The Corporation lends funds to the Northern Territory Government, government business divisions, the government owned corporation, local authorities and other government organisations. Loans are issued in accordance with commercially based guidelines and practices.
All loans are approved by the Treasurer of the Northern Territory in accordance with section 13(2)(b) of the Northern Territory Treasury Corporation Act and section 31(1) of the Financial Management Act.
General Government Agencies
General government agencies are funded through the Central Holding Authority (CHA) via loans provided by the Corporation. The CHA is the "parent body" that represents the Territory Government's ownership interest in Government-controlled entities. The funds are used to finance general government activities and the Northern Territory's major infrastructure projects.
As at 30 June 2012, loans to the general government sector totalled approximately $2114 million.
Government Business Divisions
Loans to government business divisions represent borrowings by Territory Government owned entities that operate on a commercial basis. The funds are used to finance capital and operating expenditure requirements.
As at 30 June 2012, loans to this sector totalled approximately $247 million.
Government Owned Corporations
Loans to government owned corporations (GOC) represent borrowings by Territory Government owned entities that operate on a commercial basis but whose operations are not guaranteed by the Crown and does not make the Territory liable for its debts, liabilities or obligations. The funds are used to finance capital and operating expenditure requirements.
The Power and Water Corporation is the only entity established as a GOC as at 30 June 2012.
As at 30 June 2012, loans to Power and Water Corporation totalled approximately $1198 million.
Loans to local authorities represent borrowings by town and community government councils situated throughout the Northern Territory. The funds are used to finance specific council infrastructure projects, working capital requirements or to purchase or replace existing plant and equipment.
Loans to local authorities are first assessed by the Department of Local Government, Housing and Sport and must carry the support and recommendation of the Minister for Local Government prior to being submitted for approval to the Treasurer of the Northern Territory.
As at 30 June 2012, loans to local authorities totalled approximately $0.4 million.
Other Government Organisations
Loans to other government organisations represent borrowings by non-financial public sector organisations with which the Northern Territory Government has an association.
As at 30 June 2012 there were no loans to other government organisations.