Ontario government authorized to borrow up to $35 billion under new loan legislation

Plain-language summary · AI-assisted · not legal advice

A new Ontario statute authorizes the provincial government to borrow up to $35 billion in total to pay off existing provincial debts and obligations or to make payments required by other legislation out of the Consolidated Revenue Fund. This borrowing authority is on top of whatever borrowing powers already exist under other Acts. Orders-in-council approving specific borrowing under this Act must be issued by December 31, 2028. Any actual borrowing under those orders must occur by December 31, 2029, unless by that date the Crown has already signed a borrowing agreement or enrolled in a borrowing program under the relevant order. Organizations that lend to or hold Ontario provincial debt, or that track provincial fiscal capacity, should be aware of this new authority.

Who this affects: provincial government borrowing officials · institutional lenders and bondholders · provincial debt and fiscal analysts · financial institutions participating in Ontario debt markets