The Bank of Canada has also expanded its term repo operations to support liquidity in the financial markets. William White, senior fellow at the C.D. COVID-19 … Potential funding sources include a short-term US-dollar paper program (Canada bills), medium-term notes, cross-currency swaps involving the exchange of Canadian dollars for foreign currency to acquire liquid reserves, and the issuance of global bonds. By Mike Blanchfield The Canadian Press Posted May 8, 2020 4:50 pm. Canada's tax agency limiting audits, debt collection to focus on COVID-19 aid. The number of planned auctions and the number of planned auctions per benchmark bond in 2020-21 for each sector is shown in Table A3.7. The government sets its debt issuance plan using a balanced portfolio of instruments with different maturities with the goal of meeting its objectives over a medium-term horizon under a wide range of economic and interest rate scenarios and projections. In addition, Canada has a balanced portfolio of debt instruments with a wide range of maturities. Reflecting this, the bond program for 2020-21 has increased across all terms, and up to an unprecedented combined amount of $106 billion in the 10-year and 30-year sectors alone (i.e. “Canada has done more, and more consistently, for more people than in the U.S. And we have been rewarded with much more robust job recovery and fewer business failures to … The government led a specific market consultation on Real Return Bonds. As such, this temporary increase in new borrowing will be undertaken in 2020-21 to finance the government’s COVID-19 Economic Response Plan. ©2021 BuzzFeed, Inc. All rights reserved. Sources: IMF Fiscal Monitor (April 2020); Finance Canada calculations. New household liability data released by Statistics Canada shows non-mortgage loans (debt used largely to fund consumables) has increased steadily since May 2020. At $793.5 billion as of October 2020, non-mortgage debt has rebound and is now just 1% below pre-pandemic levels of $802.2 billion in February 2020. In June 2020, Canada … Households across Canada saved close to $100 billion during Q2 of 2020, 2 around 10 times the pre-COVID-19 level. The excess savings resulting from government transfers and less spending could provide households a sizable financial buffer going into Q3. Borrowing activities support the ongoing refinancing of government debt coming to maturity, the execution of planned spending measures and the financial operations of the government. Due to higher borrowing requirements, issuance of 3-, 6- and 12-month maturities have been moved to a weekly frequency, with auction sizes projected to be largely in the $10 billion to $35 billion range. By Liz Capo McCormick, Craig Torres, Mathieu Benhamou and Demetrios Pogkas. *DMS 2020-21 planned issuance To address the current economic challenges, the Government of Canada has taken immediate action to help Canadians facing hardship as a result of the COVID-19 outbreak. The government’s overall liquidity levels cover at least one month of net projected cash flows, including coupon payments and debt refinancing needs. The Exchange Fund Account (EFA), which is held in the name of the Minister of Finance, represents the largest component of Canada’s official international reserves. The total COVID-19-related debt estimate for Canadian small businesses is based on results from CFIB survey results and Statistics Canada business counts for December 2020. As this occurs, Canada’s debt structure will be prudently positioned against G7 peers in order to maximize flexibility, predictability and liquidity. 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