Exhibit D

DESCRIPTION OF CANADA

Table of Contents

	Page
General Information		3
The Canadian Economy		5
External Trade		11
Balance of Payments		13
Foreign Exchange and International Reserves		15
Government Finances		16
Debt Record		25
Monetary and Banking System		26
Claims and Other		31
Tables and Supplementary Information		32

Unless otherwise indicated, dollar amounts hereafter in this document are expressed in Canadian dollars. On December 1, 2021, the daily average rate of the Bank of Canada for conversion of Canadian dollars (“$”) to United States dollars (“U.S.$”) was USD 1.00 = CAD 1.2776.

2

Certain information contained in the Exhibit has been extracted or compiled from public official documents of Canada, which include statistical data subject to revision. Canada is sometimes referred to as the “Government of Canada” or the “Government” in this Exhibit.

CANADA

GENERAL INFORMATION

Area and Population

Canada is the second largest country in the world, with an area of 9,984,670 square kilometers of which about 891,163 square kilometers are covered by fresh water. The occupied farm land is about 7% and the commercial forest land is about 30% of the total area. The population on July 1, 2021 was estimated to be 38.2 million. Over two thirds of Canada’s population lives in metropolitan areas of which Toronto, Montreal and Vancouver are the largest. Most of Canada’s population lives within 200 kilometers of the United States border.

Form of Government

Canada is a federal state composed of ten provinces and three territories. In 1867, the United Kingdom Parliament adopted the British North America Act, which established the Canadian federation comprised of, at that time, the Provinces of Ontario, Québec, Nova Scotia and New Brunswick. Since then, six additional provinces (Manitoba, British Columbia, Prince Edward Island, Saskatchewan, Alberta and Newfoundland and Labrador), along with the Yukon Territory, the Northwest Territories and the territory of Nunavut (which was carved out of the Northwest Territories on April 1, 1999), have become parts of Canada.

The British North America Act (which has been renamed the Constitution Act, 1867) gave the Parliament of Canada legislative power in relation to a number of matters including all matters not assigned exclusively to the legislatures of the provinces. These powers now include matters such as defense, the raising of money by any mode or system of taxation, the regulation of trade and commerce, the public debt, money and banking, interest, bills of exchange and promissory notes, navigation and shipping, extra-provincial transportation, aerial navigation and, with some exceptions, telecommunications. The provincial legislatures have exclusive jurisdiction in such areas as education, municipal institutions, property and civil rights, administration of justice, direct taxation for provincial purposes and other matters of purely provincial or local concern.

The executive power of the federal Government is vested in the Queen, represented by the Governor General, whose powers are exercised on the advice of the federal Cabinet, which is responsible to the House of Commons. The legislative branch at the federal level, Parliament, consists of the Crown, the Senate and the House of Commons. The Senate has 105 seats. There are 24 seats each for the Maritime Provinces (Prince Edward Island, Nova Scotia and New Brunswick), Québec, Ontario and the Western Provinces (Manitoba, Saskatchewan, Alberta and British Columbia), six for Newfoundland and Labrador and one each for the three territories (Nunavut, Northwest Territories and Yukon). Senators are appointed by the Governor General on the advice of the federal Cabinet and hold office until age 75. The House of Commons has 338 members, elected by voters in single-member constituencies. The leader of the political party that gains the most seats in each general election is usually invited by the Governor General to be Prime Minister and to form the Government. The Prime Minister selects the members of the federal Cabinet from among the members of the House of Commons and the Senate (in practice almost entirely from the former). The House of Commons is elected for a period of five years. Since May 2007, the Canada Elections Act requires that a general election be held on a fixed date: the third Monday of October in the fourth calendar year following the previous general election. However, the law does not prevent the Governor General from dissolving Parliament at another date. The date of a general election is set by the Governor in Council.

The most recent general election was held on September 20, 2021. As a result of that election the Liberal Party of Canada formed the Government. As of December 1, 2021, the distribution of seats in the House of Commons is as follows: the Liberal Party of Canada has 159 seats, the Conservative Party of Canada has 119 seats, the Bloc Québécois has 32 seats, the New Democratic Party has 25 seats, and the Green Party of Canada has two seats. There is one independent seat.

The executive power in each province is vested in the Lieutenant Governor, appointed by the Governor General on the advice of the federal Cabinet. The Lieutenant Governor’s powers are exercised on the advice of the provincial cabinet, which is responsible to the legislative assembly. Each provincial legislature is composed of a Lieutenant Governor and a legislative assembly and, depending on the province, members of provincial legislative assemblies are elected for four or five years. The practice of selecting the provincial premier and the provincial cabinet in each province follows that described for the federal level, as does dissolution of a legislature.

The judicial branch of government in Canada is composed of an integrated set of courts created by federal and provincial law. At the federal level there are two principal courts, the Supreme Court of Canada which is the highest appeal court in Canada and the Federal Court of Canada which, among other things, deals with federal revenue laws and claims involving the Government. Judges of the two federally constituted courts and those of the provincial superior and county courts are appointed by the Governor General on the advice of the federal Cabinet and hold office during good behavior until age 70 or 75. Judges of the magistrates courts (commonly known as provincial courts) are appointed by the provincial government and usually hold office until age 65 or 70.

3

Constitutional Reform

In April 1982, Her Majesty the Queen proclaimed the Constitution Act, 1982, terminating British legislative jurisdiction over Canada’s Constitution. The Constitution Act, 1982 provides that Canada’s Constitution may be amended pursuant to an amending formula contained therein and contains the Canadian Charter of Rights and Freedoms, including the linguistic rights of Canada’s two major language groups.

The government of Québec did not sign the constitutional agreement which led to the repatriation of the Canadian Constitution and the proclamation of the Constitution Act, 1982. Although Québec is legally bound by the Constitution Act, 1982, the government of Québec set out five conditions for accepting the legal legitimacy of the Act. Discussions on those principles led on April 30, 1987 at Meech Lake to a unanimous agreement by First Ministers on principles respecting each of Québec’s conditions.

A constitutional resolution to give effect to the Meech Lake Accord was adopted by Parliament and eight provinces before the deadline for ratification on June 23, 1990. In the absence of ratification by Newfoundland and Manitoba, the amendment was not adopted. In the wake of this event, the most extensive series of public consultations on constitutional matters ever to occur in Canada began through the work of both provincial and federal commissions and committees, among other things. Recommendations produced by this process were then assessed by a series of multilateral negotiations involving the federal, provincial and territorial governments and four national Aboriginal organizations, held from April to July 1992. Agreement was reached on a wide range of constitutional issues through the multilateral process which led to a First Ministers’ Conference held in Charlottetown in August 1992.

The Charlottetown Accord was an extensive package of reforms agreed upon by the federal, provincial and territorial governments and the four Aboriginal organizations. On October 26, 1992, Canadians were asked in a referendum if they agreed that the Constitution of Canada should be renewed on the basis of the Charlottetown agreement. A majority of Canadians in a majority of the provinces, including a majority in Québec and a majority of Status Indians living on reserves, declined to provide such a mandate. Consequently, governments set aside the constitutional issue and announced their intention to concentrate on social and economic initiatives that do not require constitutional change.

Québec

In September 1994, the Parti Québécois was elected, and its platform called for Québec’s accession to independence. On October 30, 1995, the government of Québec held a consultative referendum under provincial law, seeking a mandate to secede from Canada and proclaim Québec’s independence, after having made a formal offer of a new economic and political partnership between Québec and the rest of Canada. The government’s proposal was rejected by a vote of 50.6% against and 49.4% in favour, with a participation rate of 93%. While all sides accepted the 1995 referendum results, the Parti Québécois has not abandoned the goal of achieving independence for Québec.

In September 1996, the Government of Canada referred a series of legal questions to the Supreme Court of Canada with a view to clarifying, at both domestic and international law, whether the government of Québec has the right to secede from Canada unilaterally. On August 20, 1998, the Supreme Court rendered judgment, ruling that the government of Québec cannot, under either the Constitution of Canada or international law, legally effect the unilateral secession of Québec from Canada. The Supreme Court also stated that, if a clear majority of Québecers were to clearly and unambiguously express their will to secede, the federal and provincial governments in Canada would then have a constitutional obligation to enter into negotiations to address the potential act of secession as well as its possible terms should, in fact, secession proceed.

On June 29, 2000, the Government of Canada enacted a law to give effect to the requirement for clarity set out in the opinion of the Supreme Court. That law requires the House of Commons to assess, prior to any future referendum on the secession of a province, whether the referendum question made clear that the province would cease to be part of Canada and become an independent country. The law further requires that, after the vote itself, the House of Commons also assess whether there appeared to be a clear majority in support of the question. Only if both these conditions were met would the Government of Canada be authorized to enter into negotiations which might lead to the constitutional amendments required to effect secession.

In the provincial election of October 1, 2018, the Coalition avenir Québec party was elected, replacing the Quebec Liberal Party which had been in power (majority) since April 2014, and formed a majority government having obtained 74 out of 125 seats in Quebec’s National Assembly (37.4% of the votes cast), as compared to 31 seats (24.8% of the votes cast) for the official opposition Quebec Liberal Party, ten seats (17.1% of the votes cast) for the Parti Québécois party and ten seats (16.1% of the votes cast) for the Québec solidaire party.

4

THE CANADIAN ECONOMY¹

General

The key economic indicators for the Canadian economy and the Government of Canada consolidated statement of operations and accumulated deficit are presented in the following tables.

KEY ECONOMIC INDICATORS

	For the 2021 quarter ended (year-over-year)
	September		June		March		2020		2019		2018		2017		2016
Real GDP annual percentage change (1)		4.8		12.4		-12.2		-5.2		1.9		2.4		3.0		1.0
Nominal GDP annual percentage change (2)		12.1		22.2		6.3		-4.5		3.4		4.4		5.7		1.8
GDP Implicit Price Index (2)(3)		6.0		9.3		6.0		6.3		1.7		1.8		2.6		0.7
Consumer Price Index (total items) (3)(4)		3.9		3.2		1.5		0.7		1.9		2.3		1.6		1.4
Industrial Product Price Index (3)		15.4		16.6		7.4		-0.4		-0.1		3.9		3.1		-0.2
Unemployment Rate (percent) (5)		6.9		7.8		7.5		10.0		5.7		5.8		6.3		7.0
Trade Balance (in millions of dollars)		2,629		108		886		-45,236		-36,872		-42,196		-46,929		-47,776

Source: Statistics Canada.

(1) At market prices, chained 2012 dollars, and seasonally adjusted.

(2) Seasonally adjusted.

(3) Annual percentage changes.

(4) Year-over-year growth rates for CPI are not based on seasonally adjusted data.

(5) Unemployment levels are calculated using the difference between labor force and employment for the quarters.

GOVERNMENT OF CANADA – CONSOLIDATED STATEMENT OF OPERATIONS AND ACCUMULATED DEFICIT

(in millions of dollars)

	For the years ended March 31,
	2021		2020		2019		2018		2017
Total revenues		316,446		334,131		332,218		311,216		290,868
Total program expenses, excluding net actuarial losses		608,522		338,467		314,555		297,936		278,689
Public debt charges		20,358		24,447		23,266		21,889		21,232
Annual surplus or deficit (-) before net actuarial losses		-312,434		-28,783		-5,603		-8,609		-9,053
Net actuarial losses		-15,295		-10,609		-8,361		-10,352		-9,904
Annual deficit		-327,729		-39,392		-13,964		-18,961		-18,957
Accumulated deficit at end of year		-1,048,746		-721,360		-685,450		-671,254		-651,540

Source: Public Accounts of Canada 2021 (Volume 1, Table 1.1).

Note: see page 18 for additional details and information.

¹  Quarterly and semi-annual figures or changes are based upon seasonally adjusted data, except where otherwise indicated. All percentage changes are compounded at annual rates. For percentage changes over more than one year, the method of computation includes growth over the entire period indicated. Unless otherwise specified, all growth rates on page 6 are calculated using real GDP at basic prices, constant 2012 dollars.

The chart below shows the distribution of real gross domestic product (“GDP”) at basic prices (2012 constant dollars) in 2020, which is indicative of the structure of the economy.

Source: Statistics Canada, Gross Domestic Product by Industry.

Note: Total may not add to 100% due to rounding and rebasing.

(1) GDP is a measure of production originating within the geographic boundaries of Canada, regardless of whether factors of production are Canadian or non-resident owned, whereas gross national product (“GNP”) measures the value of Canada’s total production of goods and services – that is, the earnings of all Canadian owned factors of production. Quantitatively, GDP is obtained from GNP by adding investment income paid to non-residents and deducting investment income received from non-residents. GDP at basic prices represents the value added by each of the factors of production and is equivalent to GDP at market prices less net taxes on products. These differences can cause discrepancies in levels and growth rates of GDP at basic prices on pages 5 and 6 and GDP at market prices on pages 7 and 8.

** The agriculture, forestry, fishing, and hunting; and mining and oil and gas extraction sectors both include support activities.

The volume of industry and sector output in the following discussion provides “constant dollar” measures of the contribution of each industry to GDP at basic prices. The share of service-producing industries in real GDP was 70.9% in 2020 while the remaining 29.1% was attributed to goods-producing industries.

5

The following table shows the composition of Canada’s real GDP at basic prices (2012 constant dollars) by sector in 2020 and over the 2016-2020 period.

REAL GROSS DOMESTIC PRODUCT AT BASIC PRICES BY INDUSTRY

	(For the years ended December 31,)
	2020		2019		2018		2017		2016		2010		2020		2016		2010
			(millions of 2012 dollars)										(percentage distribution(3))
Agriculture (1)		41,923		36,175		33,423		32,505		31,698		24,314		2.2		1.7		1.5
Forestry, fishing and hunting		4,727		4,801		5,112		5,110		5,179		4,923		0.3		0.3		0.3
Mining and oil and gas extraction		142,560		160,537		161,367		151,162		137,737		118,732		7.6		7.6		7.3
Manufacturing		178,981		198,962		199,070		192,917		188,847		174,675		9.5		10.4		10.7
Construction		137,287		142,734		142,999		139,994		135,332		120,684		7.3		7.4		7.4
Utilities		42,148		43,080		42,599		41,811		41,355		38,120		2.2		2.3		2.3
Transportation and warehousing		71,620		90,617		89,492		86,419		81,232		67,804		3.8		4.5		4.2
Wholesale and retail trade		197,444		202,428		199,884		194,852		189,088		166,594		10.5		10.4		10.2
Finance, insurance and real estate		400,533		389,461		378,992		371,231		355,491		297,158		21.3		19.5		18.3
Public administration		131,613		133,345		130,104		126,663		124,344		121,260		7.0		6.8		7.5
Health, social, educational, professional and other services		532,687		588,176		572,423		559,307		549,311		492,156		28.3		30.2		30.3
Total (2)		1,881,522		1,990,316		1,955,465		1,901,971		1,820,026		1,626,420		100.0		100.0		100.0

Source: Statistics Canada, Industry Accounts Division.

(1) Agriculture includes support activities for agriculture, forestry, fishing and hunting.

(2) May not add to total due to rounding.

(3) May not add to total due to rebasing.

The share of service-producing industries in real GDP at basic prices increased from 70.4% in 2010 to 70.9% in 2020. The fastest growing industry in the services sector has been finance and insurance, which grew at an average annual growth rate of 3.7% between 2010 and 2020, compared to an average annual growth rate of 1.6% for total service sector real GDP at basic prices (2012 constant dollars). The goods-producing sector constituted 29.1% of real GDP at basic prices in 2020, down from 29.6% in 2010. The largest decrease occurred in manufacturing, with its share decreasing from 10.7% in 2010 to 9.5% in 2020, as the manufacturing industry faced challenges from pandemic restrictions, higher transportation costs, and supply chain disruptions.

Real GDP at market prices grew by 1.0% in 2016, 3.0% in 2017, 2.4% in 2018 and 1.9% in 2019. Real GDP at market prices dropped 5.2% in 2020. The COVID-19 pandemic began disrupting global economic activity in 2020, causing a severe reduction in economic activity. Canada’s real GDP registered a year-over-year decrease of 12.2% in the first quarter of 2021, followed by increases of 12.4% and 4.8% in the second and third quarters of 2021, respectively.

Manufacturing was the largest goods-producing industry in Canada by GDP in 2020. While in 2016 output fell by 0.2%, it rose again by 2.2% in 2017, 3.2% 2018, before dropping 0.2% in 2019 and 10.0% in 2020. Growth in manufacturing output from 2016 to 2020 was the highest in textile, clothing & leather product manufacturing (a 16.5% increase), beverage and tobacco product manufacturing (a 13.7% increase) and non-metallic mineral product manufacturing (a 9.0% increase) sectors. In 2021, the year-over-year growth in manufacturing output increased by 0.3%, 19.1% and 0.3% in the first, second and third quarter, respectively.

Mining and oil and gas extraction was the second largest goods-producing industry by GDP in 2020. Output from mining and oil and gas extraction declined by 0.6% in 2016. In 2017, output from mining and oil and gas extraction rose 9.7%, followed by an increase of 6.8% in 2018, followed by a decline of 0.5% in 2019 due to cuts in production and investment. In 2020, the sector dropped 11.2% due to the COVID-19 pandemic. Over the 2016-2020 period, the sector’s real GDP increased by 3.5%, as oil and gas, which makes up almost 70% of the sector, increased by 13.5%. Support activities for mining and oil and gas extraction decreased by 29.7% while mining and quarrying activities increased by 5.4% over the 2016-2020 period. In 2021, year-over-year output growth in the mining and oil and gas extraction sector decreased 2.8% in the first quarter, followed by an increase of 8.1% and 15.7% in the second and third quarter, respectively.

The construction sector was the third largest goods-producing sector in Canada in 2020. Construction output fell by 4.4% in 2016. Construction output then gained 3.4% in 2017 and 2.1% in 2018 but declined by 0.2% in 2019 and 3.8% in 2020. Construction growth from 2016 to 2020 was led by residential building construction, repair construction, and non-residential building construction, which increased by 8.6%, 2.1% and 2.0%, respectively. Engineering and other construction activities fell 16.8% over the same period. Overall construction output increased on a year-over-year basis by 1.7% in the first quarter of 2021 and 14.4% and 1.6% in the second and third quarter, respectively.

Although the share of agricultural output² in total real GDP was only 2.2% in 2020, agriculture is a significant contributor to foreign exchange earnings. Wheat is Canada’s principal agricultural crop and one of its largest export products by value. The wheat crop was 32.1 million tonnes in 2016, 30.4 million tonnes in 2017, 32.4 million tonnes in 2018, 32.7 million tonnes in 2019, and 35.2 million tonnes in 2020. Statistics Canada estimates wheat production will drop to 21.7 million tonnes in 2021 due to lower yields and less harvested area.

²  Agriculture includes support activities for agriculture and forestry, fishing and hunting.

6

Gross Domestic Income and Expenditure³

Nominal GDP at market prices was about $2.2 trillion in 2020. Nominal GDP grew 1.8% in 2016, 5.7% in 2017, 4.4% in 2018, and 3.4% in 2019, before dropping 4.5% in 2020. On a year-over-year basis, nominal GDP increased by 6.3% in the first quarter, 22.2% in the second quarter, and 12.1% in the third quarter of 2021, respectively.

GROSS DOMESTIC INCOME AND EXPENDITURE

	First 3 quarters (1)				For the years ended December 31,
	2021		2020		2020		2019		2018		2017		2016
	(millions of dollars)
Income
Compensation of employees		1,280,732		1,168,884		1,159,436		1,174,177		1,126,948		1,069,956		1,026,483
Gross operating surplus		693,020		636,900		605,333		606,065		595,791		571,830		526,024
Gross mixed income		297,200		279,996		279,275		275,968		261,378		252,569		244,403
Taxes less subsidies and residual error		233,392		148,816		162,720		255,315		251,638		246,286		228,625
Gross Domestic Income		2,504,344		2,234,596		2,206,764		2,311,525		2,235,755		2,140,641		2,025,535
Expenditure
Final consumption expenditure		1,929,160		1,792,084		1,761,151		1,814,272		1,756,531		1,684,247		1,610,954
Household final consumption		1,355,672		1,253,104		1,226,619		1,299,544		1,260,446		1,209,153		1,153,668
Government final consumption		537,152		504,540		499,873		479,356		462,369		443,184		426,335
Non-profit institution final consumption		36,336		34,440		34,659		35,372		33,716		31,910		30,951
Gross fixed capital formation		580,216		525,984		513,348		517,880		506,963		485,847		461,262
Business gross fixed capital formation		478,232		432,064		420,710		430,551		417,469		400,453		382,196
Residential structures		231,188		202,360		185,406		169,439		166,994		165,542		154,961
Non-residential structures and machinery and equipment		200,852		185,860		190,900		215,917		205,583		194,974		190,851
Intellectual property product		46,192		43,844		44,404		45,195		44,892		39,937		36,384
Government gross fixed capital formation		99,640		91,616		90,389		85,185		87,133		83,074		76,854
Non-profit institution gross fixed capital formation		2,344		2,304		2,249		2,144		2,361		2,320		2,212
Investment in inventories		-13,368		-44,644		-22,187		15,308		15,677		18,284		-228
Exports (goods and services)		772,352		665,840		647,982		745,188		722,690		673,326		638,095
Imports (goods and services)		765,168		703,952		693,345		781,585		766,265		720,254		685,868
Residual error and estimate		1,152		-716		-185		231		79		-809		1,320
Gross Domestic Expenditure		2,504,344		2,234,596		2,206,764		2,311,294		2,235,675		2,140,641		2,025,535
Gross Domestic Expenditure in Chained 2012 Dollars		2,093,927		2,014,029		1,999,406		2,109,813		2,070,888		2,014,933		1,955,488

Source: Statistics Canada, National Income and Expenditure Accounts.

(1) Seasonally adjusted, annual rates.

³  Year-over-year growth rates for nominal GDP at market prices are based on seasonally adjusted data.

7

Economic Developments and Main Risks to the Economy⁴

Real GDP grew by 1.0% in 2016, 3.0% in 2017, 2.4% in 2018, and 1.9% in 2019, before dropping 5.2% in 2020. The rebound between mid-2016 and 2019 was supported by stronger consumption and investment. Canada’s real GDP registered a year-over-year decrease of 12.2% in the first quarter of 2021, followed by an increase of 12.4% and 4.8% in the second and third quarters of 2021, respectively.

Real household spending rose 1.9% in 2016, 3.8% in 2017, 2.5% in 2018, and 1.6% in 2019, before dropping 5.5% in 2020. Year-over-year growth in household spending fell 2.0% in the first quarter before increasing 13.7% and 5.0% in the second and third quarters of 2021, respectively.

Household savings as a percentage of personal disposable income was 2.0% in 2016 and 2017, 0.8% in 2018, 1.4% in 2019, and 14.5% in 2020. The household saving rates were respectively 13.0%, 14.0% and 11.0% (annual rates) in the first three quarters of 2021.

