Ottawa, February 23 2009
2009-019
The Government of Canada today launched a consultation on how to best implement the Canadian Secured Credit Facility (CSCF).
The CSCF was announced in Canada's Economic Action Plan, with an allocation of up to $12 billion to purchase term asset-backed securities (ABS) backed by loans and leases on vehicles and equipment. The facility follows through on a commitment made by Prime Minister Stephen Harper on December 20, 2008, as part of a support package for the auto industry.
"We are taking action to improve financing options for consumers and businesses for vehicles and equipment," said Jim Flaherty, Minister of Finance. "We want to hear from interested Canadians on the optimal means to structure this facility and put funding in the hands of those who need it."
"We are taking this additional step to help the competitiveness of the auto industry and contribute to its long-term sustainability," said Tony Clement, Minister of Industry. "The new $12-billion Canadian Secured Credit Facility will improve credit availability for consumers to purchase and lease new vehicles."
The CSCF is intended to ensure continued access to financing for the purchase and leasing of automobiles, capital equipment, medical equipment and other similar assets. The facility will be priced on commercial terms to minimize the risk to taxpayers. The CSCF is part of the Extraordinary Financing Framework, which supports up to $200 billion in financing for Canadian businesses and consumers. The Department of Finance and the Business Development Bank of Canada (BDC) will jointly proceed with a consultation process with potential participants and interested stakeholders on aspects of the proposed facility. The facility will be managed by BDC and administered within parameters jointly developed by the Department of Finance and BDC following the consultation process.
The Government is seeking comments on several aspects of the facility, including:
- what structure would best facilitate the restarting of the term ABS market in Canada;
- how purchases should be priced; and
- how funds should be allocated among eligible participants and different categories of ABS.
Those interested in participating in the consultation are invited to refer to the document entitled Consultation on the Canadian Secured Credit Facility at www.bdc.ca and to forward their comments to cscf@bdc.ca.
___________________________________
For further information, media may contact:
Chisholm Pothier
Press Secretary
Office of the Minister of Finance
613-996-7861
Jack Aubry
Media Relations
Department of Finance
613-996-8080
Johanne Bissonnette
Media Relations Manager
BDC
514-283-7929
johanne.bissonnette@bdc.ca
