National Governments Including Developing Countries

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Loans to national governments consist mainly of loans for financial assistance, international development assistance to developing countries, and loans for development of export trade (administered by Export Development Canada).

Table 9.12 presents a summary of the balances and transactions for the loans and advances that were made to national governments including developing countries.

Table Summary

The table presents, to the nearest dollar, a summary of the loans and advances to national governments including developing countries. It consists of five columns: a detailed listing of components; April 1 of the current year; payments and other charges; receipts and other credits; March 31 of the current year. The first three rows present the programs. The final row presents the total.

Table 9.12
National Governments including Developing Countries

  April 1, 2014
($)
Payments and other charges
($)
Receipts and other credits
($)
March 31, 2015
($)
Finance — Financial assistance — Ukraine   400,000,000   400,000,000
Foreign Affairs, Trade and Development — Development of export trade (loans administered by Export Development Canada) — National governments 194,573,017 261,311,175 32,331,164 423,553,028
Foreign Affairs, Trade and Development — International development assistance — Developing countries 187,098,326   22,713,888 164,384,438
National Defence — Damage claims recoverable — North Atlantic Treaty Organization   6,203 6,203  
Total 381,671,343 661,317,378 55,051,255 987,937,466

Financial assistance — Ukraine

Pursuant to Section 8.3 of the Bretton Woods and Related Agreements Act, the Minister of Finance, by order of the Governor in Council, is authorized to extend certain forms of financial assistance to a foreign state. The provision of such financial assistance is contingent upon that state having an arrangement with the International Monetary Fund and upon the satisfactory participation of other countries with Canada in the provision of financial assistance.

Funding for such transactions is provided by the Minister of Finance out of the Consolidated Revenue Fund. The maximum amount of financial assistance that can be provided under legislation is $2.5 billion US in respect of any particular foreign state and $5 billion US in respect of all foreign states.

During the year, the Government provided $400 million Cdn in financial assistance in the form of interest-bearing loans to Ukraine. As at March 31, 2015, the outstanding loan balance to the Ukraine was $400 million Cdn (2014 — $nil). There were no other balances or transactions in respect of Ukraine or other foreign states during the year.

These loans bear interest at rates ranging between 1.4 percent and 2.1 percent and have repayment term of 5 years.

Development of export trade — National governments

Pursuant to section 23 of the Export Development Act, the Minister for International Trade, with the concurrence of the Minister of Finance, may authorize Export Development Canada (EDC) to enter into certain transactions or class of transactions where the Minister is of the opinion it is in the national interest and where EDC has advised the Minister that it will not enter into such transactions without such authorization. Funding for such transactions is provided by the Minister of Finance out of the Consolidated Revenue Fund and the transactions are administered by EDC on behalf of the Government of Canada.

Loan transactions with longer repayment terms or low or zero interest rates are recorded in part as expenses when the economic value is reduced due to such concessionary terms.

Table 11.4 and Table 11.5 (Section 11 of this volume) present additional information on contractual obligations and guarantees that are disclosed in the notes to the audited consolidated financial statements in Section 2 of this volume.

The following table presents the balances and transactions for loans made to national governments, together with their terms and conditions of repayments.

Table Summary

The table presents, to the nearest dollar, the loans made to national governments with their terms and conditions of repayments. It consists of five columns: a detailed listing of components, April 1 of the current year; payments and other charges divided into two columns, payments or other charges and revaluation; receipts and other credits divided into two columns, receipts or other credits and revaluation; March 31 of the current year. The first series of rows presents the non‑budgetary loans, by conditions then by country; each group is followed by a subtotal, if applicable. The last row of the first series presents the total for non‑budgetary loans. The second series of rows presents the budgetary loans, by conditions then by country; each group is followed by a subtotal, if applicable. The last row of the second series presents the total for budgetary loans. The next row presents the subtotal for non‑budgetary and budgetary loans. The next row presents the portion expensed due to concessionary terms. The last row presents the total.

