Speech (House debate)

{
    "time": "2024-09-16 15:35:00",
    "attribution": {
        "en": "Hon. Chrystia Freeland (Deputy Prime Minister and Minister of Finance, Lib.)",
        "fr": "L\u2019hon. Chrystia Freeland (vice-premi\u00e8re ministre et ministre des Finances, Lib.)"
    },
    "content": {
        "en": "<p data-HoCid=\"8549048\">Mr. Speaker, in response to part (a) of the question, the government conducted its first purchase of Canada mortgage bonds, or CMBs, on February 14, 2024.</p>\n<p data-HoCid=\"8549049\">With respect to part (b), to date, the government has purchased $11 billion of Canada mortgage bonds. More details on Canada mortgage bonds purchased by the government are available at the Bank of Canada website at https://www.bankofcanada.ca/markets/canada-mortgage-bonds-government-purchases-and-holdings/.</p>\n<p data-HoCid=\"8549050\">As of May 31, 2024, the market value of the government\u2019s CMB portfolio was equivalent to $11.1 billion.</p>\n<p data-HoCid=\"8549051\">Although the government tracks the fair value of its CMB portfolio, CMBs are accounted for at amortized cost, not at their fair value. Consequently, movement in CMB value has no financial impact on the portfolio.</p>\n<p data-HoCid=\"8549052\">With respect to part (c), the government does not expect any incremental losses on these holdings due to existing federal government guarantees. It does not expect defaults or write offs.</p>\n<p data-HoCid=\"8549053\">Furthermore, for a variety of reasons, mortgage default rates in Canada have historically been low.</p>\n<p data-HoCid=\"8549054\">Given all these structures in place, there has not been a default on CMBs since the introduction of the program in 2001.</p>\n<p data-HoCid=\"8549055\">With respect to part (d), due to the existing guarantee mechanisms in place that protect CMBs against default risk and that significantly mitigate risk, the purchase of CMBs does not increase the government\u2019s risk exposure. </p>",
        "fr": "<p data-HoCid=\"8549048\">Monsieur le Pr\u00e9sident,en r\u00e9ponse \u00e0 la partie a) de la question, le gouvernement a effectu\u00e9 son premier achat des Obligations hypoth\u00e9caires du Canada, ou OHC, le 14 f\u00e9vrier 2024.</p>\n<p data-HoCid=\"8549049\">En ce qui a trait \u00e0 la partie b), \u00e0 ce jour, le gouvernement a achet\u00e9 11 milliards de dollars d\u2019OHC. Pour obtenir plus de d\u00e9tails sur les OHC achet\u00e9s par le gouvernement, on peut consulter le site Web de la Banque du Canada \u00e0 https://www.banqueducanada.ca/marches/obligations-hypothecaires-du-canada-achats-et-avoirs-du-gouvernement/.</p>\n<p data-HoCid=\"8549050\">En date du 31 mai 2024, la valeur marchande du portefeuille d\u2019OHC du gouvernement \u00e9quivalait \u00e0 11,1 milliards de dollars.</p>\n<p data-HoCid=\"8549051\">Bien que le gouvernement fasse le suivi de la juste valeur de son portefeuille d\u2019OHC, les OHC sont comptabilis\u00e9es au co\u00fbt amorti et non \u00e0 leur juste valeur. Par cons\u00e9quent, les fluctuations de la valeur des OHC n\u2019ont aucune r\u00e9percussion financi\u00e8re sur le portefeuille.</p>\n<p data-HoCid=\"8549052\">Au sujet de la partie c), le gouvernement ne s\u2019attend pas \u00e0 ce qu\u2019il y ait des pertes sur ces avoirs en raison des garanties du gouvernement f\u00e9d\u00e9ral. Par cons\u00e9quent, on ne s\u2019attend pas \u00e0 des d\u00e9fauts de paiement ou de la radiation de valeur.</p>\n<p data-HoCid=\"8549053\">En outre, pour diff\u00e9rents motifs, les taux de d\u00e9faut de paiement au Canada ont toujours \u00e9t\u00e9 bas.</p>\n<p data-HoCid=\"8549054\">\u00c9tant donn\u00e9 toutes ces structures en place, il n\u2019y a pas eu de d\u00e9faut de paiement des OHC depuis l\u2019introduction du programme en 2001.</p>\n<p data-HoCid=\"8549055\">Relativement \u00e0 la partie d), gr\u00e2ce aux m\u00e9canismes de garantie en place qui permettent de prot\u00e9ger les OHC contre le risque de d\u00e9faut de paiement et de diminuer leur risque, l\u2019achat des OHC n\u2019augmente pas de mani\u00e8re significative l\u2019exposition au risque du gouvernement.</p>"
    },
    "url": "/debates/2024/9/16/chrystia-freeland-8/",
    "politician_url": "/politicians/chrystia-freeland/",
    "politician_membership_url": "/politicians/memberships/4261/",
    "procedural": false,
    "source_id": "p8549048",
    "h1": {
        "en": "Routine Proceedings",
        "fr": "Affaires courantes"
    },
    "h2": {
        "en": "Questions on the Order Paper",
        "fr": "Questions au Feuilleton"
    },
    "h3": {
        "en": "Question No.2762\u2014",
        "fr": "Question no 2762 \u2014"
    },
    "document_url": "/debates/2024/9/16/",
    "related": {
        "document_speeches_url": "/speeches/?document=%2Fdebates%2F2024%2F9%2F16%2F"
    }
}