On 23 February 20090, the Canadian Government launched a consultation on how to best implement the Canadian Secured Credit Facility (CSCF). Responses from interested parties are due by 6 March 2009.

The CSCF was announced in the budget introduced to Parliament on 27 January 2009 (see Canadian Government publishes proposed budget for 2009 fiscal year), with an allocation of up to CDN$12 billion to purchase term asset-backed securities (ABS) backed by loans and leases on vehicles and equipment.

The consultation paper states that the CSCF is intended to ensure continued access to financing for the purchase and leasing of automobiles, capital equipment, medical equipment and other similar assets. The inclusion of specific reference to capital equipment and medical equipment is a new development.

The Government maintains that the facility will be priced on commercial terms to minimise the risk to taxpayers.

The Department of Finance and the Business Development Bank of Canada (BDC) will jointly proceed with the consultation process with potential participants and interested stakeholders on aspects of the CSCF. The CSCF will be managed by BDC and administered within parameters jointly developed by the Department of Finance and BDC following the consultation process.

The Government is seeking comments on several aspects of the facility, including:

Further details on the consultation and the structuring of the CSCF are available on the BDC's website.