MNI POLICY: Canada Offers CAD27B Cash, CAD55B Tax Deferment

By Greg Quinn

     OTTAWA (MNI) - Canadian Prime Minister Justin Trudeau on Wednesday pledged

CAD 27 billion of direct support for workers and companies losing income amid

the coronavirus outbreak, and another CAD 55 billion of indirect support from

deferred tax and loan payments.

     Workers laid off can receive a 10% wage subsidy for three months, family

tax credits are being expanded and tax filing deadlines are being pushed back,

Trudeau told reporters Wednesday in Ottawa. The prime minister spoke from his

private residence where he's in isolation after his wife tested positive for

COVID-19.

     "Our government is prepared to do more" Trudeau said. "Our economy will

rebound after this," he said, declining to say if he expects a recession.

     Trudeau also confirmed Canada like the U.S. is temporarily closing its

border to non-essential travel until further notice, while maintaining cargo

shipments.

     "These measures will last in place as long as we feel they need to last" he

said.

     Advanced economies are stepping up after the G7 pledged all means necessary

to aid economies amid the spread of the virus. The extra spending puts Canada on

track to break a record deficit of more than CAD 50 billion set in the 2009

recession, given the prior estimate of a CAD 28 billion shortfall for the fiscal

year starting April 1.

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

[TOPICS: M$C$$$,MC$$$$,MT$$$$]