|IMF Supports Canada’s Plan to Return to Budget Balance|
The Honourable Jim Flaherty, Minister of Finance, today welcomed the International Monetary Fund’s (IMF) annual review of Canada and their support for the Government’s plan to return to balanced budgets in the medium term.
“Thanks to our sound and stable economy and measures taken in the Next Phase of Canada’s Economic Action Plan, the IMF is maintaining its positive outlook for Canada,” said Minister Flaherty. “Given that global economic growth has weakened, the IMF continues to support our flexible and pragmatic approach to returning to balanced budgets in the medium term.”
The 2011 Article IV Mission to Canada statement endorses the measures taken by the Government to promote the long-term stability of Canada’s housing market, including changes in the rules for government-backed insured mortgages.
The statement also confirms that Canada’s financial sector is solid, noting the Government’s “high prudential standards and rigorous supervision.”
The statement recognizes Canada’s substantial progress in advancing international and domestic financial sector reforms, and notes that Canada’s banks are “well capitalized for the transition to Basel III requirements.”
The IMF also welcomes the Government’s intention to launch a Canadian securities regulator. “The regulation of security markets at the national level would strengthen oversight and enrich an already strong institutional financial stability framework,” it concluded.
The IMF reviews the economic developments and policies of each member country, usually on an annual basis. The IMF’s report is released at the discretion of the country being reviewed. The Government supports this release in recognition of the importance of the IMF’s surveillance activities, and as an expression of Canada’s commitment to ensuring that these activities are transparent.
The IMF’s full statement on Canada, which will be followed by a full report later this year, can be found on the IMF website at www.imf.org.
Mary Ann Dewey-Plante 10/31/2011