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, 2023, 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 1.3507.

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, 2023 was estimated to be 40.1 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.

On September 8, 2022, on the passing of Queen Elizabeth II, His Majesty King Charles III automatically became the Sovereign of Canada. The accession of His Majesty was formally proclaimed by the Government of Canada on September 10, 2022 by way of SI/2022-42. The executive power of the federal Government is vested in the King, 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 November 30, 2023, the distribution of seats in the House of Commons is as follows: the Liberal Party of Canada has 158 seats, the Conservative Party of Canada has 117 seats, the Bloc Québécois has 32 seats, the New Democratic Party has 25 seats, and the Green Party of Canada has two seats. There are three independent seats and one vacant 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, Queen Elizabeth II 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 3, 2022, the Coalition avenir Québec party was re-elected and formed a majority government having obtained 90 out of 125 seats in Quebec’s National Assembly (41.0% of the votes cast), as compared to 21 seats (14.4% of the votes cast) for the official opposition Quebec Liberal Party, 11 seats (15.4% of the votes cast) for the Québec solidaire party and three seats (14.6% of the votes cast) for the Parti Québécois.

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 2023 quarter ended (year-over-year)
	September		June		March		2022		2021		2020		2019		2018
Real GDP annual percentage change (1)		0.5		1.2		1.8		3.8		5.3		-5.0		1.9		2.7
Nominal GDP annual percentage change (2)		2.1		0.6		4.1		11.8		13.4		-4.0		3.5		4.4
GDP Implicit Price Index (2)(3)		1.6		-0.6		2.3		7.7		7.7		1.0		1.5		1.7
Consumer Price Index (total items) (3)(4)		3.7		3.5		5.1		6.8		3.4		0.7		1.9		2.3
Industrial Product Price Index (3)		-0.9		-4.9		1.3		12.8		13.9		-0.4		-0.1		3.9
Unemployment Rate (percent) (2)(5)		5.5		5.2		5.0		5.3		7.5		9.7		5.7		5.8
Trade Balance (millions of dollars) (2)		-2,885		-9,546		-4,035		3,691		215		-49,062		-33,919		-43,576

Source: Statistics Canada.

(1) At market prices, chained 2017 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 OPERATING DEFICIT

(millions of dollars)

	For the years ended March 31(3)
	2023(1, 2)		2022		2021		2020		2019
Total revenues		447,815		413,277		316,446		334,131		332,218
Total program expenses, excluding net actuarial losses		438,555		468,919		608,522		338,467		314,555
Public debt charges		34,955		24,487		20,358		24,447		23,266
Annual operating surplus or deficit (-) before net actuarial losses		-25,695		-80,129		-312,434		-28,783		-5,603
Net actuarial losses		-9,627		-10,186		-15,295		-10,609		-8,361
Annual operating deficit		-35,322		-90,315		-327,729		-39,392		-13,964
Accumulated operating deficit at end of year		-1,183,618		-1,139,975		-1,048,746		-721,360		-685,450

Source: Public Accounts of Canada 2023 (Volume 1, Table 1.1).

(1) Prior year comparatives have been restated to reflect the adoption of Public Sector Accounting Standard PS 3280 Asset Retirement Obligations. Years prior to 2022 figures have not been restated.

(2) The 2023 accumulated operating deficit at beginning of year has been adjusted to account for changes resulting from the introduction of the financial instrument suite of standards.

(3) The figures up to 2022 have been reclassified in the fiscal year 2023 to reflect the change in the financial instrument suite of standards. Other than the 2022 restated figures, the restatements in the prior years have not been audited.

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, chained 2017 dollars.

The chart below shows the distribution of real gross domestic product (“GDP”) at basic prices (chained 2017 dollars) in 2022, 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 “chained dollar” measures of the contribution of each industry to GDP at basic prices. The share of service-producing industries in real GDP was 73.2% in 2022 while the remaining 26.8% was attributed to goods-producing industries.

5

The following table shows the composition of Canada’s real GDP at basic prices (2017 chained dollars) by sector in 2012 and over the 2017-2022 period.

REAL GROSS DOMESTIC PRODUCT AT BASIC PRICES BY INDUSTRY

	(For the years ended December 31,)
	2022		2021		2020		2019		2018		2017		2022		2017		2012
			(millions of 2017 dollars)										(percentage distribution)
Agriculture (1)		36,753		31,794		35,783		34,972		33,351		33,539		1.7		1.7		1.5
Forestry, fishing and hunting		5,717		6,091		5,741		6,363		6,935		6,920		0.3		0.3		0.4
Mining and oil and gas extraction		111,997		106,757		99,944		108,512		109,496		104,850		5.1		5.3		4.9
Manufacturing		214,537		206,934		195,385		213,615		213,656		207,312		9.9		10.4		11.0
Construction		167,187		164,328		153,595		156,910		155,701		151,266		7.7		7.6		8.2
Utilities		46,339		45,104		45,634		46,118		45,197		44,198		2.1		2.2		2.3
Transportation and warehousing		85,667		75,804		74,098		97,356		94,345		92,585		3.9		4.6		4.3
Wholesale and retail trade		232,819		230,775		215,883		220,001		213,995		207,792		10.7		10.4		10.5
Finance, insurance and real estate		444,173		440,136		422,867		413,606		402,795		392,940		20.4		19.7		18.6
Public administration		158,743		155,125		148,139		150,493		147,654		143,039		7.3		7.2		7.7
Health, social, educational, professional and other services		671,188		631,231		591,136		642,046		625,680		607,093		30.9		30.5		30.8
Total (2)		2,175,120		2,094,079		1,988,205		2,089,992		2,048,805		1,991,534		100.0		100.0		100.0

Source: Statistics Canada, Industry Accounts Division.

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

(2) Totals are not always equal to the sum of their components.

Real GDP at market prices grew 3.8% in 2022, seeing a continuation of the post-COVID-19 rebound experienced in 2021 (+5.3%). The Canadian economy shrank by 5.0% in 2020, grew 1.9% in 2019, and 2.7% in 2018. GDP growth slowed in 2023, posting 1.8% year-over-year growth in the first quarter of 2023, followed by increases of 1.2% and 0.5% in the second and third quarters of 2023, respectively.

The share of service-producing industries in real GDP at basic prices grew between 2012 (72.0%) and 2022 (73.2%). The fastest growing industry in the services sector has been finance, insurance, and real estate, which grew at an average annual growth rate of 2.9% between 2012 and 2022, compared to an average annual growth rate of 2.1% for the overall service sector. The goods-producing sector constituted 26.8% of real GDP at basic prices in 2022, down from 28.0% in 2012. The largest decrease occurred in manufacturing, with its share falling from 11.0% in 2012 to 9.9% in 2022.

Manufacturing was the largest goods-producing industry in Canada by GDP (at basic prices) in 2022. Real output rose by 3.1% in 2018, 0.0% in 2019, and fell 8.5% in 2020. Output rebounded in 2021 and 2022, growing 5.9% and 3.7% respectively. Growth in manufacturing output from 2018 to 2022 was the highest in miscellaneous manufacturing (a 23.5% increase), computer and electronic product manufacturing (a 20.3% increase), and beverage and tobacco product manufacturing (a 19.3% increase). Losses were highest in printing and related support activities (a 28.4% decrease) and transportation equipment manufacturing (a 17.1% decrease). Year-over-year growth in manufacturing output fell by 0.9%, 0.5% and 1.0% in the first, second and third quarters of 2023, respectively.

