Ottawa, March 21, 2005
Archived - Minister of Finance Tables 2005-06 Debt Management Strategy
Archived information is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.
Minister of Finance Ralph Goodale today tabled in the House of Commons and the Senate the Government of Canada's Debt Management Strategy for fiscal year 2005-06.
The document provides details on federal borrowing and investment policies for the coming fiscal year. The Government's strategy is aimed at ensuring stable, low-cost funding for its operations, while maintaining a well-functioning market for Government of Canada securities.
In keeping with the significant improvement in Canada's economic and fiscal circumstances in recent years, the Government will continue a gradual reduction in the fixed-rate share of the debt from two-thirds in 2002-03 to 60 per cent in 2007-08 to achieve savings on public debt charges while retaining a prudent debt structure. The move to a 60-per-cent debt structure is expected to save up to $500 million, on average, in annual debt-servicing costs once fully implemented.
One of the key challenges facing federal debt management is to maintain a well-functioning market for Government of Canada securities, particularly for bonds, given declining borrowing requirements and the move to the 60-per-cent fixed-rate target. In 2005-06, the Government will begin to reduce the bond buyback program as the transition to a lower level of fixed-rate borrowings is completed. The Government will also consult with market participants during 2005-06 on potential changes to the structure of a smaller bond program to help ensure that a well-functioning market for Government of Canada bonds is maintained in future years.
The publication may be viewed free of charge on the Department of Finance Web site.
For further information:
Public Affairs and Operations Division
Office of the Minister of Finance
Financial Markets Division
If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance Canada Web site athttp://www.fin.gc.ca/scripts/register-eng.asp