IMPLEMENTATION LEVEL

Subnational

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 30 May 2017 | Removal date: open ended
Still in force

Loan guarantee

On May 30, 2017 the government of Newfoundland and Labrador reached a deal with Corner Brook Pulp and Paper Ltd. to support the newsprint company’s two defined benefit pension plans. The province will guarantee a letter of credit from a financial institution. In return, the government will take security interests in the company’s power assets at Deer Lake and Watson’s Brook. A trust will hold the letter of credit for the benefit of pension plan members, with the government and the company’s representatives as co-trustees. The deficits in the two pension plans were currently about Can$65 million (US$50.6 million).

The deal is the latest arrangement with the province to keep operations going at the mill. In 2014, Corner Brook Pulp and Paper borrowed $110 million from the province.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

321 Pulp, paper & paperboard
4801 Newsprint, in rolls or sheets.
480100 Newsprint, in rolls or sheets.

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