The construction sector was the second largest goods-producing sector in Canada in 2022. Construction output grew by 2.9% in 2018 and 0.8% in 2019 but declined by 2.1% in 2020. Growth picked-up in 2021 to 7.0% and continued at 1.7% in 2022. Construction growth from 2018 to 2022 was led by repair construction, engineering and other construction activities, and residential building construction, which increased by 15.3%, 11.1% and 7.6%, respectively. Non-residential construction shrank by 9.4% over the same period. Overall construction output fell on a year-over-year basis by 0.7%, 1.1% and 0.6% in the first, second and third quarters of 2023, respectively.

Mining and oil and gas extraction was the third largest goods-producing industry by GDP in 2022. In 2018, real output from mining and oil and gas extraction rose 4.4%, followed by declines of 0.9% in 2019 and 7.9% in 2020. In 2021, the sector grew 6.8% as it recovered from the COVID-19 pandemic and grew by 4.9% in 2022. Over the 2018-2022 period, the sector’s real GDP increased by 2.3%, as oil and gas, which makes up more than 70% of the sector, grew by 5.6%. Mining and quarrying (except oil and gas) shrank by 3.8% over the 2018-22 period while support activities for mining and oil and gas extraction shrank by 3.5%. Year-over-year output in the mining and oil and gas extraction sector grew 6.1%, 1.8% and 1.5% in the first, second, and third quarters of 2023, respectively.

Although the share of agricultural output² in total real GDP was only 1.7% in 2022, 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 32.4 million tonnes in 2018, 32.7 million tonnes in 2019, and 35.4 million tonnes in 2020. In 2021, drought conditions in Western Canada reduced wheat yields to 22.4 million tonnes, recovering to 34.3 million tonnes in 2022 and 32.0 million tonnes in 2023.

²  Agriculture includes support activities for agriculture and forestry.

6

Gross Domestic Income and Expenditure³

Nominal GDP at market prices was $2.8 trillion in 2022. Nominal GDP grew by 4.4% in 2018, and 3.5% in 2019, before dropping 4.0% in 2020 and rebounding 13.4% in 2021 and 11.8% in 2022. On a year-over-year basis, nominal GDP increased by 4.1% in the first quarter, 0.6% in the second quarter and 2.1% in the third quarter of 2023, respectively.

GROSS DOMESTIC INCOME AND EXPENDITURE

	First 3 quarters (1)				For the years ended December 31,
	2023		2022		2022		2021		2020			2019		2018
	(millions of dollars)
Income
Compensation of employees		1,466,617		1,377,325		1,385,827		1,269,424		1,161,007			1,174,784		1,126,948
Gross operating surplus		752,257		824,225		820,134		729,411		618,188			608,415		595,791
Gross mixed income		347,039		319,141		323,127		292,166		277,762			275,839		261,378
Taxes less subsidies and statistical discrepancy		301,147		283,841		284,201		226,122		163,570			254,525		251,558
Gross Domestic Income		2,867,060		2,804,533		2,813,289		2,517,123		2,220,527			2,313,563		2,235,675
Expenditure
Final consumption expenditure		2,200,763		2,080,361		2,095,366		1,904,459		1,765,871			1,814,251		1,756,531
Household final consumption		1,550,760		1,461,967		1,473,588		1,327,587		1,225,996			1,300,816		1,260,446
General governments final consumption		607,716		578,908		582,117		539,730		504,084			478,063		462,369
Non-profit institutions serving households’ final consumption		42,287		39,487		39,661		37,142		35,791			35,372		33,716
Gross fixed capital formation		660,288		656,431		655,217		608,580		514,812			522,402		506,963
Business gross fixed capital formation		545,488		550,175		547,655		512,934		424,035			433,936		417,469
Residential structures		221,707		246,493		241,638		242,371		183,854			168,749		166,994
Non-residential structures, machinery and equipment		260,625		244,239		246,223		216,422		192,393			217,322		205,583
Intellectual property product		63,156		59,443		59,794		54,141		47,788			47,865		44,892
General governments gross fixed capital formation		111,809		103,359		104,664		92,919		88,425			86,315		87,133
Non-profit institution serving households’ gross fixed capital formation		2,991		2,897		2,898		2,727		2,352			2,151		2,361
Investment in inventories		26,143		58,505		58,343		3,444		(11,314	)		10,699		15,677
Exports (goods and services)		956,399		948,700		952,159		785,754		654,470			748,500		722,690
Imports (goods and services)		978,353		940,195		948,468		785,539		703,532			782,419		766,265
Statistical discrepancy		1,821		731		672		425		220			130		79
Gross Domestic Expenditure		2,867,060		2,804,533		2,813,289		2,517,123		2,220,527			2,313,563		2,235,675
Gross Domestic Expenditure in Chained 2017 Dollars		2,350,954		2,324,213		2,326,537		2,240,936		2,128,408			2,241,331		2,199,358

Source: Statistics Canada, Gross domestic product, income- and expenditure-based.

(1) Seasonally adjusted at 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 2.7% in 2018 and 1.9% in 2019, before dropping 5.0% in 2020 and rebounding by 5.3% in 2021 and 3.8% in 2022. Canada’s real GDP grew year-over-year by 1.8%, 1.2%, and 0.5% in the first, second and third quarters of 2023, respectively.

Real household final consumption expenditure rose 2.6% in 2018 and 1.5% in 2019, before dropping 6.4% in 2020 and returning to growth of 5.2% in 2021 and 5.1% in 2022. Year-over-year growth in household spending grew 3.8%, 1.6% and 1.5% in the first, second and third quarters of 2023, respectively.

Household savings as a percentage of personal disposable income was 0.6% in 2018, 2.1% in 2019, 14.2% in 2020, 10.5% in 2021 and 5.4% in 2022. The household savings rate was 4.4%, 4.7% and 5.1% (annual rates) in the first three quarters of 2023, respectively.

Real investment in non-residential structures, machinery and equipment grew 3.3% in 2018 and 3.2% in 2019, before dropping 12.3% in 2020, and then growing 8.7% in 2021 and 4.0% in 2022. On a year-over-year basis, non-residential structures, machinery and equipment investment grew 0.9%, 2.5% and -0.1% in the first, second and third quarters of 2023, respectively. In 2018 and 2019, real intellectual property products investment rose 12.5% and 3.7%, respectively, before declining 0.4% in 2020, and recovering 10.8% in 2021 and 6.0% in 2022. On a year-over-year basis, intellectual property products investment grew 4.0%, 0.8% and -0.1% in the first three quarters of 2023.

Housing starts were 212.8 thousand units in 2018, 208.7 thousand units in 2019, 216.7 thousand units in 2020, 271.2 thousand units in 2021, and 261.8 thousand units in 2022. Over the first three quarters of 2023, housing starts averaged an annual level of 239.9 thousand units.

Real government final consumption grew 3.1% in 2018, 1.1% in 2019, 1.3% in 2020, 5.4% in 2021, and 3.2% in 2022. The year-over-year growth in government spending on goods and services was 1.2%, 1.3% and 1.8% in the first three quarters of 2023, respectively.

