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).
| April 1, 2017 | Payments and other charges | Receipts and other credits | March 31, 2018 | |
|---|---|---|---|---|
| Finance | ||||
| Department of Finance | ||||
| Financial assistance—Ukraine | 400,000,000 | – | – | 400,000,000 |
| Global Affairs | ||||
| Department of Foreign Affairs, Trade and Development | ||||
| International development assistance—Developing countries | 125,428,022 | 30,188,688 | 46,866,495 | 108,750,215 |
| Export Development Canada | ||||
| Development of export trade—National governments | 489,308,257 | 32,053,330 | 92,940,000 | 428,421,587 |
| Subtotal | 614,736,279 | 62,242,018 | 139,806,495 | 537,171,802 |
| National Defence | ||||
| Department of National Defence | ||||
| Damage claims recoverable—North Atlantic Treaty Organization | – | 2,883 | – | 2,883 |
| Total | 1,014,736,279 | 62,244,901 | 139,806,495 | 937,174,685 |
|
The dash means that the amount is 0 or is rounded to 0. | ||||
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 USD in respect of any particular foreign state and $5 billion USD in respect of all foreign states.
As at March 31, 2018, the outstanding loan balance to the Ukraine was $400 million. 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% and 2.1% and have repayment term of 5 years.
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 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 present value of its debt. According to the agreement, Pakistan's debt is to be written down proportionally as the investments are made. Since 2009–2010, the Government of Pakistan's debt been reduced by the total amount of $389,423,486.
The following table presents the balances and transactions for the loans made to developing countries, together with their terms and conditions of repayments.
(in dollars)
| April 1, 2017 | Payments and other charges | Receipts and other creditsLink to footnote 1 | March 31, 2018 | |
|---|---|---|---|---|
| (a) 35 year term, 4 year grace period, 5.0% interest per annum, semi-annual interest repayments with first principal repayment due January 2017 and final repayment in July 2026: | ||||
| Egypt | 43,234,343 | – | 3,656,370 | 39,577,973 |
| (b) 50 year term, 10 year grace period, non-interest bearing, with final repayments between March 2015 and September 2035: | ||||
| Algeria | 2,742,589 | – | 234,070 | 2,508,519 |
| Argentina | 9,333 | – | 9,333 | – |
| Bolivia | 211,975 | – | 42,395 | 169,580 |
| Colombia | 39,462 | – | 26,308 | 13,154 |
| Dominican Republic | 1,617,437 | – | 236,045 | 1,381,392 |
| Ecuador | 1,450,912 | – | 273,808 | 1,177,104 |
| Guatemala | 981,250 | – | 100,000 | 881,250 |
| Indonesia | 94,583,597 | – | 10,310,317 | 84,273,280 |
| Malaysia | 916,338 | – | 31,467 | 884,871 |
| Malta | 174,980 | – | 25,000 | 149,980 |
| Mexico | 1,386 | – | 1,386 | – |
| Morocco | 2,839,251 | – | 192,460 | 2,646,791 |
| Pakistan | 82,668,163 | – | 24,584,115 | 58,084,048 |
| Peru | 5,593 | – | 3,729 | 1,864 |
| Philippines | 723,254 | – | 48,579 | 674,675 |
| Sri Lanka | 45,314,648 | – | 4,146,082 | 41,168,566 |
| Thailand | 8,369,159 | – | 674,620 | 7,694,539 |
| Tunisia | 22,218,511 | – | 1,647,865 | 20,570,646 |
| Subtotal | 264,867,838 | – | 42,587,579 | 222,280,259 |
| (c) 50 year term, 13 year grace period, non-interest bearing, with final repayment in March 2023: | ||||
| Algeria | 7,470,548 | – | 622,546 | 6,848,002 |
| Subtotal | 315,572,729 | – | 46,866,495 | 268,706,234 |
| Less: portion expensed due to concessionary terms | 190,144,707 | – | 30,188,688 | 159,956,019 |
| Total | 125,428,022 | – | 16,677,807 | 108,750,215 |
Table notes 1The dash means that the amount is 0 or is rounded to 0.Grace period refers to interval from date of issuance of the loan to first repayment of loan principal. | ||||
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 11.6 in 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.
