Ottawa has written off more than $128.6 million in bad loans through regional development agencies last year, most of it tied to pandemic relief programs that auditors had already flagged for weak oversight.Blacklock's Reporter said the largest chunk came from Prairies Economic Development Canada, which reported 498 defaults worth $38.1 million under the Regional Relief and Recovery Fund. Quebec’s regional development agency wrote off $34.7 million across 116 defaults, warning that as much as 40% of loans under the program could eventually be lost.Pacific Economic Development Canada reported 229 defaults worth $29 million, with 94% linked to pandemic relief. The Atlantic Canada Opportunities Agency admitted to $22 million in losses from 66 defaults. Northern Ontario’s agency recorded $4.7 million in defaults on 15 loans..The figures were disclosed in Parliament in response to a request from Conservative MP Pat Kelly.The Parliamentary Budget Office had repeatedly cautioned about the risks. Former budget officer Yves Giroux said there was “limited disclosure” on billions in financial exposure and warned MPs that Canadians “need better information.”At the height of the pandemic, Crown lenders rushed out $236 billion in loans and guarantees, including $5 billion through Farm Credit Canada, $20 billion from the Business Development Bank, $61 billion from Export Development Canada and $150 billion in mortgages bought by CMHC.A 2020 Budget Office report noted that while Ottawa acted as the sole shareholder for Crown lenders, reporting on the “probable or potential budgetary costs” of these programs was lacking. It warned that defaults carried “material specific risks” for taxpayers..Due to a high level of spam content being posted in our comment section below, all comments undergo manual approval by a staff member during regular business hours (Monday - Friday). Your patience is appreciated.
