NR 02-04 TFN ENG Loan Pay Off.doc
(March 5, 2002 – Iqaluit, Nunavut) Nunavut Tunngavik Inc (NTI) has presented a cheque for twenty million dollars to the Department of Indian Affairs and Northern Development (DIAND), completing the loan obligation between Tungavik Federation of Nunavut (TFN) and the Government of Canada.
TFN borrowed a total of $39 million over the years it took to complete negotiations for the Nunavut Land Claims Agreement (NLCA). Since 1993, the loan has been repaid out of the annual transfers made by the federal government to NTI, successor to TFN. NTI recently concluded negotiations with commercial lenders for loans at interest rates significantly lower than the rate currently being paid. These funds are being used to pay out the Government of Canada loan, originally scheduled to be paid through 2007.
This is a very important and fiscally responsible move, said Cathy Towtongie, President of NTI. These transactions will save nearly half a million dollars in interest payments between now and 2007. This money can be reallocated to NTI programs and activities to benefit Inuit.
The fact that we can arrange such a large loan on the commercial market is also important, continued Towtongie. The banks don’t lend money to organizations unless they have strong and secure assets, and have excellent financial systems and strategies in place. The faith placed in NTI by our lenders demonstrates the maturity and strength of NTI as an organization.
This is only one step in our efforts to make NTI more cost effective and more accountable to its Beneficiaries, added Paul Kaludjak, NTI’s Vice President of Finance. We are planning several other initiatives that will further cut NTI’s operations costs. This initiative will save NTI close to $500,000 over the next four years.
The loans taken out to repay the Government of Canada will be retired on the same schedule, ending in 2007.
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For further information:
Alan R. Vigoda
Director of Communications
Nunavut Tunngavik Inc.
Iqaluit, NU
Tel: (867) 975-4900
Fax: (867) 975-4943 Paul Irngaut
Executive Liaison & Public Relations Advisor
Nunavut Tunngavik Inc.
Iqaluit, NU
