March 16, 2020

Your CFA Daily Update on COVID-19

EI changes – Waiting period waived

On March 11, 2020, Prime Minister Justin Trudeau announced that the federal government is going to waive the mandatory one-week waiting period for employees to receive employment insurance (EI). For a quarantined worker to be eligible for EI, a doctor, medical health professional or public health official must have imposed or recommended the quarantine.

Employment Insurance (EI) sickness benefits provide up to 15 weeks of income replacement and is available to eligible claimants who are unable to work because of illness, injury or quarantine, to allow them time to restore their health and return to work. Canadians quarantined can apply for Employment Insurance (EI) sickness benefits. If you are eligible, visit the EI sickness benefits page to apply.

Ontario to Protect Workers who Take Leaves from Work

On March 16, Premier Doug Ford announced Ontario will pass legislation that would immediately provide job-protected leave to employees in isolation or quarantine due to COVID-19, or those who need to be away from work to care for children because of school or day care closures.

The proposed legislation would, if passed, provide job protection for employees unable to work for the following reasons:

• The employee is under medical investigation, supervision or treatment for COVID-19.
• The employee is acting in accordance with an order under the Health Protection and Promotion Act.
• The employee is in isolation or quarantine.
• The employee is acting in accordance with public health information or direction.
• The employer directs the employee not to work.
• The employee needs to provide care to a person for a reason related to COVID-19 such as a school or day-care closure.

The proposed legislation would also make it clear that an employee will not be required to provide a medical note if they take the leave. The measures would be retroactive to January 25, 2020, the date that the first presumptive COVID-19 case was confirmed in Ontario.

The detailed release is available at click here. 

BUSINESS RESOURCES

- CFA COVID-19 Resources
- Pandemic preparedness resources for business (Canadian Chamber of Commerce)
- Continuity plan toolkit (Business Development Canada)
- COVID-19 travel advice (Government of Canada)
- Travel advisories (Government of Canada)

Canada shutting the border to most non-citizens due to COVID-19

On March 16, Prime Minister Trudeau announced that Canada is closing its borders on March 18 to most people who are not Canadians or permanent residents to slow the spread of COVID-19. The current closure excludes US citizens because the two countries economies are intertwined.

The government is also restricting overseas flights to just four airports in Toronto, Montreal, Calgary and Vancouver, and mandating airlines to screen passengers for symptoms of the virus before allowing anyone to board a plane.

At this time the border will remain open for the trade of goods. For more information please see a news article posted by CTV News.

Ottawa announces $10 billion business credit line, plans to roll out stimulus package as COVID-19 spreads

On March 13, the federal government outlined a coordinated package of measures being taken by financial sector partners to support the functioning of markets and continued access to financing for Canadian businesses.

Business Credit Availability Program (BCAP) – The program will further support financing in the private sector through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC). Under this program, BDC and EDC will enhance their cooperation with private sector lenders to coordinate financing and credit insurance solutions for Canadian businesses. This will allow BDC and EDC to provide more than $10 billion of additional support to businesses. You can apply for funding through www.BDC.ca or www.EDC.ca

Changes to the Domestic Stability Buffer requirement – The Office of the Superintendent of Financial Institutions (OSFI) is lowering the Domestic Stability Buffer requirement for domestic systemically important banks by 1.25% of risk weighted assets, effective immediately. This action will increase the lending capacity of Canada’s large banks and support the supply of credit to the economy during the period of disruption related to COVID-19. The release of the buffer will support in excess of $300 billion of additional lending capacity.

Bankers’ Acceptance Purchase Facility – The Bank of Canada is committed to providing sufficient liquidity to the Canadian financial system and to supporting business and consumer confidence. The new Bankers’ Acceptance Purchase Facility will support a key funding market for small- and medium-size businesses at a time when they may have increased funding needs and credit conditions are tightening.

Bond buyback program – The Bank of Canada also announced it is broadening the scope of the Government of Canada bond buyback program to add market liquidity and support price discovery. The Bank also committed to proactively support interbank funding by temporarily adding new Term Repo operations with terms of 6 and 12 months, in addition to its regular 1-month and 3-month Term Repo operations.

Standing Term Liquidity Facility – In the near future the Bank of Canada will launch the Standing Term Liquidity Facility (STLF) which was first announced in November 2019. Under the STLF, the Bank could provide loans to eligible financial institutions in need of temporary liquidity support and where the Bank has no concerns about their financial soundness.