Newsrelease

May 8, 1998
Edmonton, Alberta

"The Alberta Savings Certificate program has been an important source of funding on our road to a secure financial future. Now that Alberta is on stable fiscal ground, we no longer need to raise new money through this kind of bond program. To those Albertans who have purchased Alberta Savings Certificates or Alberta Capital Bonds in the past, I thank you for helping Alberta achieve this financial security."

Province Ends Alberta Savings Certificate Program

Provincial Treasurer Stockwell Day announced today that Alberta will no longer issue Alberta Savings Certificates (ASC). The province will honour existing Alberta Savings Certificates and Alberta Capital Bonds until their respective maturity dates.

The interest rates on redeemable certificates will continue to be reset every June 1 and December 1 until the certificates mature. Interest payments totalling $15.6 million will be distributed to certificate holders this June.

Alberta was one of the first jurisdictions to use this type of financial tool, implementing the Alberta Capital Bond program in 1987, shortly after the province began running large budgetary deficits. In 1996, the program name was changed to Alberta Savings Certificates.

"While these savings certificates were a valuable tool for us to raise new capital for many years, with our fiscal house in better order, we have less need to raise dollars in this manner," said Day. "Citizens investing today have access to a greater variety of choice and opportunities in the financial marketplace than they did in 1987. Ten years later our program is less attractive to people and with the good progress we’ve made towards eliminating net debt, it was decided to end the program."

Since 1987, more than $5.7 billion of Alberta Savings Certificates and Alberta Capital Bonds have been issued. Close to $924 million is currently earning interest for Albertans. Last year, $206 million worth of Alberta Savings Certificates were purchased - $134 million less than the previous year.

Albertans with questions about their existing Alberta Capital Bonds or Alberta Savings Certificates can speak to their investment dealer or call toll-free 1-800-563-BOND (2663) for more information.

For more information, please contact:

Trish Filevich
Director of Communications
Alberta Treasury
Telephone (780) 427-5364
e-mail: webmaster@treas.gov.ab.ca

Return to: Alberta Treasury News Releases - | - Alberta Treasury Home Page - | - Government of Alberta Home Page