Real non-residential structures, machinery and equipment investment fell by 12.3% in 2016. Real non-residential structures, machinery and equipment investment then returned to growth of 1.9% in 2017, 3.1% in 2018, and 1.1% in 2019, before dropping 14.2% in 2020. On a year-over-year basis, non-residential structures, machinery and equipment investment decreased 13.6% in the first quarter of 2021, before increasing 9.2% and 1.9% in the second and third quarters of 2021, respectively. Real intellectual property products investment contracted 1.7% in 2016. In 2017 and 2018, real intellectual property products investment rose 8.8% and 5.2%, respectively, before declining 1.9% in 2019 and 3.4% in 2020. On a year-over-year basis, intellectual property products investment decreased 2.3% in the first quarter of 2021, before increasing 7.9% and 2.9% in the second and third quarters of 2021, respectively.

Housing starts were 197.9 thousand units in 2016, 219.8 thousand units in 2017, 212.8 thousand units in 2018, 208.7 thousand units in 2019, and 219.0 thousand units in 2020. Over the first three quarters of 2021, housing starts averaged an annual level of 282.3 thousand units.

Real government final consumption grew 1.8% in 2016, 2.1% in 2017, 2.9% in 2018, 2.0% in 2019, and 0.0% in 2020. The year-over-year growth in government spending on goods and services grew 4.2%, 9.3% and 3.8% in the first three quarters of 2021 respectively.

In current dollar terms, the trade balance in goods and services (on a balance of payments basis) was a deficit of $47.8 billion in 2016, $46.9 billion in 2017, $42.2 billion in 2018, $36.9 billion in 2019, and $45.2 billion in 2020. In the first three quarters of 2021, the average trade surplus in goods and services was $2.0 billion at annual rates.

The COVID-19 pandemic has brought about the deepest and fastest recession, globally, since the Great Depression. While many advanced economies, including Canada, saw strong rebounds in economic activity over the summer months, the economic outlook remains uncertain, particularly with the emergence of the Omicron variant. Globally, the semiconductor chip shortage continues to negatively affect the global automotive industry, putting a damper on the growth in the goods sector. Domestically, the recovery has been uneven and partial, as certain sectors remain disproportionately affected by public health restrictions and supply shortages caused by COVID-19 – including the automotive sector hotels, travel, entertainment and restaurants. Extraordinary measures taken by the Government continue to support households and businesses facing hardship, providing income support and access to credit. Despite significantly higher household savings, high levels of indebtedness among households and businesses continue to pose a key downside risk to the economy.

⁴  In this section all figures, except the savings rates and the trade balance, are reported in real terms and growth rates are calculated from GDP at market prices, chained 2012 dollars, seasonally adjusted at annual rates unless otherwise noted.

8

Prices and Costs

The GDP implicit price deflator increased 0.7% in 2016, 2.6% in 2017, 1.8% in 2018, 1.7% in 2019, and 0.7% in 2020. The year-over-year change in the implicit price deflator grew 6.0%, 9.3%, and 7.7% in the first three quarters of 2021, respectively.

Since the introduction of inflation-targeting into monetary policy in 1991, annual increases in the consumer price index (“CPI”) have remained almost entirely within the 1% to 3% target range until the start of the COVID-19 pandemic. Total CPI rose 1.4% in 2016, 1.6% in 2017, 2.3% in 2018, 1.9% in 2019, and 0.7% in 2020. On a year-over-year basis, total CPI increased 1.5%, 3.2%, and 3.9% in the first three quarters of 2021, respectively⁵. The high level of inflation is largely a symptom of high demand and ongoing supply chain disruptions caused by the pandemic. Housing, energy, and food prices all contributed considerably to price increases in the first three quarters of 2021.

PRICE DEVELOPMENTS

	GDP Implicit Price Index (1)		Consumer Price Index												Industrial Product Price Index
For the years ended December 31,			Total		Food		Total excluding Food		Energy		Total excluding Food and Energy		Shelter
	(annual percentage changes)
2016		0.7		1.4		1.5		1.4		-3.0		1.9		1.6		-0.2
2017		2.6		1.6		0.1		1.9		5.3		1.6		1.8		3.1
2018		1.8		2.3		1.8		2.3		6.7		1.9		1.8		3.9
2019		1.7		1.9		3.4		1.7		-2.2		2.0		2.5		-0.1
2020		0.7		0.7		2.3		0.4		-7.6		1.1		1.7		-0.4
2020Q4		2.7		0.8		1.7		0.6		-5.2		1.1		1.8		1.3
2021Q1		6.0		1.5		1.5		1.4		5.8		1.0		1.7		7.4
2021Q2		9.3		3.2		1.2		3.8		25.9		2.1		3.9		16.6
2021Q3		7.7		3.9		2.8		4.3		20.2		3.0		4.8		15.4

Source: Statistics Canada.

(1) This implicit price index is based on seasonally adjusted data.

⁵  Year-over-year growth rates for CPI are not based on seasonally adjusted data.

9

Labor Market

The following table shows labor market characteristics for the periods indicated.

LABOR MARKET CHARACTERISTICS(1) (2)

(thousands of persons)

	Canada						Atlantic Provinces						Quebec
For the years ended December 31,	Labor Force		Employ- ment		Unemploy- ment Rate		Labor Force		Employ- ment		Unemploy- ment Rate		Labor Force		Employ- ment		Unemploy- ment Rate
	(thousands)				(percent)		(thousands)				(percent)		(thousands)				(percent)
2016		19,441		18,080		7.0		1,224		1,102		10.0		4,448		4,133		7.1
2017		19,663		18,416		6.3		1,219		1,100		9.7		4,496		4,223		6.1
2018		19,813		18,658		5.8		1,223		1,111		9.2		4,510		4,262		5.5
2019		20,200		19,056		5.7		1,233		1,127		8.5		4,510		4,340		5.1
2020		19,897		17,999		9.6		1,213		1,082		10.8		4,498		4,100		8.9
2020Q4		20,285		18,502		8.8		1,241		1,119		9.8		4,537		4,209		7.2
2021Q1		20,239		18,546		8.4		1,239		1,120		9.6		4,510		4,186		7.2
2021Q2		20,287		18,659		8.0		1,237		1,114		10.0		4,539		4,246		6.5
2021Q3		20,457		18,996		7.2		1,240		1,122		9.6		4,571		4,209		5.9

	Ontario						Prairie Provinces						British Columbia
For the years ended December 31,	Labor Force		Employ- ment		Unemploy- ment Rate		Labor Force		Employ- ment		Unemploy- ment Rate		Labor Force		Employ- ment		Unemploy- ment Rate
	(thousands)				(percent)		(thousands)				(percent)		(thousands)				(percent)
2016		7,490		7,000		6.5		3,746		3,466		7.5		2,532		2,380		6.0
2017		7,580		7,128		6.0		3,768		3,499		7.2		2,601		2,467		5.1
2018		7,673		7,242		5.6		3,791		3,548		6.4		2,617		2,494		4.7
2019		7,891		7,453		5.6		3,820		3,577		6.4		2,685		2,559		4.7
2020		7,766		7,022		9.6		3,685		3,305		10.3		2,735		2,491		9.0
2020Q4		7,985		7,226		9.5		3,725		3,451		7.3		2,796		2,586		7.5
2021Q1		7,922		7,213		9.0		3,726		3,362		9.8		2,836		2,629		7.3
2021Q2		7,940		7,233		8.9		3,733		3,398		9.0		2,825		2,631		6.9
2021Q3		8,047		7,433		7.6		3,753		3,471		7.5		2,846		2,669		6.2

Source: Statistics Canada, The Labour Force Survey.

(1) Annual employment levels are based on not seasonally adjusted data, while quarterly employment levels are based on seasonnally adjusted data.

(2) Unemployment levels are calculated using the difference between labor force and employment for the quarters.

Employment increased by 0.7% in 2016, 1.9% in 2017, 1.3% in 2018, and 2.1% in 2019 before declining 5.5% in 2020. Over the first three quarters of 2021, employment increased 11.1% on an annualized basis. Meanwhile, the labor force increased 0.8% in 2016, 1.1% in 2017, 0.8% in 2018, and 2.0% in 2019, before decreasing 1.5% in 2020. Over the first three quarters of 2021, the labor force has declined 3.4% on an annualized basis. The unemployment rate was 7.0% in 2016, then declined to 6.3% in 2017, 5.8% in 2018 and 5.7% in 2019, before increasing to 9.6% in 2020. Over the first three quarters of 2021, the unemployment rate has averaged 7.9%. Before COVID-19, all provinces saw significant decreases in unemployment rates between 2016 and 2020. Owing to the easing of pandemic restrictions over the summer, as well as the expiration of government supports, the unemployment level now hovers close to its pre-pandemic level.

For the first three quarters of 2021, employment in the service sector accounts for 79.3% of total employment, slightly more than in 2020. Within the service sector, the largest employment subsectors are health care and social assistance, and retail trade. Employment in the goods sector, which makes up 20.7% of Canadian employment, is led by the manufacturing and construction subsectors. The subsector that grew the most in terms of employment share from 2017 to 2021 was health care and social assistance, and professional, scientific and technical services, while accommodation and food services contracted the most in terms of employment share.

SHARE OF TOTAL EMPLOYMENT BY SECTOR

(in percentages)

	For the years ended December 31,
	2021(1)		2020		2019		2018		2017
Total, all industries		100.0		100.0		100.0		100.0		100.0
Goods-producing sector		20.7		20.9		20.8		21.1		21.0
Agriculture		1.4		1.6		1.5		1.5		1.5
Forestry and logging with support activities		0.3		0.3		0.2		0.3		0.3
Fishing, hunting and trapping		0.1		0.1		0.1		0.1		0.1
Mining, quarrying, and oil and gas extraction		1.4		1.3		1.4		1.5		1.4
Utilities		0.8		0.8		0.7		0.8		0.7
Construction		7.6		7.6		7.7		7.7		7.7
Manufacturing		9.3		9.3		9.1		9.3		9.4
Services-producing sector		79.3		79.1		79.2		78.9		79.0
Wholesale trade		3.3		3.4		3.3		3.5		3.7
Retail trade		11.5		11.5		11.6		11.5		11.6
Transportation and warehousing		5.2		5.3		5.4		5.3		5.1
Finance, insurance, real estate and leasing		6.9		6.9		6.3		6.3		6.4
Professional, scientific and technical services		8.9		8.5		8.2		7.9		7.9
Business, building and other support services		3.8		3.9		4.1		4.2		4.1
Educational services		7.6		7.4		7.2		7.1		7.0
Health care and social assistance		13.6		13.5		13.1		12.9		12.9
Information, culture and recreation		3.8		3.8		4.1		4.2		4.3
Accommodation and food services		5.0		5.2		6.4		6.6		6.6
Other services		3.9		4.1		4.3		4.3		4.2
Public administration		5.6		5.5		5.3		5.2		5.2

Source: Statistics Canada, The Labour Force Survey.

(1) First three quarters

10

EXTERNAL TRADE

Canada has continued to work towards implementing its goals of achieving freer trade and more open markets based on internationally agreed rules and practices at the multilateral, regional and bilateral levels, and is the only G7 country to have concluded trade agreements with all other G7 countries. At the multilateral level, Canada continues to be an active member of the World Trade Organization (“WTO”) and to fully participate in multilateral trade negotiations as well as ongoing discussions related to potential WTO reform initiatives, including through the Ottawa Group.

At the regional level, the Canada-United States-Mexico Agreement (“CUSMA”) entered into force between Canada, the U.S. and Mexico on July 1, 2020. The CUSMA preserves the essential trade benefits of the North American Free Trade Agreement (“NAFTA”), including existing tariff commitments, and incorporates new and updated provisions that seek to address 21st century trade issues. The three parties continue to collaborate in ensuring the full implementation of commitments under the Agreement, especially through regular engagement in the CUSMA Free Trade Commission and related committees. The CUSMA is also serving to support the management of regional trade issues, including the trade-related disputes over U.S. duties on Canadian softwood lumber, Canada’s administration of import quotas for U.S. dairy products, and the interpretation of certain rules of origin for automotive goods.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”) is a free trade agreement among Canada and Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which entered into force on December 30, 2018. Canada was among the first six countries to ratify the agreement, along with Australia, Japan, Mexico, New Zealand, and Singapore. On January 14, 2019 and September 19, 2021, the CPTPP also became effective with respect to Vietnam and Peru, respectively. As a result, Canada now benefits from expanded preferential market access to CPTPP countries that have ratified the agreement. The CPTPP also provides for the Agreement’s potential expansion to include new economies, provided they have the ability to meet its high standards. On June 1, 2021, Canada and its CPTPP partners agreed to assess the potential accession of the United Kingdom (“U.K.”), and these accession discussions are ongoing.

At the bilateral level, Canada has implemented free trade agreements with the following countries: Chile, Colombia, Costa Rica, Honduras, Israel, Jordan, South Korea, Panama, Peru, Ukraine, and the European Free Trade Association (Norway, Switzerland, Iceland and Liechtenstein). In addition, provisional application of the Comprehensive Economic and Trade Agreement (“CETA”) between Canada and the European Union (“EU”), with its Member States, began in September 2017. The CETA will enter definitively into force once all Member States of the EU ratify the text according to their respective domestic constitutional requirements. However, the U.K. ceased to be a party to the CETA after December 31, 2020, and the Canada-U.K. Trade Continuity Agreement (“TCA”) entered into force on April 1, 2021, substantively replicating the CETA on a bilateral basis. Although the TCA has no expiry date, it commits Canada and the U.K. to begin free trade negotiations by April 1, 2022, with the goal of achieving a permanent bilateral agreement.

Canada is also committed to expanding and diversifying trade with large, fast-growing markets and regional groupings. This includes ongoing negotiations with the Mercosur trade bloc (Argentina, Brazil, Paraguay and Uruguay) that started in March 2018. Canada also launched bilateral negotiations with Indonesia in June 2021, and with the 10 countries of the Association of Southeast Asian Nations (Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam) in November 2021.

Merchandise and Service Trade

The following table sets forth the composition of Canadian trade for the periods indicated.

THE COMPOSITION OF CANADIAN MERCHANDISE TRADE

(Balance of Payments Basis)

	First 3 quarters (1)				For the years ended December 31,
	2021		2020		2020		2019		2018		2017		2016
	( in millions of dollars)
Value of Exports
Farm, fishing & intermediate food products		35,069		11,520		43,625		37,989		39,735		38,913		38,311
Energy products		101,454		21,116		74,278		114,065		111,109		96,809		74,139
Metal ores & non-metallic minerals		19,778		5,389		20,808		20,865		19,259		16,082		13,930
Metal & non-metallic mineral products		58,982		18,274		66,895		65,296		64,568		61,632		55,519
Basic & industrial chemical, plastic & rubber products		30,184		8,367		30,513		34,212		35,006		32,774		31,110
Forestry products & building & packaging materials		42,323		11,899		42,119		42,377		47,197		43,777		42,123
Industrial machinery, equipment & parts		27,948		9,071		35,247		41,309		39,354		37,081		35,195
Electronic & electrical equipment & parts		20,634		6,737		26,353		30,011		29,404		28,396		28,203
Motor vehicles & parts		48,616		20,860		74,242		93,130		90,429		93,161		98,449
Aircraft & other transportation equipment & parts		17,855		5,389		22,349		28,043		25,742		22,756		23,594
Consumer goods		59,972		17,931		70,687		70,705		66,554		62,913		66,182
Other (2)		13,242		4,326		16,723		17,262		16,842		15,969		15,546
Total Exports (3)		476,055		140,879		523,838		595,263		585,199		550,262		522,301
Value of Imports
Farm, fishing & intermediate food products		17,565		5,466		21,426		21,227		20,299		19,444		19,134
Energy products		23,012		5,276		22,827		37,420		38,101		33,385		28,236
Metal ores & non-metallic minerals		10,452		4,221		16,468		14,176		14,372		12,377		10,028
Metal & non-metallic mineral products		46,043		12,636		49,674		39,576		41,457		40,901		41,591
Basic & industrial chemical, plastic & rubber products		39,409		10,318		41,207		44,972		47,323		43,090		39,677
Forestry products & building & packaging materials		22,853		6,945		25,992		26,894		26,873		25,464		24,529
Industrial machinery, equipment & parts		52,129		16,205		60,475		69,388		68,190		62,798		61,050
Electronic & electrical equipment & parts		54,959		18,086		67,990		72,155		71,311		67,627		64,509
Motor vehicles & parts		66,226		26,411		87,458		115,046		113,830		113,410		107,955
Aircraft & other transportation equipment & parts		15,248		4,087		19,389		26,417		23,849		20,899		19,238
Consumer goods		99,680		34,447		127,176		125,424		121,410		115,709		112,881
Other (2)		19,323		6,045		21,269		21,013		20,316		19,301		18,521
Total Imports (3)		419,349		119,784		561,352		613,706		607,330		574,406		547,349

Source: Statistics Canada, Canadian International Merchandise Trade.

(1) Seasonally adjusted.

(2) Other includes special transactions trade and other balance of payments adjustments

(3) May not add due to rounding.

Canada is one of the world’s leading trading nations. Canada’s exports have always reflected the country’s high endowment in natural resources. While Canada’s exports have diversified over time, commodities still remain an important part of Canada’s exports. In 2020, energy products accounted for 14.2% of Canada’s merchandise exports, followed by both motor vehicles and parts at 14.2% and consumer goods at 13.5%. Together, these components represented 41.9% of total merchandise exports in 2020.

Canada and the United States are each other’s most important trading partners, reflecting the physical proximity of the two countries and their close economic and financial relationship. In 2020, trade with the United States accounted for 71.8% of the value of Canada’s merchandise exports and 62.2% of the value of Canada’s merchandise imports. According to the United States Census Bureau, trade with Canada accounted for 17.6% of the United States’ exports and 12.5% of its imports in 2020. These shares have risen slightly on a year-to-date basis up to and including September 2020 due to the partial reopening of 2021.

11

The following table presents the geographical distribution of Canadian merchandise exports and merchandise imports for the periods indicated.

GEOGRAPHICAL DISTRIBUTION OF CANADIAN MERCHANDISE TRADE

(Balance of Payments Basis)

	First 3 quarters						For the years ended December 31,
	2021			2020			2020			2019			2018			2017			2016
Exports(1)
United States		74.5			71.9			71.8			74.5			73.9			74.7			75.2
Japan		2.5			2.5			2.4			2.2			2.3			2.2			2.1
United Kingdom		2.7			3.7			4.1			3.4			2.9			3.4			3.4
European Union(2)		5.1			9.0			9.6			4.9			5.0			4.5			4.6
Other		15.2			12.9			12.2			15.0			15.9			15.1			14.6
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Imports(1)
United States		61.9			62.4			62.2			63.9			64.4			64.6			65.7
Japan		1.8			1.7			1.8			2.0			2.1			2.4			2.2
United Kingdom		1.8			1.7			1.7			1.4			1.4			1.4			1.4
European Union(2)		9.4			10.9			10.8			9.4			9.1			8.5			8.2
Other		25.1			23.3			23.6			23.3			23.1			23.1			22.5
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Source: Statistics Canada, Canadian International Merchandise Trade.

(1) May not add to total due to rounding.

(2) Excludes the United Kingdom.

The following table presents volume and price indices of Canada’s merchandise trade for the periods indicated.

MERCHANDISE TRADE INDICES

(Balance of Payments Basis)

	First 3 quarters				For the years ended December 31,
	2021		2020		2020		2019		2018		2017		2016
	( 2012 = 100 )
Indices of physical volume
Exports		115.0		112.2		113.3		118.6		117.5		114.1		113.2
Imports		112.0		102.1		104.8		114.4		113.5		110.2		105.1
Indices of prices
Exports		123.8		106.9		107.9		109.0		108.0		104.3		99.7
Imports		125.1		122.8		122.6		112.9		112.6		109.9		109.7
Terms of trade(1)		99.0		87.1		88.0		96.5		96.0		94.9		90.9

Source: Statistics Canada, Canadian International Merchandise Trade.

(1) Index of price of exports divided by index of price of imports multiplied by 100.

Over the first three quarters of 2021, the service sector accounted for 20.3% of total exports and 21.2% of total imports (seasonally adjusted). Service exports are mainly comprised of commercial services (75.9%), travel services (11.7%), transportation services (11.4%) and general government services (1.0%). On the import side, commercial services, transportation services, travel services and general government services accounted for 73.2%, 19.9%, 5.9% and 1.1% of total service imports, respectively. In 2020, the United States was Canada’s largest services trading partner, accounting for 54.2% and 55.0% of total service exports and imports, respectively.

The following tables present respectively the shares of total service exports and imports by sector and by country for the periods indicated.

SHARE OF TOTAL SERVICE EXPORTS AND IMPORTS BY SECTOR (1)

(in percentages)

	First 3 quarters						For the years ended December 31,
	2021			2020			2020			2019			2018			2017			2016
Exports
Travel services		11.7			15.4			14.4			26.7			26.0			26.4			25.9
Transportation services		11.4			10.8			10.9			13.3			13.3			14.2			14.1
Commercial services		75.9			72.7			73.6			58.7			59.4			58.1			58.7
General government services		1.0			1.1			1.1			1.2			1.3			1.4			1.4
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Imports
Travel services		5.9			14.5			12.3			29.5			28.6			31.0			31.3
Transportation services		19.9			17.5			17.7			20.2			20.3			19.9			19.5
Commercial services		73.2			67.0			68.9			49.4			50.1			48.2			48.3
General government services		1.1			1.0			1.1			1.0			1.0			0.9			0.9
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Source: Statistics Canada.

(1) In current prices, seasonally adjusted at annual rates. May not add to total due to rounding.

SHARE OF TOTAL SERVICE EXPORTS AND IMPORTS BY COUNTRY (1)

(in percentages)

	2020			2019			2018			2017			2016
Exports
United States		54.2			53.1			54.7			55.2			55.1
Japan		1.3			1.5			1.3			1.5			1.5
Europe(2)		14.1			14.3			13.9			13.0			14.0
United Kingdom		4.6			5.0			5.3			5.2			5.8
Others		25.9			26.2			24.8			25.1			23.6
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Imports
United States		55.0			54.4			54.0			54.6			54.8
Japan		2.0			2.0			1.8			1.6			1.8
Europe(2)		15.4			16.0			15.9			15.7			15.5
United Kingdom		6.5			5.4			5.1			5.7			5.4
Others		21.1			22.3			23.2			22.5			22.5
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Source: Statistics Canada.

(1) In current prices. May not add to total due to rounding.

(2) Excludes United Kingdom. Includes Austria, Belgium, Denmark, France, Finland, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and Other Europe in and not in Organisation for Economic Co-operation and Development (OECD).

12

BALANCE OF PAYMENTS

The following table presents the balance of international payments for the periods indicated.

