March 13, 2020 – The Canadian Chamber of Commerce today issued the following statement (see the full video below) regarding the government’s financial system response plan for COVID-19:
The Canadian Chamber of Commerce welcomes today’s commitment by the Prime Minister to assist individuals and small and medium-sized businesses that have been hard-hit by the pandemic.
His statement reflected the advice given during the Prime Minister’s telephone call yesterday with the Presidents of the Canadian Chamber and the Canadian Labour Congress. The Prime Minister’s address was followed by a coordinated announcement by the Minister of Finance, the Governor of the Bank of Canada and the Superintendent of Financial Institutions on additional measures to help the Canadian economy.
Canada is facing unprecedented challenges. Canadians are at our best when we work together, and today Team Canada showed how we can work together to deal with the pandemic.
The additional measures announced today will help provide liquidity for Canadian businesses during the current crisis. Measures of particular note for Canadian businesses include:
- A cut by the Bank of Canada in its benchmark interest rate by 50 basis points to 0.75 per cent.
- $10 billion in credit support to Canadian businesses through the Business Development Bank of Canada and the Export Development Bank of Canada.
- A decrease in the domestic stability buffer that will add nearly $300 billion in liquidity to the banking system and reinforce the commercial banks’ ability to supply credit.
The Canadian Chamber is helping to lead the business response to COVID-19. Along with our partners, we will continue working with governments on options and tools to help businesses and their employees throughout the crisis.