Alberta reversing hike on capital project loans for local authorities [Video]

The Government of Alberta says that it will reverse a previous rate hike on capital project loans to local authorities, a policy that is expected to save municipalities millions.

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In 2021, the province increased the interest rate on money borrowed through its Loans to Local Authorities Office by about 0.5 per cent. Prior to this, local authorities paid the same rate as the province itself.

Premier Danielle Smith told the Alberta Municipalities (ABmunis) Convention in Red Deer on Thursday that her government will be returning to the original lending policy, and decreasing the cost of borrowing for municipalities, counties, airports, and irrigation districts.

“Lowering the interest rate will save municipalities $7.2 million in 2025-26 and we estimate it will lead to $12.1 million in savings the year after,” Smith said.

The below-market rates will apply to …