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Northern Territory Treasury Corporation Annual report 2013-2014



Northern Territory Treasury Corporation Annual report 2013-2014


Department of Treasury and Finance reports; Reports; PublicationNT




Made available via the Publications (Legal Deposit) Act 2004 (NT).




Northern Territory Treasury Corporation -- Periodicals; Finance, Public -- Northern Territory -- Periodicals

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Dept. of Treasury and Finance

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Notes to the Financial Statements For the financial year ended 30June2014 59Annual Report 2014 15. Borrowings 2014 2013 $000 $000 Wholesale market Fixed interest securities 4 721 679 4 379 399 Promissory notes 99 437 Retail market Territory Bonds 101 392 107 569 Migration Linked Bonds 1 500 1 750 Commonwealth Credit foncier loans 236 549 242 749 TOTAL BORROWINGS 5 160 557 4 731 467 16. Financial Instruments and Risk Management Objectives and Policies NTTCs objectives in managing financial risks, such as market risk (interest rate risk and foreign exchange risk), credit risk, liquidity risk and funding risk, are to: safeguard financial resources by establishing and regularly reviewing counterparty credit limits, maintaining adequate internal controls and staffing; minimise borrowing costs via effective control and management of interest rate risk and maintain interest rate risk at an acceptable level; ensure there is sufficient short and long-term liquidity to meet debts as and when they fall due; minimise the cost of foreign currency requirements through the effective control and management of its foreign exchange risk and neutralise foreign exchange exposures; and review and evaluate the risk management policies and procedures on an annual basis to ensure they remain adequate for NTTC to operate in a risk-neutral manner. These objectives and policies are endorsed by NTTCs Advisory Board and the Under Treasurer. Management of Capital NTTC is not subject to any legislative requirement to maintain a minimum level of equity, however NTTCs Advisory Board reviews and recommends an appropriate balance between debt and equity funding. The current level of contributed equity is deemed appropriate for the risks inherent to NTTCs business.