  April 1, 2014
($)
Payments and other charges Receipts and other credits March 31,2015
($)
Payment or other chargesLink to footnote 1
($)
Revaluations
($)
Receipts or other creditsLink to footnote 2
($)
Revaluation
($)
Non‑Budgetary LoansLink to footnote 3            
(a) 1 to 5 year term, Canadian prime rate plus 0.35 percent interest per annum, assumed from the Canadian Wheat Board (CWB), with final repayments in June 2016:            
Egypt   25,002,018   6,040,226   18,961,792
(b) 1 to 5 year term, 3.0 percent to 9.0 percent interest per annum, with final repayments in May 2019:            
Argentina 29,370,665   3,546,879 9,523,468   23,394,076
(c) 11 to 15 year term, based on 6 month London Interbank Offered Rate (LIBOR) plus 0.50 percent interest per annum, assumed from CWB with final repayments in January 2028:            
Iraq   140,054,502 575,106     140,629,608
(d) 11 to 15 year term, interest based on LIBOR, plus a range of rates from 0.5 percent to 1.0 percent per annum, with final repayments between December 2019 and June 2020:            
Kenya 844,610   132,731 75,558   901,783
(e) 16 to 20 year term, interest based on LIBOR, plus a range of rates from 0.5 percent to 0.63 percent per annum, with final repayments between October 2018 and June 2021:            
Indonesia 466,797   62,012 45,384   483,425
Venezuela 26,409,301   2,640,700 8,751,978   20,298,023
Subtotal 26,876,098   2,702,712 8,797,362   20,781,448
(f) 21 to 25 year term, 9.0 percent to 10.0 percent interest per annum, with final repayments in September 2000:            
Sudan 4,269,450   622,169     4,891,619
(g) 21 to 25 year term, interest based on LIBOR, plus 0.55 percent per annum, with final repayments in November 2024:            
Pakistan 6,095,746   850,613 281,324   6,665,035
Total — Non‑budgetary loans 67,456,569 165,056,520 8,430,210 24,717,938   216,225,361
Budgetary LoansLink to footnote 3            
(a) 21 to 25 year term, 0 percent to 3.5 percent interest per annum, with final repayments between March 2011 and November 2015:            
Indonesia 4,158,301   218,617 2,700,428   1,676,490
(b) 26 to 30 year term, 3.0 percent interest per annum, with final repayments between December 2016 and April 2018:            
Algeria 2,142,000     568,000   1,574,000
(c) 31 to 55 year term, 0 percent to 10.29 percent interest per annum, with final repayments between September 2029 and February 2045:            
China 403,296,732   56,822,332 20,116,864   440,002,200
Egypt 7,869,584   325,143 333,201   7,861,526
Gabon 7,268,624   1,032,443 287,475   8,013,592
India 41,915,539   5,974,566 1,490,984   46,399,121
Jamaica 4,955,933   704,624 214,177   5,446,380
Morocco 70,068,161   9,905,069 2,945,298   77,027,932
Turkey 85,936,201   12,222,011 3,153,592   95,004,620
Subtotal 621,310,774   86,986,188 28,541,591   679,755,371
(d) 31 to 55 year term, comprised of several loans with fixed or variable interest rates currently ranging from 0 percent to 2.21 percent per annum, with final repayments between December 2018 and December 2033:            
Kenya 4,598,744   619,640 237,774   4,980,610
Total — Budgetary loans 632,209,819   87,824,445 32,047,793   687,986,471
Subtotal 699,666,388 165,056,520 96,254,655 56,765,731   904,211,832
Less: portion expensed due to concessionary terms 505,093,371     24,434,567   480,658,804
Total 194,573,017 165,056,520 96,254,655 32,331,164   423,553,028

International development assistance — Developing countries

Interest-free or low interest bearing loans have been made through the Canadian International Development Agency, now amalgamated with the Department of Foreign Affairs, Trade and Development (DFATD) to developing countries for international development assistance. Loans are recorded in part as expenses when the economic value of the loans is reduced due to their concessionary terms. No new loans have been issued since April 1, 1986.

All loans have been made in Canadian dollars and are therefore not subject to revaluations for foreign exchange fluctuations.

Similar assistance has been provided to developing countries by way of subscriptions and advances to the International Development Association, advances to the Global Environment Facility, and loans to other international financial institutions. These are reported later in this section under the heading "International Organizations".

