NEWS
03/18/2016 06:37 EDT | Updated 03/19/2017 01:12 EDT

Newfoundland and Labrador secures $1.4 billion in loans ahead of budget

ST. JOHN'S, N.L. — The government of Newfoundland and Labrador is looking to borrow more money as budget preparations continue under the cloud of a nearly $2-billion deficit.

Premier Dwight Ball says the Liberal government has secured $1.4-billion in low interest, long term loans ahead of the budget.

The Liberal government also introduced two bills in the legislature Thursday that will increase its capacity to borrow money.

Under the proposed legislation the borrowing limit will increase from $2-billion to $2.4-billion this year and to $1.6-billion next year.

Ball says the aim is to gain access to as much long-term borrowing as possible, so interest rates are lower and the government can establish a long-term fiscal plan for the province.

Finance Minister Cathy Bennett says the province is doing what it can to gain the confidence of bond rating agencies. (VOCM)

The Canadian Press