Territory Stories

Northern Territory Treasury Corporation Annual report 2013-2014

Details:

Title

Northern Territory Treasury Corporation Annual report 2013-2014

Collection

Department of Treasury and Finance reports; Reports; PublicationNT

Date

2014

Description

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

Language

English

Subject

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

Publisher name

Dept. of Treasury and Finance

Place of publication

Darwin

ISSN

1324-9789

Copyright owner

Check within Publication or with content Publisher.

Parent handle

https://hdl.handle.net/10070/256369

Citation address

https://hdl.handle.net/10070/521143

Related items

https://hdl.handle.net/10070/521145

Page content

63Annual Report 2014 Notes to the Financial Statements For the financial year ended 30June2014 Note 16 continued For comparative purposes, NTTCs exposure to interest rate risk, re-pricing maturities and the effective interest rates on financial instruments at 30June 2013was as follows: Interest Rate Reset Due In Weighted Average Interest Rate 0to 3 Months 3Months to 1Year 1to 5 Years More than 5Years NonInterest Bearing Total % $000 $000 $000 $000 $000 $000 Financial assets Cash 2.50 509 588 - - - - 509 588 Trade and other receivables - - - - 9 777 9 777 Loans Fixed rate loans 5.86 - 557 000 2 029 900 209 300 - 2 796 200 Floating rate loans 6.32 10 000 166 000 1 002 686 - 1 178 686 Credit foncier loans 8.76 - - 40 954 313 122 354 076 TOTAL FINANCIAL ASSETS 519 588 723 000 3 073 540 522 422 9 777 4 848 327 Financial liabilities Deposits held - - - - - 278 278 Trade and other payables - - - - - 61 039 61 039 Borrowings Fixed interest securities 5.32 1 001 1 042 851 1 612 182 1 832 684 - 4 488 718 Promissory notes - - - - - - Credit foncier loans 4.66 - - - 242 749 - 242 749 TOTAL FINANCIAL LIABILITIES 1 001 1 042 851 1 612 182 2 075 433 61 317 4 792 784 (b) Foreign Exchange Risk Foreign exchange risk is the risk of financial loss due to adverse movements in foreign exchange rates. NTTCs assets are denominated solely in Australian dollars, therefore exposure to foreign exchange risk arises only if and when borrowings are denominated in foreign currencies. NTTC does not currently issue any foreign currency debt, however should it do so in the future, foreign exchange exposures will be neutralised using cross-currency interest rate swaps. (c) Credit Risk Credit risk is the risk of financial loss and/or increased costs due to the failure of a counterparty to meet its financial obligations. NTTCs exposure to credit risk arises out of lending and derivative transactions. This risk is mitigated by the fact that lending activities are limited to Territory Government entities and its wholly-owned corporations and that derivative transactions may only be entered into with counterparties rated A- or better by Standard&Poors rating group. NTTC aims to ensure that its exposures to individual and group counterparties are within acceptable levels, and to minimise the likelihood that a counterparty will fail to execute its financial obligations.