IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 05 Aug 2009 | Removal date: open ended
Still in force

Trade finance

On 5 August 2009, the Canadian Government announced that it would be providing up to CAD173 million in loans to Bombardier Inc. in order to "help it complete and deliver an order for up to eight of its Q400 and CRJ900 to Sweden's Scandinavian Airlines (SAS)." The repayable loans will be provided through Export Development Canada (EDC). EDC is Canada's export credit agency; its sole shareholder is the Department of Finance. The repayable loans are conditional on Bombardier and SAS coming to an agreement on the terms of sale for the planes and will be provided under the Canada Account.
 
The Canada Account is a special funding facility that permits EDC to fund specific projects that it would be otherwise unable to support but that the Minister of International Trade deems to be in the national interests of Canada. Although EDC administers all loans granted under the Canada Account in the same way as loans issued under the Corporate Account (which are granted according to the corporation's loan and risk rules), the Government of Canada assumes all risk related to the loans. Transactions completed under the Canada Account must be approved by the Minister of Finance, and those of a value exceeding CAD50 million are also approved by Cabinet. EDC discloses the parties to these transactions, their approximate value, the general purpose of the transactions and the principal financial counterparties, but not the terms of the loans or guarantees. Details of previous financial products issued under the Canada Account are available on http://www.edc.ca/english/disclosure_9239.htm
 
Bombardier Inc. is Canada's largest aircraft producer and the third-largest civilian aircraft producer in the world, with a specialization in small and regional jets. It is estimated that the company employs approximately 17 000 people in Canada.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

496 Aircraft & spacecraft; parts
8802 Other aircraft (for example, helicopters, aeroplanes); spacecraft (including satellites) and suborbital and spacecraft launch vehicles.
880211 Of an unladen weight not exceeding 2,000 kg
880212 Of an unladen weight exceeding 2,000 kg
880220 Aeroplanes and other aircraft, of an unladen weight not exceeding 2,000 kg
880230 Aeroplanes and other aircraft, of an unladen weight exceeding 2,000 kg but not exceeding 15,000 kg
880240 Aeroplanes and other aircraft, of an unladen weight exceeding 15,000 kg

Please report this page in case you detect an inaccuracy in its content.