Why has the Government of Canada given EDC new powers to do domestic insurance and financing?
The Government of Canada has temporarily broadened EDC’s mandate and scope of activity for two years because of the severe and ongoing credit crunch affecting a large number of Canadian businesses. Our “new powers” enable us to provide domestic financing and insurance services, in partnership with private sector financial institutions such as your banks, credit insurance and surety companies, and with Business Development Bank of Canada (BDC). Overall, this measure is expected to add much-needed capacity to the Canadian financial system to help Canadian companies get more credit during these exceptional times, so they can remain viable and grow both at home and abroad. What does EDC’s enhanced domestic mandate mean in practical terms? Our enhanced domestic financing, credit insurance and bonding re-insurance services will be offered through and with private sector banks, insurers and surety companies. This means EDC will concentrate on adding capacity and filling gaps so that domestic
