Remember the recession of 2009? It's hard not to - the economy was shot, jobs were lost, and Canada still hasn't finished picking up the pieces.

Businesses all over the country were hit hard and it wasn't pretty. However, one company impacted by the recession got quite the financial boost from the Canadian government. Or, should I say Canadian taxpayers?

In a report by CBC, it was revealed today that the Liberal government wrote off a $2.6 billion auto-sector loan. It was lent to Chrysler by the Harper government in co-operation with the Ontario government back in 2009 to bail them out of Canada's economic crisis.

Documents in the 2018 Public Accounts of Canada reveal that there has been no official explanation for the write-off. The loan, which has grown in interest over the last nine years, has been considered "non-performing" - meaning it hasn't seen any repayment from Chrysler.

John Babcock of Global Affairs Canada said this, "After exhausting all potential avenues for recovery, a $1.125 billion US principal plus accrued interest write-off in respect of 'Old Chrysler' occurred in March."

While that's pretty much the extent of what we know about the write-off, we also know that it's among the largest ever for a taxpayer-funded bailout.

Canadians might also recall that the government bailed out General Motors back in 2009. They currently have an outstanding loan of $1 billion. One of the kickers here? Chrysler and GM aren't even Canadian companies.

As you can imagine, Canadians are absolutely furious. For good reason, too. The total amount lost on company bailouts for taxpayers equals over an astonishing $3.5 billion.

The news has resulted in political social media feuds. Who's to blame here, Trudeau or Harper?

Via CBC

Others are staying away from the politics of it all and focusing on the fact that the Canadian taxpayers are being totally screwed over to protect corporations.

Via CBC

Something tells me while the government doesn't mind writing-off billions for auto-makers, they probably won't be writing off our student loans any time soon. So unfair.

Source: CBC, Twitter

Comments are now closed.
Account Settings
Notifications
Favourites
Share Feedback
Log Out

Register this device to receive push notifications