NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2004
NOTE 17: CONTINGENT LIABILITIES AND COMMITMENTS
The Corporation incurs contingent liabilities as part of its general function to engage in activities relating to the finances of the Tasmanian public sector as is prescribed by its enabling legislation and approved by the Treasurer. The contingent liabilities incurred take the form of the provision of indemnities, swaps transactions, forward foreign currency transactions, other forward contracts and commitments to extend credit.
Indemnities have been provided by TASCORP to third parties involved either directly or indirectly in financing arrangements with TASCORP and relate to financial advantages which are expected to be available to those parties or to the preservation of existing financial advantages. All indemnities and other financial obligations are guaranteed or otherwise supported by the State of Tasmania. The Corporation is of the view that this is sufficient to justify not raising any specific provisions in respect of such transactions
(a)
The Corporation has a number of deferred start swaps outstanding at balance date, the details of which are as follows:
2003-04
Face Value
A$’000
2002-03
Face Value
A$’000
Receive Fixed
28,000
15,000
Pay Fixed
291,500
259,000
(b)
The Corporation has forward rate agreements outstanding at balance date, details of which are as follows :
2003-04
Face Value
A$’000
2002-03
Face Value
A$’000
Lender FRA
91,000
71,000
Borrower FRA
(110,000)
(20,000)
Net Exposure
(19,000)
51,000
(c)
The Corporation has commitments to extend standby credit facilities (including undrawn facilities) at balance date, details of which are as follows:
2003-04
Face Value
A$’000
2002-03
Face Value
A$’000
Government Business Enterprises and State Owned Companies
150,000
150,000
(d)
The Corporation has provided Contract Performance guarantees as at balance date, the exposure of which are as follows
2003-04
Face Value
A$’000
2002-03
Face Value
A$’000
Government Business Enterprises and State Owned Companies