CANADIAN BALANCE OF INTERNATIONAL PAYMENTS

	First 3 quarters (1)				For the years ended December 31,
	2021		2020		2020		2019		2018		2017		2016
	( in millions of dollars )
Current and Capital Account
Current account receipts
Goods and services		557,445		466,750		638,449		737,500		721,679		673,325		638,093
Goods		463,278		380,634		523,838		598,167		587,512		550,525		522,301
Services		94,167		86,116		114,611		139,333		134,167		115,792		115,792
Primary income		105,542		96,353		131,217		149,213		135,981		116,567		97,904
Secondary Income		11,419		9,823		13,132		15,285		13,696		11,951		13,248
Total receipts		674,406		572,926		782,798		901,998		871,356		801,843		749,245
Current account payments
Goods and services		555,931		505,941		683,685		774,371		763,875		720,254		685,868
Goods		460,672		411,350		561,352		613,527		607,344		575,024		547,349
Services		95,259		94,591		122,333		160,844		156,532		145,229		138,519
Primary income		104,401		92,578		121,498		157,282		142,794		125,270		110,561
Secondary income		15,065		13,369		17,704		17,730		16,910		16,317		15,370
Total payments		675,397		611,888		822,887		949,383		923,579		861,841		811,799
Current account balance
Goods and services		1,514		-39,191		-45,236		-36,871		-42,196		-46,929		-47,776
Goods		2,606		-30,716		-37,514		-15,361		-19,832		-24,499		-25,048
Services		-1,092		-8,474		-7,721		-21,510		-22,365		-22,429		-22,728
Primary income		1,140		3,775		9,719		-8,069		-6,814		-8,703		-12,656
Secondary income		-3,646		-3,545		-4,570		-2,445		-3,214		-4,366		-2,121
Total balance		-992		-38,961		-40,086		-47,385		-52,224		-59,998		-62,553
Capital account balance		-38		-48		-48		-89		-76		-76		-91
Financial Account (2)
Net lending/net borrowing, from financial account		6,467		-42,964		-37,220		-51,160		-45,315		-57,308		-60,130
Net acquisition of financial assets		199,275		8,530		213,501		264,716		169,443		222,974		195,661
Canadian direct investment abroad		53,703		46,813		67,159		101,127		80,790		101,944		89,558
Canadian portfolio investment		121,609		-1,169		40,030		32,960		57,532		84,657		12,885
Foreign debt securities		33,126		-5,393		1,749		27,485		50,376		16,028		-7,122
Foreign equity and investment fund shares		88,484		4,223		38,282		5,475		7,156		68,629		20,006
Official international reserves		23,880		2,782		-888		-1,716		-2,004		1,053		7,481
Other Canadian investment		81		-39,895		107,200		132,345		33,125		35,320		85,737
Net incurrence of liabilities
Foreign direct investment in Canada		56,077		31,983		37,203		59,914		55,940		32,606		45,215
Foreign portfolio investment		125,956		108,713		122,030		36,165		52,944		181,875		150,160
Canadian debt securities		98,246		134,666		136,044		38,562		27,551		126,244		98,767
Canadian equity and investment fund shares		27,710		-25,954		-14,015		-2,397		25,393		55,631		51,393
Other foreign investment		10,775		-89,202		91,489		219,798		105,875		65,801		60,417
Discrepancy (net errors and omissions)		7,497		-2,484		2,914		-3,687		6,984		2,765		2,514

Source: Statistics Canada, Canada’s Balance of International Payments.

(1) Year-to-date (not annualized). Current and capital account data are seasonally adjusted. Financial account data are not seasonally adjusted.

(2) For the Financial Account, transactions are recorded on a net basis. A plus sign denotes an increase in investment and a minus sign denotes a decrease in investment.

The current account deficit was $1.3 billion (seasonally adjusted, annualized level) in the first three quarters of 2021. Over the last five years, the three main components of the current account have evolved as follows:

(1) Merchandise trade registered a deficit of $25.0 billion in 2016 and 2017, $19.8 billion in 2018, $15.4 billion in 2019, and $37.5 billion in 2020. In the first three quarters of 2021, merchandise trade showed an average surplus of $3.5 billion (annualized level).

(2) The service account deficit narrowed from $22.7 billion in 2016 to $7.7 billion in 2020. The services deficit averaged $1.5 billion (annualized level) in the first three quarters of 2021.

(3) The deficit on primary income narrowed from $12.7 billion in 2016 to a surplus of $9.7 billion in 2020. The primary income surplus averaged $1.5 billion (annualized level) in the first three quarters of 2021.

Canada registered a net financial account inflow (net borrowing) of $51.1 billion and $37.2 billion in 2019 and 2020, respectively. The net inflow was $8.7 billion in the first three quarters of 2021 (annualized level).

Non-resident net purchases of Canadian securities⁶ were $98.8 billion in 2016. The amount of Canadian securities purchased by non-residents since has increased, reaching $136.0 billion in 2020. In the first three quarters of 2021, portfolio investment from abroad decreased significantly to $168.0 billion (annualized level). Foreign direct investment was $45.2 billion in 2016, $32.6 billion in 2017, $55.9 billion in 2018, $59.9 billion in 2019, and $37.2 billion in 2020.

Foreign direct investment in 2020 was led by manufacturing, trade and transportation, and other industries. In the first three quarters of 2021, foreign direct investment was $74.8 billion (annualized level).

⁶  Canadian securities include Canadian bonds, money market instruments, equity and investment fund shares.

13

The table below provides a breakdown of foreign direct investment in Canada for the periods indicated.

FOREIGN DIRECT INVESTMENT IN CANADA

	First 3 quarters (1)				For the years ended December 31,
	2021		2020		2020		2019		2018		2017		2016
	(in millions of dollars)
All countries		56,836		32,611		32,320		63,470		49,552		29,550		47,796
United States		22,625		8,146		11,981		27,659		21,970		16,397		24,744
All other countries		34,211		24,465		20,339		35,811		27,583		13,153		23,052
All industries		56,835		32,610		32,319		63,470		49,552		29,550		47,796
Energy and mining (2)		17,235		-5,349		-7,285		20,425		5,651		-4,883		10,800
Manufacturing		14,516		5,765		6,429		19,105		15,791		10,682		4,356
Trade and transportation (3)		9,091		7,345		9,629		271		4,408		11,978		11,647
Finance and Insurance		5,401		4,065		5,061		7,510		2,544		4,541		9,183
Management of companies and enterprises		919		10,076		5,628		7,730		5,439		-66		5,088
Other industries (4)		9,673		10,708		12,857		8,428		15,720		7,297		6,724

Source: Statistics Canada, Canada’s Balance of International Payments.

Totals may not add up due to rounding.

(1) Year-to-date (not annualized).

(2) This combines the North American Industry Classification System (NAICS) codes 21 and 22.

(3) This combines the North American Industry Classification System (NAICS) codes 41, 44, 45, 48 and 49.

(4) This combines the North American Industry Classification System (NAICS) codes 11, 23, 51, 53, 54, 56, 61, 62, 71, 72, 81 and 91.

14

FOREIGN EXCHANGE AND INTERNATIONAL RESERVES

Since May 31, 1970, the Canadian dollar has been allowed to float so that the rate of exchange is determined by conditions of supply and demand in the market. Since then, the Canadian dollar has floated between a low of 61.79 U.S. cents in January 2002 and a high of 110.30 U.S. cents in November 2007. The Canadian dollar closed 2020 at an average rate price of 78.54 U.S. cents. From the beginning of 2021 through to September 30, the Canadian dollar average rate price ranged between 77.78 and 83.06 U.S. cents. The Canadian dollar average rate price on September 29, 2021 was 78.49 U.S. cents.

EXCHANGE RATE FOR THE CANADIAN DOLLAR

	2021 through September 29		For the years ended December 31,
			2020		2019		2018		2017		2016		2015		2014		2013		2012		2011		2010
	(in U.S. cents)
High		83.06		78.63		76.99		81.38		82.45		80.19		85.62		94.44		101.88		103.71		106.30		100.69
Low		77.78		68.98		73.53		73.30		72.76		68.21		71.41		85.68		93.14		95.76		93.83		92.18

Source: Bank of Canada.

Canada does not have foreign exchange controls. Foreign exchange operations conducted by the Bank of Canada on behalf of the Minister of Finance are directed toward the maintenance of orderly conditions in the foreign exchange market in Canada through the purchase or sale of United States dollars for Canadian dollars. The following table shows Canada’s official international reserves on the dates indicated.

CANADA’S OFFICIAL INTERNATIONAL RESERVES

	At September 29, 2021		At December 31,
			2020		2019		2018		2017		2016		2015		2014		2013		2012		2011		2010
	(in millions of U.S. dollars)
Total		106,270		90,428		85,297		83,926		86,625		82,718		79,753		74,700		71,937		68,546		65,819		57,151

Source: Department of Finance.

As of September 29, 2021, Canada’s official international reserves stood at U.S.$106,270 million equivalent. The total was composed of U.S.$53,264 million held in U.S. dollar denominated assets, U.S.$13,136 million equivalent in euro denominated assets, U.S.$6,479 million equivalent in pound sterling assets, U.S.$5,056 million equivalent in yen denominated assets, U.S.$23,910 million in Special Drawing Rights (“SDRs”) and U.S.$4,425 million in the form of the reserve position in the International Monetary Fund (“IMF”).

Beginning in 1978, transactions relating to foreign currency debt undertaken for reserve management purposes have had an important effect on the level of official reserves. The “Canada Bills” program was launched in October 1986. Under this program, U.S. dollar-denominated short-term notes are issued in the United States money market. There were U.S.$5,254 million of Canada Bills outstanding on September 30, 2021. The “Canada Notes” program was launched in June 2010. Canada Notes are interest-bearing marketable notes that mature not less than nine months from their date of issue. As of September 30, 2021, there were no Canada Notes outstanding. A Euro Medium-Term Notes (EMTN) program was launched in October 2011. EMTNs are interest bearing, foreign currency medium-term notes issued outside the United States and Canada and maturities can range from short-term to long-term. As of September 30, 2021, there were no EMTNs outstanding. As of September 30, 2021, U.S.$12,500 million in foreign currency denominated bonds remained outstanding comprised of four U.S. dollar global bond issues.

15

GOVERNMENT FINANCES

Introduction

The financial structure of the Government of Canada rests on a constitutional and statutory framework dating back to the British North America Act, 1867. That Act, which has been renamed the Constitution Act, 1867, gave constitutional foundation to the principles of financing that are basic to responsible government, while other necessary financial administrative machinery and procedures were established by subsequent legislation, most notably the Financial Administration Act. The proclamation in 1982 of the Constitution Act, 1982 terminated British legislative jurisdiction over Canada’s Constitution in accordance with an amending formula that permits amendment of the Constitution without resorting to the Parliament of the United Kingdom.

Within the confines of the Constitution, the authority of Parliament is supreme. Ultimate control of the public purse and the financial structure of the Government rests with Parliament. This is reflected in the fundamental principles that no tax shall be imposed and no money shall be spent without the authority of Parliament, and that expenditures shall be made only for the purposes authorized by Parliament.

Public money received by the Government is deposited in the Consolidated Revenue Fund of Canada. Withdrawals of public money out of the Consolidated Revenue Fund may not be made without the authority of Parliament.

The Government has two major sources of money: budgetary revenues and borrowing. The main sources of revenue are personal and corporate income taxes, employment insurance premiums and excise taxes and duties. These revenues are authorized by specific acts passed by Parliament. The Government’s revenues also include those of consolidated Crown corporations and other entities, net income/loss from enterprise Crown corporations (such as the Bank of Canada, Export Development Canada and the Canada Mortgage and Housing Corporation), proceeds from the pollution pricing framework, foreign exchange revenues and other revenues (primarily revenues from the sales of goods and services). The other major source of money to finance Government operations is borrowing. Borrowing authority is established by acts of Parliament and borrowing limits are established by acts of Parliament and by Orders in Council. The Borrowing Authority Act, which entered into force by order of the Governor in Council on November 23, 2017, provides authorization for the borrowing of money on behalf of Her Majesty in right of Canada, by way of the issue and sale of securities. Such borrowings under the Borrowing Authority Act are not to exceed $1,831 billion; provided that such amount shall exclude any amounts borrowed for the purpose of refinancing existing debt and addressing contingent liabilities or in extraordinary circumstances, including in the event of a natural disaster or to promote the stability or maintain the efficiency of the financial system in Canada. The main sources of borrowing are marketable bonds and treasury bills.

Parliament authorizes the disbursement of moneys out of the Consolidated Revenue Fund by means of Appropriation Acts passed on an annual basis by Parliament and based on the Main Estimates submitted by the various departments. In addition to the Appropriation Acts, authority for payments may also be found in certain statutes which authorize certain payments out of the Consolidated Revenue Fund. Expenditures for public debt charges, social security payments and transfers to other levels of government are authorized in this way. Appropriations may also be made by the Governor in Council for urgent payments. Such appropriations may be made only when Parliament is not in session and must be laid before Parliament during the subsequent session.

Information on the Government’s planned revenues and expenditures is presented to Parliament primarily in two documents: the Budget and the Main Estimates, which are both presented in the House of Commons. The Budget, which may be delivered at any time during the fiscal year, provides the occasion on which the Minister of Finance generally brings under review the whole financial position of the Government, present and prospective, and announces the Government’s plans and proposals. The Main Estimates are tabled (i.e., introduced) once each year and outline the Parliamentary authority, either existing or required, for disbursements. Supplementary Estimates may also be tabled during the year to provide authority for spending as the need arises.

The considerations for overall resource availability and demands for new policies and programs are reconciled through the establishment of five year economic and fiscal projections reflecting Government priorities. The projections are released in an Economic and Fiscal Update in the fall for pre-budget consultation purposes. To incorporate objective economic assumptions, the fiscal projection is based on the average of private sector economic forecasts.

For financial reporting purposes, the Government of Canada includes all departments, agencies, corporations, organizations and funds which are controlled by the Government. For financial reporting purposes, control is defined as the power to govern the financial and operating policies of an organization with benefits from the organization’s activities being expected, or the risk of loss being assumed by the Government. All organizations that are defined as departments and as Crown corporations in the Financial Administration Act are included for financial reporting purposes. Other organizations not listed in the Financial Administration Act may also meet the definition of control and they are included in the Government’s reporting entity if their revenues, expenses, assets or liabilities are significant. The financial activities of all these entities are consolidated in the Government’s financial statements, except for enterprise Crown corporations and other government business enterprises, which are reported under the modified equity basis of accounting. Enterprise Crown corporations and other government business enterprises are defined as those entities which are not dependent on parliamentary appropriations and whose principal activity and source of revenue is the sale of goods and services to outside parties. The remaining Crown corporations, which rely on the Government for most of their financing, are classified as consolidated Crown corporations.

The primary source of information on all actual financial transactions of the Government is the Public Accounts of Canada, which is required by the Financial Administration Act to be tabled in Parliament each year. The other chief accountability reports are the statements of budgetary and non-budgetary financial transactions and of the Government’s cash position published monthly in The Fiscal Monitor and in the Annual Financial Report.

The financial statements of the Government of Canada are presented on an accrual basis of accounting, recording government revenues and expenses when they are earned or incurred, regardless of when the cash is received or paid. The Government’s main measure of financial performance is the budgetary balance, which provides the most comprehensive and up-to-date picture of the financial situation. In 2019-20, the Government introduced an additional measure of financial performance in its financial reporting framework – the budgetary balance before net actuarial losses. This new measure is intended to enhance financial reporting and decision-making for users by isolating the impacts of re-measurements of public sector pension and other employee and veteran future benefit obligations, which are often significant and can potentially mask underlying events and trends in current government spending. The accumulated deficit, or federal debt, is equal to total liabilities less total assets – both financial and non-financial. Financial assets include cash and cash equivalents, accounts receivable, foreign exchange accounts, loans, investments and advances and public sector pension assets. Non-financial assets include tangible capital assets, such as land and buildings, inventories and prepaid expenses. The annual change in the accumulated deficit is equal to the budgetary balance plus other comprehensive income or loss. Net debt, which is a different measure of the Government’s financial position, represents total liabilities less financial assets.

16

Fiscal Policy

In fiscal 2020-21, the Government posted a budgetary deficit of $327.7 billion, compared to a budgetary deficit of $39.4 billion in fiscal 2019-20. The unprecedented shift in the Government’s financial results reflects the severe deterioration in the economic situation brought on by the COVID-19 pandemic and temporary measures implemented through Canada’s Economic Response Plan to protect Canadians from its impacts. The budgetary deficit before net actuarial losses was $312.4 billion in fiscal 2020-21, compared to a deficit of $28.8 billion in fiscal 2019-20. Federal debt was 47.6% of GDP in fiscal 2020-21, up from 31.2% in the previous year and remaining well below its peak of 66.6% in fiscal 1995-96. Program expenses, excluding net actuarial losses, increased by $270.1 billion, or 79.8%, over the prior year, largely reflecting transfers to individuals, businesses, and other levels of government under the Economic Response Plan. As a percentage of GDP, program expenses excluding net actuarial losses increased to 27.6% in fiscal 2020-21, up from 14.6% in fiscal 2019-20. As a percentage of GDP, public debt charges were 0.9%, while net actuarial losses were 0.7% of GDP in fiscal 2020-21.

The financial requirement/source measures the difference between cash coming in to the Government and cash going out. It differs from the budgetary balance in that it includes cash transactions in loans, investments and advances, pensions and other employee and veteran future benefits, other specified purpose accounts, foreign exchange activities, and changes in other financial assets, liabilities and non-financial assets. These activities are included as part of non-budgetary transactions. Adjustments for the effects of non-cash items included in the budgetary balance are also reflected in non-budgetary transactions.

There was a total financial requirement of $314.6 billion in fiscal 2020-21, compared to a financial requirement of $47.2 billion in fiscal 2019-20. The Government financed this financial requirement of $314.6 billion and increased its cash balances by $26.9 billion by increasing unmatured debt by $341.4 billion.

Unmatured debt as a percentage of GDP stood at 51.0% in fiscal 2020-21, up from 33.9% in fiscal 2019-20.

Budgetary Revenue

The Government reports revenue on an accrual basis in the period in which the event that gave rise to the revenue took place. Income tax revenue is recognized when the taxpayer has earned the income subject to tax. Personal income taxes accounted for 55.2% of Government revenue in fiscal 2020-21 while corporate income taxes accounted for 17.1% of Government revenue.

There are currently five federal income tax brackets for individuals: 15%, 20.5%, 26%, 29% and 33%. For 2021, the taxable income thresholds at which the brackets apply, indexed annually to account for inflation, are as follows: 15% on taxable income up to $49,020, 20.5% on taxable income over $49,020 and up to $98,040, 26% on taxable income over $98,040 and up to $151,978, 29% on taxable income over $151,978 and up to $216,511 and 33% on taxable income above $216,511.

The general federal corporate income tax rate in 2021 is 15%. The small business deduction reduces the federal corporate income tax rate applied to the first $500,000 of qualifying active business income in a taxation year of a Canadian-controlled private corporation to 9%.

Capital gains are taxed at a preferred income tax rate under which only one-half of a realized gain is included in income, and then subject to tax at the applicable personal or corporate income tax rate.

The federal Goods and Services Tax (“GST”) is a broad-based value-added tax, which is applied to the sale of most goods and services at a rate of 5%. Basic groceries, prescription drugs, residential rents, sales of existing houses and educational and healthcare services are generally not subject to tax.

Federal excise taxes and duties are imposed on selected goods, including certain fuel, tobacco, cannabis and alcohol products. Customs duties are imposed on a wide range of goods.

In addition, the Government obtains non-tax revenues in the form of revenues from consolidated Crown corporations and other entities, net income/loss from enterprise Crown corporations (such as the Bank of Canada, Export Development Canada and the Canada Mortgage and Housing Corporation), net foreign exchange revenues, employment insurance premium revenues, proceeds from the pollution pricing framework and other revenues (primarily from the sale of goods and services).

Budgetary Expenses

Budgetary expenses encompass the cost of servicing the public debt, the operating expenses of Government departments and agencies, net actuarial losses, and transfer payments to other levels of government, organizations and individuals.

Transfer payments, which generally make up about two-thirds of the government’s total spending include a range of federal social spending programs designed to enhance the quality of life of Canadians, particularly those who have modest incomes or who are disadvantaged. Transfer payments include income support — most notably for the elderly and unemployed; transfers to the provinces for health, education and social assistance; and programs for Indigenous Canadians. In fiscal 2020-21, transfer payments increased to three-quarters of total expenses, reflecting a number of temporary measures implemented through Canada’s Economic Response Plan to protect Canadians and businesses from the impacts of the pandemic.

17

The following table sets forth budgetary revenues, budgetary expenses, the annual surplus/deficit before net actuarial losses, the annual surplus/deficit and the accumulated deficit for the years shown.

GOVERNMENT OF CANADA – DETAILED CONSOLIDATED STATEMENT OF OPERATIONS AND ACCUMULATED DEFICIT

(in millions of dollars)

	Year ended March 311,2,3
	2021		2020		2019		2018		2017
Revenues
Tax revenues
Income tax revenues
Personal		174,755		167,576		163,881		153,619		143,680
Corporate		54,112		50,060		50,368		47,805		42,216
Non-resident		8,107		9,476		9,370		7,845		7,071
		236,974		227,112		223,619		209,269		192,967
Other taxes and duties
Goods and services tax		32,415		37,386		38,221		36,751		34,368
Energy taxes		4,894		5,683		5,802		5,739		5,634
Customs import duties		4,254		4,853		6,881		5,416		5,478
Other excise taxes and duties		5,391		5,958		6,323		5,913		5,868
		46,954		53,880		57,227		53,819		51,348
Total tax revenues		283,928		280,992		280,846		263,088		244,315
Employment insurance premiums		22,392		22,219		22,295		21,140		22,125
Proceeds from the pollution pricing framework		4,380		2,655		–		–		–
Other revenues
Enterprise Crown corporations revenues and other government business enterprises		-10,542		5,059		7,101		7,731		5,655
Net foreign exchange revenues		2,173		2,410		1,667		1,473		2,133
Other		14,115		20,796		20,309		17,784		16,640
Total other revenues		5,746		28,265		29,077		26,988		24,428
Total revenues		316,446		334,131		332,218		311,216		290,868
Expenses
Program expenses
Transfer payments
Old age security benefits, guaranteed income supplement and spouse’s allowance		58,529		56,227		53,366		50,644		48,162
Major transfer payments to other levels of government
Canada health transfer		45,880		40,872		38,568		37,124		36,057
Canada social transfer		15,023		14,585		14,161		13,748		13,348
Fiscal arrangements		19,299		18,030		17,929		17,575		17,145
Other major transfers		26,451		5,688		5,267		2,072		2,102
		106,653		79,175		75,925		70,519		68,652
Employment insurance and support measures		58,356		21,750		18,888		19,715		20,711
Children’s benefits		27,370		24,344		23,882		23,432		22,065
Canada emergency response benefit and Canada recovery benefits		55,832		4,739		–		–		–
Canada emergency wage subsidy		80,166		–		–		–		–
Proceeds from the pollution pricing framework returned		4,566		2,636		664		–		–
Other transfer payments		97,961		54,405		51,753		47,138		41,580
Total transfer payments		489,433		243,276		224,478		211,448		201,170
Other expenses, excluding net actuarial losses		119,089		95,191		90,077		86,488		77,519
Total program expenses, excluding net actuarial losses		608,522		338,467		314,555		297,936		278,689
Public debt charges		20,358		24,447		23,266		21,889		21,232
Total expenses, excluding net actuarial losses		628,880		362,914		337,821		319,825		299,921
Annual surplus or deficit (–) before net actuarial losses		-312,434		–28,783		–5,603		–8,609		–9,053
Net actuarial losses		-15,295		–10,609		–8,361		–10,352		–9,904
Annual surplus or deficit (–)		-327,729		–39,392		–13,964		–18,961		–18,957
Accumulated deficit at beginning of year – as previously reported		-721,360		–685,450		–671,254		–631,899		–615,986
Accounting change and restatement – Public sector pensions		–		–		–		–19,641		–18,454
Other comprehensive income or loss (–)		343		3,482		–232		–753		1,857
Accumulated deficit at end of year		-1,048,746		–721,360		–685,450		–671,254		–651,540

Source: Public Accounts of Canada 2021 (Volume 1, Table 1.1).

