Ottawa Boosts Mortgage Plan
Posted by John Malloy on 11/12/2008
Finance Minister Jim Flaherty said the Conservative government will buy up to $75-billion of insured Canadian mortgage pools, boosting its previously announced mortgage plan by $50-billion.
The government is also reducing by 50 basis points the premiums banks need to pay to participate in the secured lending facility announced last month.
“The government has acted to provide significant support to the Canadian financial system through liquidity support through the Bank of Canada,” Mr. Flaherty said as he made the annoucement on Wednesday morning in Toronto.
“I’ve been hearing increasing concerns about the availability of credit, particularly from Canadian businesses,” he said. “Now, this action will increase to $75-billion dollars in maximum value of insured mortgages purchased through the Canada Housing and Mortgage Corporation.”
Asked by a reporter if Ottawa is contemplating a stimulous package geared specifically toward the troubled auto industry, Mr. Flaherty said such stimulous is already “in the economy” and is not a one-time program as was done in the United States.
Mr. Flaherty said the availability of credit remains his primary concern. The measures announced Wednesday are designed to make it easier for banks and lenders to obtain credit for consumers and businesses…
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