In current dollar terms, the trade balance in goods and services (on a balance of payments basis) was a deficit of $43.6 billion in 2018, $33.9 billion in 2019, and $49.1 billion in 2020. In 2021 and 2022, Canada posted surpluses of $0.2 and $3.7 billion, respectively. In the first three quarters of 2022, the average trade balance in goods and services was a deficit of $22.0 billion at annual rates.

Canada’s economic recovery from the pandemic recession has been strong, with real GDP and employment having returned to pre-pandemic levels by the fourth quarter of 2021—the fastest recovery of the last three recessions. Nevertheless, the economy is now showing signs of slowing as higher interest rates around the world are a drag on global growth. Moreover, elevated domestic inflation and interest rates, combined with the labour market softening, are weighing on household finances and are likely to slow household spending going forward. However, Canadian households’ savings are still healthy, and labor market tightness has allowed wages to catch-up with inflation, which is helping to lessen the impacts on domestic consumption. At the same time, weakening of the global economy may weigh on commodity prices which could have an impact on demand for Canadian exports.

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 2017 dollars, seasonally adjusted at annual rates unless otherwise noted.

8

Prices and Costs

The GDP implicit price deflator increased 1.7% in 2018, 1.5% in 2019, 1.0% in 2020, 7.7% in 2021 and 7.7% in 2022. The year-over-year change in the implicit price deflator grew 2.3%, -0.6% and 1.6% in the first three quarters of 2023, respectively.

Since the introduction of inflation-targeting into monetary policy in 1991, annual increases in the consumer price index (“CPI”) remained almost entirely within the 1% to 3% target range until the start of the COVID-19 pandemic. Total CPI rose 2.3% in 2018, 1.9% in 2019, 0.7% in 2020, 3.4% in 2021 and 6.8% in 2022. On a year-over-year basis, total CPI increased 5.1%, 3.5% and 3.7% in the first three quarters of 2023, respectively⁵. The high level of inflation was initially in large part a symptom of high demand for goods and supply chain disruptions caused by the pandemic. Russia’s illegal invasion of Ukraine spurred additional energy and food inflation, and consequently, prices for goods in these categories have increased significantly in 2022. More recently, elevated inflation has reflected excess demand in the domestic economy, including in the labor market, as well as the long lag-time associated with the pass-through of monetary policy tightening.

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)
2018		1.7		2.3		1.9		2.3		6.7		1.9		2.1		3.9
2019		1.5		1.9		3.4		1.7		-2.2		2.1		2.5		-0.1
2020		1.0		0.7		2.3		0.4		-7.6		1.1		1.7		-0.4
2021		7.7		3.4		2.5		3.6		18.8		2.4		3.9		13.9
2022		7.7		6.8		8.9		6.4		22.6		5.0		6.9		12.8
2022Q4		5.4		6.7		10.2		6.0		12.5		5.4		7.1		8.8
2023Q1		2.3		5.1		9.7		4.3		-0.9		4.8		6.0		1.3
2023Q2		-0.6		3.5		8.3		2.6		-10.6		4.0		4.8		-4.9
2023Q3		1.6		3.7		6.8		3.1		-0.6		3.4		5.7		-0.9

Source: Statistics Canada.

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

⁵  Year-over-year growth rates for CPI are based on non-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)
2018		19,884		18,723		5.8		1,233		1,117		9.4		4,500		4,253		5.5
2019		20,275		19,121		5.7		1,247		1,138		8.8		4,562		4,331		5.1
2020		19,973		18,044		9.7		1,222		1,088		11.0		4,498		4,097		8.9
2021		20,484		18,942		7.5		1,257		1,134		9.8		4,553		4,273		6.1
2022		20,791		19,693		5.3		1,274		1,175		7.8		4,602		4,403		4.3
2022Q4		20,893		19,827		5.1		1,284		1,188		7.5		4,638		4,453		4.0
2023Q1		21,114		20,058		5.0		1,294		1,203		7.0		4,694		4,501		4.1
2023Q2		21,238		20,139		5.2		1,294		1,203		7.0		4,698		4,503		4.2
2023Q3		21,393		20,214		5.5		1,307		1,209		7.5		4,720		4,512		4.4

	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)
2018		7,679		7,246		5.6		3,739		3,501		6.4		2,733		2,606		4.6
2019		7,867		7,429		5.6		3,787		3,546		6.4		2,813		2,678		4.8
2020		7,788		7,026		9.8		3,704		3,324		10.3		2,761		2,509		9.1
2021		8,049		7,393		8.1		3,774		3,478		7.8		2,852		2,664		6.6
2022		8,190		7,732		5.6		3,843		3,635		5.4		2,881		2,748		4.6
2022Q4		8,219		7,761		5.6		3,868		3,667		5.2		2,885		2,759		4.4
2023Q1		8,292		7,867		5.1		3,924		3,712		5.4		2,911		2,775		4.7
2023Q2		8,372		7,922		5.4		3,942		3,731		5.4		2,931		2,779		5.2
2023Q3		8,443		7,950		5.8		3,972		3,750		5.6		2,951		2,793		5.3

Source: Statistics Canada, The Labour Force Survey.

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

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

Employment increased by 1.6% in 2018 and 2.1% in 2019, before declining 5.6% in 2020, and then growing 5.0% in 2021 and 4.0% in 2022. Over Q1-Q3 of 2023, employment grew by 2.7%, 2.1% and 2.5%, respectively. Meanwhile, the labor force grew 1.1% in 2018, 2.0% in 2019, -1.5% in 2020, 2.6% in 2021, and 1.5% in 2022. Over Q1-Q3 of 2023, the labor force has grown by 1.9%, 2.2%, and 2.9%, respectively, on an annualized basis.

Before COVID-19, all provinces saw significant decreases in unemployment rates between 2018 and 2020. The unemployment rate was 5.8% in 2018 and 5.7% in 2019, before increasing to 9.7% in 2020 and falling back to 7.5% in 2021 and 5.3% in 2022. Canada’s unemployment rate has risen since mid-2023, reflecting the impact of higher interest rates. In 2023, the unemployment rate rose from a low of 5.0% in the first quarter to 5.5% in the third quarter—still low relative to pre-pandemic levels.

Over the first three quarters of 2023, employment in the service sector accounted for 79.5% of total employment, slightly more than in 2022. 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 20.5% of Canadian employment, is led by the manufacturing and construction subsectors. The subsector that grew the most in terms of employment share from 2018 to 2022 was professional, scientific and technical services. Meanwhile, the subsector that contracted the most was accommodation and food services.

