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 9.11
National governments including developing countries
(in dollars)
  April 1, 2019 Payments and other charges Receipts and other credits March 31, 2020
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 84,713,401 13,276,741 27,280,230 70,709,912
Export Development Canada
Development of export trade—National governments 397,159,530 59,093,628 76,816,402 379,436,756
Subtotal 481,872,931 72,370,369 104,096,632 450,146,668
National Defence
Department of National Defence
Damage claims recoverable—North Atlantic Treaty Organization 3,531 – 3,531 –
Total 881,876,462 72,370,369 504,100,163 450,146,668

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.

The loan was reimbursed in full during the year.

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 2010, the Government of Pakistan's debt been reduced by the total amount of $427,345,514.

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, 2019 Payments and other charges Receipts and other creditsLink to footnote 1 March 31, 2020
(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 35,736,670 – 4,035,685 31,700,985
(b) 50 year term, 10 year grace period, non-interest bearing, with final repayments between March 2015 and September 2035:
Algeria 2,091,460 – 604,025 1,487,435
Bolivia 127,185 – 42,380 84,805
Dominican Republic 1,145,346 – 236,046 909,300
Ecuador 903,296 – 273,808 629,488
Guatemala 781,250 – 100,000 681,250
Indonesia 73,962,963 – 9,836,389 64,126,574
Malaysia 795,422 – 53,028 742,394
Malta 124,980 – 25,000 99,980
Morocco 2,261,871 – 462,001 1,799,870
Pakistan 20,162,020 – – 20,162,020
Philippines 577,516 – 145,739 431,777
Sri Lanka 36,913,109 – 4,105,457 32,807,652
Thailand 7,019,919 – 674,621 6,345,298
Tunisia 17,307,417 – 4,818,414 12,489,003
Subtotal 164,173,754 – 21,376,908 142,796,846
(c) 50 year term, 13 year grace period, non-interest bearing, with final repayment in March 2023:
Algeria 5,602,911 – 1,867,637 3,735,274
Subtotal 205,513,335 – 27,280,230 178,233,105
Less: portion expensed due to concessionary terms 120,799,934 – 13,276,741 107,523,193
Total 84,713,401 – 14,003,489 70,709,912

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, 2019 Payments and other charges Receipts and other credits March 31, 2020
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 64,913,690 – 832,309 29,659,197 – 36,086,802
(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 102,708,860 – 4,829,607 11,363,250 – 96,175,217
(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 488,593 – 10,170 274,973 – 223,790
(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 233,935 – 7,484 86,538 – 154,881
Venezuela 2,613,152 – 139,635 – – 2,752,787
Subtotal 2,847,087 – 147,119 86,538 – 2,907,668
(e) 21 to 25 year term, 9.0% to 10.0% interest per annum, with final repayments in September 2000:
Sudan 5,160,415 – 275,747 – – 5,436,162
(f) 21 to 25 year term, interest based on LIBOR, plus 0.55% per annum, with final repayments in November 2024:
Pakistan 6,028,629 – 283,889 659,922 – 5,652,596
(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 13,266,708 – 620,342 1,527,973 – 12,359,077
Total—Non-budgetary loans 195,413,982 – 6,999,183 43,571,853 – 158,841,312
Budgetary loansLink to footnote 4
(a) 31 to 55 year term, 0% to 10.29% interest per annum, with final repayments between September 2029 and February 2045:
China 370,567,996 – 18,450,577 23,303,787 – 365,714,786
Egypt 6,596,658 – 113,902 350,766 – 6,359,794
Gabon 7,127,832 – 361,649 330,014 – 7,159,467
India 42,128,133 – 2,152,205 1,706,534 – 42,573,804
Jamaica 4,767,675 – 240,650 243,450 – 4,764,875
Morocco 67,542,164 – 3,411,182 3,414,939 – 67,538,407
Turkey 85,646,945 – 4,366,208 3,628,952 – 86,384,201
Subtotal 584,377,403 – 29,096,373 32,978,442 – 580,495,334
(b) 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 4,008,757 – 198,784 266,107 – 3,941,434
Total—Budgetary loans 588,386,160 – 29,295,157 33,244,549 – 584,436,768
Subtotal 783,800,142 – 36,294,340 76,816,402 – 743,278,080
Less: portion expensed due to concessionary terms 386,640,612 – – – 22,799,288 363,841,324
Total 397,159,530 – 36,294,340 76,816,402 (negative 22,799,288) 379,436,756

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.

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