(Reuters) – Key financial and economic measures announced by Canada to support the economy.
– Bank of Canada cut key benchmark rate by 50 basis points to 0.25% on March 27, its lowest in a decade.
– The central bank also said it would begin purchases of C$5 billion per week of Government of Canada securities in the secondary market.
– Canadian Mortgage and Housing Corp on March 26 bolstered the insured mortgage purchase program to C$150 billion ($107 billion) from previously announced C$50 billion.
– The Canadian parliament on Wednesday approved C$52 billion financial package.
– Delays student loan repayment to six months.
– Provides a taxable C$2,000 a month benefit for up to fourth months to workers affected by the outbreak. The benefit is also available to Canadian workers affected by the current situation whether or not they are eligible for employment insurance.
– Provides additional help to low and modest income individuals and families with a special top-up payment under the Goods and Services Tax credit, estimated to cost about C$5.5 billion.
– Provides eligible small employers a temporary wage subsidy for a period of three months.
– Provides additional assistance to families with children by temporarily boosting Canada Child Benefit payments, delivering almost C$2 billion in extra support.
– The government also has offered C$10 billion in credit support to businesses.
– The Bank of Canada on March 20 announced a coordinated action with some other central banks to further enhance liquidity via the standing U.S. dollar liquidity swap line arrangements.
– Extends the tax filing deadline for individuals to June 1, and allows all taxpayers to defer, until after Aug. 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020.
– Allows all businesses to defer, until after Aug. 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020.
– Further expands Export Development Canada’s ability to provide support to domestic businesses.
– Provides flexibility on the Canada account limit, to allow the government to provide additional support to Canadian businesses, when deemed to be in the national interest, to deal with exceptional circumstances.
– Augments credit available to farmers and the agri-food sector through Farm Credit Canada.
– Provides one-time funding of C$500 million to provinces through the Canada Health Transfer for their critical healthcare system needs.
– Increases the credit available to small, medium, and large Canadian businesses.
(Compiled by Denny Thomas; Editing by Diane Craft and Steve Orlofsky)