SHARE OF TOTAL EMPLOYMENT BY SECTOR

(in percentages)

	For the years ended December 31,
	2023(1)		2022		2021		2020		2019
Total, all industries		100.0		100.0		100.0		100.0		100.0
Goods-producing sector		20.5		20.7		20.7		21.0		20.8
Agriculture		1.3		1.3		1.4		1.6		1.5
Forestry and logging with support activities		0.2		0.2		0.3		0.3		0.2
Fishing, hunting and trapping		0.1		0.1		0.1		0.1		0.1
Mining, quarrying, and oil and gas extraction		1.4		1.4		1.4		1.3		1.4
Utilities		0.8		0.8		0.7		0.7		0.7
Construction		7.8		7.9		7.7		7.8		7.7
Manufacturing		9.0		9.1		9.2		9.3		9.2
Services-producing sector		79.5		79.3		79.3		79.0		79.2
Wholesale trade		3.4		3.5		3.4		3.5		3.5
Retail trade		11.3		11.7		11.8		11.8		11.9
Transportation and warehousing		5.0		5.0		5.2		5.2		5.4
Finance, insurance, real estate and leasing		6.9		6.9		7.0		6.9		6.5
Professional, scientific and technical services		9.3		9.2		8.9		8.7		8.1
Business, building and other support services		3.5		3.5		3.6		3.8		4.0
Educational services		7.3		7.5		7.6		7.3		7.0
Health care and social assistance		13.2		13.2		13.3		13.3		13.0
Information, culture and recreation		4.2		4.1		3.8		3.8		4.1
Accommodation and food services		5.6		5.3		5.1		5.2		6.4
Other services		3.8		3.6		3.8		3.9		4.1
Public administration		5.9		5.8		5.7		5.6		5.3

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 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.

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. The CPTPP entered into force on December 30, 2018 for the first six countries to ratify the agreement, including Canada, and has since become effective with respect to the remaining members. As a result, Canada now benefits from expanded preferential market access to the CPTPP countries. The Agreement also provides for potential expansion to include new economies, provided they have the ability to meet its high standards. Following the conclusion of negotiations that started in 2021, on July 16, 2023, CPTPP members and the United Kingdom (“U.K.”) signed a protocol establishing the terms and commitments of the U.K.’s accession to the Agreement. This protocol is now undergoing domestic ratification and implementation processes in each of the respective countries.

At the bilateral level, Canada has implemented free trade agreements (“FTAs”) 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 entered into force on April 1, 2021, substantively replicating the CETA on a bilateral basis. On March 24, 2022, Canada and the U.K. announced the launch of negotiations toward a Canada-U.K. free trade agreement that would best reflect the two countries’ bilateral trading relationship. These negotiations are ongoing. On September 22, 2023, Canada and Ukraine signed an agreement to modernize the 2017 Canada-Ukraine Free Trade Agreement (CUFTA). The modernized CUFTA includes new chapters and provisions on trade in services (including financial), investment, temporary entry for business persons, telecommunications, digital trade, labour, and the environment, among other areas. The modernized agreement is now undergoing domestic ratification and implementation processes in both countries.

Canada is also committed to expanding and diversifying trade with large, fast-growing markets and regional groupings. In this respect, a focus of Canada’s Indo-Pacific Strategy (“IPS”) launched in November 2022 is to expand trade, investment and supply chain resilience in the Indo-Pacific region. The IPS seeks to increase export diversification and free trade access, including by joining the Indo-Pacific Economic Framework for Prosperity and the Digital Economic Partnership Agreement, as well as to improve market access through new FTAs, including those already under negotiation. Canada 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.

In response to the invasion of Ukraine, on March 2, 2022, Canada withdrew eligibility for Most-Favoured-Nation (“MFN”) tariff treatment for virtually all goods originating in Russia and Belarus, resulting in the application of the General Tariff of 35% to these imports. This trade measure, in force indefinitely, is accompanied by Canada’s import prohibition on Russian petroleum products implemented on March 10, 2022. To address the exceptional circumstances of the illegal war and its impact on the Ukrainian economy, on June 9, 2022, Canada also implemented a temporary waiver of tariffs and trade remedy duties on imports originating in Ukraine, which currently extends to June 9, 2024.

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,
	2023		2022		2022		2021		2020		2019		2018
	(millions of dollars)
Value of Exports
Farm, fishing & intermediate food products		44,974		37,565		54,462		47,487		43,653		37,818		39,728
Energy products		125,065		163,532		211,764		134,824		74,341		117,085		113,597
Metal ores & non-metallic minerals		20,733		24,632		32,884		25,665		20,843		20,775		19,096
Metal & non-metallic mineral products		68,165		64,881		85,572		76,602		66,340		64,423		64,371
Basic & industrial chemical, plastic & rubber products		31,837		33,677		44,640		38,960		30,057		33,633		34,992
Forestry products & building & packaging materials		36,653		44,940		58,689		54,825		41,619		41,717		47,102
Industrial machinery, equipment & parts		38,131		33,073		45,171		37,940		35,906		42,008		39,330
Electronic & electrical equipment & parts		25,835		23,396		31,750		26,967		25,693		29,318		29,045
Motor vehicles & parts		76,311		60,349		80,978		72,003		75,198		94,224		90,310
Aircraft & other transportation equipment & parts		22,463		17,453		24,555		24,157		22,582		27,938		25,817
Consumer goods		67,253		66,169		88,620		79,220		69,536		69,350		65,927
Other (2)		15,656		14,896		20,132		17,634		16,627		17,312		16,851
Total Exports (3)		573,075		584,562		779,217		636,284		522,394		595,599		586,165
Value of Imports
Farm, fishing & intermediate food products		20,906		20,974		27,866		23,727		21,434		21,251		20,292
Energy products		33,521		38,013		51,450		32,113		23,024		37,656		38,660
Metal ores & non-metallic minerals		14,227		14,496		19,272		15,394		16,472		14,161		14,369
Metal & non-metallic mineral products		48,515		48,418		64,146		58,792		49,681		39,581		41,466
Basic & industrial chemical, plastic & rubber products		44,016		50,901		67,076		51,797		41,219		45,013		47,309
Forestry products & building & packaging materials		25,289		26,633		35,655		30,213		25,988		26,886		26,870
Industrial machinery, equipment & parts		69,012		61,998		84,567		68,815		60,508		69,345		68,220
Electronic & electrical equipment & parts		64,382		63,419		84,622		74,183		67,973		71,955		71,279
Motor vehicles & parts		103,956		83,838		114,769		95,078		88,382		115,262		113,778
Aircraft & other transportation equipment & parts		19,842		17,594		23,761		19,859		19,388		26,638		23,898
Consumer goods		112,299		117,541		156,291		136,358		127,290		125,610		121,422
Other (2)		21,295		20,931		27,859		25,375		21,293		21,040		20,406
Total Imports (3)		577,259		564,755		757,332		631,703		562,652		614,398		607,970

Source: Statistics Canada, Table 12-10-0121-01 International merchandise trade by commodity.

(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 remain an important part of Canada’s exports. In 2022, surging energy prices drove exports of energy products to account for 27.2% of Canada’s merchandise exports, followed by consumer goods (11.4%) and metal and non-metallic mineral products (11.0%). Together, these three components represented 48.9% of total merchandise exports in 2022.

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 the first three quarters of 2023, trade with the United States accounted for 77.1% of the value of Canada’s merchandise exports and 63.0% of the value of Canada’s merchandise imports. According to the United States Census Bureau, trade with Canada accounted for 17.3% of the United States’ exports and 13.5% of its imports in 2022. The United States’ share of imports from Canada has risen slightly on a year-to-date basis up to September 2023, likely due to higher energy prices.