¹  The figures for fiscal years 2017 and 2018 were restated in fiscal year 2019 to reflect a change in revenue recognition criteria for consolidated Crown corporations. The 2018 restated figures have been audited; the restatements for 2017 have not been audited.

²  The figures for fiscal year 2017 were restated in fiscal year 2018 to reflect the impact of a change in methodology for the determination of the discount rate for unfunded pension benefits.

18

Loans, Investments and Advances

The Government’s financial assets include loans and advances to, or investments in, its enterprise Crown corporations, other governments and other individuals and organizations. Loans, investments and advances by the Government resulted in a net financial requirement of $26.4 billion in fiscal 2020-21.

Pension and Other Future Benefits

Public Sector Pensions.  The Government is responsible for defined benefit pension plans covering substantially all of its employees (including the Public Service, Canadian Forces, Royal Canadian Mounted Police and certain Crown corporations) as well as federally appointed judges and Members of Parliament. Pension benefits are generally calculated by reference to the highest earnings for a specific period of time. They are related to years of service and are indexed to inflation. Until March 31, 2000, separate market invested funds were not set aside to provide for payment of these pension benefits. Beginning on April 1, 2000, new employer and employee contributions to the pension plans, less benefit payments and other charges, are transferred to the Public Sector Pension Investment Board. The Board’s goal is to achieve maximum rates of return on investments without undue risk, while respecting the requirements and financial obligations of each of the public sector pension plans. At March 31, 2021, the Government’s liability in respect of pensions net of public sector pension assets, totaled $162.4 billion. This net liability is mainly comprised of the accrued benefit obligation determined as of March 31, 2021, which amounted to $368.8 billion, less pension assets of $201.4 billion and unrecognized actuarial losses of $5.4 billion. In fiscal 2020-21, the net pension liability decreased by $1.6 billion.

Other Employee and Veteran Future Benefits.  The Government also sponsors a variety of other future benefit plans from which employees and former employees can benefit, during or after employment or upon retirement. The cost of these benefits can accrue either during the service life of employees or upon occurrence of an event giving rise to the liability under the terms of the plans. The Government is liable for future payments for disability and other benefits paid to war veterans, as well as Canadian Forces retired veterans and still-serving members, their beneficiaries and dependants. Other significant benefits for which the Government is liable include the health care and dental plans available to retired employees and their dependants, severance benefits, accumulated sick leave entitlements, and workers’ compensation benefits. All these plans are unfunded. The health care and dental plans are contributory plans.

Other Liabilities

Canada Pension Plan Liability. The Canada Pension Plan (the “Plan”) was established in 1965 and is a federal-provincial program for compulsory and contributory social insurance. It operates in all parts of Canada, except for Quebec which has a comparable program. The Plan is excluded from the Government’s reporting entity because changes to the Plan require the agreement of two thirds of participating provinces and it is therefore not controlled by the Government. The Government administers the Plan under joint control with the provinces. Until 1997, the Plan was financed on an essentially pay-as-you-go basis, which means that pensions and benefits were paid out of current contributions (with some interest earned by the Canada Pension Plan Investment Fund). In December 1997, the Government passed legislation to ensure that the Plan remains sustainable over the long term and to allow fuller funding. Changes included a more rapid increase in contribution rates, a new investment policy, as well as changes to calculations of, and eligibility criteria to, some benefits. Under the new investment policy which came into effect April 1, 1998, the Plan’s funds are prudently invested by an independent Canada Pension Plan Investment Board in a diversified portfolio that includes equities, under generally the same rules that apply to other private and public pension funds. Following federal and provincial approval to enhance the Plan, legislation was enacted in March of 2017 to increase the income replacement rate from one-quarter to one-third of pensionable earnings and increase the amount of maximum pensionable earnings by 14%.

Contributions are paid equally by employers and employees, and self-employed workers pay the full amount. To fund the enhanced benefits, annual Canada Pension Plan contributions will increase modestly over 7 years, starting in 2019, from 9.9% to 11.9% up to the current yearly maximum pensionable earnings limit and 8% on earnings between 100% and 114% of this limit.

As administrator, the Government’s authority to spend is limited to the Plan’s net assets of $502.8 billion at March 31, 2021 ($415.6 billion at March 31, 2020). Of these assets, $153.5 billion was transferred to the Canada Pension Plan Investment Board and $0.1 billion was a direct liability of the Government. The balance of $349.2 billion represents accumulated net income from Canada Pension Plan Investment Board’s operations and net receivables. The Government’s liability to the Canada Pension Plan Account represents the Plan’s deposit with the Receiver General of Canada.

Other Liabilities. The Government acts as an insurer and/or administrator of a number of annuities and deposit and trust accounts, as well as specified purpose accounts. The balance outstanding of these accounts amounted to $6.6 billion at March 31, 2021.

Non-Financial Assets

Non-financial assets include the net book value of the Government’s tangible capital assets. Tangible capital assets include land, buildings, works and infrastructure such as roads and bridges, machinery and equipment, ships, aircraft and other vehicles. Non-financial assets also include inventories and prepaid expenses. Non-financial assets increased to $101.1 billion in fiscal 2020-21, up $9.5 billion from fiscal 2019-20.

Other Transactions

This category includes taxes receivable, other accounts receivable, the provincial, territorial and Aboriginal tax collection agreements account, amounts payable to taxpayers and other liabilities. These transactions, due to their nature, are subject to wide fluctuations. They resulted in a financial source of $19.9 billion in fiscal 2020-21, compared to a financial source of $7.1 billion in fiscal 2019-20.

Foreign Exchange Accounts

Foreign exchange accounts include all transactions in international reserves held in the Exchange Fund Account (“EFA”) and balances with the International Monetary Fund. The objectives of the EFA are to provide general foreign currency liquidity for the Government and promote orderly conditions in the foreign exchange market. The EFA includes foreign currency investments, and assets related to Canada’s commitment to the International Monetary Fund. Foreign exchange accounts decreased by $12.3 billion in fiscal 2020-21, totalling $92.6 billion at March 31, 2021, reflecting appreciation in the value of the Canadian dollar and a decrease in net advances to the EFA.

Subsequent Events

On September 29, 2021, the Federal Court of Canada issued its decision on Canada’s application for a judicial review of the Canadian Human Rights Tribunal’s (“CHRT”) orders regarding compensation under the First Nations Child and Family Services program and Jordan’s Principle, as well as the definition of a First Nations child under Jordan’s Principle. The Court rejected Canada’s arguments and upheld the CHRT orders. The decision was appealed by the Government on October 29, 2021. As at November 19, 2021, the financial impact on the Government’s consolidated financial statements of these events was assessed. As a result, the Government’s best estimate of the contingent liability recognized within the consolidated financial statements reflects information available as of November 19, 2021.

19

DETAILED CONSOLIDATED STATEMENT OF NON-BUDGETARY TRANSACTIONS, NON-FINANCIAL ASSETS AND

FOREIGN EXCHANGE TRANSACTIONS

(in millions of dollars)

	Year ended March 311,2
	2021		2020		2019		2018		2017
Loans, Investments and Advances
Enterprise Crown corporations and other government business enterprises
Loans and advances
Canada Mortgage and Housing Corporation		–907		–6,282		592		1,124		720
Business Development Bank of Canada		5,179		–1,170		–1,765		–1,659		–1,869
Farm Credit Canada		–1,688		–2,791		–1,854		–2,324		–2,246
Canadian Development Investment Corporation		–3,725		–1,465		–4,790		–		–
Other		–8		22		14		–13		–115
		–1,149		–11,686		–7,803		–2,872		–3,510
Investments
Share of annual loss or profit (–)		11,638		–3,588		–5,920		–6,959		–4,920
Other comprehensive loss or income (–)		–343		–3,482		232		753		–1,857
Dividends		13,592		3,618		6,427		8,058		2,320
Capital		–18,470		–1,816		–125		–65		–125
Transition adjustment and other		–24		190		–		–		–
		6,393		–5,078		614		1,787		–4,582
Total		5,244		–16,764		–7,189		–1,085		–8,092
Less:
Loans expected to be repaid from future appropriations		115		167		204		264		218
Unamortized discounts and premiums		15		8		1		–1		1
Total		5,114		–16,939		–7,394		–1,348		–8,311
Other loans, investments and advances
Portfolio investments		–53		–		–		5		–
National governments, including developing countries		109		432		55		78		–49
International organizations		–1,231		–1,183		–989		–888		–703
Provincial and territorial governments		–9		60		–16		–98		126
Other loans, investments and advances		–47,757		–1,295		–1,242		760		32
Total		–48,941		–1,986		–2,192		–143		–594
Less: allowance for valuation		–17,051		–335		–2,045		874		–856
Total		–31,890		–1,651		–147		–1,017		262
Total loans, investments & advances		–26,776		–18,590		–7,541		–2,365		–8,049
Pensions and Other Future Benefits
Public sector pensions		–1,557		–2,378		–2,414		–757		505
Other employee and veteran future benefits		17,808		12,516		9,069		11,225		7,887
Total pensions and other future benefits		16,251		10,138		6,655		10,468		8,392
Other Liabilities
Canada Pension Plan Account		–139		115		131		–74		71
Other liabilities		800		31		104		55		16
Total other liabilities		661		146		235		–19		87
Non-Financial Assets
Tangible capital assets		–3,901		–4,740		–5,107		–4,159		–3,838
Inventories		–3,593		430		78		163		379
Prepaid expenses and other		–2,054		–547		–12		77		–86
Total non-financial assets		–9,548		–4,857		–5,041		–3,919		–3,545
Other Transactions
Taxes receivable		–21,444		6,463		–4,526		–12,521		–4,666
Other accounts receivable		–2,179		–3,530		2,535		–4,064		–177
Provincial, Territorial and Indigenous Tax Agreements Account		7,691		–4,710		–351		5,034		–1,942
Amounts payable related to tax		11,330		–5,014		3,324		6,799		1,380
Other liabilities		24,543		13,849		8,936		9,016		3,386
Total other transactions		19,941		7,058		9,918		4,264		–2,019
Foreign Exchange Accounts
International reserves held in the Exchange Fund Account		14,427		–4,817		–1,770		1,238		–5,289
International Monetary Fund — Subscriptions		1,546		–729		198		–755		278
International Monetary Fund — Loans		171		178		229		350		153
		16,144		–5,368		–1,343		833		–4,858
Less: International Monetary Fund
Special drawing rights allocations		840		–396		107		–409		150
Notes payable		3,023		243		1,300		–617		250
		3,863		–153		1,407		–1,026		400
Total foreign exchange accounts		12,281		–5,215		–2,750		1,859		–5,258

Source: Public Accounts of Canada 2021 (Volume 1, Tables 1.5, 1.6).

¹  The figures for fiscal years 2017 and 2018 were restated in fiscal year 2019 to reflect a change in revenue recognition criteria for consolidated Crown corporations. The 2018 restated figures have been audited; the restatements for 2017 have not been audited.

²  The figures for fiscal year 2017 were restated in fiscal year 2018 to reflect the impact of a change in methodology for the determination of the discount rate for unfunded pension benefits.

20

Unmatured Market Debt

The Government’s unmatured market debt represents financial obligations resulting from the sale of marketable bonds, treasury bills, Canada Savings Bonds, Canada Premium Bonds, Canada Bills, Canada Notes, Euro-Medium Term Notes and global foreign currency marketable bonds.

Borrowing is one of the two major sources of money available to the Government to finance its operations. The changes in unmatured market debt payable in Canadian currency have been broadly consistent with changes in financial requirements. The changes in unmatured market debt payable in foreign currency have been associated with developments in foreign exchange markets and related requirements to supplement foreign exchange reserves through foreign borrowing.

UNMATURED MARKET DEBT

(Principal Amount Outstanding)

	At Sept. 30, 2021		At March 31,
			2021		2020		2019		2018		2017
	(in millions)
Canadian Currency:
Marketable bonds	$	968,978	$	875,023	$	596,540	$	569,169	$	575,796	$	535,861
Treasury bills		193,800		218,800		151,867		134,300		110,700		136,700
Canada Savings Bonds		161		163		275		749		1,628		3,266
Canada Premium Bonds		130		136		222		487		957		1,267
Total Canadian currency		1,163,070		1,094,122		749,904		704,706		689,082		677,094
Foreign Currency:(1)
Canada Bills		6,703		4,054		2,160		2,699		2,591		3,521
Canada Notes		–		63		704		1,737		1,675		1,729
Euro Medium-Term Notes		–		–		409		559		882		878
Other marketable bonds(2)		15,949		11,310		12,668		11,020		10,926		11,508
Total foreign currency		22,652		15,427		15,941		16,015		16,074		17,636
Total Unmatured Market Debt	$	1,185,721	$	1,109,549	$	764,845	$	720,721	$	705,156	$	694,731

Source: Bank of Canada, Department of Finance.

Note: Amounts may not add due to rounding.

(1) Foreign currency debt is converted to Canadian dollars using the following closing exchange rate levels:

	At Sept. 29, 2021		At March 31,
			2021		2020		2019		2018		2017
United States Dollar		1.2759		1.2567		1.4076		1.3362		1.2884		1.3299
Euro		1.4790		1.4736		1.5522		1.4989		1.5853		1.4189

(2) Excludes Canada Notes and Euro Medium-Term Notes. Other global foreign currency marketable bonds are comprised of the following amounts (before conversion to Canadian dollars):

	At Sept. 30, 2021		At March 31,
			2021		2020		2019		2018		2017
	(in millions)
United States Dollars		12,500		9,000		9,000		6,004		6,020		6,520
Euro		–		–		–		2,000		2,000		2,000

21

Total Canadian currency unmatured market debt was $1,163 billion on September 30, 2021, an increase of $68,948 million from March 31, 2021. The increase resulted from an increase in outstanding marketable bonds.

Marketable bonds are interest-bearing obligations generally available to all investors. In the period April 1, 2021 to September 30, 2021, the Government issued an aggregate of $145,200 million of marketable bonds in Canadian currency and redeemed $53,259 million (no bonds were repurchased and cancelled during the period), for a net increase of $91,941 million. This was further increased by $2,015 million for the inflation compensation on Real Return Bonds, which resulted in an overall net increase of $93,955 million in marketable bonds.

Treasury bills are obligations issued at a discount with maturities generally of three months, six months and one year. In the period April 1, 2021 to September 30, 2021, the amount of treasury bills outstanding decreased by $25,000 million.

In Budget 2017, released on March 22, 2017, the Government announced its decision to discontinue the sales of new Canada Savings Bonds and Canada Premium Bonds. All outstanding bonds will continue to be honoured. In the period April 1, 2021 to September 30, 2021, the amount of unmatured Canada Savings Bonds outstanding decreased by $2 million and the amount of unmatured Canada Premium Bonds outstanding decreased by $6 million.

Total foreign currency unmatured market debt was $22,652 million on September 30, 2021, an increase of $7,225 million from March 31, 2021. Canada Bills are short-term U.S. dollar-denominated unsecured obligations issued in the U.S. money market with a term to maturity of not more than 270 days. Canada Notes are usually U.S. dollar-denominated interest-bearing marketable notes that mature not less than nine months from their date of issue. Euro Medium Term Notes are medium-term notes issued outside the United States and Canada. Notes issued under this program can be denominated in a range of currencies and structured to meet investor demand. The other marketable bonds are comprised of four global bond issues denominated in U.S. dollars.

In 1996, Canada implemented the EFA foreign currency swap program. Under these foreign exchange swaps, Canadian dollar liabilities are swapped into liabilities in foreign currencies, allowing Canada to raise foreign exchange reserves cost effectively. As of September 30, 2021, $48,511 million of Canadian dollars have been swapped for USD $39,493 million, $16,386 million of Canadian dollars have been swapped for EUR 11,167 million, $8,372 million of Canadian dollars have been swapped for GBP 4,484 million and $6,695 million Canadian dollars have been swapped for JPY 561,950 million. As of September 30, 2021, on a net basis $426 million Canadian dollars have been swapped for USD 344 million through foreign exchange swaps which mature in less than one year.

The average rates of interest paid on the unmatured debt outstanding by instrument are set out below.

AVERAGE RATES OF INTEREST (%)

	At March 31
	2021		2020		2019		2018		2017
Marketable bonds(1)		1.63		2.19		2.28		2.18		2.25
Treasury bills		0.21		1.39		1.79		1.16		0.54
Retail debt		0.71		0.79		0.71		0.63		0.66
Canada bills		0.07		1.56		2.44		1.61		0.77
Medium-term notes		0.18		0.99		2.23		1.70		1.06
Total market debt		1.35		2.03		2.18		2.01		1.89

Source: Public Accounts of Canada 2021 (Volume 1, Table 6.8).

(1) Includes foreign currency marketable bonds.

22

The following table shows the scheduled repayments in respect of principal and interest on the marketable bonds and notes outstanding at September 30, 2021.

SCHEDULE OF MARKETABLE BOND AND NOTE REPAYMENTS

(in millions)

	Total Principal and Interest(1)
For years ended December 31,	Canadian Currency Debt(2)		Foreign Currency Debt(3)
2021		22,630		55
2022		169,546		7,878
2023		188,214		96
2024		96,961		96
2025		89,318		3,892
2026-2030		251,243		4,482
2031-2035		82,348		—
2036-2040		35,115		—
2041-2045		57,737		—
2046-2050		38,718		—
2051-2055		63,960		—
2056-2060		928		—
2061-2065		7,493		—

Source: Bank of Canada.

(1) Does not include Canada Bills and excludes the effect of interest rate swaps and cross currency swaps.

(2) Only includes domestic marketable bonds, excluding inflation compensation component on Real Return Bonds.

(3) Converted at USD 1.00 = CAD 1.2759, EUR 1.00 = CAD 1.4790; the closing rates on September 29, 2020.

23

Crown Corporations

Except for enterprise Crown corporations and other government business enterprises, which are reported under the modified equity basis of accounting, all Government organizations are consolidated in the Government’s financial statements.

The payment of all money borrowed by agent enterprise Crown corporations is a charge on and payable out of the Consolidated Revenue Fund. Such borrowings constitute unconditional obligations of the Government and are recorded as such in the accounts of Canada, net of borrowings expected to be repaid directly by these corporations. Borrowings expected to be repaid by agent enterprise Crown corporations amounted to $314,727 million as at March 31, 2021. Since fiscal 2007-08, the Government has met all of the borrowing needs of the Business Development Bank of Canada, Canada Mortgage and Housing Corporation and Farm Credit Canada through direct lending. The following table summarizes the unaudited financial information of consolidated Crown corporations, other entities and enterprise Crown corporations as at March 31, 2021.

FINANCIAL INFORMATION REGARDING CROWN CORPORATIONS AND OTHER ENTITIES

(in millions)

	Consolidated Crown corporations		Other entities		Enterprise Crown corporations		Total
Assets
Total assets		16,542		876		1,025,210		1,042,628
Liabilities
Liabilities to other than Government
Borrowings		296		—		315,149		315,445
Other		11,502		187		520,022		531,711
		11,798		187		835,171		847,156
Net assets		4,744		689		190,039		195,472
Financial interest of the Government
Obligations to the Government		715		16		145,693		146,424
Net equity of the Government		4,029		673		44,346		49,048
Total financial interest		4,744		689		190,039		195,472
Contingent liabilities		(1)		(1)		4,718		4,718

Source: Public Accounts of Canada 2021 (Volume 1, Tables 4.1, 4.4, 9.3, 9.7).

(1) Contingent liabilities of consolidated Crown corporations and other entities are included in the Government’s financial statements as follows: claims and pending and threatened litigation - provision accrued: $31.2 million; disclosure only: $33.6 million.

Note: Amounts may not add due to rounding.

Contingent Liabilities (with respect to Guarantees provided by the Government)

The contingent liabilities of the Government with respect to guarantees provided by the Government as at March 31, 2021 are summarized as follows.

CONTINGENT LIABILITIES (WITH RESPECT TO NET EXPOSURE UNDER GUARANTEES)

(in millions)

Guarantees provided by the Government
Guaranteed borrowings of enterprise Crown corporations and other government business enterprises	$	314,727
Loan guarantees		13,487
Insurance programs managed by the Government		255,531
Other explicit guarantees		—
Total gross guarantees		583,745
Less: allowance for guarantees		720
Net exposure under guarantees	$	583,025

Source: Public Accounts of Canada 2021 (Volume 1, Table 11.6).

Note: Amounts may not add due to rounding.

24

Insurance Programs

Certain agent enterprise Crown corporations operate insurance programs. In the event that such corporations have insufficient funds to meet their obligations, the Government would provide the required financing through appropriations, either budgetary or non-budgetary.

The following table summarizes the unaudited information regarding such insurance programs as at March 31, 2021.

AGENT ENTERPRISE CROWN CORPORATIONS INSURANCE PROGRAMS

(in millions)

	Insurance in force		Net claims(1)		5-year average of net claims paid		Closing balance of Fund
Canada Deposit Insurance Corporation		967,981		—		—		3,842
Canada Mortgage and Housing Corporation:
Mortgage Insurance Fund		422,000		115		252		10,919
Mortgage-Backed Securities Guarantee Fund		479,000		—		—		1,552
Export Development Canada:
Export insurance contracts entered into on its own behalf		28,792		128		167		—
Farm Credit Canada		4,477		4		6		21

Source: Public Accounts of Canada 2021 (Volume 1, Table 11.8).

(1) Refers to the difference between claims and amounts received from sales of related assets and other recoveries.

DEBT RECORD

Canada has always paid the full face amount of the principal and interest on every direct obligation issued by it and every indirect obligation on which it has been required to implement its guarantee, promptly when due. During war, where such payment would have violated laws or regulations forbidding trading with the enemy, payment was made to a custodian of enemy property.

25

MONETARY AND BANKING SYSTEM

Bank of Canada

The Bank of Canada (the “Bank”) was incorporated in 1934 under the Bank of Canada Act (in this section referred to as the “Act”) as Canada’s central bank. All of the capital stock of the Bank is owned by the Government. The Act gives the Bank the responsibility for the conduct of monetary policy and confers specific powers for discharging that responsibility.

The Bank has the sole right to issue notes for circulation in Canada. The Bank acts as the fiscal agent of the Government of Canada and, in this role, the Bank participates in the management of the public debt. Specifically, the Bank is responsible for handling the Government’s new market debt borrowings, administering its outstanding market debt and making payments for interest and market debt redemption on its behalf.

