CALGARY – The Canadian government announced C$1.5-billion in loans for the oil and gas sector, as well as some government funding for unspecified projects, after a supply glut sank heavy crude prices to as low as $13.46 a barrel last month. The country’s Energy and Trade Ministers announced the aid Tuesday morning in Edmonton. It includes “commercial financial support” loans of C$1-billion from Export Development Canada, and C$500-million in commercial financing from the Business Development Bank of Canada. While the funds are available immediately, the package was criticised as insufficient by Alberta’s premier. The EDC money will be aimed at exporters, including those who have “working capital needs,” while the C$500-million will be for “higher risk but viable oil and gas small business enterprises,” and be spread over three years, according to a government statement. “All in all, it has to do with liquidity,” Trade Minister Jim Carr said at a press conference. The loan money can augment oil producers’ relationship with commercial banks and “will go a long way in helping them get through this tough spot.” The liquidity injection is aimed at producers pinched when the price of heavy crude plunged in what Prime Minister Justin Trudeau […]
