FACTBOX-Highlights of Canada's stimulus measures to fight coronavirus outbreak


Reuters | Updated: 21-03-2020 00:23 IST | Created: 21-03-2020 00:23 IST
FACTBOX-Highlights of Canada's stimulus measures to fight coronavirus outbreak

Key financial and economic measures announced by Canada to support the economy. *The Bank of Canada has slashed its key interest rate by 100 basis points in March to 0.75% - its lowest level since Sept 2017. The government has offered C$10 billion ($7.2 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. * The federal government announced C$27 billion package on Mar 18.

* To provide additional assistance to families with children by temporarily boosting Canada Child Benefit payments. *Introduce an Emergency Care Benefit of up to C$900 bi-weekly for up to 15 weeks to provide income support to workers who must stay home and do not have access to paid sick leave.

* Introduce an Emergency Support Benefit delivered through the Canada Revenue Agency to provide up to C$5 billion to workers not eligible for employment insurance (EI) and who are facing unemployment. *Provide additional assistance to individuals and families with low and modest incomes with a special top-up payment under the Goods and Services Tax credit.

* Waive, for a minimum of six months, the mandatory one-week waiting period for EI sickness benefits for workers in imposed quarantine or who have been directed to self-isolate. * Extend the tax filing deadline for individuals to June 1, and allow all taxpayers to defer, until after Aug 31, 2020, the payment of any income tax amounts that become owing on or after Mar 18 and before Sept 2020.

*Allow all businesses to defer, until after Aug 31, 2020, the payment of any income tax amounts that become owing on or after Mar. 18 and before Sept 2020. * Further expand Export Development Canada's ability to provide support to domestic businesses.

* Provide 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. * Augment credit available to farmers and the agri-food sector through Farm Credit Canada.

* Launch an Insured Mortgage Purchase Program to purchase up to C$50 billion of insured and uninsured mortgage pools through the Canada Mortgage and Housing Corporation. The program has been expanded to allow lenders to pool previously uninsured mortgages, i.e. those with down payments of more than 20%. *Increase the credit available to small, medium, and large Canadian businesses. (Compiled by Denny Thomas and Nichola Saminather Editing by Alistair Bell and Cynthia Osterman)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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