Canada creates C$1 billion fund to fight coronavirus, set to spend more

Canada is setting up a C$1 billion ($728 million) fund to help its provinces combat a worsening coronavirus outbreak and is prepared to spend more money if necessary, Prime Minister Justin Trudeau said on Wednesday.

The measures are the first to be unveiled by the Liberal government in Canada, where 91 people have been diagnosed so far. One person has died. "Our message to Canadians is clear: to every worker and business, in every province and territory, we have your back and we will get through this together," Trudeau told reporters.

The money will help buy surgical masks and face shields and also fund vaccine research. The government will also make it easier for sick workers to claim employment insurance. In a bid to support businesses should the economy experience tightening credit conditions, Ottawa will boost investment in federal lending agencies, such as the Business Development Bank of Canada and Export Development Canada.

"We are ready to do more as the situation warrants it. We know that Canada is in a good position so far both fiscally and with a strong health system ... we are always ready to do more," Trudeau said. ($1 = 1.3735 Canadian dollars)