BDC's new Borrowing Framework
Within the Government of Canada 2007 Budget, presented on March 19th, 2007, the Government proposed to consolidate the borrowings of Business Development Bank of Canada (BDC) with its own debt program. To support this initiative, amendments to the Government of Canada's legislative authority have been adopted.
Since April 21st, 2008, funding is made available to BDC in accordance with this new borrowing framework.
Hence, BDC is not issuing paper on the capital and money markets anymore, but continues to honour all existing debts previously issued and responds to debt holder's requests until their maturity date.
BDC debt obligations issued prior to April 21st, 2008 are secured by the Government of Canada. The payment of principal and any interest carries the full faith and credit of Canada and constitutes direct unconditional obligations of and by Canada. As such, BDC benefits from preferred credit ratings.
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