The Bank may buy or sell various types of securities, including securities issued or guaranteed by Canada or any province, and securities issued or guaranteed by the Government of the United States of America, of Japan, of the United Kingdom or of a member state of the European Union. For purposes of conducting monetary policy or promoting the stability of the Canadian financial system, the Bank may buy or sell from or to any person securities and any other financial instruments other than instruments that evidence an ownership interest or right in or to an entity, that comply with the policy established by the Governor and published in the Canada Gazette. Also, for the purposes of conducting monetary policy or promoting financial stability, if the Governor is of the opinion that there is a severe and unusual stress on a financial market or the financial system, the Bank may buy and sell from or to any person any securities and any other financial instruments, to the extent determined necessary by the Governor. The Bank may buy and sell foreign currencies, SDRs issued by the IMF, coin and gold and silver bullion. The Bank may open accounts with other central banks, at the Bank for International Settlements (“BIS”) and at commercial banks. The Bank may accept deposits from the Government or any of its corporations or agencies, any province, as well as any bank, any authorized foreign bank that is not subject to certain restrictions and requirements or any other member of Payments Canada as well as financial market infrastructure. The Bank may pay interest to the Government on deposits held at the Bank and may pay interest to member institutions of Payments Canada on deposits accepted for certain specified purposes. It may also accept deposits from other central banks and official international financial organizations and may pay interest on such deposits. The Bank does not accept deposits from individuals, nor offer commercial banking services.

The Bank is not required to maintain gold or foreign exchange reserves against its liabilities. The Bank may, on the pledge of certain classes of securities or property, make loans or advances for periods not exceeding six months to any member of Payments Canada. The Bank shall at all times make public the minimum rate at which it is prepared to make loans or advances. Although the Bank has the power to make loans or advances under certain conditions and for limited periods to the Government or any province, such loans are extremely rare and no such loans have been made in over 50 years.

The framework for the implementation of monetary policy by the Bank was changed considerably on two occasions during the 1990s, first as a result of the phased elimination of reserve requirements between June 1992 and July 1994, and second, with the introduction of a large-value settlement system (the “Large Value Transfer System” or “LVTS”) in February 1999. In 2021, the Lynx system replaced the LVTS system and is Canada’s real-time gross settlement system.

The Bank can implement monetary policy through two different frameworks, depending on how the Bank manages the balance sheet and supplies liquidity to the payment system. The interest rate corridor is one where the Bank supplies limited settlement balances to maintain a targeted level on a daily basis through the auctioning of Government of Canada cash balances. The Bank implemented this approach in 1999. Or the Bank can use the floor system where settlement balances drive the overnight rate down to equal the deposit rate. This system was implemented in March 2020 to reinforce the overnight target rate. The following paragraphs describe these two alternatives more fully.

In the corridor system, given the Lynx system is a closed system, which means that the net overall cash position of the entire system should generally be zero, any participant in the Lynx with a deficit funds position should therefore be aware that there will be at least one participant with an offsetting surplus position, and is therefore a potential counterparty for transactions at market rates. The Bank encourages these transactions by paying an interest rate on positive balances held overnight by Lynx participants at the lower limit of its operating band and charging an interest rate on overdraft loans to Lynx participants at the upper limit of the band (which is also the Bank Rate). Thus, the overnight rate should stay within the operating band since participants are aware that they can earn at least the lower limit of the band on positive balances and need not pay more than the upper limit to cover shortfalls. Moreover, the Bank is prepared to enter into overnight buyback transactions to reinforce its target rate through a competitive single rate auction with midpoint being the minimum rate if lending funds or maximum rate if borrowing funds. Through its influence on the interest rate for overnight funds, the Bank is able to influence other short-term interest rates, the exchange rate, aggregate demand and, ultimately, inflation. Under this approach, the Bank generally targets a specific level of excess settlement balances in the Lynx (e.g., $250 million). This added liquidity helps reduce transaction costs and other frictions during the end-of-day process and, as a result, lessens the need for participants in deficit positions to take frequent small advances from the Bank. Changing the level of settlement balances is an effective policy tool to reinforce the Bank’s target for the overnight rate. To achieve the targeted level of excess Lynx settlement balances, the Bank adjusts the level of Government deposits held at financial institutions through twice-daily auctions of Government cash balances (i.e., Receiver General of Canada auctions).

During times of severe financial system stress, such as the 2008-2009 global financial crisis and the 2020 COVID pandemic, the Bank may adjust its operating framework to reinforce its target rate, accommodate increased market-wide demand for liquidity, and reduce the operational burden on the Bank and Lynx participants. To do so, the Bank may allow settlement balances to reach a higher level than usual or cease targeting a specific level of settlement balances altogether. By providing an ample amount of settlement balances during these periods of stress, the overnight rate is less sensitive to the overall level of settlement balances. Because of this, there is less need for intraday liquidity operations or afternoon Receiver General of Canada auctions that the Bank typically uses to achieve its target level of settlement balances. In such circumstances, the Bank may also narrow its operating band for implementing monetary policy, setting the deposit rate equal to the target for the overnight rate, while maintaining the Bank rate at 25 basis points above the target rate. Along with higher settlement balances, this helps motivate trading in the general collateral overnight market at or close to the deposit rate during the day and supports the Bank’s ability to achieve its overnight rate target.

The Act provides for regular consultation between the Governor of the Bank and the Minister of Finance as well as for a formal procedure whereby, in the event of a disagreement between the Government and the Bank which cannot be resolved, the Government may issue a directive to the Bank as to the monetary policy that it is to follow. The directive must be in writing, in specific terms, applicable for a specified period and published forthwith. This provision in the Act makes it clear that the Government must take the ultimate responsibility for monetary policy, but the Bank is in no way relieved of its responsibility for monetary policy and its execution so long as a directive is not in effect. No directive has ever been issued.

The Payment Clearing and Settlement Act gives the Bank formal responsibility for the regulatory oversight of major clearing and settlement systems. Specifically, the Bank will review all eligible systems and identify their potential to cause systemic or payment system risk. If the Governor of the Bank is of the opinion that a clearing and settlement system could be operated in a manner that poses a systemic risk or payments system risk and the Minister is of the opinion that it is in the public interest to do so, the Governor may designate the clearing and settlement system as a clearing and settlement system that is subject to this Part. Designated systems will have to satisfy the Bank that they have appropriate risk-control mechanisms in place. The Bank may carry out examinations and, in situations where it is judged that systemic or payment risk is being inadequately controlled, the Governor of the Bank may issue directives to a designated system.

The Payment Clearing and Settlement Act also gives the Bank powers to provide certain services. In particular, the Bank can provide a guarantee of settlement to the participants of designated systems. Furthermore, the Payment Clearing and Settlement Act establishes the Bank’s role as the resolution authority for Canadian designated systems. This new role came into force in 2019. The resolution regime’s main objectives are to promote financial stability, maintain the availability of critical financial services and minimize the potential exposure of public funds to a loss. To achieve this, the Bank is developing plans on how to respond to the unlikely event of a designated system in resolution in Canada. The Bank also has the power to lend to the clearing house of a system in resolution on an uncollateralized basis, and also the power to take temporary control of the system.

26

Other Government Financial Institutions

Export Development Canada (“EDC”) was established on October 1, 1969 for the purpose of facilitating and developing trade between Canada and other countries. EDC is the successor to the Export Credits Insurance Corporation which commenced operations in 1944. Activities were originally limited to insuring Canadian exporters against non-payment of credits extended to foreign buyers. To further enhance Canada’s growing export trade, EDC has introduced an export loans program, a foreign investment guarantees program and a surety risk protection insurance program. The Federal Business Development Bank was established in 1975 as the successor to the Industrial Development Bank which was established in 1944 as a subsidiary of the Bank of Canada. In 1995, the Federal Business Development Bank was continued as the Business Development Bank of Canada (“BDC”). The purpose of the BDC is to provide financial and management services to Canadian businesses, with a focus on small and medium-sized enterprises in Canada. The Canada Deposit Insurance Corporation, established in 1967, insures deposits payable in Canada and in Canadian currency at banks and other financial institutions up to $100,000 per depositor. Farm Credit Canada, established in 1959, provides financial and management services to farms and agrifood businesses. The Canada Mortgage and Housing Corporation (formerly the Central Mortgage and Housing Corporation, or “CMHC”) was incorporated in 1945 to insure mortgage loans made by approved lenders and to make direct mortgage loans. Since then, CMHC’s role in the housing market has expanded beyond mortgage loan insurance to include the provision of mortgage-backed securities and related guarantees, housing policy and advice, and housing research.

Chartered Banks

Canada’s banks are all federally incorporated and are regulated under the Bank Act. The Bank Act sets out the rules for the structure and operation of these institutions. The Office of the Superintendent of Financial Institutions (“OSFI”) is the federal agency responsible for supervising banks.

Under the Bank Act, foreign banks are permitted to incorporate Canadian banks. In June 1999, legislation was passed to allow foreign banks to establish branches in Canada. Foreign banks can operate full-service branches or lending branches. As at October 29, 2021, the banking system consisted of 35 domestic banks, 17 foreign bank subsidiaries, 27 full-service foreign bank branches and four foreign bank lending branches. Foreign branches are permitted to raise wholesale deposits (not insured by the Canada Deposit Insurance Corporation). Moreover, foreign branches are not subject to the capital requirements of domestic banks; however, they are required to maintain a minimum capital equivalent deposit amount with a domestic federal financial institution.

Financial Sector Initiatives

The Government of Canada is responsible for ensuring the federal financial sector regulatory framework operates efficiently and effectively for consumers and businesses while maintaining the safety of institutions and soundness and integrity of the sector. The five-year sunset clause in the financial institutions statutes, which include the Bank Act, the Insurance Companies Act and the Trust and Loan Companies Act, encourages regular review of the federal financial sector framework to ensure that it continues to meet the changing needs of its users. In the most recent review, conducted through 2016 and 2017, the Department of Finance consulted stakeholders regarding initiatives to improve the stability, efficiency and utility of the framework in the context of current trends and emerging risks. Stakeholders indicated that the financial sector legislative framework is functioning well, but called for targeted updates to adapt to innovations and sectoral developments.

Priority amendments were adopted in 2018 to implement targeted proposals from the review. These included: providing greater flexibility for financial institutions to undertake and leverage broader fintech activities that enable the delivery of financial services in new and innovative ways; permitting life and health insurance companies to make long-term equity investments in public infrastructure; and renewing the sunset date in the federal financial institutions statutes. A second phase of measures introduced a number of targeted and technical amendments to enhance the stability, efficiency, and utility of the financial sector. A third phase of measures was adopted in 2019 and introduced amendments to provide members of federal credit unions with more options for voting prior to and at annual general meetings.

In early 2021, the Government extended the sunset dates in the financial institutions statutes by two years to 2025, in order to enable full consideration of the impacts of the pandemic on the financial sector as part of the next legislative review.

27

The Government of Canada continues to support the Cooperative Capital Markets Regulatory System that will better protect investors, foster efficiency and innovation, and enhance capacity to identify and manage systemic risk in capital markets, in a manner that fully respects provincial and territorial jurisdiction.

The Government has acted repeatedly since 2008 to protect the financial security of borrowers and increase discipline in mortgage funding markets. Successive rounds of macroprudential policy tightening were implemented to ensure that government-backed programs support safer forms of lending. Notably, in October 2016, the Government required lenders to test a borrower’s ability to make their mortgage payments at a higher interest rate for all insured mortgages. The Government has also prohibited the use of insured mortgages in securitization vehicles not sponsored by the Canada Mortgage and Housing Corporation, and restricted the use of optional portfolio insurance to government-sponsored securitization. In January 2018, OSFI implemented changes to its underwriting guidelines, affecting all mortgages underwritten by Federally Regulated Financial Institutions (“FRFIs”), which include a mortgage rate stress test for uninsured mortgage borrowers. In July 2020, while not required by regulation, CMHC unilaterally tightened its underwriting criteria for transactional and portfolio mortgage insurance by lowering maximum debt service ratios, establishing a higher minimum credit score, and restricting the use of non-traditional sources of down payment that increase indebtedness. These changes, with the exception of the use of non-traditional sources of down payment, were reversed in July 2021. In June 2021, OSFI issued a revised draft Mortgage Insurer Capital Adequacy Test (“MICAT”) 2023 guideline, reporting forms, and instructions for consultation. Key revisions to the MICAT 2023 guideline aim to adapt the MICAT for IFRS 17 Insurance Contracts, introduce a capital requirement on the loss components of liabilities for remaining coverage, and specify credit risk requirements in a manner consistent with IFRS 9 Financial Instruments terminology. In June 2021, the Office of the Superintendent of Financial Institutions implemented changes to its minimum qualifying rate for uninsured mortgages, concurrent with the Minister of Finance adjusting the framework for insured mortgages. Subject to review, all borrowers are now required to qualify for a residential mortgage at the greater of the borrower’s mortgage contract rate plus 2 per cent, or a "floor", initially set at 5.25 per cent.

Monetary Policy and Interest Rate Developments

The ultimate objective of Canadian monetary policy is to promote good overall economic performance, namely by keeping inflation low, stable and predictable.

In February 1991, the Government and the Bank of Canada (the “Bank”) jointly announced a series of targets for reducing total CPI inflation to the mid-point of a range of 1% to 3% by the end of 1995. This inflation-control target range has been extended a number of times. In November 2016, the Government and the Bank renewed Canada’s inflation-control framework for a further five-year period. Monetary policy will continue to aim at keeping future inflation at the 2% target mid-point, both to maximize the likelihood that inflation stays within the target range and to increase the predictability of inflation over the longer term. The next review of the inflation-control framework will be in 2021.

The policy instrument the Bank uses to influence monetary conditions is the target overnight rate, which is the mid-point of the Bank’s operating band for overnight financing. The Bank constantly reassesses the level of the target overnight rate necessary to achieve the inflation-control targets.

Since November 2000, the Bank has moved to eight fixed announcement dates for the target overnight rate to make monetary policy more effective. Fixed dates have reduced the uncertainty in financial markets associated with not knowing exactly when changes in the overnight rate target may be announced and contributed to the improved functioning of financial markets. Fixed dates have provided a regular opportunity to emphasize the medium-term perspective of monetary policy and increased the Bank’s transparency, accountability and dialogue with the public.

The necessary efforts to contain the COVID-19 pandemic have caused a sudden and deep contraction in economic activity and employment worldwide. This has driven a flight to safety and a sharp repricing of a wide range of assets. It has also pushed down prices for commodities, especially oil. As a result, in March 2020, the Bank lowered its target for the overnight rate by 150 basis points to its effective lower bound of 25 basis points. The Bank also initiated extraordinary measures to support liquidity and market-functioning in the financial system. These measures have been effective at resolving the initial stress in financial markets and ensuring their well-functioning on a continued basis. In October 2020, the Bank began to gradually reduce the pace of the quantitative easing (“QE”) purchases, and the program shifted to supporting economic growth. Given the continued progress in the economic recovery, the Bank ended its QE program in October 2021, by moving into the reinvestment phase.

In the October 2021 Monetary Policy Report (“MPR”), the Bank expected that after a decline in real GDP of 5.3 percent in 2020, the economy would grow by about 5 percent in 2021, 4.25 percent in 2022, and 3.75 percent in 2023. The Bank expects CPI inflation to be elevated into next year due to pandemic-related supply bottlenecks and energy prices, and ease back to around the 2 percent target by the end of 2022.

The Bank stated that in view of ongoing excess capacity, the economy continues to require considerable monetary policy support and is committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. In the October 2021 MPR projection, this happens sometime in the middle quarters of 2022.

28

Selected Interest Rates

29

Membership in International Economic Organizations

As of September 30, 2021, Canada’s paid-up quota in the IMF is SDR 11,024 million. On September 30, 2021, one SDR equaled $1.80.

Canada also participates in the New Arrangements to Borrow (the “NAB”), which provides special financial resources to the IMF. The NAB is subject to periodic review and renewal by the IMF’s Board of Governors. On January 1, 2021, a NAB reform became effective, doubling the NAB credit arrangements and establishing a new NAB period through end-2025. As of September 30, 2021, Canada’s NAB commitment is SDR 7,747 million, with SDR 91 million currently drawn.

Alongside a number of G7, G20 and other partner countries, Canada also participates in the global undertaking to extend the IMF’s access to bilateral resources (also known as Bilateral Borrowing Agreements (“BBAs”). The previous 2016 agreement under which Canada provided a credit line of SDR 8,200 million ended on December 31, 2020. With the doubling of the NAB, the BBAs were roughly halved, keeping overall borrowed resources unchanged. A new BBA agreement became effective on January 1, 2021 for a term of three years through end-2023, extendable by one year. As of September 30, 2021, Canada’s bilateral credit line to the IMF is SDR 3,532 million.

Canada is also a member of the Organization for Economic Cooperation and Development, a party to the World Trade Organization and a shareholder (through the Bank) of the BIS. Canada’s participation in other international development institutions is summarized in the table below.

PARTICIPATION IN OTHER INTERNATIONAL DEVELOPMENT INSTITUTIONS

	At September 30, 2021
	Subscription
	Total		Paid-in(1)
	(in millions of U.S. dollars)
International Bank for Reconstruction and Development	$	8,499	$	620
International Finance Corporation		620		620
Multilateral Investment Guarantee Agency		57		11
Asian Development Bank		7,849		393
Inter-American Development Bank		7,026		242
Caribbean Development Bank		157		34
African Development Bank		8,796		292
European Bank for Reconstruction and Development		1,835		289
Asian Infrastructure Investment Bank		995		199

Source: Department of Finance. Data derived from the annual statements/reports of the above-mentioned institutions. Where applicable, subscription amounts were converted to U.S. dollar amounts using closing exchange rates as of September 30, 2021.

(1) Balance of subscription payable only in the unlikely event that there is a call on the institution’s capital.

30

CLAIMS AND OTHER

Contingent liabilities arise in the normal course of operations and their ultimate disposition is unknown. Contingent liabilities are potential liabilities, which may become actual liabilities when one or more future events not wholly within the Government’s control occur or fail to occur. The following table presents the different components of the Government’s provision for contingent liabilities as at March 31, 2021.

	2021 (in millions)
Claims
Pending and threatened litigation and other claims		25,644
Specific claims		11,503
Comprehensive land claims		6,948
Provision for guarantees provided by the Government		720
Total provision recorded		44,815

Source: Public Accounts of Canada 2021 (Volume 1, Section 2).

Claims

The Government’s estimated provision for claims is determined using relevant historical experience, facts and circumstances. In situations where the estimate of loss is based on a range of amounts, the amount accrued within the range is the Government’s best estimate of the potential loss, which may be at an amount lesser than the maximum of the range. Significant exposure to a liability could exist in excess of what has been accrued. In situations where the outcome is likely but the Government cannot reasonably estimate a liability, no amount is accrued. As of March 31, 2021, claims for which the outcome was not determinable and for which an amount had not been accrued were estimated at approximately $4,791 million ($4,648 million in fiscal year 2020).

Pending and threatened litigation and other claims: There are thousands of pending and threatened litigation cases as well as claims outstanding against the Government. These claims include items with pleading amounts and items where an amount is not specified. While the total amount claimed in these actions is significant, their outcomes are not known in all cases. As a result, provisions that are recorded are based on the Government’s best estimate of the potential loss.

Specific claims: Specific claims deal with the past grievances of First Nations related to Canada’s obligations under historic treaties or the way it managed First Nations’ funds or other assets. The past grievances may be proceeding via the legal system or via the specific claims program. The Government of Canada will pursue a settlement agreement with the First Nation when a claim demonstrates an outstanding lawful obligation. As of March 31, 2021, there were 627 (593 in 2020) specific claims under negotiation, accepted for negotiation or under review. A liability is estimated and recorded for claims that have progressed to a point where quantification is possible. This estimate also includes projections based on historical rates and costs of settlement for similar claims and includes an estimate for claims that have been filed but not yet assessed.

Comprehensive land claims: Comprehensive land claims arise in areas of the country where Aboriginal rights and title have not been resolved by treaty or by other legal means. As of March 31, 2021, there were 84 (84 in 2020) comprehensive land claims under negotiation, accepted for negotiation or under review. A liability is estimated and recorded for claims that have progressed to a point where quantification is possible. This estimate also includes projections based on historical rates and costs of settlement for similar claims.

Other

Assessed taxes under appeal: Contingent liabilities include previously assessed federal taxes where amounts are being appealed to the Tax Court of Canada, the Federal Court of Appeal, or the Supreme Court of Canada. As of March 31, 2021, an amount of $4,269 million ($4,373 million in 2020) was being appealed to the courts. The Government has recorded, in the amounts payable related to tax or in reduction of the amounts receivable from taxpayers, as applicable, the estimated amount of appeals that are considered likely to be lost and that can be reasonably estimated.

31

TABLES AND SUPPLEMENTARY INFORMATION

The tables and supplementary information under the headings Unmatured Market Debt, Other Obligations (with Respect to Money Borrowed) and Supplementary Information have been provided by the Department of Finance and the Bank of Canada.

Unmatured Market Debt

All debt obligations listed below are direct obligations of the Government of Canada and constitute a charge on the Consolidated Revenue Fund of Canada.

