Short-Term Borrowings


Short-term Borrowings

The MFA provides short term borrowing under various pieces of to help local governments with their cash flow needs. We offer several types of loans depending on what category of local government you are. Funds can be accessed at any time during the year once the appropriate documentation has been submitted, your loan has been approved and you have submitted an executed loan agreement and corresponding demand promissory note. The time required before a loan is approved or an advance can take place is dependent on what type of loan you are applying for as some loans require more detailed analysis before they can be approved.

Short term loans are direct obligations of the local government requesting the funding. In the case of a municipality, it does not have to seek consent of their regional district to participate in short term borrowing which is the case for long term borrowing.

There are no fees to set up a short term loan. Interest is calculated daily, compounded monthly and automatically collected the 2nd business day of the following month. Payments of principal can be made by direct deposit, wire, cheque, or by EFT (by request). Each loan has a detailed statement of advances, repayments and interest owing with participants accessing their statements by logging into their account.

The MFA raises money weekly in the Commercial Paper market to fund loan requests. This allows our members access to low cost funding and the flexibility to borrow and repay on short notice. Funds can be accessed on the same day for amounts less than $5 million (provided notice is given prior to 10:30 a.m.). For amounts between $5 million and $10 million, please allow three days notice, and for amounts in excess of $10 million five business days’ notice is required. Loans can be repaid at any time without notice or penalty.

Administering your short-term loan:

For Sample Bylaws click here. The Ministry of Community, Sport and Cultural Development has reviewed all sample municipal and regional district bylaws that are provided on our website. Questions regarding the construction and wording of bylaws can be directed to your Advice and Approvals officer at the Ministry. The Ministry provides a summary of the contacts available on their website.

Interesting facts

  • Liquidity Ratio may refer to:
    Liquidity ratio, expresses a company's ability to repay short-term creditors out of its total cash. The liquidity ratio is the result of dividing the total cash by short-term borrowings. It shows the number of times short-term liabilities are covered by cash. If the value is greater than 1.00, it means fully...
  • Suleiman Kerimov (born 1966) is a Russia billionaire and known as "Russia's Richest Civil Servant". He was born in Derbent, Dagestan and is a member of the ultranationalist Liberal Democratic Party. He is listed as #35 on Forbes' World's Richest People, though there seems to be controversy over this ranking since the assets appear to have been...

Additional information


Pros & Cons of Short-Term Loans
Pros & Cons of Short-Term Loans
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Wonga Short Term Loans - How to Apply
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Get The Needed Commercial Loan In A Short Time
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Short Time Loan in UK
Short Time Loan in UK

Popular Q&A

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what is long-term borrowing and short-term borrowing? | Yahoo Answers

Just what it says. You borrow with the re-payment date long (like 15-20 years) or short (like less than 5 years). A good example is Govt. Bonds like Treasury 5% 2026 (long) or Treasury 5% 2013 (short).
A pension fund will lend long term as it may not need the money back for many years when the benficiaries retire. Or a house mortgage would probably be long (say 40-45 years)

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How can the need for an increase or decrease in short-term borrowing can be predicted

You would need to project a cash budget.