Insolvencies in Canada now as high as during the financial crisis: Report
Personal insolvencies become more common when interest rates rise. In Canada, people are filing for insolvency at a higher rate than usual. According to The Toronto Star, experts are saying that we haven’t had this many instances since the financial crisis in 2008-09.
President of the Canadian Association of Insolvency and Restricting Professionals, Grant Christensen said, “It’s fairly clear what’s going on. There’s a close correlation between interest rates and insolvencies.”
Middle-class Canadians will save $1.73 a week under the Liberal Government’s new middle-class tax cut, totalling out to $90 dollars a year.
“We are lowering taxes for middle-class families and people working hard to join them, which means more money that can be used to do things like buy healthy food, send kids to camp,” said Middle-Class Prosperity Minister Mona Fortier to the Commons Friday. “This is just the next step in our plan to make life more affordable for middle-class Canadians.”
According to Blacklock’s reporter, parliament passed Bill C-2 that would raise the basic personal exemption for tax filers by roughly $3,000 from $12,298 to $15,000 annually by 2023.
“We know that will have an important impact,” said Finance Minister Bill Morneau. “It’s a very significant measure.”
“The government is trying to get extraordinary credit for what is really a very modest tax cut,” said MP Pat Kelly (Calgary Rocky Ridge), deputy Conservative finance critic to Blacklocks. “It’s a tax cut, and I support cutting taxes for Canadians, but this isn’t going to help Canadians get ahead anywhere near to the extent this government is claiming.”
“The budget resembles marketing documents rather than giving Canadians accurate and clear information about what the government actually plans to do,” said Kelly.
A January cost report found that people earning between $104,000 AND $159,000 will benefit most.
“The Liberals are taking from the poor and giving it to the rich,” said MP Peter Julian. “They have got Robin Hood backwards.”
Central banks around the world have been discussing the possibility of digital currencies as the use of cash continues to dwindle in lieu of electronic and online payment systems, according to CTV News.
The Bank of Canada has joined the study group alongside the European Central Bank, the Bank of Japan, the Bank of England, the Swedish Riskbank and the Swiss National Bank.
The Swedish central bank began studying the issue several years ago and has already implemented a pilot project to deal with the country’s declining use of cash however they haven’t reached a final conclusion on whether or not to keep the project. The Bank of Canada stated in a press release that they will assess the potential for digital currencies in their home jurisdictions.
Bitcoin and other cryptocurrencies currently in circulation are not suited for paying for things because their value can fluctuate too quickly. The Libra project, backed by Facebook, is a digital currency that has been called a stable-coin because it is tied to existing currencies. The major backers in Bitcoin such as Visa, MasterCard, PayPal and eBay have all left the association in order to oversee Libra as it comes under fire from regulatory authorities.
The goal of the group is to assess technical issues and share their knowledge of impending technologies. Benoit Coeure, a former top ECB official and Jon Cunliffe, deputy governor of the Bank of England will serve as the group’s co-chairs.
Desjardins Group has announced that they are buying the portfolio of Le Capitale, moving 6376 mortgages transferred over to the company. The transaction will be in early February according to a recent press release.
“I’m proud of this acquisition, which solidifies Desjardins’s position as a leader in the residential mortgage market,” said Guy Cormier, President and CEO of Desjardins Group. “It’s a high-quality portfolio from La Capitale that fits perfectly with Desjardins’s expansion objectives, which include seeking out acquisitions to maximize synergies within our organization. We’ll continue to pursue attractive growth opportunities in our primary markets.”
Mortgage holders currently with Le Capitale will receive a letter after February 3 to make them aware of the transfer and welcome them aboard with Desjardins. The transfer requires no action on the part of the holder and their loans will be moved automatically with no change to the conditions of their financing.
Desjardins is opening a new support centre dedicated to the questions of their mortgage holders. The financial cooperative is committed to delivering excellent customer service and provides personalized support for new members.
Desjardins Group has assets of $312.5 billion, making them the fifth largest cooperative financial group in the world and the leading group in Canada. It’s good for Canadian employment as well, rated one of Canada’s Top 100 Employers according to Mediacorp. Offering a full range of products and services, it has been highly ranked among the strongest banks in the world by The Banker Magazine.
Fifty percent of Canada’s population is on the verge of insolvency, a recent survey has found.
According to the latest MNP Consumer Debt Index published today, 50 percent of survey respondents answered that they were within $200 of being unable to pay their bills. Forty-nine percent of respondents also said that they didn’t have full confidence “in their ability to cover expenses without going deeper in debt.”
“Our findings may point to a shift among some Canadians from debt apathy to debt hopelessness. Feelings of hopelessness can make people feel like giving up on ever paying down their debt or, worse, ignoring the debt as it piles up higher,” said MNP President Grant Bazian.
Statistics Canada has previously released similar data which also paints a grim picture for Canadians. According to their most recent figures, the seasonally-adjusted credit market debt to disposable income ratio has continued to climb, now to 171.84—this would mean that for every dollar of disposable income, Canadians carry $1.72 of debt.
The Bank of Canada is set to release its next interest rate figure on Wednesday.