Hon Peter Collier questions the Treasurer regarding Keystart's declining net new borrowings and potential sale/securitisation of its loan book. The Treasurer confirms the borrowing figures and states the government is exploring options to maintain Keystart's lending capacity.

AnsweredQoN 236Legislative Council
Asked
21 March 2019
Portfolio
minister representing the Treasurer

QuestionView source ↗

STATE BUDGET 2018–19 — GOVERNMENT
MID-YEAR FINANCIAL PROJECTIONS STATEMENT —KEYSTART
236. Hon PETER COLLIER to
the minister representing the Treasurer:
I refer to the Treasurer's answer to Legislative
Assembly question on notice 4753 answered on 12 March 2019 regarding Keystart
borrowing.
(1) Will the Treasurer confirm that the forecast new net
borrowings in 2020–21 is only $2.3 million?
(2) Will the
Treasurer confirm that the forecast net new borrowings in 2021–22 is
negative $1.4 million?
(3) Will the
Treasurer please explain why the net new borrowings of Keystart decline from
$400 million in 2019–20 to $2.3 million in 2020–21?
(4) Is the
government giving consideration to either a sale, securitisation or equitable
assignment of some or all of Keystart's book; and, if yes, what is the
government currently considering?

AnswerView source ↗

I thank the Leader of the
Opposition for some notice of the question.
(1)–(2) Yes.
(3)–(4) Decisions
made at the 2018–19 midyear review process have provided Keystart with
sufficient lending capacity for the medium term, with the government exploring
a range of opportunities to maintain Keystart's lending capacity across
the forward estimates. This may include options to re-engage with the market to
pursue further equitable assignments or access to other sources of capital.

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