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Ontario has “financial firepower” to provide pandemic support-Reuters’ new finance minister

© Reuters.File photo: A man passes through Terminal 3 at Pearson Airport as cases of coronavirus disease (COVID-19) surge.

Fergal Smith

Toronto (Reuters)-Ontario has the financial capacity to support the economy during a coronavirus pandemic, Canada’s most populous state’s new finance minister told Reuters on Tuesday, debt sustainability is another. He added that it was a priority.

“Financial sustainability in this state is our focus in the long run, but now it’s important for us to protect people’s health and well-being,” Peter Bethren Falby said in an interview.

Bethlen Falby was appointed Finance Minister of Ontario last Thursday to replace Rod Phillips, who resigned after public anger over a vacation in the Caribbean last month.

“We have the ability to provide financial firepower to keep the people of Ontario safe,” said Chairman of the Finance Commission, formerly at financial sector companies such as Manulife Financial (NYSE :) Corp and TD Securities. Bethlen Falby, who worked, said.

Ontario, one of the world’s largest subsovereign borrowers, forecasts a record budget deficit of C $ 38.5 billion ($ 30.4 billion) in November 2020-21, increasing pandemic spending. Further shortages were expected in the future.

Yields on Ontario 10-year bonds fell about 80 basis points from March last year to 1.34%, thanks to the Bank of Canada’s interest rate cuts and the central bank’s municipal bond purchase program.

Last month, DBRS Morningstar, a credit rating agency that gave Ontario the fourth highest rating of AA (low), said negative rating behavior could be the result of the government’s failure to reduce its budget deficit in the medium term. Said there is.

Like the rest of Canada, Ontario is back with a coronavirus infection. The blockade began on December 26 to curb the spread of viruses that could put pressure on the economy.

Bethlen Falby said the state is using the reserves secured by the November budget and has been transferring from the federal government to health care since being appointed Finance Minister Chrystia Freeland of Canada. He added that he was talking about the potential for growth.

“We are very clear about Canada’s healthcare transfer to support our healthcare system, which is our number one priority,” said Bethlen Falby. “The population is aging and a pandemic is occurring.”

($ 1 = 1.2666 Canadian dollars)

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Ontario has “financial firepower” to provide pandemic support-Reuters’ new finance minister Ontario has “financial firepower” to provide pandemic support-Reuters’ new finance minister

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