Financing Fund

In this section:

• Mandate
• Clientele
• Financing products offered
• Fees
• Overview of operations

Important : Please note that Financement-Québec was dissolved on March 31, 2025, and that its activities were transferred to the Financing Fund on April 1, 2025.

Mandate

The Financing Fund provides financing to Québec government’s bodies. Loans are granted at the government’s borrowing cost, to which are added service fees.

The government borrows on financial markets and makes advances to the Financing Fund. The Financing Fund then lends these funds to its clientele.

This means that bodies included in the reporting entity can borrow at rates equivalent to those of the government.

Clientele

The Financing Fund’s clientele is made up of public bodies of the government. They include, in particular, bodies in the health and social services network, educational organizations, non‑budget‑funded bodies and special funds.

Financing products offered

The Financing Fund offers its clientele financing in the form of lines of credit, short‑term notes and long‑term loans.

Line of credit

This financing vehicle is available for all short‑term borrowing needs of the clientele.

Investment projects subsidized by the Québec government are financed by lines of credit with the Financing Fund. The line of credit is used for the duration of the project.

The borrower may borrow or make repayments at any time, subject to the applicable authorizations.

Short‑term note

The short‑term note is a fixed‑rate loan with a maturity date determined by the borrower. The maturity date cannot exceed 3 months.

The interest rate is determined at the date of issue of the short‑term note. Interest is payable at maturity.

Long‑term loan

Long‑term loans are granted mainly to finance investment projects.

Following the new application of the accounting standard respecting transfer payments, the terms and conditions for the payment of grants related to subsidized investment projects have been modified. For the majority of government departments, these grants are now paid in repayment of temporary loans contracted with the Financing Fund, rather than as repayment of debt service on long‑term loans.

Fees

Order in Council No. 637‑2023 (in French only) of March 29, 2023 sets the criteria for fixing the fees applicable to loans granted by the Financing Fund.

Interest rates

For the line of credit and the short‑term note

The interest rate corresponds to the average rate for 3‑month Québec Treasury bills, plus 2 basis points. The rate before increase is published on the Québec Treasury bill auction site.

The interest rate is determined on each auction date. It applies from the following day to the next auction date.

For long‑term loans

The interest rate corresponds to the interest rate of the advance granted to the Financing Fund to carry out the financing.

Order in Council No. 511‑2022 (in French only) of March 23, 2022 sets out the terms and conditions for advances granted to the Financing Fund.

Issuance and service fees

Issuance and service fees applicable to loans granted by the Financing Fund are shown in the fee schedule: of the Financing Fund.

Overview of operations

For the year 2023‑2024, the Financing Fund granted long‑term loans amounting to $9.8 billion.

These loans were financed by long‑term advances from the General Fund.

For the year 2023‑2024, the average outstanding amount of short‑term loans totalled $11.3 billion.