Export Development Canada (EDC) said it was unsure of recovering millions of dollars it loaned for aircraft engines at an insolvent Mexican carrier, according to Blacklock’s Reporter. .“Whether, and to what extent, Export Development Canada may suffer financial losses in relation to this transaction is unknown at this time,” said EDC in a statement. .The Parliamentary Budget Office (PBO) has sought greater disclosure of loan losses by Crown banks such as EDC, which would not disclose the value of loans at risk, citing confidentiality under the Export Development Act. .It approved financing to sell Pratt and Whitney Canada turboprop engines to Mexican airline Transportes Aeromar. .“The underlying motivation for Export Development Canada to engage in this transaction was to support the Canadian aerospace industry,” it said. .EDC petitioned a Mexican court in February to seize three aircrafts after Aeromar faced insolvency. It was grounded one week later due to a series of financial problems, including a large tax liability with the Mexican government. .It would not disclose terms of the Aeromar deal. .“The Export Development Act classifies all information obtained in relation to our customers as privileged,” it said..The PBO complained in a 2020 report there was no way for taxpayers to gain a true picture of write-offs and delinquent loans through Crown agencies such as EDC, Farm Credit Canada, the Business Development Bank, and other lenders. PBO analysts said expected losses in Crown corporations have not been calculated. .It said each enterprise Crown corporation possesses key data and expertise. It added they should "furnish projections of program size and gains or losses to Parliament.".Budget Officer Yves Giroux said it had “limited disclosure to parliamentarians and Canadians on the billions in potential financial exposure from these programs.”.“Parliamentarians and Canadians need better information,” said Giroux. .The PBO has repeatedly warned Crown banks guaranteed loans with little public oversight..A 2015 report estimated banks’ loan guarantees at the time totalled $256.7 billion.
Export Development Canada (EDC) said it was unsure of recovering millions of dollars it loaned for aircraft engines at an insolvent Mexican carrier, according to Blacklock’s Reporter. .“Whether, and to what extent, Export Development Canada may suffer financial losses in relation to this transaction is unknown at this time,” said EDC in a statement. .The Parliamentary Budget Office (PBO) has sought greater disclosure of loan losses by Crown banks such as EDC, which would not disclose the value of loans at risk, citing confidentiality under the Export Development Act. .It approved financing to sell Pratt and Whitney Canada turboprop engines to Mexican airline Transportes Aeromar. .“The underlying motivation for Export Development Canada to engage in this transaction was to support the Canadian aerospace industry,” it said. .EDC petitioned a Mexican court in February to seize three aircrafts after Aeromar faced insolvency. It was grounded one week later due to a series of financial problems, including a large tax liability with the Mexican government. .It would not disclose terms of the Aeromar deal. .“The Export Development Act classifies all information obtained in relation to our customers as privileged,” it said..The PBO complained in a 2020 report there was no way for taxpayers to gain a true picture of write-offs and delinquent loans through Crown agencies such as EDC, Farm Credit Canada, the Business Development Bank, and other lenders. PBO analysts said expected losses in Crown corporations have not been calculated. .It said each enterprise Crown corporation possesses key data and expertise. It added they should "furnish projections of program size and gains or losses to Parliament.".Budget Officer Yves Giroux said it had “limited disclosure to parliamentarians and Canadians on the billions in potential financial exposure from these programs.”.“Parliamentarians and Canadians need better information,” said Giroux. .The PBO has repeatedly warned Crown banks guaranteed loans with little public oversight..A 2015 report estimated banks’ loan guarantees at the time totalled $256.7 billion.