(in dollars)
| April 1, 2017 | Payments and other charges | Receipts and other credits | March 31, 2018 | |||
|---|---|---|---|---|---|---|
| Payment or other chargesLink to footnote 2 | Revaluation | Receipts or other creditsLink to footnote 3 | Revaluation | |||
| Non-budgetary loansLink to footnote 4 | ||||||
| (a) 1 to 5 year term, 3.0% to 9.0% interest per annum, with final repayments in May 2019: | ||||||
| Argentina | 111,250,871 | – | – | 17,729,409 | 1,285,403 | 92,236,059 |
| (b) 11 to 15 year term, based on 6 month London Interbank Offered Rate (LIBOR), plus 0.50% interest per annum, assumed from the Canadian Wheat Board (CWB) with final repayments in January 2028: | ||||||
| Iraq | 124,941,180 | – | – | 10,894,102 | 4,008,582 | 110,038,496 |
| (c) 11 to 15 year term, interest based on LIBOR, plus a range of rates from 0.5% to 1.0% per annum, with final repayments between December 2019 and June 2020: | ||||||
| Kenya | 735,689 | – | 47,197 | 153,133 | – | 629,753 |
| (d) 16 to 20 year term, interest based on LIBOR, plus a range of rates from 0.5% to 0.63% per annum, with final repayments between October 2018 and June 2021: | ||||||
| Indonesia | 383,152 | – | – | 70,767 | 10,594 | 301,791 |
| Venezuela | 4,334,882 | – | – | 1,774,210 | 41,000 | 2,519,672 |
| Subtotal | 4,718,034 | – | – | 1,844,977 | 51,594 | 2,821,463 |
| (e) 21 to 25 year term, 9.0% to 10.0% interest per annum, with final repayments in September 2000: | ||||||
| Sudan | 5,136,084 | 6,829,294 | – | – | – | 11,965,378 |
| (f) 21 to 25 year term, interest based on LIBOR, plus 0.55% per annum, with final repayments in November 2024: | ||||||
| Pakistan | 6,174,756 | – | 380,781 | 472,328 | – | 6,083,209 |
| (g) 21 to 25 year term, based on 6 month LIBOR, plus 0.55% interest per annum, assumed from CWB, with final repayments in November 2024: | ||||||
| Pakistan | 15,704,173 | – | – | 1,175,808 | 443,395 | 14,084,970 |
| Total—Non-budgetary loans | 268,660,787 | 6,829,294 | 427,978 | 32,269,757 | 5,788,974 | 237,859,328 |
| Budgetary loansLink to footnote 4 | ||||||
| (a) 26 to 30 year term, 3.0% interest per annum, with final repayments between December 2016 and April 2018: | ||||||
| Algeria | 48,929 | – | 608,071 | 438,000 | – | 219,000 |
| (b) 31 to 55 year term, 0% to 10.29% interest per annum, with final repayments between September 2029 and February 2045: | ||||||
| China | 416,075,511 | – | – | 24,242,485 | 13,128,600 | 378,704,426 |
| Egypt | 7,287,486 | – | – | 226,815 | 197,199 | 6,863,472 |
| Gabon | 7,919,136 | – | – | 485,683 | 240,937 | 7,192,516 |
| India | 45,306,400 | – | – | 1,643,802 | 1,422,560 | 42,240,038 |
| Jamaica | 5,231,883 | – | – | 232,557 | 166,456 | 4,832,870 |
| Morocco | 74,050,608 | – | – | 3,496,915 | 2,120,791 | 68,432,902 |
| Turkey | 92,497,866 | – | – | 3,387,752 | 3,012,851 | 86,097,263 |
| Subtotal | 648,368,890 | – | – | 33,716,009 | 20,289,394 | 594,363,487 |
| (c) 31 to 55 year term, comprised of several loans with fixed or variable interest rates currently ranging from 0% to 2.21% per annum, with final repayments between December 2018 and December 2033: | ||||||
| Kenya | 4,612,239 | – | – | 278,471 | 159,395 | 4,174,373 |
| Total—Budgetary loans | 653,030,058 | – | 608,071 | 34,432,480 | 20,448,789 | 598,756,860 |
| Subtotal | 921,690,845 | 6,829,294 | 1,036,049 | 66,702,237 | 26,237,763 | 836,616,188 |
| Less: portion expensed due to concessionary terms | 432,382,588 | – | – | 24,187,987 | – | 408,194,601 |
| Total | 489,308,257 | 6,829,294 | 1,036,049 | 42,514,250 | 26,237,763 | 428,421,587 |
Table notes 2The dash means that the amount is 0 or is rounded to 0.Final repayment dates may change if loan amounts are rescheduled or restructured. | ||||||
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.