MNI POLICY: Morneau to Boost Risk Provision in Canada Budget

--Finance Minister Says COVID-19 Needs Global Coordination

By Greg Quinn

     OTTAWA (MNI) - Canada's finance minister said he has the most fiscal

firepower in the G7 to tackle the coronavirus and his next budget will boost

money set aside to cover unexpected costs.

     The outbreak requires a global response and Canada is in close contact with

G7 and other peers, Bill Morneau said in a speech Friday in Toronto. He's

expected to deliver a budget in the next few weeks that could add to the

stimulus of the Bank of Canada's 50bp cut on Wednesday.

     Here are other highlights from the speech:

     --"We continue to have the necessary fiscal room to respond to whatever

might lie ahead," Morneau said. "Canada, more so than any other country in the

G7, has economic resiliency and fiscal firepower at its disposal."

     --"Although things are changing quickly, it's clear that the COVID-19

outbreak is going to impact the real economy, and markets. Over the last few

weeks, I have been in touch with my international counterparts: this is a global

problem that demands global coordination."

     --"We will soon be announcing support for Canadians who would have to be

quarantined in order to prevent the spread of the virus. As a second step, we

will continue to monitor the impact on businesses and workers. We have the tools

to respond quickly. Finally, we will increase our risk adjustment provision in

this Budget to ensure that we are ready and able to respond."

     --"This means that we will be judicious and responsible in how we make

investments in this Budget, while continuing to show confidence in the economy

that Canadians have built. Our approach will be practical and prudent, but

squarely focused on making progress on the things that matter to Canadians."

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

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