Frequently Asked Questions

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. Ontario's net debt, the difference between total liabilities and total financial assets of the Province, is projected to be $252.8 billion in 2012-13.

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 March 31, 2013, interim interest rate reset exposure was 8.9 per cent.

Q. What percentage of debt is exposed to foreign currency fluctuations?
A. As at March 31, 2013, the Province's interim foreign exchange exposure was 0.8 per cent of debt. The Province's exposure to unhedged foreign currency is limited to 5 per cent.

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

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