Pre-approval borrowing arrangements

The  Minister for Tertiary Education, Skills and Employment recently used his powers under section 192(5) of the Education Act to allow Tertiary Education Institutions (TEIs) to borrow up to a specified limit without the need to seek the Secretary for Education’s approval to borrow. 

The Minister’s determination came into effect on 1 May 2014.

The determination allows:

  • all TEIs  to borrow up to 2% of the TEI group’s consolidated total revenue in certain specified borrowing instruments (eg overdrafts, finance leases) without the Secretary’s consent; and
  • well-performing TEIs to borrow up to $50 million or 10% of the TEI group’s consolidated total revenue, whichever is less, without the Secretary’s consent provided certain criteria have been met.

Further information:

Enquiries on the scheme should be emailed to: Teifm.info@tec.govt.nz.

  • Last changed: 6 July 2015
  • Last verified: 6 July 2015