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Frequently Asked Questions
General | Debt and Debt Management | Contact Information
General
Q. What are the responsibilities of the Ontario Financing Authority (OFA)?
A. The OFA is responsible for borrowing, investment and financial risk
management activities on behalf of the Province, its Crown corporations and other public bodies. It also provides
financial and centralized cash management services for the Province and advises on financial policies and projects.
Q. What is the OFA's primary objective?
A. The OFA's primary objective is to ensure that the Province's borrowing,
debt and liquid reserves are managed in a sound and cost-effective manner.
Q. What is the OFA's relationship with the
Ministry of Finance?
A. The OFA is a Schedule IV Agency of the Ministry of Finance. The Chair
of the OFA, who is also the Deputy Minister of Finance, reports directly to the Minister of Finance. Day-to-day
operations of the Ontario Financing Authority are overseen by the Chief Executive Officer.
Debt and Debt Management
Q. What is the Province's current outstanding
net debt?
A. Starting in 2009–10, the broader public-sector's (BPS)
hospitals, school boards,
and colleges net debt is included in the Province's net debt because of the adoption of a revised
presentation of BPS revenue, expenses assets, and liabilities. This change does not impact the
Province's annual surplus/deficit results or accumulated deficit.
Ontario's net debt, the difference between total liabilities
and total financial assets of the Province, is projected to be $220.0 billion as at
March 31, 2011.
This figure includes BPS net debt of $10.9
billion.
Q. How much is the Province's debt servicing cost
exposed to interest rate fluctuation?
A. To avoid the potentially adverse impact of unexpected changes in
interest rates on Ontario's public debt interest cost, the Province has set a limit on interest rate reset
exposure. This is short-term floating rate exposure (net of liquid reserves) and fixed rate debt maturing within
the next 12 months.
At present, the maximum amount of interest rate reset exposure is limited to 35 per cent of the debt managed on behalf of the Province ("debt"). As at June 30, 2010, interest rate reset exposure was 8.86 per cent.
Q. What percentage of debt is exposed to foreign currency
fluctuations?
A. As at June 30, 2010, the Province's foreign exchange exposure
was 0.88 per cent of debt. The Province's exposure to unhedged foreign currency is limited to 5 per cent.
Q. What is the impact
on interest on debt (IOD) of a 1% change in interest rates?
A. For 2010—11, the impact is
forecast to be $480 million.
Contact Information
Q. How can I contact the OFA?
A. The OFA can be contacted in one of the following ways:
-
E-mail:
investor@ofina.on.ca -
Telephone:
(416) 325-8000 -
Written:
1 Dundas Street West, 14th floor, Toronto, Ontario M7A 1Y7
