TORONTO, Ontario, November 12, 2008 - The Honourable Tony Clement, Minister of Industry, today announced that the Government of Canada has increased the borrowing authority of the Business Development Bank of Canada (BDC) to provide it with greater flexibility in meeting the credit demands of its small and medium-sized business clients.
"The recent credit market tightening has increased the demand for financing offered by such Crown corporations as BDC," said Minister Clement. "Our actions will ensure that BDC has the necessary flexibility to help small and medium-sized businesses and manage its liquidity and business activities in a prudent and cost-effective manner."
Today's amendment to BDC's 2008-09 borrowing approval increases its borrowing authority limit to $11.5 billion from $9.7 billion.
"The government understands that the turmoil in financial markets has posed significant challenges for Canadian industry, and we are taking action to help," said the Honourable Jim Flaherty, Minister of Finance. "Raising BDC's borrowing authority limit will ensure that BDC has the necessary tools to continue to meet the increasing financing needs of its clients by complementing products and services offered by private sector financial institutions."
Today's action builds on the government's approval last month of a $2-billion increase in Export Development Canada's borrowing authority to ensure that its clients have access to the financing they need to continue to grow, innovate and take advantage of business opportunities in Canada and abroad.
In addition, to maintain the availability of longer-term credit in Canada, the government recently announced that it would be purchasing up to $75 billion in insured mortgage pools from Canadian lenders through the Canada Mortgage and Housing Corporation. This action, coupled with the subsequent creation of the temporary Canadian Lenders Assurance Facility, will help Canadian financial institutions provide loans to consumers, homebuyers and businesses.
For further information (media only), please contact:
Pema Lhalungpa
Press Secretary
Office of the Honourable Tony Clement
Minister of Industry
613-995-9001
Media Relations
Industry Canada
613-943-2502
