EDC to increase financial capacity to help oil and gas companies access liquidity
As part of a Team Canada response to the COVID-19 crisis, the Government of Canada, through Export Development Canada (EDC) and the Business Development Bank of Canada (BDC), will make available added financial capacity to help support Canada's oil and gas sector.
The commercial support, to be provided through EDC and BDC, is intended to help Canada's exploration and production, mid-stream, and oil-field companies navigate these uncertain times. The support is aimed at helping bring liquidity into the market in order to manage the challenges companies are facing due to the global pandemic and decline in oil prices.
"EDC recognizes the considerable strain on Canada's oil and gas sector that is resulting from the economic impact of this global pandemic and other market-based conditions. We will support Canada's energy sector during these incredibly challenging times. In doing so, we are supporting the hundreds of thousands of Canadians who work in this sector and their families," said Carl Burlock, Chief Business Officer, EDC.
As part of the Government of Canada's economic response plan, EDC will increase its financial capacity over 12 months to support Canada's oil and gas sector. This business support will be provided through EDC's lending, bonding and accounts receivable insurance products. For those wishing to access support, they are encouraged to reach out to their financial institution for more information.
"As an important driver of the Canadian economy, it's important that we do our part to support Canada's oil and gas companies during the crisis. This is part of our commitment to support Canadian companies of all sizes, in every sector. EDC will continue to work with our government and financial industry partners to be responsive to the needs of Canadian companies during these challenging times," said Burlock.
This support for qualifying Canadian oil and gas companies is in addition to other EDC and BDC programs that companies can access through their financial institutions such as financial solutions under the Business Credit Availability Program (BCAP) and interest-free loans for small businesses and not-for-profits available under Canada Emergency Business Account (CEBA). The BCAP and CEBA relief programs are focused on providing much needed liquidity to small- and medium-sized companies.
EDC and BDC, both of which are financially sustainable Crown corporations, are working together to respond to the needs of Canadian companies during the COVID-19 pandemic. Working in partnership with the Government of Canada and private and public sector partners, they are using each other's strengths and products and services to help Canadian businesses navigate these extraordinary times. Together, they will help provide emergency economic relief to mitigate the economic impact on Canadian businesses.
To further help Canadian businesses facing extreme financial challenges brought on by the global response to COVID-19, the Government of Canada hasuntil December 31, 2021. This broader mandate will enable EDC to expand its support to companies focused domestically.