The Honourable Jim Flaherty, Minister of Finance, today welcomed the International Monetary Fund’s (IMF) Staff Report on Canada, which acknowledges the effectiveness and appropriateness of the Harper Government’s fiscal and financial sector policies and its commitment to return to balanced budgets.
“I am pleased that the IMF Staff Report confirms Canada’s sound approach to economic management and our Economic Action Plan’s focus on jobs, growth and long-term prosperity,” said Minister Flaherty. “The Report’s conclusions lend particular credence to our ongoing efforts to ensure a strong, competitive and efficient financial sector for Canadians, backstopped by sound federal finances and the return to balanced budgets before the end of this Parliament.”
The IMF Staff Report for the 2012 Article IV consultation states that Canada’s financial sector is healthy, noting that it “is well capitalized, has posted another year of strong profits, and continues to show low nonperforming loans [loans where orderly repayment is in jeopardy and losses are probable], also owing to high prudential standards and rigorous supervision.” The Report supports measures taken by the Government to promote the long-term stability of Canada’s housing market, concluding that “the authorities’ gradual tightening of mortgage insurance rules was appropriate.”
The Report also recognizes “Canadian authorities’ strong determination to move ahead with the international financial reform agenda, often taking a leadership role among other jurisdictions.”
The IMF continues to support ongoing efforts to establish a common securities regulator for Canada, noting that these efforts “should continue to further strengthen the robustness of the financial system.”
The IMF reviews the economic developments and policies of each member country, usually on an annual basis. IMF Staff Reports are released at the discretion of the country being reviewed. The Government supports this release in recognition of the importance of the IMF’s surveillance activities, and as an expression of Canada’s commitment to ensuring that these activities are transparent.
The IMF’s Staff Report on Canada can be found on the IMF website.
Kathleen Perchaluk
Press Secretary
Office of the Minister of Finance
613-996-7861
Jack Aubry
Media Relations
Department of Finance
613-996-8080