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)

(in percentages)

	First 3 quarters				For the years ended December 31,
	2023		2022		2022		2021		2020		2019		2018
Exports(1)
United States		77.1		76.8		76.4		74.9		71.9		74.9		74.1
European Union(2)		4.5		4.6		4.7		4.9		5.5		4.9		5.0
China		4.1		3.3		3.8		4.5		5.0		4.1		4.9
United Kingdom		1.9		2.7		2.6		2.9		4.1		3.4		2.9
Japan		2.1		2.4		2.3		2.3		2.4		2.2		2.2
Mexico		1.3		1.2		1.3		1.4		1.3		1.3		1.6
South Korea		0.9		1.2		1.1		1.0		0.9		1.0		1.0
Other		8.1		7.7		7.9		8.2		9.0		8.4		8.2
Total		100.0		100.0		100.0		100.0		100.0		100.0		100.0
Imports(1)
United States		63.0		62.1		62.2		62.2		62.3		63.9		64.4
European Union(2)		9.7		9.1		9.1		9.1		9.1		9.5		9.1
China		7.8		9.4		9.2		9.1		8.8		7.6		7.6
United Kingdom		1.5		1.3		1.3		1.6		1.7		1.4		1.4
Japan		1.9		1.6		1.6		1.8		1.8		2.0		2.1
Mexico		3.7		3.2		3.2		3.1		3.0		3.3		3.4
South Korea		1.4		1.5		1.4		1.4		1.3		1.4		1.4
Other		11.0		11.9		11.9		11.9		12.0		11.0		10.6
Total		100.0		100.0		100.0		100.0		100.0		100.0		100.0

Source: Statistics Canada, Table 12-10-0011-01 International merchandise trade by principal trading partners.

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

(2) Does not include 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,
	2023		2022		2022		2021		2020		2019		2018
	( 2017 = 100 )
Indices of physical volume
Exports		122.8		117.1		117.9		115.1		113.4		121.6		120.3
Imports		120.7		121.7		121.6		114.0		105.1		114.1		113.8
Indices of prices
Exports		143.4		151.2		150.7		126.3		107.7		111.3		110.8
Imports		149.4		142.2		144.6		127.6		122.6		121.4		118.5
Terms of trade (1)		96.0		106.3		104.2		99.0		87.9		91.7		93.6

Source: Statistics Canada, Table 12-10-0168-01 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 2023, the service sector accounted for 22.0% of total exports and 21.4% of total imports (seasonally adjusted). Service exports are comprised of commercial services (65.8%), travel services (22.3%), transportation services (11.0%) and general government services (0.9%). On the import side, commercial services, travel services, transportation services, and general government services accounted for 59.2%, 22.0%, 17.8% and 0.9% of total service imports, respectively. In 2022, the United States was Canada’s largest services trading partner, accounting for 53.9% and 58.8% 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
	2023		2022		2022		2021		2020		2019		2018
Exports
Travel services		22.3		18.8		19.7		13.0		13.6		25.9		25.9
Transportation services		11.0		11.8		11.8		10.6		10.3		12.2		13.2
Commercial services		65.8		68.5		67.7		75.3		75.1		60.8		59.6
General government services		0.9		0.9		0.9		1.0		1.0		1.2		1.2
Total		100.0		100.0		100.0		100.0		100.0		100.0		100.0
Imports
Travel services		22.0		17.0		18.0		6.8		11.4		27.9		28.3
Transportation services		17.8		20.5		20.2		18.6		16.5		19.4		20.2
Commercial services		59.2		61.5		60.8		73.4		71.1		51.8		50.5
General government services		0.9		1.0		1.0		1.2		1.1		0.9		1.0
Total		100.0		100.0		100.0		100.0		100.0		100.0		100.0

Source: Statistics Canada, Table 12-10-0144-01.

(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)

	2022		2021		2020		2019		2018
Exports
United States		53.9		56.6		54.6		53.4		54.3
Japan		1.1		1.0		1.2		1.4		1.4
Europe (2)		10.8		10.9		11.2		11.7		11.7
United Kingdom		4.7		4.7		4.9		4.9		5.4
Others		29.6		26.7		28.1		28.5		27.2
Total		100.0		100.0		100.0		100.0		100.0
Imports
United States		58.8		58.2		57.8		54.9		54.3
Japan		1.3		1.5		1.8		2.0		1.8
Europe (2)		11.9		12.1		11.9		12.7		13.0
United Kingdom		5.2		5.6		6.1		5.3		5.2
Others		22.8		22.7		22.5		25.2		25.6
Total		100.0		100.0		100.0		100.0		100.0

Source: Statistics Canada, Table 12-10-0157.

(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 the 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
	2023		2022		2022		2021		2020		2019		2018
	(millions of dollars)
Current and Capital Account
Current account receipts
Goods and services		717,298		711,525		952,159		785,756		654,469		748,502		722,691
Goods		572,317		585,160		779,189		636,757		522,477		595,599		586,165
Services		144,982		126,365		172,970		148,997		131,993		152,902		136,525
Primary income		167,830		126,238		172,944		147,840		132,330		147,385		136,826
Secondary Income		14,365		13,363		18,180		15,516		12,495		15,297		13,902
Total receipts		899,494		851,126		1,143,283		949,110		799,295		911,183		873,416
Current account payments
Goods and services		733,765		705,148		948,468		785,539		703,531		782,421		766,266
Goods		577,284		565,908		759,482		634,298		563,123		614,397		607,970
Services		156,481		139,240		188,986		151,241		140,409		168,022		158,296
Primary income		163,477		131,643		182,967		142,906		121,663		155,672		143,101
Secondary Income		19,563		16,119		22,160		20,293		18,889		18,275		17,194
Total payments		916,805		852,910		1,153,595		948,738		844,084		956,366		926,561
Current account balance
Goods and services		-16,466		6,377		3,691		215		-49,062		-33,919		-43,576
Goods		-4,970		19,252		19,708		2,460		-40,648		-18,798		-21,806
Services		-11,499		-12,874		-16,016		-2,245		8,415		-15,122		-21,769
Primary income		4,354		-5,405		-10,022		4,933		10,667		-8,286		-6,273
Secondary Income		-5,199		-2,756		-3,980		-4,777		6,394		-2,977		-3,292
Total payments		-17,314		-1,783		-10,310		371		-44,790		-45,183		-53,140
Capital account balance		172		-53		-53		-38		-48		-89		-76
Financial Account (2)
Net lending/net borrowing, from financial account		-12,025		-391		-3,154		10,357		-46,040		-50,324		-46,388
Net acquisition of financial assets		192,253		143,975		278,939		426,276		216,871		271,730		169,602
Canadian direct investment abroad		98,639		97,402		112,772		130,049		63,490		100,786		81,654
Canadian portfolio investment		22,444		-22,128		-11,485		161,467		44,023		33,404		57,639
Foreign debt securities		26,467		36,800		50,867		48,828		1,749		27,716		50,159
Foreign equity and investment fund shares		-4,022		-58,926		-62,350		112,637		42,273		5,688		7,480
Official international reserves		8,671		12,630		13,817		25,319		1,772		127		-1,887
Other Canadian investment		62,498		56,071		163,835		109,441		107,588		137,413		32,196
Net incurrence of liabilities		204,277		144,367		282,093		415,919		262,909		322,053		215,989
Foreign direct investment in Canada		49,696		50,100		64,825		74,257		39,252		65,030		55,236
Foreign portfolio investment		20,455		95,213		137,613		217,465		134,862		35,569		53,186
Canadian debt securities		61,107		107,723		149,634		171,634		148,861		37,965		27,793
Canadian equity and investment fund shares		-40,653		-12,510		-12,021		45,832		-13,998		-2,396		25,394
Other foreign investment		134,127		-945		79,656		124,194		88,794		221,454		107,567
Discrepancy (net errors and omissions)		11,311		6,391		7,211		10,023		-1,201		-5,052		6,829

Source: Statistics Canada, Tables 36-10-0016 and 36-10-0472.

