Ottawa’s stimulus package to combat the fallout from the effects of the COVID-19 pandemic was greeted with relief from Canada’s petroleum producers.
“The Canadian Association of Petroleum Producers (CAPP) supports the federal government’s announcement of a $10 billion stimulus package for businesses under stress as a result of COVID-19, and the world-wide financial crisis,” says Tim McMillan, CAPP’s president and CEO. “The federal government recognized the serious consequences of the crisis on Canadian families and the economy, particularly in energy intensive regions.”
Finance Minister Bill Morneau announced Friday that the government will establish a $10 billion credit facility to lend money to businesses under stress as a result of the spreading COVID-19 pandemic.
Morneau told CBC News the money will flow to the Business Development Bank of Canada and Export Development Canada, both Crown-owned entities, to help companies access cash and keep exporting to markets abroad at a time when COVID-19 is dramatically affecting the functioning of the economy.
Morneau said this sort of credit facility was an effective tool during the 2008 financial crisis and will be again now.
“This announcement is an important step to helping sustain the oil and natural gas industry as one of the key drivers of the Canadian economy,” says McMillan. “The oil and natural gas industry is committed to continuing to do its part to help Canadians all across the country to recover from the significant adversity posed by the crisis, and looks forward to hearing more details on the stimulus in the near future.”
Most of the money will be directed to small- and medium-sized enterprises.
(CBC News)
