Canada Fin Min:Bulk Of C$12 Billion Facility For Auto Loans Used
08 Juni 2009 - 5:34PM
Dow Jones News
Canadian Finance Minister Jim Flaherty said Monday only $1
billion of a C$12 billion secured credit facility to help consumers
and businesses access financing for vehicles and equipment remains
to be allocated, and this will be done in August.
Under the program, the government purchases newly-issued term
asset-backed securities backed by loans and leases on vehicles and
equipment, and inventory loans. Lenders holding these securities
would then have room to extend new loans and leases.
The facility was unveiled in the January budget and officially
rolled out last month.
In a statement, Flaherty said C$11 billion has been allocated,
including C$1 billion set aside for smaller players. Fifteen
lenders received allocations under the large enterprise tranche in
mid-May.
-Nirmala Menon, Dow Jones Newswires; 613-237-0668;
nirmala.menon@dowjones.com