Quebec Debt Expected to Decline in 2016

Quebec Debt Expected to Decline in 2016

On the eve of the planning committee on investments and financial framework of Quebec, the Labeaume Administration was keen to point out that the city is “financially sound” and that debt management is well controlled.

Among the highlights mentioned, Régis Labeaume noted that the debt of Quebec City should begin to decline in 2016. In 2002, the debt was $955.2 million, while for this year it is an estimated $1.56 billion.

“The older cities have underinvested. We must invest if we want to make the city attractive, it’s the only way. We have a plan to reduce the accumulated debt,” said the Mayor. “We are not proposing to get the debt to zero, since the current generation would be required to pay all of the debt, there must be an established balance, an equilibrium,” added the CEO of the Quebec City, Alain Marcoux.

For the first time since 2002, fewer than 50% of the capital expenditures are financed by long-term debt. The fact that Quebec City borrows less also helps to improve its credit rating and the current interest on borrowing rates are almost half as much as it was 10 years ago. In 2002, the rate was set at 5.32%, while in 2012 it was set 2.93%.

Management of Liquid Assets and pension plans

Quebec City is investing heavily on infrastructure to ensure sustainability and to catch up in their rehabilitation. By the end of 2013, over 17% of the city’s road network will have been rebuilt in the 2500 km of roads, over 1,300 km of sidewalks, 6,700 km of water mains and sewers and 810 buildings.

By 2023, Quebec will have managed to refurbish its infrastructure. From 2008 to 2013, $2.8 billion has been committed to infrastructure with a value that is estimated at $10.8 billion.

Mayor Labeaume insisted that government loan programs for municipal infrastructure will not stop. “We will make the most of disposable incomes. (…) All that remains is to establish policies on liquidity management and pensions. There is nothing more that works for the (rapport D’Amours),” said Régis Labeaume.

Without confirming what the age of retirement for employees of Quebec would be, the mayor simply said that 60 is too low. But he did not confirm whether the retirement age for city workers would be raised to 65 or 67.
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LifeinQuebec.com Staff Writer

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