Ottawa unveils two-pronged approach in bid to stimulate economic growth
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TORONTO — The federal government unveiled a two-pronged effort Thursday aimed at improving Canada’s ability to foster growth at a time when a rising tide of protectionism threatens to hurt the country’s economy.
Canada’s biggest banks and other financial institutions launched a fund of up to $1 billion over 10 years to help small- and medium-sized companies access capital to expand their businesses.
The fund, which will be financed by the private sector and aims to fill the gap between angel investors and the public markets, will start at $500 million for the first year. It follows a recommendation issued last month by a federal panel advising Finance Minister Bill Morneau on economic growth.
“This effort of the banks and other institutions to come together is one that we’ve been pleased to be involved with, of course, but it’s really been a bank-, insurance company- and fund-led initiative, to seek a way to provide capital, patient capital, that will make an important, long-term difference for our country,” Morneau told a news conference in Toronto.
