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Legislative Assembly for the ACT: 1999 Week 3 Hansard (25 March) . . Page.. 935 ..

After taking into consideration the level of outstanding borrowings funded through the Commercial Paper Program at any point in time and reviewing future cashflow estimates, if there is any available capacity in the Program it is available for the purposes of arbitrage transactions. Based on historical information, estimated forward estimates and the liquid nature of arbitrage transactions, the use of the Commercial Paper Program for arbitrage is restricted to a maximum usage of $200 million at any time.

The summary of Commercial Paper on issue report utilised by the CFU in its day-to-day operations is updated daily and must be checked in the first instance by the Manager CFU or alternatively the Assistant Manager CFU prior to authorisation of an arbitrage transaction.

There are no implications for the projected end of year borrowing outcomes or for the ACT's loan council allocation as the arbitrage program is to be wound down to zero by 30 June each financial year.

(h) During 1997-98 the average amount of arbitrage related transactions at any time was approximately $166 million. The average duration of these transactions was 78 days. Refer to 2g above for details of exposure policy.

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