(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 positive value denotes an increase in investment and a negative value denotes a decrease in investment.

The current account deficit was $23.1 billion (seasonally adjusted, annualized level) in the first three quarters of 2023. Over the last five years, the three main components of the current account have evolved as follows:

(1) Merchandise trade registered a deficit of $21.8 billion in 2018, $18.8 billion in 2019 and $40.6 billion in 2020, followed by a surplus of $2.5 billion in 2021 and $19.7 billion in 2022. In the first three quarters of 2023, merchandise trade showed an average deficit of $6.6 billion (annualized level).

(2) The service account deficit narrowed from $21.8 billion in 2018 to $16.0 billion in 2022. The services deficit was $15.3 billion (annualized level) in the first three quarters of 2023.

(3) The balance on primary income declined from a deficit of $6.2 billion in 2018 to a deficit of $10.0 billion in 2022. Primary income showed an average surplus of $5.8 billion (annualized level) in the first three quarters of 2023.

Canada registered net financial account outflows (net lending) of $10.4 billion in 2021 and net inflows (borrowing) of $3.2 billion in 2022. The net inflow was $16.0 billion in the first three quarters of 2023 (annualized level).

Foreign portfolio investment in Canada sat at $53.2 billion in 2018, rising to $137.6 billion in 2022. In the first three quarters of 2023, portfolio investment from abroad decreased significantly to $27.3 billion (annualized level). Foreign direct investment was $55.2 billion in 2018, $65.0 billion in 2019, $39.3 billion in 2020, $74.3 billion in 2021, and $64.8 billion in 2022.

Foreign direct investment in 2022 was led by management of companies and enterprises, energy and mining, and manufacturing. In the first three quarters of 2023, foreign direct investment was $66.3 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
	2023		2022		2022		2021		2020			2019			2018
	(millions of dollars)
All countries		56,457		46,596		60,099		75,712		34,326			67,062			48,803
United States		29,124		19,055		26,291		31,770		14,546			23,853			21,227
All other countries		27,333		27,541		33,808		43,942		19,780			43,209			27,576
All industries		56,457		46,596		60,099		75,712		34,326			67,062			48,803
Energy and mining (2)		7,552		10,107		13,568		14,534		(9,287	)		25,632			5,651
Manufacturing		17,552		10,193		11,888		22,059		7,934			18,476			15,745
Trade and transportation (3)		6,529		5,663		8,201		10,362		10,367			(1,008	)		3,712
Finance and Insurance		4,559		4,180		8,178		7,728		5,525			7,947			2,544
Management of companies and enterprises		8,127		13,473		14,221		6,150		7,425			7,159			5,431
Other industries (4)		12,136		2,977		4,040		14,878		12,363			8,855			15,720

Source: Statistics Canada, Table 36-10-0025 and 36-10-0026.

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 2022 at an average rate price of 73.83 U.S. cents. From the beginning of 2023 through to September 29, the Canadian dollar average rate price ranged between 72.43 and 76.17 U.S. cents. The Canadian dollar average rate price on September 29, 2023 was 73.96 U.S. cents.

EXCHANGE RATE FOR THE CANADIAN DOLLAR

	2023 through September 29		For the years ended December 31,
			2022		2021		2020		2019		2018		2017		2016		2015		2014		2013		2012
	(in U.S. cents)
High		76.17		80.31		83.06		78.63		76.99		81.38		82.45		80.19		85.62		94.44		101.88		103.71
Low		72.43		72.17		77.27		68.98		73.53		73.30		72.76		68.21		71.41		85.68		93.14		95.76

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, 2023		At December 31,
			2022		2021		2020		2019		2018		2017		2016		2015		2014		2013		2012
	(millions of U.S. dollars)
Total		112,446		107,255		106,615		90,428		85,297		83,926		86,625		82,718		79,753		74,700		71,937		68,546

Source: Department of Finance.

As of September 29, 2023, Canada’s official international reserves stood at U.S.$112,446 million equivalent. The total was composed of U.S.$59,781 million held in U.S. dollar denominated assets, U.S.$10,931 million equivalent in euro denominated assets, U.S.$8,046 million equivalent in pound sterling assets, U.S.$5,868 million equivalent in yen denominated assets, U.S.$23,103 million in Special Drawing Rights (“SDRs”) and U.S.$4,210 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.$1,877 million of Canada Bills outstanding on September 30, 2023. 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, 2023, 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, 2023, there were no EMTNs outstanding. As of September 30, 2023, U.S.$14,000 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 His 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 any amounts borrowed by the Government 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, are not limited by this maximum amount. 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 some 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 (or Fall Economic Statement) in the fall to update Canadians on the government’s economic and fiscal position in the lead-up to the annual budget. 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 listed 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 that 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, or annual operating surplus/deficit, 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 assets, derivatives, 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 accumulated deficit comprises accumulated operating deficit and accumulated remeasurement gains and losses. Net debt, which is a different measure of the Government’s financial position, represents total liabilities less financial assets.

16

Fiscal Policy

In fiscal  2022-23,  the  Government  posted   an annual operating  deficit of $35.3 billion, compared to an annual operating deficit of $90.3 billion in fiscal 2021-22. The year-over-year improvement in the budgetary balance reflects the strong recovery of the Canadian economy from the effects of the pandemic along with the wind-down of temporary COVID-19 support measures.  The  annual operating  deficit  before  net  actuarial  losses  was  $25.7  billion  in  fiscal  2022-23,  compared to  a  deficit  of $80.1 billion in fiscal 2021-22. Federal debt was 42.2% of GDP in fiscal 2022-23, down from 45.4% in the previous year and remaining well below its peak of 66.6% in fiscal 1995-96. Program expenses, excluding net actuarial losses, decreased by $30.4 billion, or 6.5%, over the prior year, largely reflecting lower transfers to individuals and businesses due to expiring temporary COVID-19 measures. As a percentage of GDP, program expenses excluding net actuarial losses decreased to 15.8% in fiscal 2022-23, down from 18.7% in fiscal 2021-22. As a percentage of GDP, public debt charges were 1.3%, while net actuarial losses were 0.3% of GDP in fiscal 2022-23.

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  $66.2  billion  in  fiscal  2022-23,  compared  to  a  financial  requirement  of  $84.4  billion in  fiscal  2021-22. The Government financed this financial requirement of $66.2 billion by reducing its cash balances by $51.8 billion and by increasing unmatured debt by $14.3 billion.

Unmatured debt as a percentage of GDP stood at 45.5% in fiscal 2022-23, down from 49.8% in fiscal 2021-22.

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 46.4% of Government revenue in fiscal 2022-23 while corporate income taxes accounted for 21.0% of Government revenue.

