Canada faces "string of bad news" in 2009: BoC

Thu Mar 5, 2009 9:56am EST
 
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OTTAWA (Reuters) - Canada faces a string of bad news in the coming months and needs to ensure that Ottawa's plans to increase the amount of credit that major government-owned entities can issue are realized soon, a senior Bank of Canada official said on Thursday.

"I agree there is a sense of urgency. Very clearly we will be hit by a string of bad news in the coming months," said Bank of Canada deputy governor Pierre Duguay when asked about the government plans.

"What is absolutely critical is to maintain business and public confidence and clearly access to credit is essential in that situation," he told the House of Commons finance committee.

(Reporting by David Ljunggren; editing by Janet Guttsman)

 
<p>The Bank of Canada building is pictured in Ottawa March 3, 2009. REUTERS/Chris Wattie</p>