Canadian Provinces to Borrow 22% More This Year as Deficits Rise
- Borrowing estimated to be C$130 billion for fiscal year
- Quebec, British Columbia, Manitoba issued debt recently
The growing financing requirements come as borrowing costs have stayed elevated due to persistent inflation.
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Canadian provinces are set to issue more debt than they did last year as they look to plug budget shortfalls, according to National Bank of Canada’s financial markets unit.
Borrowing needs from provinces facing growing deficits and maturing debt are estimated to be C$130 billion for the fiscal year starting April 1, the highest in four years, data compiled by the division showed. That’s a 21.5% jump from C$107 billion for the prior fiscal year.