A WA parliamentary question seeks details on the state government's debt, interest rates, and credit rating as of June 30, 2008. The Treasurer provides a detailed response regarding WATC's debt and Commonwealth borrowings.

AnsweredQoN 98Legislative Assembly
Asked
12 November 2008
Portfolio
Treasurer

QuestionView source ↗

(1) What is the total borrowed funds (debt) of the state government as at June 30, 2008 and the average interest rate applicable?
(2) What percentage of the above was borrowed with a Triple A credit rating?
(3) For individual borrowings over $500 million will the Treasurer list those loans separately along with the applicable interest rate and the loan provider?

AnswerView source ↗

Answered
10 December 2008
Response time
28 days
(1) Over 99% of the State's borrowings are currently raised through, and managed by, the Western Australian Treasury Corporation ("WATC"). As at 30 June 2008, the face value of WATC's debt was $14.019 billion. The average interest rate paid on WATC's borrowings during 2007/08 was 6.4%.
As at 30 June 2008, the State also held around $510 million in borrowings sourced from the Commonwealth. This debt represents specific purpose loans e.g. under housing agreements, and has a weighted average effective interest rate of 4.2%
(2) All long term borrowings by WATC are guaranteed by the State and are rated as follows:
Standard & Poors
Moody's Investors Service
Long Term
AAA
Aaa
Short Term
A1+
P-1
(3) Whilst WATC has a number of benchmark bond lines of over $1 billion, which it issues into on a tap basis, none of its outstanding debt as at 30 June 2008 was raised through individual borrowings of over $500 million.
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