(A) PAYABLE IN CANADA IN CANADIAN DOLLARS

MARKETABLE BONDS(1)

Maturity date	Coupon%	Issue date(s)	Series		Outstanding at September 30, 2021
2021 — Nov. 1	1.25	2019: Aug. 9, Aug. 30, Sep. 23, Oct. 18		K452		12,000,000,000
2021 — Dec. 1	4.25	1991: Dec. 10; 1992: Oct. 14; 1993: May 1, Dec. 1; 1994: Feb. 22, Jun. 21, Sep. 15, Dec. 15; 1995: Feb. 2, May 8, Aug. 4		L25		8,862,187,500	(2)
2022 — Feb. 1	1.50	2019: Nov. 4, Nov. 22, Dec. 20; 2020: Jan. 10		K601		12,000,000,000
2022 — Mar. 1	0.50	2016: Oct. 11, Nov. 15; 2017: Jan. 24, Feb. 21; 2018: Dec. 24; 2019: Mar. 29		G328		19,000,000,000
2022 — May 1	1.50	2020: Jan. 27, Feb. 14, Mar. 13, Mar. 30, Apr. 13		K866		20,000,000,000
2022 — Jun. 1	2.75	2011: Aug. 2, Oct. 11; 2012: Feb. 6, May 7, Jun. 11		ZU15		12,700,000,000
2022 — Jun. 1	9.25	1991: Dec. 16; 1992: Jan. 3, May 15		A49		206,022,000
2022 — Aug. 1	0.25	2020: May 4, May 25, Jun. 15, Jul. 6, Jul. 24		L286		30,000,000,000
2022 — Sep. 1	1.00	2017: Apr. 10, May 30, Jul. 10, Aug. 28; 2019: May 17, Jun. 14, Aug. 6, Sep. 27		G732		25,200,000,000
2022 — Nov. 1	0.25	2020: Aug. 17, Aug. 24, Aug. 31, Sep. 14, Oct. 2, Oct. 13		L369		37,000,000,000
2023 — Feb. 1	0.25	2020: Oct. 26, Nov. 4, Nov. 18, Dec. 2, Dec. 29; 2021: Jan. 15		L773		32,000,000,000
2023 — Mar. 1	1.75	2017: Oct. 6, Nov. 10; 2018: Jan. 22, Feb. 16; 2019: Oct. 25, Nov. 15; 2020: Feb. 10, Feb. 28		H490		24,600,000,000
2023 — May 1	0.25	2021: Feb. 5, Feb. 19, Mar. 5, Mar. 17, Apr. 19		L856		30,000,000,000
2023 — Jun. 1	1.50	2012: Jul. 30, Oct. 22; 2013: Feb. 4, Apr. 2, May 6		A610		14,200,000,000
2023 — Jun. 1	8.00	1992: Aug. 17; 1993: Feb. 1, Apr. 1, Jul. 26, Oct. 15; 1994: Feb. 1, May 2		A55		2,358,552,000
2023 — Aug. 1	0.25	2021: May 14, Jun. 21, Jun. 30, Jul. 19		M359		20,000,000,000
2023 — Sep. 1	2.00	2018: Apr. 6, May 22, Jul. 9, Aug. 24; 2020: Apr. 20, May 22, Jun. 19, Jul. 10, Aug. 4, Sep. 25		H987		40,500,000,000
2023 — Nov. 1	0.50	2021: Aug. 9, Aug. 23, Sep. 17		M763		12,500,000,000
2024 — Mar. 1	2.25	2018: Oct. 5, Nov. 16; 2019: Jan. 18, Feb. 15		J546		11,907,680,000
2024 — Apr. 1	0.25	2020: Oct. 16, Oct. 28, Dec. 7; 2021: Feb. 26, Mar. 24, Apr.12, May 21		L690		37,000,000,000
2024 — Jun. 1	2.50	2013: Jul. 2, Aug. 19, Oct. 7; 2014: Feb. 10, Apr. 28		B451		13,700,000,000
2024 — Sep. 1	1.50	2019: Apr. 5, May 10, Jul. 5, Aug. 23		J967		16,065,381,000
2024 — Oct. 1	0.75	2021: Jul. 12, Aug. 27		M508		8,000,000,000
2025 — Mar. 1	1.25	2019: Oct. 11, Nov 8; 2020: Feb. 3, Feb. 21, Mar. 25		K528		17,300,000,000
2025 — Jun. 1	2.25	2014: Jun. 30, Jul. 28, Oct. 20; 2015: Jan. 27, Apr. 21		D507		13,100,000,000
2025 — Jun. 1	9.00	1994: Aug. 2, Nov. 1; 1995: Feb. 1, May 1, Aug. 1, Nov. 1; 1996: Feb. 1		A76		2,133,858,000
2025 — Sep. 1	0.50	2020: Apr. 3, Apr. 14, May 15, Jun. 1, Jun. 29, Jul. 20, Aug. 7, Aug. 21, Sep. 8		K940		47,500,000,000
2026 — Mar. 1	0.25	2020: Oct. 9, Oct. 23, Nov. 12, Dec. 9; 2021: Jan. 18, Feb. 16, Mar. 11, Apr. 5		L518		34,000,000,000
2026 — Jun. 1	1.50	2015: Jul. 21, Oct. 27; 2016: Jan. 26, Apr. 25, Jun. 27		E679		13,472,000,000
2026 — Sep. 1	1.00	2021: Apr. 16, May 7, Jun. 7, Jul. 9, Aug. 13, Sep. 23		L930		23,000,000,000
2026 — Dec. 1	4.25	1995: Dec. 7; 1996: Mar. 6, Jun. 6, Sep. 6, Dec. 6; 1997: Mar. 12, Jun. 9, Sep. 8, Dec. 8; 1998: Mar. 9, Jun. 8, Sep. 8, Dec. 7		VS05		8,504,527,500	(2)
2027 — Jun. 1	1.00	2016: Oct. 31; 2017: Mar. 7, May 1, Jun. 26		F825		14,740,000,000
2027 — Jun. 1	8.00	1996: May 1, Aug. 1, Nov. 1; 1997: Feb. 3, May 1, Aug. 1, Nov. 3		VW17		3,620,841,000
2028 — Jun. 1	2.00	2017: Aug. 1, Oct. 30; 2018: Feb. 23, Apr. 27, Jun. 22		H235		13,500,000,000
2029 — Jun. 1	2.25	2018: Jul. 27, Oct. 19; 2019: Jan. 25, Apr. 22		J397		12,300,000,000
2029 — Jun. 1	5.75	1998: Feb. 2, May 1, Nov. 2; 1999: May 3, Oct. 15; 2000: Apr. 24, Oct. 16; 2001: Apr. 23		WL43		10,598,959,000
2030 — Jun. 1	1.25	2019: Jul. 26, Oct. 4; 2020: Jan. 17, Mar. 23, Apr. 1, Apr. 6, May 8, Jun. 22, Jul. 13, Aug. 10, Aug. 28, Sep. 28		K379		44,200,000,000
2030 — Dec. 1	0.50	2020: Oct. 5, Oct. 21, Nov. 16, Dec. 23; 2021: Jan. 11, Feb. 1, Mar. 8, Mar. 29		L443		40,000,000,000
2031 — Jun. 1	1.5	2021: Apr. 26, May 10, Jun. 16, Jul. 5, Jul. 23, Aug. 6, Sep. 7, Sep. 29		M276		42,000,000,000
2031 — Dec. 1	4.00	1999: Mar. 8, Jun. 8, Sep. 7, Dec. 6; 2000: Mar. 6, Jun. 5, Sep. 5, Dec. 11; 2001: Mar. 5, Jun. 11, Sep. 24, Dec. 10; 2002: Mar. 18, Jun. 10, Sep. 16, Dec. 9; 2003: Mar. 17		WV25		9,029,788,000	(2)
2033 — Jun. 1	5.75	2001: Oct. 15; 2002: Jan. 21, Mar. 4, May 6, Jul. 15, Nov. 25; 2003: Jan. 20, Mar. 3, Apr. 14, Jul. 14, Aug. 25, Nov. 10; 2004: Jan. 19, Mar. 1		XG49		11,988,905,000
2036 — Dec. 1	3.00	2003: Jun. 9, Sep. 15, Dec. 8; 2004: Mar. 8, Jun. 7, Sep. 7, Dec. 6; 2005: Mar. 7, Jun. 6, Sep. 6, Dec. 5; 2006: Mar. 06, Jun. 5, Oct. 2, Dec. 4; 2007: Mar. 5		XQ21		8,081,014,500	(2)
2037 — Jun. 1	5.00	2004: Jul. 19, Sep. 14, Nov. 8; 2005: Jan. 17, Apr. 11, Jul. 11, Oct. 18; 2006: Jan. 16, May 1, Jul. 24, Oct. 31; 2007: Jan. 15, Jun. 11, Jul. 23, Oct. 9; 2008: Jan. 21; 2009: Jan. 12		XW98		11,730,774,000
2041 — Jun. 1	4.00	2008: Jun. 9, Sep. 15, Dec. 15; 2009: Mar. 23, May 19, Jul. 14, Aug. 5, Oct. 20; 2010: Feb. 22, Mar. 22, May 25, Sep. 7, Nov. 22; 2011: Mar. 21		YQ12		13,838,441,000
2041 — Dec. 1	2.00	2007: Jun. 4, Sep. 4, Dec. 10; 2008: Mar. 3, Jun. 2, Sep. 2, Dec. 8; 2009: Mar. 9, Jun. 2, Aug. 31, Dec. 7; 2010: Mar. 1		YK42		8,378,694,500	(2)
2044 — Dec. 1	1.50	2010: May 31, Aug. 30, Dec. 6; 2011: Feb. 28, Jun. 6, Sep. 6, Dec. 5; 2012: Feb. 27, Jun. 4, Sep. 17, Dec. 10, 2013: Feb. 25, Jun. 10, Sep. 16		ZH04		9,476,467,000	(2)
2045 — Dec. 1	3.50	2011: Jun. 13, Aug. 29, Nov. 21; 2012: Mar. 26, May 28, Jul. 24, Sep. 24, Dec. 3; 2013: Feb. 5, Mar. 18, May 27, Aug. 6, Nov. 18; 2014: Feb. 18, Mar. 11		ZS68		16,300,000,000
2047 — Dec. 1	1.25	2013: Dec. 2; 2014: Mar. 3, Jun. 16, Aug. 25, Dec. 15; 2015: Mar. 16, Jun. 8, Sep. 8, Dec. 8; 2016: Mar. 7, Jun. 6, Sep. 19, Dec. 13; 2017: Feb. 13		B949		8,885,338,000	(2)
2048 — Dec. 1	2.75	2014: Jun. 2, Sep. 3, Nov. 17; 2015: Feb. 9, May 25, Aug. 24, Nov. 30; 2016: May 24, Oct. 3, Nov. 28; 2017: Jan. 31, May 23, Aug. 21, Oct. 2		D358		14,900,000,000
2050 — Dec. 1	0.50	2017: Jun. 5, Sep. 15, Dec. 1; 2018: Mar. 5, Jun. 18, Sep. 14, Nov. 30; 2019: Feb. 22, May 24, Sep. 13, Nov. 29; 2020: May 29, Sep. 4		G997		8,319,492,000	(2)
2051 — Dec. 1	2.00	2017: Dec. 22; 2018: Jan. 29, May 25, Aug. 17, Sep. 24, Nov. 2; 2019: Jan. 21, Apr. 29, Aug. 16, Sep. 30, Nov. 18; 2020: Mar. 18, Mar. 27, Apr. 24, Jun. 8, Jul. 27, Aug. 14, Sep. 21, Oct. 19, Nov. 2, Dec. 21; 2021: Jan. 25, Mar. 1, Mar. 22, May 3, May 28, Jun. 25		H722		51,816,529,000
2053 — Dec. 1	1.75	2021: Aug. 3, Aug. 30, Sep. 20		M680		9,000,000,000
2054 — Dec. 1	0.25	2021: Jun. 4, Sep. 3		M433		713,034,000	(2)
2064 — Dec. 1	2.75	2014: May 1, Jul. 15, Nov. 25; 2017: Sep. 1, Nov. 20; 2021: May 20, Sep. 27		C939		6,750,000,000
Total Unmatured Marketable Bonds Payable in Canadian Dollars:						968,978,485,000

32

Unmatured Market Debt (Continued)

TREASURY BILLS

Maturity date(s)	Yield %	Issue dates	Outstanding at      September 30, 2021
Various maturity dates from Oct. 7, 2021 to Sept. 15, 2022	0.131 to 0.289	Various issue dates from Oct. 8, 2020 to Sept. 16, 2021	$	193,800,000,000

CANADA SAVINGS BONDS(3)

Maturity date	Annual   Coupons %	Issue date	Series	Outstanding at      September 30, 2021
2021 — Nov. 1	0.50	2011 — Nov. 1	S128		$    100,796,234
2021 — Dec. 1	0.50	2011 — Dec. 1	S129		5,735,457
2021 — Nov. 1	0.50	2017 — Nov. 1	S500		11,037,064
2021 — Nov. 1	0.50	2018 — Nov. 1	S501		18,508,115
2021 — Nov. 1	0.50	2019 — Nov. 1	S502		19,267,801
2021 — Nov. 1	0.50	2020 — Nov. 1	S503		6,091,961
Total				$	161,436,632

CANADA PREMIUM BONDS(4)

Maturity date	Annual   Coupons %		Issue date		Series		Outstanding at      September 30, 2021
2021 — Nov. 1		0.80 – 1.40		2011 — Nov. 1		P078		$    42,552,140
2021 — Dec. 1		0.80 – 1.40		2011 — Dec. 1		P079		19,546,570
2021 — Nov. 1		0.80 – 1.00		2017 — Nov. 1		P550		20,412,489
2021 — Dec. 1		0.80 – 1.00		2017 — Dec. 1		P551		884,908
2021 — Nov. 1		1.10 – 1.30		2018 — Nov. 1		P552		19,355,579
2021 — Dec. 1		1.25 – 1.45		2018 — Dec. 1		P553		1,800,001
2021 — Nov. 1		1.30 – 1.40		2019 — Nov. 1		P554		17,637,597
2021 — Dec. 1		1.30 – 1.40		2019 — Dec. 1		P555		1,079,047
2021 — Nov. 1		0.80		2020 — Nov. 1		P556		5,510,618
2021 — Dec. 1		0.80		2020 — Dec. 1		P557		863,678
Total							$	129,642,627

Total Unmatured Market Debt Payable in Canadian Dollars $
1,163,069,564,259

33

Unmatured Market Debt (Continued)

(B) PAYABLE IN FOREIGN CURRENCY (1) (5)

CANADA BILLS

Maturity date(s)	Yield(s) %	Original issue amount	Issue date(s)	Outstanding at September 30, 2021
Various maturity dates from Oct. 1, 2021 to May 6, 2022	0.03 to 0.11	USD 5,253,624,000	Various issue dates from Jan. 26, 2021 to Sept. 29, 2021	$	6,703,098,862

OTHER MARKETABLE BONDS PAYABLE IN FOREIGN CURRENCIES

Maturity date	Coupon %	Original amount at issue or assumption	Issue or assumption date	Outstanding at September 30, 2021
2022 — Jan. 25	2.625	USD  3,000,000,000	2019 — Jan. 25	$	3,827,700,000
2022 — Nov. 15	2.00	USD  3,000,000,000	2017 — Nov. 15		3,827,700,000
2025 — Jan. 22	1.625	USD  3,000,000,000	2020 — Jan. 22		3,827,700,000
2026 — May 19	0.75	USD  3,500,000,000	2021 — May 19		4,465,650,000
Total				$	15,948,750,000
Total Unmatured Market Debt Payable in Foreign Currency				$	22,651,848,862
Total Unmatured Market Debt				$	1,185,721,413,121

34

Unmatured Market Debt (Continued)

(C) CROSS CURRENCY SWAPS

For the cross currency swaps listed below (outstanding as of September 30, 2021), the Government’s Canadian dollar liability has been swapped into a U.S. dollar liability.

	Canadian dollar liability		U.S. dollar liability
Maturity date	Coupon %	Notional amount	Basis	Notional amount
2022 — Feb. 6	0.9446	$      188,295,000	Fixed	USD 150,000,000
Feb. 12	1.0430	125,250,000	Fixed	100,000,000
Feb. 20	1.98960	48,066,474	3 month LIBOR	47,216,576
Mar. 16	0.90400	132,750,000	Fixed	100,000,000
Mar. 20	2.06980	67,549,554	3 month LIBOR	67,414,725
Apr. 20	2.16100	118,258,207	3 month LIBOR	119,392,436
Apr. 20	2.22240	13,045,854	3 month LIBOR	13,144,437
May 8	0.22500	1,255,200	SOFR	1,000,000
May 20	2.01810	150,480,000	3 month LIBOR	150,000,000
May 20	2.04090	49,715,000	3 month LIBOR	50,000,000
May 20	2.04640	100,200,000	3 month LIBOR	100,000,000
May 20	2.07870	24,737,500	3 month LIBOR	25,000,000
May 20	2.09420	24,762,500	3 month LIBOR	25,000,000
May 20	2.12000	49,265,000	3 month LIBOR	50,000,000
May 20	2.16300	24,905,000	3 month LIBOR	25,000,000
Jun. 10	1.3449	124,140,000	3 month LIBOR	100,000,000
Jun. 11	1.3584	52,649,285	3 month LIBOR	42,631,000
Jun. 16	1.3669	123,150,000	3 month LIBOR	100,000,000
Jun. 20	1.85000	86,606,176	3 month LIBOR	84,551,573
Jun. 20	1.85060	102,290,000	3 month LIBOR	100,000,000
Jun. 20	1.91050	50,150,000	3 month LIBOR	50,000,000
Jun. 20	2.08300	24,622,500	3 month LIBOR	25,000,000
Jun. 20	2.08520	150,084,800	3 month LIBOR	152,000,000
Jun. 20	2.08950	98,720,000	3 month LIBOR	100,000,000
Jul. 10	1.0632	159,819,000	3 month LIBOR	125,250,000
Jul. 20	1.1167	129,300,000	3 month LIBOR	100,000,000
Jul. 20	1.72730	51,300,000	3 month LIBOR	50,000,000
Jul. 20	1.73460	51,325,000	3 month LIBOR	50,000,000
Jul. 20	1.74000	51,425,000	3 month LIBOR	50,000,000

35

Unmatured Market Debt (Continued)

	Canadian dollar liability		U.S. dollar liability
Maturity date	Coupon %	Notional amount	Basis	Notional amount
Jul. 20	1.77550	$      77,325,000	3 month LIBOR	USD    75,000,000
Jul. 20	1.78200	51,325,000	3 month LIBOR	50,000,000
Jul. 20	1.79420	51,000,000	3 month LIBOR	50,000,000
Jul. 20	1.80000	102,550,000	3 month LIBOR	100,000,000
Jul. 20	1.80300	102,600,000	3 month LIBOR	100,000,000
Aug. 20	1.58000	101,805,000	3 month LIBOR	100,000,000
Aug. 20	1.58950	50,915,000	3 month LIBOR	50,000,000
Aug. 20	1.59990	50,800,000	3 month LIBOR	50,000,000
Aug. 20	1.64840	50,400,000	3 month LIBOR	50,000,000
Aug. 20	1.66000	51,025,000	3 month LIBOR	50,000,000
Aug. 20	1.66700	69,052,452	3 month LIBOR	67,566,000
Aug. 20	1.66700	71,470,000	3 month LIBOR	70,000,000
Aug. 25	0.8909	131,250,000	3 month LIBOR	100,000,000
Sep. 15	1.0770	66,290,000	3 month LIBOR	50,000,000
Sep. 20	1.71520	100,200,000	3 month LIBOR	100,000,000
Sep. 20	1.71640	100,400,000	3 month LIBOR	100,000,000
Sep. 20	1.80800	98,940,000	3 month LIBOR	100,000,000
Sep. 20	1.83510	49,750,000	3 month LIBOR	50,000,000
Sep. 20	1.92480	49,475,000	3 month LIBOR	50,000,000
Sep. 24	1.0867	132,820,000	3 month LIBOR	100,000,000
Oct. 1	0.24440	1,339,400	SOFR	1,000,000
Oct. 16	1.06380	133,714,600	3 month LIBOR	103,000,000
Oct. 20	1.85500	97,620,000	3 month LIBOR	100,000,000
Oct. 20	1.90450	97,600,000	3 month LIBOR	100,000,000
Oct. 20	1.92060	97,500,000	3 month LIBOR	100,000,000
2023 — Feb. 20	1.93800	19,832,670	3 month LIBOR	20,100,000
Feb. 20	1.94000	51,027,900	3 month LIBOR	51,700,000
Feb. 20	1.93900	49,400,000	3 month LIBOR	50,000,000
Feb. 20	1.92890	49,680,000	Fixed	50,000,000
Feb. 20	1.93350	99,420,000	Fixed	100,000,000
Feb. 20	1.91400	50,135,000	Fixed	50,000,000
Feb. 20	1.99700	100,900,000	Fixed	100,000,000
Mar. 20	2.03160	50,150,000	Fixed	50,000,000
Mar. 20	2.02700	99,900,000	Fixed	100,000,000
Mar. 20	1.98480	50,150,000	Fixed	50,000,000
Mar. 20	1.98480	100,700,000	Fixed	100,000,000
Mar. 20	1.97830	50,325,000	Fixed	50,000,000
Mar. 20	2.04710	100,420,000	Fixed	100,000,000
Mar. 20	2.04400	150,465,000	Fixed	150,000,000
Mar. 20	2.02500	100,100,000	Fixed	100,000,000
Mar. 20	2.02830	100,100,000	Fixed	100,000,000
Mar. 20	2.03100	100,120,000	Fixed	100,000,000
Mar. 20	2.02000	101,250,000	Fixed	100,000,000
Mar. 20	2.01680	101,200,000	Fixed	100,000,000
Mar. 20	2.04500	101,680,000	Fixed	100,000,000
Apr. 20	1.89700	102,970,000	Fixed	100,000,000
Apr. 20	1.90510	103,030,000	Fixed	100,000,000
Apr. 20	1.95880	102,800,000	Fixed	100,000,000
Apr. 20	1.95380	102,760,000	Fixed	100,000,000
Apr. 20	1.94200	102,600,000	Fixed	100,000,000
Apr. 20	1.94100	102,650,000	Fixed	100,000,000
Apr. 20	1.95070	205,700,000	Fixed	200,000,000
Apr. 20	1.97460	102,650,000	Fixed	100,000,000
Apr. 20	1.97110	205,420,000	Fixed	200,000,000
Apr. 20	1.88460	78,771,000	3 month LIBOR	77,000,000
Apr. 20	1.83980	204,900,000	Fixed	200,000,000
May 3	1.13630	125,100,000	Fixed	100,000,000
May 20	1.71930	114,307,200	3 month LIBOR	112,000,000
May 20	1.71930	89,812,800	3 month LIBOR	88,000,000
May 20	1.69580	101,720,000	3 month LIBOR	100,000,000
Jun. 20	1.93050	103,100,000	3 month LIBOR	100,000,000
Jun. 22	1.4896	121,550,000	3 month LIBOR	100,000,000
Jul. 20	2.17690	102,000,000	3 month LIBOR	100,000,000
Jul. 20	2.19500	101,900,000	3 month LIBOR	100,000,000
Jul. 20	2.16600	101,700,000	3 month LIBOR	100,000,000
Jul. 20	2.15000	102,070,000	3 month LIBOR	100,000,000
Jul. 20	2.28700	207,000,000	3 month LIBOR	200,000,000
Jul. 20	2.28950	103,690,000	3 month LIBOR	100,000,000
Jul. 20	2.49090	48,650,400	3 month LIBOR	46,400,000
Aug. 20	1.1344	130,900,000	3 month LIBOR	100,000,000
Aug. 20	2.49150	105,850,000	3 month LIBOR	100,000,000
Aug. 20	2.47400	130,055,150	3 month LIBOR	123,100,000
Aug. 20	2.42970	104,000,000	SOFR	100,000,000
Sep. 18	1.3032	38,309,000	3 month LIBOR	29,000,000
Sep. 20	2.55970	205,800,000	3 month LIBOR	200,000,000
Sep. 20	2.51030	104,300,000	3 month LIBOR	100,000,000

36

Unmatured Market Debt (Continued)

