Government officials and politicians must wait longer to find out how banks and investment companies will deal with asset-backed commercial paper (ABCP) investments crisis.

The Yukon government was unable to recover the $36.5 million it invested in the market at the maturity dates in late August and early September.

Investments of more than $30 billion from investors ranging from the Ontario government to Air Canada and others have remained frozen due to the liquidity problem.

Last Friday had been set as the date for an announcement on how the issue would be dealt with. However, the Pan-Canadian Investors Committee, which was formed to fix the problem, has now set a new deadline of Jan. 31.

'We're basically back to where we were on Dec. 13,' Clarke LaPrairie, the assistant deputy Finance minister, said this morning.

While government officials are waiting for an announcement, LaPrairie said he can appreciate how complicated the situation is.

Though some investors have been selling their investments at a loss, LaPrairie said the government will continue to wait for a resolution.

It's expected the funds will be rolled over into long-term investments.

However, LaPrairie said he doesn't expect the government will make any documents on the plan available to the public following an announcement about the future of the investments.

He pointed out the government, like other investors, had to sign a non-disclosure agreement on the matter, which means the details will be confidential.

Officials, however, will likely hold a news conference following the announcement to state how the territory will be impacted.

The current situation won't affect any government spending over the next few months, LaPrairie said, noting the government's healthy financial situation and surplus.

While there won't be any short-term impact on government projects, both opposition leaders argued it could affect the long-term financial situation for the territory.

NDP Leader Todd Hardy suggested it could have a bearing on highway work planned over the next few years.

Liberal Leader Arthur Mitchell continued to ask the government during the fall sitting (which wrapped up last Thursday) what would be cut if money was lost on the investments.

Both leaders also said the extension was somewhat expected in the few days leading up to Dec. 14.

'It's in limbo. It's not a big surprise,' Mitchell said today, noting no one seems to know what is behind the investments.

He compared the situation to when an individual borrows money from someone who's lending money he or she borrowed from someone, who also borrowed money from someone, and so on.

'There's a giant game of chicken going on here,' Mitchell said, pointing out that Europe is also affected with all markets tied to one another somehow.

If the funds re-rolled into long-term investments, Mitchell said, the return likely won't be the same as a traditional long-term investment.

'There's also an opportunity cost,' he said, noting the money had originally been intended for a short-term investment rather than long-term.

He pointed out Finance Minister Dennis Fentie said in October he wasn't concerned about the situation.

'There's all kinds of unfortunate results possible,' Mitchell said, arguing the government shouldn't be gambling with the public's money.

'Government's not a business,' he said, adding it's there to serve the public so it should not be taking the risks a business may take.

Meanwhile, Hardy said he's heard business people in the territory question whether proper procedure was followed when the investment purchases were made and if the Finance minister was aware of the investments.

While they understand diversifying investments, Hardy noted Yukoners seem to want to know about whether the right process was followed and wonder whether the amount of money put in was too large.

Acting Finance Minister Elaine Taylor did not respond to phone calls on the issue from the Star this morning. She has been filling in for Fentie, who continues to recover at home from tumour removal surgery.