There are currently five federal income tax brackets for individuals: 15%, 20.5%, 26%, 29% and 33%. For 2023, the taxable income thresholds at which the brackets apply, indexed annually to account for inflation, are as follows: 15% on taxable income up to $53,359, 20.5% on taxable income over $53,359 and up to $106,717, 26% on taxable income over $106,717 and up to $165,430, 29% on taxable income over $165,430 and up to $235,675 and 33% on taxable income above $235,675.

The general federal corporate income tax rate in 2023 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 (with taxable capital and investment income certain thresholds) 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, alcohol and vaping 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.

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 OPERATING DEFICIT

(millions of dollars)

	Year ended March 31(3)
	2023(1,2)		2022		2021		2020		2019
Revenues
Tax revenues
Income tax revenues
Personal		207,872		198,385		174,755		167,576		163,881
Corporate		93,945		78,815		54,112		50,060		50,368
Non-resident		13,187		10,789		8,107		9,476		9,370
		315,004		287,989		236,974		227,112		223,619
Other taxes and duties
Goods and services tax		45,962		46,165		32,415		37,386		38,221
Energy taxes		5,657		5,355		4,894		5,683		5,802
Customs import duties		6,057		5,237		4,254		4,853		6,881
Other excise taxes and duties		6,548		5,923		5,391		5,958		6,323
		64,224		62,680		46,954		53,880		57,227
Total tax revenues		379,228		350,669		283,928		280,992		280,846
Employment insurance premiums		26,914		23,856		22,392		22,219		22,295
Proceeds from the pollution pricing framework		8,041		6,341		4,380		2,655		–
Other revenues
Enterprise Crown corporations and other government business enterprises		6,452		12,804		-10,542		5,059		7,101
Net foreign exchange revenues		1,261		873		2,173		2,410		1,667
Other		25,919		18,734		14,115		20,796		20,309
Total other revenues		33,632		32,411		5,746		28,265		29,077
Total revenues		447,815		413,277		316,446		334,131		332,218
Expenses
Program expenses
Transfer payments
Old age security benefits, guaranteed income supplement and spouse’s allowance		69,392		60,774		58,529		56,227		53,366
Major transfer payments to other levels of government
Canada Health Transfer		47,141		45,133		45,880		40,872		38,568
Canada Social Transfer		15,938		15,474		15,023		14,585		14,161
Canada-Wide Early Learning and Child Care		4,489		2,948		–		–		–
Fiscal arrangements		19,731		19,121		19,299		18,030		17,929
Other major transfers		3,485		5,710		26,451		5,688		5,267
		90,784		88,386		106,653		79,175		75,925
Employment insurance and support measures		21,836		38,923		58,356		21,750		18,888
Children’s benefits		24,553		26,226		27,370		24,344		23,882
COVID-19 income support for workers		-3,544		15,582		55,832		4,739		–
Canada emergency wage subsidy		-257		22,291		80,166		–		–
Proceeds from the pollution pricing framework returned		6,996		3,814		4,566		2,636		664
Other transfer payments		99,199		88,478		97,961		54,405		51,753
Total transfer payments		308,959		344,474		489,433		243,276		224,478
Other expenses, excluding net actuarial losses		129,596		124,445		119,089		95,191		90,077
Total program expenses, excluding net actuarial losses		438,555		468,919		608,522		338,467		314,555
Public debt charges		34,955		24,487		20,358		24,447		23,266
Total expenses, excluding net actuarial losses		473,510		493,406		628,880		362,914		337,821
Annual operating surplus or deficit (–) before net actuarial losses		-25,695		-80,129		-312,434		-28,783		-5,603
Net actuarial losses		-9,627		-10,186		-15,295		-10,609		-8,361
Annual operating surplus or deficit (–)		-35,322		-90,315		-327,729		-39,392		-13,964
Accumulated operating deficit at beginning of year – as previously (adjusted)		-1,148,296		-1,048,746		-721,360		-685,450		-671,254
Accounting change and restatement
Asset retirement obligations		–		-5,379		–		–		–
Other comprehensive income or loss (–)		–		4,465		343		3,482		-232
Accumulated operating deficit at end of year		-1,183,618		-1,139,975		-1,048,746		-721,360		-685,450

Source: Public Accounts of Canada 2023 (Volume 1, Table 1.1).

(1) Prior year comparatives have been restated to reflect the adoption of Public Sector Accounting Standard PS 3280 Asset Retirement Obligations. Years prior to 2022 figures have not been restated.

(2) The 2023 accumulated operating deficit at beginning of year has been adjusted to account for changes resulting from the introduction of the financial instrument suite of standards.

(3) The figures up to 2022 have been reclassified in the fiscal year 2023 to reflect the change in the financial instrument suite of standards. Other than the 2022 restated figures, the restatements in the prior years have not been audited.

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 $4.5 billion in fiscal 2022-23.

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, 2023, the Government’s liability in respect of pensions net of public sector pension assets, totaled $153.4 billion. This net liability is mainly comprised of the accrued benefit obligation determined as of March 31, 2023, which amounted to $366.6 billion, less pension assets of $241.8 billion and plus unrecognized net actuarial gains of $27.0 billion. In fiscal 2022-23, the net pension liability decreased by $5.0 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 $573.9 billion at March 31, 2023 ($548.1 billion at March 31, 2022). Of these net assets, $184.1 billion was transferred to the Canada Pension Plan Investment Board and $0.3 billion was a direct liability of the Government. The balance of $389.5 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 $7.0 billion at March 31, 2023.

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 $109.7 billion in fiscal 2022-23, up $5.0 billion from fiscal 2021-22.

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 requirement of $18.4 billion in fiscal 2022-23, compared to a financial source of $33.5 billion in fiscal 2021-22.

Foreign Exchange Accounts

Foreign exchange accounts assets and liabilities 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 assets increased by $23.1 billion in fiscal 2022-23, totalling $169.4 billion at March 31, 2023, due mainly to an increase in net advances to the EFA and foreign exchange rate movements. Foreign exchange accounts liabilities, related to Canada’s commitments to the International Monetary Fund, increased by $1.9 billion in fiscal 2022-23, totalling $44.2 billion at March 31, 2023, primarily due to foreign exchange rate movements.

Derivatives

Derivatives represent financial contracts whose value is derived by reference to a rate, index, or underlying asset. The Government uses derivatives for hedging purposes to manage various types of financial risk. With the adoption of new accounting standards on financial instruments in fiscal 2022-23, derivatives are presented separately from other types of assets and liabilities and are recorded at fair value. Derivatives estimated to result in a net inflow of resources if terminated on March 31 are presented as assets, while derivatives estimated to require a net outflow of resources if terminated on March 31 are presented as liabilities. Derivative assets decreased $1.7 billion in fiscal 2022-23 to $3.3 billion at March 31, 2023, while derivative liabilities increased $2.2 billion in fiscal 2022-23 to $4.7 billion at March 31, 2023. These movements largely reflected the transition to a fair value measurement basis and changes in foreign exchange rates during the fiscal year.

