A Canadian law that will limit the total number of foreigners on the country’s national debt has been hailed as a step in a “right direction” by one of the countrys largest banks.
Aboriginal Affairs Minister Maryam Monsef said Tuesday the measure would help to “reduce” Canada’s debt burden.
“We are talking about an economy that is not going to grow any faster if we are not prepared to take some action to increase our economic competitiveness,” Ms. Monseff said at a news conference.
The announcement came after Finance Minister Bill Morneau said last month that he wanted to make sure Canada was “looking at ways to reduce” the number it holds on the debt.
In a statement, a spokeswoman for TD Canada Trust said the bank would not be able to speculate on the impact of the new rules on its loan portfolio.
This would include its foreign equity loan portfolio, which it holds to buy the mortgage insurance it has underwritten.
But the bank is looking at how it can increase its foreign portfolio, the spokeswoman said, adding that it is “currently looking at our business portfolio and whether we can increase the portfolio of foreign equity mortgages we are in.”
Canada is currently in the midst of an election campaign in which the government is running on an aggressive platform to build on the economic recovery and to boost Canada’s foreign investment.
Last month, the government unveiled a plan to increase the number, size and scope of foreign investments that it has undertaken to help Canada’s economy grow.
It has also said it will be raising the foreign direct investment cap to $2.3 billion per year.