Sunday, October 4, 2020

EXPANDING GOV'T'S EXPOSURE TO RISK

 OTTAWA — The parliamentary budget officer says Crown corporations have handed out an estimated $422 billion in "liquidity support" to businesses since the start of the pandemic.

Four Crown corporations account for roughly $236 billion in loans or deferrals handed out since the start of the pandemic to make it easier for businesses to manage costs.

The measures are mostly to be repaid, with just some portions of loans being forgivable, meaning they are unlikely to have a large impact on the federal deficit.

But budget officer Yves Giroux warns they represent a significant expansion of the government's financial footprint and exposure to risk from bad debts that would hit Ottawa's bottom line.

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