Quebec benefits from unusually low interest rates in financing its debt, making this heavy burden manageable, at least for the time being. But what will happen when borrowing costs rise? Lenka Martinek, chief strategist of Daily Insights at BCA Research estimates that a 2% increase in interest rates would require $1.3 billion in additional spending on debt service in 2018. And this scenario does not take account of a potential recession.
Media release :: Quebec’s debt: how much would higher interest rates cost?
|Interview with Lenka Martinek (CTV News, March 6, 2013)|