	Canadian dollar liability		U.S. dollar liability
Maturity date	Coupon %	Notional amount	Basis	Notional amount
Oct. 20	2.74130	$    207,880,000	3 month LIBOR	USD  200,000,000
Oct. 20	2.61040	103,000,000	3 month LIBOR	100,000,000
Oct. 20	2.61040	51,500,000	3 month LIBOR	50,000,000
Oct. 20	2.61040	25,750,000	3 month LIBOR	25,000,000
Oct. 20	2.61040	25,750,000	3 month LIBOR	25,000,000
Dec. 13	1.3323	197,550,000	Fixed	150,000,000
2024 — Jan. 20	2.53160	78,345,000	3 month LIBOR	75,000,000
Jan. 20	2.58780	105,250,000	3 month LIBOR	100,000,000
Jan. 20	2.63700	104,850,000	3 month LIBOR	100,000,000
Jan. 20	2.64000	104,900,000	3 month LIBOR	100,000,000
Feb. 20	2.44240	78,120,000	3 month LIBOR	70,000,000
Feb. 20	2.57680	117,390,000	3 month LIBOR	107,500,000
Feb. 20	2.61220	109,600,000	3 month LIBOR	100,000,000
Mar. 20	2.36450	111,100,000	3 month LIBOR	100,000,000
Mar. 20	2.40440	111,350,000	3 month LIBOR	100,000,000
Apr. 20	2.49320	84,000,000	3 month LIBOR	75,000,000
May 20	2.38680	65,899,650	3 month LIBOR	60,100,000
May 20	2.44830	137,212,500	3 month LIBOR	125,000,000
May 20	2.47500	50,458,500	3 month LIBOR	45,000,000
Jun. 20	2.34430	109,740,000	Fixed	100,000,000
Jun. 20	2.36750	81,757,500	Fixed	75,000,000
Jun. 20	2.40570	109,640,000	Fixed	100,000,000
Aug. 20	2.11200	135,137,500	Fixed	125,000,000
Aug. 20	2.11420	136,813,205	3 month LIBOR	126,550,000
Aug. 20	2.11440	107,360,000	Fixed	100,000,000
Aug. 20	2.14130	107,370,000	3 month LIBOR	100,000,000
Aug. 20	2.21890	107,320,000	Fixed	100,000,000
Aug. 20	2.25360	106,750,000	Fixed	100,000,000
Aug. 20	2.25940	106,730,000	Fixed	100,000,000
Sep. 20	2.07730	109,370,000	3 month LIBOR	100,000,000
Sep. 20	2.08840	109,380,000	3 month LIBOR	100,000,000
Sep. 20	2.10840	109,150,000	3 month LIBOR	100,000,000
Oct. 20	2.08440	54,375,000	3 month LIBOR	50,000,000
Nov. 20	2.02720	111,800,000	3 month LIBOR	100,000,000
Nov. 20	1.95800	112,300,000	3 month LIBOR	100,000,000
Nov. 20	1.88120	113,080,000	Fixed	100,000,000
Nov. 20	1.98340	112,240,000	Fixed	100,000,000
Nov. 20	2.00210	113,040,000	Fixed	100,000,000
Dec. 2	1.90520	113,790,000	SOFR	100,000,000
Dec. 3	1.85390	113,780,000	3 month LIBOR	100,000,000
Dec. 11	1.87030	114,180,000	SOFR	100,000,000
Dec. 15	2.01060	13,745,295	SOFR	12,150,000
2025 — Jan. 16	1.5504	119,390,000	3 month LIBOR	100,000,000
Jan. 20	2.04600	114,150,000	Fixed	100,000,000
Jan. 22	1.4957	121,050,000	3 month LIBOR	100,000,000
Jan. 22	1.6175	59,780,000	Fixed	50,000,000
Jan. 30	1.3553	124,490,000	3 month LIBOR	100,000,000
Feb. 5	1.2298	125,240,000	Fixed	100,000,000
May 11	1.20510	64,925,000	Fixed	50,000,000
May 31	1.23740	258,800,000	Fixed	200,000,000
Jun. 2	1.20030	262,000,000	Fixed	200,000,000
Jun. 3	1.18618	196,275,000	Fixed	150,000,000
Jun. 6	1.17250	196,710,000	Fixed	150,000,000
Jun. 7	1.07010	64,745,000	Fixed	50,000,000
Jun. 13	1.03840	127,300,000	Fixed	100,000,000
Jun. 14	1.02860	127,110,000	Fixed	100,000,000
Jun. 14	1.03916	127,400,000	Fixed	100,000,000
Dec. 8	1.61800	133,730,000	Fixed	100,000,000
Dec. 10	1.54170	271,120,000	Fixed	200,000,000
Dec. 14	1.50160	271,800,000	Fixed	200,000,000
Dec. 17	1.48580	274,800,000	Fixed	200,000,000
Dec. 18	1.52620	275,720,000	Fixed	200,000,000
2026 — Feb. 4	1.15570	140,450,000	Fixed	100,000,000
Mar. 3	1.18280	202,290,000	Fixed	150,000,000
Apr. 18	1.28570	128,420,000	Fixed	100,000,000
Apr. 18	1.30940	128,400,000	Fixed	100,000,000
Apr. 19	1.28480	160,662,500	Fixed	125,000,000
Apr. 21	1.31760	127,180,000	Fixed	100,000,000
Apr. 22	1.31360	633,750,000	Fixed	500,000,000
Jul. 18	1.03600	258,440,000	Fixed	200,000,000
Jul. 18	1.03940	129,310,000	Fixed	100,000,000
Jul. 21	1.08950	195,555,000	Fixed	150,000,000
Aug. 5	1.07810	262,000,000	Fixed	200,000,000
Aug. 11	1.00290	262,340,000	Fixed	200,000,000
Aug. 12	0.99620	260,960,000	Fixed	200,000,000
Aug. 22	1.04870	255,320,000	Fixed	200,000,000
Aug. 23	0.83100	128,080,000	SOFR	100,000,000
Sep. 1	1.02180	130,620,000	Fixed	100,000,000
Sep. 1	1.02170	156,960,000	Fixed	120,000,000

37

Unmatured Market Debt (Continued)

	Canadian dollar liability		U.S. dollar liability
Maturity date	Coupon %	Notional amount	Basis	Notional amount
Sep. 7	1.06050	$    162,687,500	Fixed	USD  125,000,000
Sep. 19	1.21390	198,045,000	Fixed	150,000,000
Sep. 21	1.19880	131,690,000	Fixed	100,000,000
Sep. 30	0.97050	132,190,000	Fixed	100,000,000
Sep. 30	0.96630	66,290,000	Fixed	50,000,000
Sep. 30	0.95990	132,470,000	Fixed	100,000,000
Oct. 3	0.97690	196,485,000	Fixed	150,000,000
Oct. 4	0.99950	131,250,000	Fixed	100,000,000
Oct. 5	0.99060	164,000,000	Fixed	125,000,000
Oct. 17	1.18900	131,930,000	Fixed	100,000,000
Oct. 24	1.17710	230,982,500	Fixed	175,000,000
Oct. 25	1.13570	99,922,500	Fixed	75,000,000
Oct. 26	1.13800	133,480,000	Fixed	100,000,000
Oct. 26	1.15210	133,870,000	Fixed	100,000,000
Oct. 28	1.16070	133,660,000	Fixed	100,000,000
Nov. 1	1.23170	334,900,000	Fixed	250,000,000
Nov. 2	1.21510	200,955,000	Fixed	150,000,000
Nov. 3	1.24200	267,740,000	Fixed	200,000,000
Nov. 8	1.18440	147,664,000	Fixed	110,000,000
Nov. 8	1.17350	100,822,500	Fixed	75,000,000
Nov. 21	1.52660	201,195,000	Fixed	150,000,000
Nov. 25	1.55800	200,925,000	Fixed	150,000,000
2027 — Jan. 6	1.74140	133,350,000	Fixed	100,000,000
Jan. 9	1.69530	265,720,000	Fixed	200,000,000
Apr. 7	1.60600	133,800,000	Fixed	100,000,000
Apr. 7	1.60600	133,960,000	Fixed	100,000,000
Apr. 7	1.59640	268,000,000	Fixed	200,000,000
Apr. 7	1.59330	134,130,000	Fixed	100,000,000
Apr. 11	1.55040	133,720,000	Fixed	100,000,000
Apr. 21	1.48350	67,350,000	Fixed	50,000,000
Apr. 24	1.50090	134,670,000	Fixed	100,000,000
Apr. 28	1.52590	339,500,000	Fixed	250,000,000
Apr. 28	1.51570	204,000,000	Fixed	150,000,000
May 9	1.5340	137,500,000	Fixed	100,000,000
May 9	1.53290	274,200,000	Fixed	200,000,000
Jun. 5	1.43600	134,990,000	Fixed	100,000,000
Jun. 5	1.43380	134,900,000	Fixed	100,000,000
Jun. 26	1.49080	132,600,000	Fixed	100,000,000
Jun. 26	1.49860	99,165,000	Fixed	75,000,000
2028 — Feb. 26	2.3080	63,570,000	Fixed	50,000,000
Feb. 27	2.2790	126,670,000	Fixed	100,000,000
Feb. 28	2.2200	126,880,000	Fixed	100,000,000
Mar. 6	2.1774	128,900,000	Fixed	100,000,000
Mar. 6	2.1799	128,890,000	Fixed	100,000,000
Mar. 12	2.2198	258,420,000	Fixed	200,000,000
Mar. 13	2.2420	257,280,000	Fixed	200,000,000
Mar. 26	2.1820	129,060,000	Fixed	100,000,000
Apr. 9	2.1858	191,700,000	Fixed	150,000,000
Apr. 10	2.1570	191,250,000	Fixed	150,000,000
Apr. 18	2.2807	188,775,000	Fixed	150,000,000
Apr. 23	2.3155	126,100,000	Fixed	100,000,000
Apr. 27	2.3482	128,800,000	Fixed	100,000,000
Jun. 4	2.2153	64,915,000	Fixed	50,000,000
Jun. 7	2.2416	130,020,000	Fixed	100,000,000
Jun. 8	2.3135	64,575,000	Fixed	50,000,000
Jun. 12	2.3047	64,900,000	Fixed	50,000,000
Jun. 14	2.2945	64,935,000	Fixed	50,000,000
Jun. 21	1.1467	123,480,000	Fixed	100,000,000
Jun. 22	2.1720	66,575,000	Fixed	50,000,000
Jun. 22	2.1697	133,210,000	Fixed	100,000,000
Jun. 25	2.1213	133,060,000	Fixed	100,000,000
Jun. 25	2.1262	133,040,000	Fixed	100,000,000
Jun. 26	2.1200	66,650,000	Fixed	50,000,000
Jun. 28	2.1010	133,100,000	Fixed	100,000,000
Jun. 28	2.0955	66,500,000	Fixed	50,000,000
Jul. 3	2.1035	132,870,000	Fixed	100,000,000
Jul. 9	2.1297	65,660,000	Fixed	50,000,000
Jul. 10	2.1274	131,000,000	Fixed	100,000,000
Jul. 13	1.0966	124,950,000	SOFR	100,000,000
Jul. 16	2.1629	197,475,000	Fixed	150,000,000
Jul. 16	2.1561	131,720,000	Fixed	100,000,000
Jul. 16	2.1549	98,752,500	Fixed	75,000,000
Jul. 17	2.1402	65,885,000	Fixed	50,000,000
Jul. 17	2.1310	65,835,000	Fixed	50,000,000
Jul. 17	2.1334	65,830,000	Fixed	50,000,000
Jul. 18	2.1618	131,300,000	Fixed	100,000,000
Jul. 19	2.1017	131,900,000	Fixed	100,000,000
Jul. 20	2.1210	132,260,000	Fixed	100,000,000
Jul. 20	1.0747	125,810,000	SOFR	100,000,000
Jul. 23	2.1222	66,240,000	Fixed	50,000,000

38

Unmatured Market Debt (Continued)

	Canadian dollar liability		U.S. dollar liability
Maturity date	Coupon %	Notional amount	Basis	Notional amount
Jul. 24	2.1723	$      65,645,000	Fixed	USD    50,000,000
Jul. 25	2.2136	131,570,000	Fixed	100,000,000
Jul. 26	2.2344	131,660,000	Fixed	100,000,000
Jul. 26	2.2298	131,460,000	Fixed	100,000,000
Jul. 27	2.2229	65,630,000	Fixed	50,000,000
Jul. 30	2.2773	65,345,000	Fixed	50,000,000
Aug 13	1.0763	125,000,000	SOFR	100,000,000
Aug 27	1.0206	126,210,000	SOFR	100,000,000
Aug 30	1.0743	126,220,000	SOFR	100,000,000
Aug 31	1.0596	126,650,000	SOFR	100,000,000
Sep. 2	0.9883	126,180,000	SOFR	100,000,000
Sep. 14	1.0230	125,870,000	SOFR	100,000,000
Sep. 25	2.4299	129,200,000	Fixed	100,000,000
Oct. 2	2.42330	129,230,000	Fixed	100,000,000
Oct. 3	2.48300	128,200,000	Fixed	100,000,000
Oct. 5	2.48930	128,260,000	Fixed	100,000,000
Oct. 16	2.48760	260,400,000	Fixed	200,000,000
Oct. 22	2.51600	130,340,000	Fixed	100,000,000
Oct. 22	2.51630	130,350,000	Fixed	100,000,000
Oct. 29	2.44760	130,520,000	Fixed	100,000,000
Oct. 29	2.43550	130,920,000	Fixed	100,000,000
Oct. 30	2.40560	131,510,000	Fixed	100,000,000
Oct. 30	2.40100	131,460,000	Fixed	100,000,000
Oct. 31	2.39760	131,050,000	Fixed	100,000,000
Nov. 1	2.40860	65,660,000	Fixed	50,000,000
Nov. 19	2.37805	132,310,000	Fixed	100,000,000
Dec. 3	2.30050	132,650,000	Fixed	100,000,000
Dec. 3	2.30070	132,700,000	Fixed	100,000,000
Dec. 4	2.27470	133,040,000	Fixed	100,000,000
Dec. 4	2.26650	133,170,000	Fixed	100,000,000
Dec. 4	2.26180	133,040,000	Fixed	100,000,000
Dec. 10	2.05280	134,220,000	Fixed	100,000,000
Dec. 10	2.03550	268,400,000	Fixed	200,000,000
Dec. 11	2.10190	132,960,000	Fixed	100,000,000
Dec. 11	2.10530	132,750,000	Fixed	100,000,000
Dec. 12	2.05570	133,550,000	Fixed	100,000,000
Dec. 18	2.11600	133,880,000	Fixed	100,000,000
Dec. 18	2.11250	133,850,000	Fixed	100,000,000
2029 — Jan. 8	1.89320	134,320,000	Fixed	100,000,000
Jan. 16	1.93840	132,680,000	Fixed	100,000,000
Jan. 22	1.98840	132,950,000	Fixed	100,000,000
Jan. 25	1.96490	133,650,000	Fixed	100,000,000
Feb. 7	1.93640	131,400,000	Fixed	100,000,000
Mar. 13	1.76100	134,190,000	Fixed	100,000,000
Apr. 5	1.70510	133,310,000	Fixed	100,000,000
Apr. 8	1.69880	133,610,000	Fixed	100,000,000
Apr. 10	1.72730	133,230,000	Fixed	100,000,000
Apr. 17	1.79980	133,150,000	Fixed	100,000,000
Apr. 17	1.75810	133,780,000	Fixed	100,000,000
Apr. 18	1.78000	133,720,000	Fixed	100,000,000
Apr. 18	1.78280	133,490,000	Fixed	100,000,000
Apr. 18	1.77920	133,560,000	Fixed	100,000,000
Apr. 24	1.76000	133,860,000	Fixed	100,000,000
Apr. 29	1.67900	135,030,000	Fixed	100,000,000
Apr. 29	1.69380	134,980,000	Fixed	100,000,000
Apr. 30	1.69280	134,920,000	Fixed	100,000,000
May 6	1.71920	134,680,000	Fixed	100,000,000
May 8	1.72130	134,560,000	Fixed	100,000,000
May 8	1.71700	134,470,000	Fixed	100,000,000
May 16	1.68930	134,580,000	Fixed	100,000,000
May 17	1.63650	134,800,000	Fixed	100,000,000
May 22	1.64400	134,910,000	Fixed	100,000,000
May 22	1.67090	134,740,000	Fixed	100,000,000
May 23	1.73500	134,240,000	Fixed	100,000,000
May 23	1.74300	134,120,000	Fixed	100,000,000
May 28	1.67270	134,880,000	Fixed	100,000,000
May 28	1.64800	134,860,000	Fixed	100,000,000
Jul. 17	1.59960	130,250,000	Fixed	100,000,000
Jul. 26	1.45170	131,270,000	Fixed	100,000,000
Oct. 29	1.5009	130,670,000	Fixed	100,000,000
Nov. 22	1.4695	132,240,000	Fixed	100,000,000
Nov. 26	1.4675	132,640,000	Fixed	100,000,000
2030 — Jul. 8	0.5507	135,470,000	Fixed	100,000,000
Jul. 20	0.4983	135,450,000	Fixed	100,000,000
Jul. 24	0.4985	134,330,000	Fixed	100,000,000
Jul. 31	0.4775	133,630,000	Fixed	100,000,000
Aug. 6	0.43851	134,160,000	Fixed	100,000,000
Aug. 7	0.476	132,530,000	Fixed	100,000,000
Aug. 14	0.6126	132,650,000	Fixed	100,000,000
Aug. 18	0.6162	132,470,000	Fixed	100,000,000
Aug. 21	0.5588	131,680,000	Fixed	100,000,000
Aug. 27	0.5938	132,030,000	Fixed	100,000,000
Sep. 3	0.636	130,230,000	Fixed	100,000,000
Sep. 17	0.5609	131,590,000	Fixed	100,000,000
Sep. 25	0.557	133,510,000	Fixed	100,000,000
Oct. 1	0.5463	133,730,000	Fixed	100,000,000
Oct. 8	0.557	132,660,000	Fixed	100,000,000
Oct. 16	0.5815	131,250,000	Fixed	100,000,000
Oct. 22	0.5984	131,840,000	Fixed	100,000,000
Nov. 2	0.6051	133,500,000	Fixed	100,000,000
Nov. 5	0.692	131,150,000	Fixed	100,000,000
Nov. 25	0.6933	130,880,000	Fixed	100,000,000
2031 — Apr. 8	1.5197	125,500,000	Fixed	100,000,000
Apr. 14	1.5041	125,340,000	Fixed	100,000,000
Apr. 15	1.5011	125,650,000	Fixed	100,000,000
Apr. 16	1.5155	125,530,000	Fixed	100,000,000
Apr. 26	1.544	125,100,000	Fixed	100,000,000
Apr. 27	1.5093	124,880,000	Fixed	100,000,000
Apr. 30	1.5735	123,940,000	Fixed	100,000,000
May 5	1.5527	245,840,000	Fixed	200,000,000
May 11	1.5196	121,960,000	Fixed	100,000,000
May 17	1.6025	121,300,000	Fixed	100,000,000
May 18	1.5521	242,360,000	Fixed	200,000,000
May 21	1.5841	120,700,000	Fixed	100,000,000
May 28	1.4593	121,160,000	Fixed	100,000,000
Jun. 3	1.5156	120,320,000	Fixed	100,000,000
Jun. 3	1.5323	120,320,000	Fixed	100,000,000
Jun. 3	1.514	120,500,000	Fixed	100,000,000
Jun. 7	1.4932	120,740,000	Fixed	100,000,000
Jun. 7	1.5157	121,060,000	Fixed	100,000,000
Jul. 6	1.4013	123,980,000	Fixed	100,000,000
Jul. 9	1.2921	124,360,000	Fixed	100,000,000
Jul. 19	1.2947	125,430,000	Fixed	100,000,000
Jul. 20	1.2834	125,850,000	Fixed	100,000,000
Jul. 21	1.1671	127,600,000	Fixed	100,000,000
Jul. 27	1.2222	125,910,000	Fixed	100,000,000
Aug. 11	1.2192	125,530,000	SOFR	100,000,000
Aug. 12	1.2528	125,600,000	SOFR	100,000,000
Aug. 16	1.277	125,140,000	Fixed	100,000,000
Aug. 18	1.1565	125,760,000	Fixed	100,000,000
Sep. 16	1.1986	126,650,000	Fixed	100,000,000
Sep. 17	1.2238	126,470,000	SOFR	100,000,000
Oct. 4	1.4766	127,120,000	SOFR	100,000,000
		$      48,510,922,772		USD       39,492,766,747

39

Unmatured Market Debt (Continued)

For the cross currency swaps listed below (outstanding as of September 30, 2021), the Government’s Canadian dollar liability has been swapped into a euro liability.

