The automotive parts industry looks unlikely to be granted its request for special financing of up to C$1 billion (US$770m) in short-term loans and loan guarantees from the Canadian and Ontario governments, according to a government minister.
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In an interview with the news agency Reuters, industry minister Jim Prentice argued that improved general financing is already available. He added that the fall in the Canadian dollar was also relieving pressure on the sector.
“Effectively the government is doing really already what has been asked for,” Prentice told Reuters.
Prentice also said the government had authorised a C$2bn increase in the borrowing capacity of Export Development Canada, and the Business Development Bank was also taking additional measures to improve its ability to get liquidity to Canadian businesses.
Prentice added: “As the dollar sinks relative to the US dollar, it is something that does help the manufacturing sector.”
