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January 30, 2024
A First Nation-led financing model has reached $2 billion in loans issued as it works to close the economic and infrastructure gap between member nations and the rest of Canada.
The First Nations Finance Authority is crossing the lending threshold a decade after issuing its first debenture — a type of long-term loan that isn’t backed by collateral.
The not-for-profit FNFA pools resources of member nations into a scale that allows it to offer discounted interest rates to borrowers, similar to what’s accessible to municipal or provincial governments.
Ernie Daniels, chief executive of FNFA, said during a media availability that the institution’s re-lending rate is 2.92 per cent below bank prime rates, allowing members to build much-needed infrastructure at a discount.