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Short-term loans

Short-term loans in the form of a line of credit

Financement-Québec offers short-term financing in the form of a line of credit to finance investment projects subsidized by the Québec government and carried out by its clientele.

Policy and conditions of line of credit loans

Interest rate

Average rate for 3-month Québec Treasury bills, as published on the Québec Treasury Bill auction site, plus 2 basis points (applicable rate according to Order in Council No. 514‑2022 [in French only]). The interest rate is determined on each auction date. It applies from the following day until the next auction date, inclusively.

Calculation of interest

The interest rate applies to the daily balance of the bodies’ borrowings.

Changes in outstanding borrowings

The borrower may increase or reduce the amount of its borrowings from Financement‑Québec at any time within the time limits for completing the transactions.

Date of payment interest

Interest is payable monthly on the first day of the following month or it will be capitalized to date.

Requisite documents

Financement-Québec prepares and provides all of the documents.

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Prior to the initial borrowing on the line of credit

Borrowing resolution

The borrower must adopt a resolution to allow for the establishment of a line of credit with Financement-Québec.

Master borrowing agreement

The borrower must first sign a master borrowing agreement. The agreement sets out the main terms and conditions of borrowings and repayments.

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Modification of a borrowing on a line of credit

Confirmation

The borrower must submit to Financement-Québec a transaction confirmation each time it wishes to increase or decrease the outstanding balance on its line of credit.

The transaction confirmation form is provided to borrowing bodies by Financement-Québec on a secure extranet.

Temporary loans from Financement-Québec must be used only for subsidized investment projects.

Operation
  1. The borrower sends the signed transaction confirmation by e-mail. The deadlines for transmitting the transaction confirmation are:
    • 9:30 a.m. on the day of borrowing or repayment if funds are deposited by the borrower into the lender s bank account; or
    • 9:30 a.m. on the business day prior to repayment if funds are withdrawn.
  2. The amount of the increase or the repayment on the line of credit borrowing, as well as the date on which the transaction will be made, must be indicated in the appropriate spaces on the confirmation form. The transaction date must be a business day. The list of holidays is published on the secure extranet.
  3. The borrower receives an e-mail confirmation that the transaction will take place on the requested date. If this e-mail is not received before 11 a.m. on the transaction date, the borrower must inform the person in charge of Financement-Québec’s short-term financing operations.
  4. The sums borrowed from Financement-Québec are deposited in the borrower’s bank account on the day of the transaction. The time of receipt of the transfer cannot be known due to the processing times of the financial institutions.
  5. A statement of account is filed monthly on a secure extranet detailing the beginning and end of month balances, the borrowings and repayments that have occurred during the month and the accrued interest.