In 2006–2007, the Government of Canada, as represented by the Canadian International Development Agency (now amalgamated with DFATD), entered into an agreement with the Government of Pakistan to forgive its outstanding $447,507,534 loan pursuant to Foreign Affairs and International Trade Vote 32c, Appropriation Act No. 5, 2009–2010. In order to expire its debt obligation, the Government of Pakistan will be required to make education sector investments that are equivalent to the current present value of its debt. According to the agreement, Pakistan's debt is to be written down proportionally as the investments are made in 2014–2015. The Government of Pakistan has invested in its education sector program and those investments permitted to grant the Government of Pakistan a debt forgiveness equivalent to $47,612,029. Since 2009–2010, the Government of Pakistan's debt has been reduced by the total amount of $324,893,067.

Table Summary

The table presents, to the nearest dollar, the loans made to developing countries with their terms and conditions of repayments. It consists of five columns: a detailed listing of components; April 1 of the current year; payments and other charges; receipts and other credits; March 31 of the current year. Each row lists the loans by terms and conditions of repayments, then by country. A subtotal is shown if there is more than one loan under the same terms. The next row presents the loans subtotal. The next row presents the portion expensed due to concessionary terms. The last row presents the total.

  April 1, 2014
($)
Payments and other charges
($)
Receipts and other creditsLink to footnote 4
($)
March 31, 2015
($)
(a) 30 year term, 7 year grace period, 3.0 percent interest per annum, with final repayment in March 2005:        
Cuba 9,547,012     9,547,012
(b) 35 year term, 4 year grace period, 5.0 percent interest per annum, semi‑annual interest repayments with first principal repayment due January 2017 and final repayment in July 2026:        
Egypt 44,995,933     44,995,933
(c) 50 year term, 10 year grace period, non‑interest bearing, with final repayments between March 2015 and September 2035:        
Algeria 4,036,655   240,756 3,795,899
Argentina 65,333   18,667 46,666
Bolivia 339,161   42,395 296,766
Chile 392,247   147,093 245,154
Colombia 118,386   26,308 92,078
Dominican Republic 2,325,573   236,045 2,089,528
Ecuador 2,365,668   304,918 2,060,750
Guatemala 1,281,250   100,000 1,181,250
Indonesia 125,514,547   10,310,317 115,204,230
Malaysia 1,105,143   62,935 1,042,208
Malta 249,980   25,000 224,980
Mexico 9,700   2,772 6,928
Morocco 3,994,010   384,920 3,609,090
Pakistan 170,226,496   47,612,029 122,614,467
Paraguay 59,989   19,996 39,993
Peru 16,777   3,729 13,048
Philippines 1,063,313   97,159 966,154
Sri Lanka 58,197,292   4,325,399 53,871,893
Thailand 10,393,022   674,620 9,718,402
Tunisia 32,105,699   3,295,729 28,809,970
Subtotal 413,860,241   67,930,787 345,929,454
(d) 50 year term, 13 year grace period, non‑interest bearing, with the final repayment in March 2023:        
Algeria 11,205,822   622,546 10,583,276
Subtotal 479,609,008   68,553,333 411,055,675
Less: portion expensed due to concessionary terms 292,510,682   45,839,445 246,671,237
Total 187,098,326   22,713,888 164,384,438

Damage claims recoverable — North Atlantic Treaty Organization

Article VIII of the NATO Status of Forces Agreement signed April 4, 1949, as amended, deals with claims for damages to third parties arising from accidents in which a member of a visiting force is involved. This account is charged with the amount recoverable from other states, for claims for damages which took place in Canada, and is credited with recoveries.

The advances are non‑interest bearing and have no specific repayment terms.

Footnotes

Footnote 1

Payments or other charges may include transactions such as loans, adjustments, etc.

Return to footnote 1 referrer

Footnote 2

Receipts or other credits may include transactions such as repayments, forgiveness, adjustments, etc.

Return to footnote 2 referrer

Footnote 3

Prior to April 1, 1987, these loans were authorized by miscellaneous non‑budgetary authorities. Subsequently, they were authorized by miscellaneous budgetary authorities.

Return to footnote 3 referrer

Footnote 4

Receipts and other credits may include transactions such as repayments, forgiveness, adjustments, etc.

Return to footnote 4 referrer

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