International Financial Assistance Act (S.C. 2018, c. 27, s. 659)

Short Title

Marginal note:Short title

1 This Act may be cited as the International Financial Assistance Act.

Interpretation

Marginal note:Definition of competent minister

2 In this Act, competent minister means the Minister of Foreign Affairs, or the Minister for International Development for the purposes of the role described in section 4 of the Department of Foreign Affairs, Trade and Development Act.

International Financial Assistance

Marginal note:International assistance — sovereign loans

• 3 (1) Subject to the regulations, for the purpose of supporting a federal sovereign loans program, the competent minister may

  • (a) make loans to a foreign state or to any person or entity;

  • (b) acquire and hold security or a security interest, including, in Quebec, a right in a security, of any kind and in any form, for the due discharge of obligations with respect to loans under paragraph (a);

  • (c) surrender the security, security interest or right in the security and acquire and hold, in exchange, a security or security interest, including, in Quebec, a right in a security, of any kind and in any form;

  • (d) realize the security, security interest or right in the security made, acquired and held for the due discharge of obligations with respect to loans made under paragraph (a);

  • (e) exchange, assign, sell or otherwise dispose of the security, security interest or right in the security, of any kind and in any form, for the due discharge of obligations with respect to loans under paragraph (a); and

  • (f) acquire, hold, assign, exchange, sell or otherwise dispose of shares within the meaning of paragraph 90(5)(e) of the Financial Administration Act.

• Marginal note:Guarantee of sovereign loan

  (2) Unless a loan referred to in paragraph (1)(a) is made to the government of a foreign state, it must be guaranteed by the government of a foreign state benefiting from the loan in favour of Her Majesty in right of Canada.

Marginal note:Innovative financing

4 Subject to the regulations, for the purpose of supporting a federal program that promotes international assistance through the use of innovative financing, the competent minister may, directly or indirectly,

• (a) guarantee, in whole or in part, any obligation undertaken by a person or entity;

• (b) acquire and hold security or a security interest, including, in Quebec, a right in a security, of any kind and in any form, for the due discharge of obligations guaranteed under paragraph (a);

• (c) surrender the security, security interest or right in the security and acquire and hold, in exchange, a security or security interest, including, in Quebec, a right in a security, of any kind and in any form;

• (d) realize the security, security interest or right in the security made, acquired and held with respect to obligations guaranteed under paragraph (a);

• (e) exchange, assign, sell or otherwise dispose of the security, security interest or right in the security, of any kind and in any form, for the due discharge of obligations guaranteed under paragraph (a); and

• (f) acquire, hold, assign, exchange, sell or otherwise dispose of shares within the meaning of paragraph 90(5)(e) of the Financial Administration Act.

Marginal note:Program for climate change

5 Subject to the regulations, for the purpose of supporting a federal international assistance program that promotes the mitigation of or adaptation to climate change through repayable contributions, the competent minister may, directly or indirectly, acquire, hold, assign, exchange, sell or otherwise dispose of shares within the meaning of paragraph 90(5)(e) of the Financial Administration Act.

Marginal note:Fees and interest

• 6 (1) The competent minister may charge fees and interest as determined under the regulations for the purposes of sections 3 and 4.

• Marginal note:Service Fees Act

  (2) For greater certainty, the Service Fees Act does not apply to any fees or interest referred to in subsection (1).

Marginal note:Provisions no longer applicable

• 7 (1) The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply with respect to the exercising and carrying out of the powers, duties and functions conferred to the competent minister under paragraphs 3(1)(b) to (f) and 4(b) to (f) and section 5.

• Marginal note:Provision no longer applicable

  (2) For the purposes of section 90 of the Financial Administration Act, shares of a corporation that on acquisition would be held by, on behalf of or in trust for Her Majesty in right of Canada, may be acquired for the purposes of sections 3 to 5.

Marginal note:Foreign exchange loss

7.1 Any foreign exchange loss in respect of any transaction entered into in relation to a program referred to in section 3, 4 or 5 must be charged to the Consolidated Revenue Fund.

Marginal note:Maximum payment

• 7.2 (1) The competent minister may, in relation to a program referred to in section 4 or 5, make payments not exceeding $720,000,000 in the aggregate, or any greater amount that is specified in an appropriation Act, to Development Finance Institute Canada.

• Marginal note:Payments out of Consolidated Revenue Fund

  (2) Any amount payable under subsection (1) may be paid by the competent minister out of the Consolidated Revenue Fund, at the times and in the manner that the minister considers appropriate.

• Marginal note:Separate account

  (3) Development Finance Institute Canada must maintain a separate account of

  • (a) all amounts received under subsection (1); and

  • (b) all amounts received by way of receipts and recoveries, and all disbursements made, in connection with all transactions involving the amounts received under subsection (1).

• Marginal note:Repayments

  (4) The competent minister may require Development Finance Institute Canada to pay to the Receiver General for credit to the Consolidated Revenue Fund any amount referred to in subsection (3) at the times and in the manner that the minister considers appropriate.

• Marginal note:Definition of Development Finance Institute Canada

  (5) In this section, Development Finance Institute Canada means Development Finance Institute Canada (DFIC) Inc., a corporation incorporated under the Canada Business Corporation Act, or any successor to that corporation.

Regulations

Marginal note:Regulations

• 8 (1) The Governor in Council may, on the recommendation of the Minister of Foreign Affairs and the Minister for International Development and with the concurrence of the Minister of Finance, make regulations for the purposes of sections 3 to 6, including regulations

  • (a) prescribing eligibility criteria for recipients;

  • (b) establishing the maximum loan term, the terms and conditions of repayment and the manner in which applicable rates of interest are set;

  • (c) prescribing the type of security referred to in paragraphs 3(1)(b) to (e) and 4(b) to (e);

  • (d) prescribing the circumstances and the manner in which shares may be acquired, held, assigned, exchanged, sold or otherwise disposed of;

  • (e) prescribing the maximum amount of outstanding guarantees;

  • (f) prescribing the applicable fees or the manner in which fees are set, circumstances in which they are required and the manner in which fees are paid; and

  • (g) providing that certain transactions or classes of transactions require consultation with or the approval of the Minister of Finance.

• Marginal note:Classes

  (2) The regulations may establish classes of securities or guarantees and distinguish among those classes.

Marginal note:Regulations

9 The Governor in Council may, on the recommendation of the Minister of Foreign Affairs and the Minister for International Development and with the concurrence of the Minister of Finance, make regulations for the purposes of section 7.2.