Ottawa, December 26, 2008
Archived - Minister of Finance Welcomes Approval of ABCP Restructuring Plan
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The Honourable Jim Flaherty, Minister of Finance, today welcomed the announcement of an agreement on the terms of the restructuring plan for non-bank sponsored asset-backed commercial paper (ABCP).
"I would like to commend all participants for their collective patience and hard work," said Minister Flaherty. "The agreement will provide a stable and effective result for investors and asset providers."
Minister Flaherty confirmed the Government of Canada's contribution of $1.3 billion, which is its share of a partnership with the governments of Quebec, Ontario and Alberta that supports the restructuring plan with a senior funding facility.
"The Government's decision to support this restructuring plan reflects its ongoing commitment to protect financial stability and ensure the health of Canada's capital markets in these very challenging times," said Minister Flaherty. "It is important to note this action supports a market-led solution."
"I believe each government partner has contributed a fair proportion to facilitate this restructuring plan in keeping with its interests. I am confident that the use of this backstop facility is not likely to be required, and the risk to taxpayers is low."
"A successful restructuring agreement will protect financial stability and the health of Canada's financial markets."
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Office of the Minister of Finance
Department of Finance
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