MNI POLICY: Canada Sets CAD1B Virus Fund, Prepared For More

--No Sign That Business Credit Freezing Up

By Greg Quinn

     OTTAWA (MNI) - Canada is creating a CAD1 billion fund to deal with the

COVID-19 outbreak and Prime Minister Justin Trudeau said he's prepared to pull

out all the stops if needed to help workers and keep business credit flowing.

     The package responds to the current needs for jobless benefits and

increased healthcare spending as recommended by health officials, Trudeau said

at a press conference Wednesday in Ottawa. So far there isn't a need for major

border closures or a credit relief package given the number of local cases. 

     "We are already preparing to do more if need be," Trudeau said, flanked by

Finance Minister Bill Morneau, the health minister and top public health

officer. "With a strong balance sheet and a resilient economy Canada is well

positioned."

     Government agencies are preparing plans to extend business credit, and

Morneau said his daily conversations with private banks don't reveal signs of

distress in corporate lending flows. The global economic impact is being felt in

Canada's tourism, energy and supply logistics companies, officials said.

     For workers the government is waving a one-week waiting period for jobless

benefits and relaxing work-sharing rules. "No one should have to worry about

their job if they have to be quarantined, no employer should feel like they have

to lay off a worker because of the virus," Trudeau said.

     The extra spending comes with the government yet to announce a budget date

before the next fiscal year begins on April 1. 

--MNI Ottawa Bureau; +1 613-314-9647; email: greg.quinn@marketnews.com

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