June 17, 2015 / 3:09 PM / 3 years ago

Report advocates winding down Canada retail savings bond program

OTTAWA, June 17 (Reuters) - A report commissioned by the Canadian government recommended on Wednesday that the government wind down its Retail Debt Program, which runs the Canada Savings Bonds and Canada Premium Bonds.

“The evaluation found that ... there is currently no valid economic rationale for the Retail Debt Program. It is no longer a net source of funds for the government, since it has been necessary since 1987 to borrow on the wholesale market to fund the net yearly redemptions,” the KPMG report said.

It said that if the government did not wind the program down, its fall-back recommendation is a no-frills version which would eliminate the costly payroll sales channel and would maintain a cash sales channel. (Reporting by Randall Palmer; Editing by Meredith Mazzilli)

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