	Canadian dollar liability			Euro liability
Maturity date	Coupon %	Notional amount		Basis	Notional amount
2021 — Oct. 15	2.0739	$	69,275,000	Fixed		EUR 50,000,000
Oct. 15	2.2247		69,430,000	Fixed		50,000,000
Oct. 15	2.21410		104,550,000	Fixed		75,000,000
Oct. 15	2.22390		34,787,500	Fixed		25,000,000
Oct. 20	2.1210		67,920,000	Fixed		50,000,000
Oct. 20	2.1350		68,000,000	Fixed		50,000,000
Oct. 20	2.1880		67,750,000	Fixed		50,000,000
Oct. 20	2.2051		67,500,000	Fixed		50,000,000
Oct. 20	2.2399		138,800,000	Fixed		100,000,000
Oct. 20	2.2448		68,925,375	Fixed		50,000,000
Oct. 20	2.2580		101,775,000	Fixed		75,000,000
Oct. 20	2.2805		68,470,000	Fixed		50,000,000
Oct. 20	2.3960		70,880,760	Fixed		50,000,000
Oct. 20	2.4163		70,220,000	Fixed		50,000,000
Nov. 20	2.14000		69,775,000	Fixed		50,000,000
Nov. 20	2.24090		70,400,000	Fixed		50,000,000
Nov. 20	2.27080		69,618,275	Fixed		50,000,000
Nov. 20	2.28610		69,800,000	Fixed		50,000,000
Nov. 20	2.29830		105,075,000	Fixed		75,000,000
Nov. 20	2.32660		69,865,000	Fixed		50,000,000
Nov. 20	2.33160		104,700,000	Fixed		75,000,000
Nov. 20	2.36460		70,050,000	Fixed		50,000,000
Nov. 20	2.39230		105,375,000	Fixed		75,000,000
Nov. 20	2.40280		140,800,000	Fixed		100,000,000
Dec. 20	2.20560		139,270,000	Fixed		100,000,000
Dec. 20	2.20800		140,000,000	Fixed		100,000,000
Dec. 20	2.21440		139,800,000	Fixed		100,000,000
Dec. 20	2.43430		140,990,000	Fixed		100,000,000
2022 — Jan. 20	2.02240		67,825,000	Fixed		50,000,000
Feb. 20	2.48200		147,510,000	Fixed		100,000,000
Aug. 21	1.0148		129,915,000	Fixed		90,000,000
Sep. 16	1.0469		134,595,000	Fixed		90,000,000
2023 — Jun. 18	1.4465		138,600,000	Fixed		100,000,000
Sep. 20	2.69480		137,000,000	Fixed		100,000,000
Oct. 20	2.69570		138,800,000	Fixed		100,000,000
Oct. 20	2.81850		68,750,000	Fixed		50,000,000
2024 — May 20	2.37900		114,270,000	Fixed		75,000,000
May 20	2.38450		151,950,000	Fixed		100,000,000
Jul. 20	2.29210		147,100,000	Fixed		100,000,000
Jul. 20	2.29750		110,602,500	Fixed		75,000,000
Aug. 20	2.25000		109,312,500	Fixed		75,000,000
Aug. 28	1.2983		136,170,000	Fixed		90,000,000
Sep. 1	1.2937		134,550,000	Fixed		90,000,000
Sep. 4	1.3479		134,586,000	Fixed		90,000,000

40

Unmatured Market Debt (Continued)

	Canadian dollar liability			Euro liability
Maturity date	Coupon %	Notional amount		Basis	Notional amount
Oct. 20	2.12130	$	105,652,500	Fixed		EUR    75,000,000
Oct. 20	2.18500		42,672,000	Fixed		30,000,000
Oct. 20	2.19030		85,056,000	Fixed		60,000,000
Oct. 20	2.20090		99,449,000	Fixed		70,000,000
Oct. 20	2.21480		128,925,000	Fixed		90,000,000
Nov. 28	1.99800		139,900,000	Fixed		100,000,000
Dec. 10	1.94890		140,550,000	Fixed		100,000,000
Dec. 15	2.03960		105,825,000	Fixed		75,000,000
2025 — Feb. 9	1.2820		142,380,000	Fixed		100,000,000
Sep. 3	1.4661		133,425,000	Fixed		90,000,000
2026 — Feb. 8	1.17530		153,574,400	Fixed		100,000,000
Apr. 8	1.6290		149,880,096	Fixed		100,000,000
Aug. 15	1.70460		244,125,000	Fixed		175,000,000
Oct. 3	1.4043		72,400,000	Fixed		50,000,000
2027 — Jan. 13	1.69020		138,700,000	Fixed		100,000,000
Jan. 17	1.72790		139,550,000	Fixed		100,000,000
Jan. 17	1.72220		139,530,000	Fixed		100,000,000
Jan. 23	1.74670		141,050,000	Fixed		100,000,000
Jan. 23	1.76540		141,250,000	Fixed		100,000,000
Jan. 25	1.71050		143,000,000	Fixed		100,000,000
Jan. 27	1.80010		140,720,000	Fixed		100,000,000
Feb. 6	1.74160		140,560,000	Fixed		100,000,000
Apr. 28	1.52260		295,440,000	Fixed		200,000,000
Jul. 18	1.87360		145,300,000	Fixed		100,000,000
Oct. 3	1.4305		144,720,000	Fixed		100,000,000
2028 — Jan. 15	2.1719		150,950,000	Fixed		100,000,000
Jan. 23	2.2310		76,155,000	Fixed		50,000,000
Jan. 24	2.2238		152,510,000	Fixed		100,000,000
Feb. 1	2.2880		153,130,000	Fixed		100,000,000
Feb. 2	2.2815		76,505,000	Fixed		50,000,000
Feb. 7	2.3681		309,800,000	Fixed		200,000,000
Feb. 13	2.3452		154,400,000	Fixed		100,000,000
Feb. 14	2.3418		154,270,000	Fixed		100,000,000
Sep. 13	1.0101		149,720,000	Fixed		100,000,000
2029 — Feb. 20	1.93070		149,710,000	Fixed		100,000,000
May 16	1.67350		150,990,000	Fixed		100,000,000
Jun. 17	1.47780		150,300,000	Fixed		100,000,000
Jun. 27	1.45330		299,820,000	Fixed		200,000,000
Jul. 5	1.45600		44,373,000	Fixed		30,000,000
Jul. 15	1.57600		147,190,000	Fixed		100,000,000
Jul. 16	1.61500		146,730,000	Fixed		100,000,000
Aug. 23	1.19040		147,360,000	Fixed		100,000,000
Aug. 28	1.21000		148,160,000	Fixed		100,000,000
Aug. 30	1.11080		147,590,000	Fixed		100,000,000
Aug. 30	1.12240		147,300,000	Fixed		100,000,000
Sep. 23	1.40310		293,740,000	Fixed		200,000,000
Oct. 21	1.5616		134,596,000	Fixed		92,000,000
Nov. 14	1.5996		145,750,000	Fixed		100,000,000
Nov. 15	1.538		145,880,000	Fixed		100,000,000
2030 — Jan. 6	1.6261		145,160,000	Fixed		100,000,000
Jan. 10	1.5776		289,516,000	Fixed		200,000,000
Jan. 15	1.6098		145,040,000	Fixed		100,000,000
Jan. 15	1.6121		145,150,000	Fixed		100,000,000
Feb. 18	1.3795		143,920,000	Fixed		100,000,000
Jun. 8	0.6676		130,041,500	Fixed		85,000,000
Jun. 11	0.6341		129,327,500	Fixed		85,000,000
Jun. 25	0.5443		129,956,500	Fixed		85,000,000
Jul. 2	0.5175		153,970,000	Fixed		100,000,000
Jul. 10	0.5315		153,460,000	Fixed		100,000,000
Jul. 21	0.504		155,010,000	Fixed		100,000,000
Jul. 22	0.4989		155,100,000	Fixed		100,000,000
Jul. 23	0.5137		154,030,000	Fixed		100,000,000
Jul. 30	0.4978		157,020,000	Fixed		100,000,000
Aug. 13	0.5423		156,790,000	Fixed		100,000,000
Aug. 26	0.5462		155,810,000	Fixed		100,000,000
Sep. 1	0.5824		155,560,000	Fixed		100,000,000
Sep. 4	0.577		155,050,000	Fixed		100,000,000
Sep. 18	0.5374		156,230,000	Fixed		100,000,000
Sep. 24	0.553		156,400,000	Fixed		100,000,000
Oct. 7	0.5922		156,200,000	Fixed		100,000,000
Oct. 19	0.5458		154,750,000	Fixed		100,000,000
Oct. 26	0.6272		155,520,000	Fixed		100,000,000
Oct. 27	0.6553		155,610,000	Fixed		100,000,000
Nov. 12	0.775		153,270,000	Fixed		100,000,000
Nov. 13	0.794		153,920,000	Fixed		100,000,000
Nov. 19	0.7142		155,440,000	Fixed		100,000,000
2031 — May 3	1.6003		148,910,000	Fixed		100,000,000
May 20	1.5874		147,230,000	Fixed		100,000,000
May 26	1.5575		146,980,000	Fixed		100,000,000
		$	16,386,272,406			EUR 11,167,000,000

41

Unmatured Market Debt (Continued)

For the cross currency swaps listed below (outstanding as of September 30, 2021), the Government’s Canadian dollar liability has been swapped into a yen liability.

	Canadian dollar liability			Yen liability
Maturity date	Coupon %	Notional amount		Basis	Notional amount
2022 — Mar. 9	1.15570		$          58,844,298	Fixed		JPY      5,000,000,000
Mar. 21	1.28990		70,320,000	Fixed		6,000,000,000
Mar. 21	1.30530		70,440,000	Fixed		6,000,000,000
Mar. 21	1.26930		70,380,000	Fixed		6,000,000,000
Mar. 22	1.23920		70,440,000	Fixed		6,000,000,000
Mar. 23	1.22920		70,680,000	Fixed		6,000,000,000
Mar. 24	1.20030		71,160,000	Fixed		6,000,000,000
Mar. 27	1.14480		72,420,000	Fixed		6,000,000,000
2023 — Sep. 10	2.15160		59,311,981	Fixed		5,000,000,000
Oct. 18	2.39750		115,473,441	Fixed		10,000,000,000
Oct. 19	2.38740		115,685,844	Fixed		10,000,000,000
Oct. 19	2.38300		231,722,860	Fixed		20,000,000,000
Oct. 22	2.42600		115,828,685	Fixed		10,000,000,000
Oct. 31	2.35370		116,672,500	Fixed		10,000,000,000
Nov. 1	2.34760		139,809,626	Fixed		12,000,000,000
Nov. 7	2.43020		196,875,470	Fixed		17,000,000,000
Nov. 9	2.44630		115,377,515	Fixed		10,000,000,000
Nov. 13	2.44080		115,227,286	Fixed		10,000,000,000
Nov. 14	2.43410		115,944,718	Fixed		10,000,000,000
Nov. 15	2.39570		116,292,592	Fixed		10,000,000,000
Nov. 16	2.38700		116,191,251	Fixed		10,000,000,000
Nov. 19	2.31140		116,890,707	Fixed		10,000,000,000
Nov. 19	2.31300		116,814,242	Fixed		10,000,000,000
Dec. 10	1.98690		119,260,584	Fixed		10,000,000,000
Dec. 10	1.97030		119,431,506	Fixed		10,000,000,000
2024 — Jan. 24	1.91490		121,943,784	Fixed		10,000,000,000
Jan. 25	1.90120		121,614,555	Fixed		10,000,000,000
Jan. 31	1.88340		60,580,360	Fixed		5,000,000,000
Jul. 18	1.53040		121,921,483	Fixed		10,000,000,000
Jul. 26	1.36560		121,472,735	Fixed		10,000,000,000
Aug. 1	1.41820		121,315,055	Fixed		10,000,000,000
Oct. 23	1.5662		120,869,292	Fixed		10,000,000,000
Oct. 25	1.504		120,637,448	Fixed		10,000,000,000
Dec. 9	1.6206		121,000,000	Fixed		10,000,000,000
Dec. 10	1.6095		121,770,000	Fixed		10,000,000,000
Dec. 11	1.5796		121,900,000	Fixed		10,000,000,000
Dec. 12	1.5892		121,900,000	Fixed		10,000,000,000
2025 — Feb. 5	1.3144		122,000,000	Fixed		10,000,000,000
Feb. 6	1.3164		121,600,000	Fixed		10,000,000,000
Feb. 7	1.382		121,000,000	Fixed		10,000,000,000
Feb. 10	1.3761		192,835,500	Fixed		15,950,000,000
Mar. 3	1.0584		124,000,000	Fixed		10,000,000,000
May 28	0.3873		64,300,000	Fixed		5,000,000,000
May 29	0.3825		64,050,000	Fixed		5,000,000,000
Jun. 17	0.3258		63,400,000	Fixed		5,000,000,000
Jun. 19	0.3603		63,100,000	Fixed		5,000,000,000
Oct. 2	0.3397		126,400,000	Fixed		10,000,000,000
Oct. 20	0.3244		125,300,000	Fixed		10,000,000,000
Oct. 23	0.3700		125,300,000	Fixed		10,000,000,000
Nov. 4	0.3957		126,600,000	Fixed		10,000,000,000
Nov. 20	0.436		125,838,398	Fixed		10,000,000,000
Nov. 26	0.455		124,595,066	Fixed		10,000,000,000
2026 — Jun. 7	0.943		109,892,525	Fixed		10,000,000,000
Jun. 15	0.8603		110,465,502	Fixed		10,000,000,000
Jun. 21	0.9461		111,610,880	Fixed		10,000,000,000
Jul. 26	0.8043		116,022,740	Fixed		10,000,000,000
Aug. 24	0.8328		117,453,606	Fixed		10,000,000,000
Aug. 25	0.859		115,821,172	Fixed		10,000,000,000
Sep. 3	0.858		114,584,288	Fixed		10,000,000,000
Sep. 7	0.8318		114,626,318	Fixed		10,000,000,000
			$     6,695,215,814			JPY  561,950,000,000

42

Unmatured Market Debt (Continued)

For the cross currency swaps listed below (outstanding as of September 30, 2021), the Government’s Canadian dollar liability has been swapped into a pound sterling liability.

	Canadian dollar liability			Pound sterling liability
Maturity date	Coupon %	Notional amount		Basis	Notional amount
2023 — Sep. 8	1.2519		$    167,535,000	Fixed		GBP    85,000,000
2024 — Sep. 8	1.3753		133,510,000	Fixed		65,000,000
Sep. 8	1.4063		132,223,000	Fixed		65,000,000
2025 — Sep. 8	1.4788		131,690,000	Fixed		65,000,000
Sep. 8	1.4817		132,795,000	Fixed		65,000,000
Sep. 8	1.4982		132,632,500	Fixed		65,000,000
Sep. 8	1.5052		133,009,500	Fixed		65,000,000
Sep. 8	1.5578		131,787,500	Fixed		65,000,000
Sep. 8	1.5955		123,825,000	Fixed		65,000,000
Sep. 8	1.6630		153,120,000	Fixed		80,000,000
Sep. 8	1.7711		104,208,500	Fixed		55,000,000
Sep. 8	1.7750		142,905,000	Fixed		75,000,000
Sep. 8	1.7984		165,180,500	Fixed		85,000,000
Sep. 8	1.8166		98,587,800	Fixed		54,000,000
Sep. 8	1.8258		164,900,000	Fixed		85,000,000
Sep. 8	1.45800		198,950,000	Fixed		100,000,000
Sep. 8	1.46210		202,120,000	Fixed		100,000,000
Sep. 8	1.45290		131,365,000	Fixed		65,000,000
Sep. 8	1.68360		131,625,000	Fixed		65,000,000
Sep. 8	1.66710		131,950,000	Fixed		65,000,000
Sep. 8	1.61080		140,777,000	Fixed		70,000,000
Sep. 8	1.58350		200,970,000	Fixed		100,000,000
Sep. 8	1.57250		203,300,000	Fixed		100,000,000
Sep. 8	1.45380		207,800,000	Fixed		100,000,000
Sep. 8	1.32500		133,835,000	Fixed		65,000,000
Sep. 8	1.33340		288,174,000	Fixed		140,000,000
Sep. 8	1.31470		204,800,000	Fixed		100,000,000
Sep. 8	1.18950		101,650,000	Fixed		50,000,000
Sep. 8	1.25740		141,225,000	Fixed		70,000,000
Sep. 8	1.25510		282,940,000	Fixed		140,000,000
Sep. 8	1.17710		99,760,000	Fixed		50,000,000
Sep. 8	1.22870		281,848,000	Fixed		140,000,000
Sep. 8	1.13580		101,385,000	Fixed		50,000,000
2026 — Mar. 7	1.26820		142,327,500	Fixed		75,000,000
Mar. 22	1.31940		131,383,000	Fixed		70,000,000
Mar. 24	1.29830		93,100,000	Fixed		50,000,000
May 19	1.37420		264,510,000	Fixed		150,000,000
Dec. 2	1.58030		200,280,000	Fixed		120,000,000
2027 — Jan. 12	1.67990		160,640,000	Fixed		100,000,000
Jan. 24	1.74510		164,350,000	Fixed		100,000,000
Feb. 1	1.79150		164,200,000	Fixed		100,000,000
Feb. 3	1.80000		165,500,000	Fixed		100,000,000
Feb. 6	1.73900		163,300,000	Fixed		100,000,000
Feb. 13	1.64020		247,050,000	Fixed		150,000,000
Feb. 21	1.77800		81,550,000	Fixed		50,000,000
Feb. 22	1.71720		162,680,000	Fixed		100,000,000
Mar. 6	1.70010		164,070,000	Fixed		100,000,000
Mar. 6	1.70730		164,080,000	Fixed		100,000,000
Mar. 15	1.83300		327,000,000	Fixed		200,000,000
Mar. 16	1.85790		343,665,000	Fixed		210,000,000
			$     8,372,068,800			GBP 4,484,000,000

43

Unmatured Market Debt (Continued)

(D) FOREIGN EXCHANGE SWAPS

For the foreign exchange swaps listed below (outstanding as of September 30, 2021), the Government swapped Canadian dollars for U.S. dollars.

	Canadian dollar		U.S. dollar
Maturity date	Notional amount		Notional amount
2021 — Oct. 7	$	425,661,760		USD    343,700,051

(E) FOREIGN EXCHANGE FORWARDS

The Government entered into transactions to purchase (outstanding as of September 30, 2021): EUR 7,734,000 in exchange for USD 9,140,196, JPY 238,000,000 in exchange for USD 2,166,729, GBP 1,719,000 in exchange for USD 2,379,371, and CNH 20,300,000 in exchange for USD 3,132,619; USD 1,918,545,273 in exchange for EUR 1,633,515,000, USD 457,521,791 in exchange for JPY 50,266,900,000, USD 497,157,958 in exchange for GBP 363,049,000, and USD 657,684,736 in exchange for CNH 4,297,600,000.

Notes:

(1) Non-callable except as otherwise noted.

(2) Real Return Bonds bear interest adjusted in relation to the CPI for Canada. At maturity, a final payment equal to the sum of inflation compensation from the original issue date to maturity and principal will be made. All amounts shown for these issues include the inflation compensation accrued to date.

(3) Canada Savings Bonds offer minimum guaranteed annual interest rates and are non-callable. They can only be assigned or transferred under certain conditions. Canada Savings Bonds are redeemable on demand at any time with accrued interest.

(4) Canada Premium Bonds are non-callable. They can only be assigned or transferred under certain conditions. Issues are available in compound interest or regular interest form.

(5) Converted at USD 1.00 = CAD 1.2759, EUR 1.00 = CAD 1.4790 the closing rates on September 29, 2021.

44

Unmatured Market Debt (Continued)

Other Obligations (with Respect to Money Borrowed)

DIRECT OBLIGATIONS (1)

The borrowings listed below are direct obligations of agent enterprise Crown corporations which are agents of Canada and as such constitute direct obligations of the Government of Canada and are a charge on and payable out of the Consolidated Revenue Fund of Canada.

BORROWINGS BY AGENT ENTERPRISE CROWN CORPORATIONS

	Outstanding at March 31, 2021
	Canadian dollar borrowings		Foreign currency borrowings (2)		Total borrowings
	(in millions)
Business Development Bank of Canada	$	128	$	—	$	128
Canada Mortgage and Housing Corporation		265,191		—		265,191
Canada Post Corporation		998		—		998
Export Development Canada		1,025		46,506		47,532
Farm Credit Canada		289		563		852
Freshwater Fish Marketing Corporation		21		—		21
Royal Canadian Mint		6		—		6
Total	$	267,657	$	47,070	$	314,727

Source: Public Accounts of Canada 2021 (Volume 1, Table 9.5) and Public Services and Procurement Canada.

Note: Amounts may not add due to rounding.

(1) The payment of all money borrowed by agent enterprise Crown corporations and interest thereon is a charge on and payable out of the Consolidated Revenue Fund. Such borrowings therefore constitute obligations of the Government and are recorded as such net of borrowings expected to be repaid directly by these corporations. In practice, with few exceptions, all borrowings have been repaid by the agent enterprise Crown corporations.

(2) Foreign currency equivalent in Canadian dollars.

CONTINGENT LIABILITIES

	Principal amount outstanding
GUARANTEES PROVIDED BY THE GOVERNMENT AS AT MARCH 31, 2021 (IN MILLIONS OF DOLLARS)
Guaranteed borrowings of enterprise Crown corporations and other government business enterprises
Agent enterprise Crown corporations		314,727
Other guarantees provided by the Government
Loan guarantees
Agriculture and Agri-Food
Department of Agriculture and Agri-Food
Advance Payments Program—Agricultural Marketing Programs Act		1,243
Loans to farmers under the Canadian Agricultural Loans Act		90
Employment, Workforce Development and Disability Inclusion
Department of Employment and Social Development
Canada Student Loans Act		—	(1)
Finance
Department of Finance
Coast Capital Savings and Federal Credit Union		—
International Bank for Reconstruction and Development		148
Indigenous Services
Department of Indigenous Services
Indian Economic Development Guarantee Program		—	(1)
On-Reserve Housing Guarantee Program
Canada Mortgage and Housing Corporation		1,558
Other approved lenders		278
Innovation, Science and Economic Development
Department of Industry
Canada Small Business Financing Act		1,019
College of Patent and Trademark Agents		1
Natural Resources
Department of Natural Resources
Lower Churchill Hydro Electric Projects		9,150
Total—Loan guarantees		13,487
Insurance programs managed by the Government
Canadian Heritage
Department of Canadian Heritage
Canada Travelling Exhibitions Indemnification Act		—
Finance
Department of Finance
Mortgage or Hypothecary Insurance Protection		255,498
Global Affairs
Department of Foreign Affairs, Trade and Development
Accounts administered for the Government by Export Development Canada		33
Natural Resources
Department of Natural Resources
Nuclear Liability Account		—
Total—Insurance programs managed by the Government		255,531
Other explicit guarantees
Agriculture and Agri-Food
Department of Agriculture and Agri-Food
National Biomass Ethanol Program		—
Price Pooling Program—Agricultural Marketing Programs Act		—
Total—Other explicit guarantees		—
Total—Gross guarantees		583,745
Less: allowance for guarantees		720
Net exposure under guarantees		583,025

Source: Public Accounts of Canada 2021 (Volume 1, Table 11.6).

Note: Amounts may not add due to rounding.

(1) Less than $500,000.

45

Supplementary Information

MARKETABLE BONDS (DOMESTIC)

From October 1, 2021 through November 30, 2021, Government of Canada domestic marketable bonds outstanding increased by $28,000 million to $979,053 million. New issues and retirements during this period are detailed below.

Issue or Maturity Date	Coupon (%)		Maturity Date		Issue Amount		Maturing Amount
October 8, 2021		0.50		November 1, 2023	$	4,000,000,000
October 15, 2021		1.25		March 1, 2027		4,500,000,000
October 22, 2021		0.75		February 1, 2024		3,500,000,000
October 25, 2021		1.50		December 1, 2031		4,500,000,000
October 27, 2021		0.75		October 1, 2024		3,000,000,000
November 1, 2021		1.25					$	12,000,000,000
November 1, 2021		1.75		December 1, 2053		2,000,000,000
November 3, 2021		1.50		December 1, 2031		4,500,000,000
November 8, 2021		2.75		December 1, 2064		1,000,000,000
November 15, 2021		1.25		March 1, 2027		4,500,000,000
November 19, 2021		0.75		February 1, 2024		3,500,000,000
November 24, 2021		0.75		October 1, 2024		3,000,000,000
November 26, 2021		1.75		December 1, 2053		2,000,000,000
					$	40,000,000,000	$	12,000,000,000

From October 1, 2021 through November 30, 2021, there were no bond repurchase operations.

46

TREASURY BILLS

From October 1, 2021 through November 30, 2021, treasury bills outstanding decreased by $5,600 million to $188,200 million.

CANADA BILLS

From October 1, 2021 through November 30, 2021, Canada Bills outstanding decreased by U.S.$1,960,738,000 to U.S.$3,292,886,000.

CROSS CURRENCY SWAPS

From October 1, 2021 through November 30, 2021, Canadian dollar liabilities of $1,803,082,500 were swapped into liabilities of USD 1,435,000,000; Canadian dollar liabilities of $216,090,000 were swapped into liabilities of EUR 150,000,000; and Canadian dollar liabilities of $329,520,558 were swapped into liabilities of JPY 30,000,000,000.

FOREIGN EXCHANGE FORWARDS

As of November 30, 2021, the Government had outstanding transactions to purchase: USD 1,965,587,152 in exchange for EUR 1,737,553,000, USD 469,329,748 in exchange for JPY 53,468,300,000, USD 519,220,026 in exchange for GBP 386,171,000, and USD 711,123,858 in exchange for CNH 4,571,360,000.

FOREIGN EXCHANGE SWAPS

As of November 30, 2021, the Government had the following foreign exchange swaps (Canadian dollars swapped for U.S. dollars) outstanding:

	Canadian dollar		U.S. dollar
Maturity date	Notional amount		Notional amount
2022 – Jan. 7	$	425,738,921		USD 337,465,109

47