Key borrowing principles

Where a financial accommodation is required outside the annual budget allocation or beyond the Department's asset investment program, the approval of the Minister of Health and the Treasurer must be obtained before obtaining financial accommodation.

A Government guaranteed loan can be sought from the Treasury Corporation of Victoria (TCV) (external link), the State's central financing authority. Loans provided by TCV are guaranteed by the Treasurer and generally have significantly lower associated costs than debt provided by private sector financial institutions.

TCV's legislative functions are to:

• Provide financial accommodation to a participating authority or the State
• Enter into or perform financial arrangements; and
• Provide financial services for, and financial advice to, participating authorities and the State.

It is the Government's policy that all Government agencies should conduct their substantive borrowing through TCV, with certain exceptions for example certain overdraft facilities for day to day cash management purposes. However, TCV can also provide flexible cash loans or short term loans that can offer similar flexibility to many overdraft arrangements offered by private sector financial institutions.