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"The federal government has some crucial decisions in the near future and is under a lot of pressure to make the correct choices," Andy Manahan RCCAO executive director
"The cost of financing is reduced by taking advantage of the federal government's top credit rating."
He says the small difference between interest rates that the federal government has access to in order to borrow money and the lending services of the CIB could be beneficial, but only for large infrastructure projects of at least $10 million.
"Despite this restriction, if a CIB can shave 100 basis points offthe cost of borrowing $500 million, it would save the borrower $100 million in interest payments over a 35-year loan term," Siemiatycki states, adding the CIB must provide funding that is in addition to and not a replacement for existing federal...