The federal government said Friday it would inject up to another $25-billion of liquidity into the financial system through the purchase of insured mortgage pools.
In a speech delivered in Ottawa, Jim Flaherty, the Minister of Finance, said the move is aimed at maintaining the availability of long-term credit, which is under severe strain at present as banks are unwilling to lend to each other.
"It is becoming increasingly clear that the continuing disruption of global credit markets, which has been severe and protracted, is making it difficult for our financial institutions to raise long-term funding. This is beginning to affect the availability of mortgage loans and other types of credit in Canada," Mr. Flaherty said.
Read the whole story here: http://www.nationalpost.com/news/canada/story.html?id=873182
No comments:
Post a Comment