Ottawa, December 16, 2009
2009-117
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The Honourable Jim Flaherty, Minister of Finance, today tabled in Parliament the Debt Management Report for 2008–09, which reports that despite a synchronized global recession and financial turmoil, Canada’s securities market responded well to increased demands for fiscal stimulus funding. Despite greater market volatility, both bond and treasury bill auctions remained well covered and well bid.
“Canada found a ready and diversified investor base thanks to Canada’s strong fiscal position, combined with our policy of maintaining a liquid, well-functioning securities market,” said Minister Flaherty.
“Canada’s net debt-to-gross domestic product ratio is still the lowest of all Group of Seven countries, and few other countries can claim to have fiscal and economic fundamentals that are as strong as Canada’s,” he added.
In 2008–09, the federal debt, or accumulated deficit, increased by $6.1 billion to $463.7 billion but is still down almost $100 billion from its peak in 1996–97.
However, market debt increased by $116.8 billion, mainly to fund measures under the Extraordinary Financing Framework to support access to financing. This increase in debt was mostly offset by corresponding financial assets. In addition, these assets are expected to generate a modest profit in excess of the Government’s cost of borrowing.
Public debt charges declined by $2.3 billion to $31.0 billion in 2008–09, largely due to a decrease in the average effective interest rate on interest-bearing debt.
The Debt Management Report can be viewed on the Department of Finance website at www.fin.gc.ca.
For further information, media may contact:
Annette Robertson
Press Secretary
Office of the Minister of Finance
613-996-7861
Jack Aubry
Media Relations
Department of Finance
613-996-8080
