The Queensland Government’s financing arm, Queensland's Treasury Corporation (QTC), has released a report that reveals a projected $11.8 billion in new borrowing and $10.2 billion in refinancing of existing debt, as the state anticipates raising $22 billion on global bond markets over the current financial year to finance repair of flood damaged infrastructure.

 

The QTC said the borrowing estimate includes $14 billion in new funding to meet the capital works and asset procurement requirements of the Queensland public sector.

 

The funding would be sourced through term debt and a commercial paper program.

 

Queensland is the largest state government borrower in Australia, with total bonds outstanding coming in at around $56 billion. The next biggest is NSW with about $44 billion in bonds outstanding.

 

The extent of the Queensland's latest borrowing program will see the state government's budget position remain in deficit until at least 2015, with analysts suggesting Queensland is unlikely to have its credit rating return to the AAA band within the medium term.

 

In early 2009 Queensland's credit rating was downgraded to AA-plus.