GATINEAU, Quebec, Sept 21 (Reuters) - The Canadian government intends to make it easier for businesses to get financing after the economic crisis left some firms short of cash, Finance Minister Jim Flaherty said on Monday.
'I realize that there are still some challenges and still some gaps and that many of you have the desire to see more done so that we address some of these gaps,' he said in a speech to the Canadian Financing and Leasing Association.
The association represents the asset-based financing, equipment and vehicle leasing industry, which Flaherty said had been sideswiped by the recession and credit crunch.
Speaking in Gatineau, Quebec, across the Ottawa River from the capital, Flaherty said the government's Canadian Secured Credit Facility was designed to ease the severe liquidity crunch in the Canadian securitization market. But he understood this was not meeting all the financing needs.
He gave no details on what the government might do, but said a group of experts was providing him with timely information on financing gaps.
'I look forward to further discussions that we're going to have on this subject, I hope this week. We need to know where the gaps are, and I understand there are some good ideas about how we can fill the remaining gaps,' he said.
'I look forward to doing that. This is still a work in progress. We have to do more.'
The minister also said measures taken by Canada to stimulate the economy had a built-in exit strategy that would enable a return to balanced budgets over the medium term.
'Temporary measures will expire at the end of the two-year time frame outlined in the budget,' Flaherty said.
'And, as the economy improves over the medium term, the government is committed to returning to balanced budgets through spending-growth restraint.'
(Reporting by Louise Egan, writing by Randall Palmer) Keywords: CANADA ECONOMY/FLAHERTY (randall.palmer@thomsonreuters.com; +1-613-235-6745; Reuters Messaging: randall.palmer.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'I realize that there are still some challenges and still some gaps and that many of you have the desire to see more done so that we address some of these gaps,' he said in a speech to the Canadian Financing and Leasing Association.
The association represents the asset-based financing, equipment and vehicle leasing industry, which Flaherty said had been sideswiped by the recession and credit crunch.
Speaking in Gatineau, Quebec, across the Ottawa River from the capital, Flaherty said the government's Canadian Secured Credit Facility was designed to ease the severe liquidity crunch in the Canadian securitization market. But he understood this was not meeting all the financing needs.
He gave no details on what the government might do, but said a group of experts was providing him with timely information on financing gaps.
'I look forward to further discussions that we're going to have on this subject, I hope this week. We need to know where the gaps are, and I understand there are some good ideas about how we can fill the remaining gaps,' he said.
'I look forward to doing that. This is still a work in progress. We have to do more.'
The minister also said measures taken by Canada to stimulate the economy had a built-in exit strategy that would enable a return to balanced budgets over the medium term.
'Temporary measures will expire at the end of the two-year time frame outlined in the budget,' Flaherty said.
'And, as the economy improves over the medium term, the government is committed to returning to balanced budgets through spending-growth restraint.'
(Reporting by Louise Egan, writing by Randall Palmer) Keywords: CANADA ECONOMY/FLAHERTY (randall.palmer@thomsonreuters.com; +1-613-235-6745; Reuters Messaging: randall.palmer.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.