19

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

FOREIGN EXCHANGE TRANSACTIONS

(millions of dollars)

	Year ended March 31(2)
	2023(1)		2022		2021		2020		2019
Loans, Investments and Advances
Enterprise Crown corporations and other government business enterprises
Loans and advances
Canada Mortgage and Housing Corporation		–2,510		–2,024		–907		–6,282		592
Business Development Bank of Canada		–6,793		–1,848		5,179		–1,170		–1,765
Farm Credit Canada		–2,821		–3,106		–1,699		–2,794		–1,850
Canadian Development Investment Corporation		138		–6,290		–3,725		–1,465		–4,790
Other		–26		154		–12		17		9
		–12,012		–13,114		–1,164		–11,694		–7,804
Investments
Share of annual loss or profit (–)		–3,878		–11,535		11,638		–3,588		–5,920
Other comprehensive loss or income (–)		–1,628		–4,465		–343		–3,482		232
Dividends		1,695		6,050		13,592		3,618		6,427
Capital		8,717		–435		–18,470		–1,816		–125
Transition adjustment and other		–27		2		–24		190		–
		4,879		–10,383		6,393		–5,078		614
Total		–7,133		–23,497		5,229		–16,772		–7,190
Less:
Loans expected to be repaid from future appropriations		201		225		115		167		204
Total		–7,334		–23,722		5,114		–16,939		–7,394
Other loans, investments and advances
Portfolio investments		–166		390		–165		–385		–616
Capital subscriptions - International organizations		–		–		–		–		257
Loans and advances
Canada Emergency Business Account		3,864		344		-28,789		–		–
Canada Student Loans and Canada Apprentice Loans		–510		–115		–1,120		–637		–1,156
Unconditionally repayable contributions		–948		–1,098		–1,619		–389		–147
Other loans and advances		–984		–3,550		–197		–240		1,515
Total loans and advances		1,422		–4,419		–31,725		–1,266		212
Total		1,256		–4,029		–31,890		–1,651		–147
Total loans, investments & advances		–6,078		–27,751		–26,776		–18,590		–7,541
Pensions and other future benefits
Public sector pensions		–5,034		–3,979		–1,557		–2,378		–2,414
Other employee and veteran future benefits		18,244		15,519		17,808		12,516		9,069
Total pensions and other future benefits		13,210		11,540		16,251		10,138		6,655
Other Liabilities
Canada Pension Plan Account		204		–38		–139		115		131
Other liabilities		–573		1,034		800		31		104
Total other liabilities		–369		996		661		146		235
Non-Financial Assets
Tangible capital assets		–4,552		–5,202		–3,901		–4,740		–5,107
Inventories		–379		738		–3,593		430		78
Prepaid expenses		–44		774		–2,054		–547		–12
Total non-financial assets		–4,975		–3,690		–9,548		–4,857		–5,041
Other Transactions
Taxes receivable		–13,394		–25,565		–20,925		6,463		–4,526
Other accounts receivable		–1,890		6,430		–2,697		–3,530		2,535
Provincial, Territorial and Indigenous Tax Agreements Account		–20,942		16,140		7,691		–4,710		–351
Amounts payable related to tax		6,285		6,947		11,330		–5,014		3,324
Other liabilities		11,568		35,845		24,419		13,863		8,888
Total other transactions		–18,373		39,797		19,818		7,072		9,870
Foreign exchange accounts
Assets
International reserves held in the Exchange Fund Account		–21,767		–29,510		14,427		–4,817		–1,770
International Monetary Fund — Subscriptions		–992		581		1,546		–729		198
International Monetary Fund — Loans		65		65		171		178		229
International Monetary Fund — Resilience and Sustainability Trust		–414		–		–		–		–
		–23,108		–28,864		16,144		–5,368		–1,343
Liabilities
International Monetary Fund
Special drawing rights allocations		–1,489		–17,945		840		–396		107
Notes payable		–411		490		3,023		243		1,300
		–1,900		–17,455		3,863		–153		1,407
Total foreign exchange accounts		–21,208		–11,409		12,281		–5,215		–2,750

Source: Public Accounts of Canada 2023 (Volume 1, Tables 1.5, 1.6).

(1) Prior year comparatives have been restated to reflect the adoption of Public Sector Accounting Standard PS 3280 Asset Retirement Obligations. Years prior to 2022 figures have not been restated.

(2) The figures up to 2022 have been reclassified in the fiscal year 2023 to reflect the change in the financial instrument suite of standards and change in presentation of the foreign exchange accounts. Other than the 2022 restated figures, the restatements in the prior years have not been audited.

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, 2023		At March 31,
			2023		2022		2021		2020		2019
	(millions of dollars)
Canadian Currency:
Marketable bonds	$	1,022,984	$	1,037,890	$	1,030,634	$	875,023	$	596,540	$	569,169
Treasury bills		257,400		201,800		187,400		218,800		151,867		134,300
Canada Savings Bonds		0		0		0		163		275		749
Canada Premium Bonds		0		0		0		136		222		487
Total Canadian currency		1,280,384		1,239,690		1,218,034		1,094,122		749,904		704,706
Foreign Currency:(1)
Canada Bills		2,550		2,473		2,575		4,054		2,160		2,699
Canada Notes		–		–		–		63		704		1,737
Euro Medium-Term Notes		–		–		–		–		409		559
Other marketable bonds(2)		19,013		13,516		11,877		11,310		12,668		11,020
Total foreign currency		21,563		15,989		14,452		15,427		15,941		16,015
Total Unmatured Market Debt	$	1,301,947	$	1,255,679	$	1,232,486	$	1,109,549	$	764,845	$	720,721

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, 2023		At March 31,
			2023		2022		2021		2020		2019
United States Dollar		1.3581		1.3516		1.2502		1.2567		1.4076		1.3362
Euro		1.4359		1.4657		1.3831		1.4736		1.5522		1.4989

(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, 2023		At March 31,
			2023		2022		2021		2020		2019
	(millions)
United States Dollars		14,000		10,000		9,500		9,000		9,000		6,004
Euro		–		–		–		–		2,000		2,000

21

Total Canadian currency unmatured market debt was $1,280 billion on September 30, 2023, an increase of $40,694 million from March 31, 2023. The increase resulted from an increase in outstanding treasury bills.

Marketable bonds are interest-bearing obligations generally available to all investors. In the period April 1, 2023 to September 30, 2023, the Government issued an aggregate of $90,500 million of marketable bonds in Canadian currency and redeemed $107,259 million ($1,550 million in bonds were repurchased and cancelled during the period), for a net decrease of $16,759 million. This was offset by an increase of $1,853 million for the inflation compensation on Real Return Bonds, which resulted in an overall net decrease of $14,906 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, 2023 to September 30, 2023, the amount of treasury bills outstanding increased by $55,600 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. As of December 1, 2021, all Canada Savings Bonds and Canada Premium Bonds have matured. The outstanding balance of matured but unredeemed bonds is $468 million as of September 30, 2023.

Total foreign currency unmatured market debt was $21,563 million on September 30, 2023, an increase of $5,574 million from March 31, 2023. 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, 2023, $71,620 million of Canadian dollars have been swapped for USD $55,518 million, $17,583 million of Canadian dollars have been swapped for EUR 11,972 million, $12,355 million of Canadian dollars have been swapped for GBP 6,924 million and $9,925 million Canadian dollars have been swapped for JPY 879,950 million. As of September 30, 2023, on a net basis $368 million Canadian dollars have been swapped for USD 277 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
	2023		2022		2021		2020		2019
Marketable bonds(1)		1.90		1.49		1.63		2.19		2.28
Treasury bills		4.28		0.60		0.21		1.39		1.79
Canada bills		4.64		0.33		0.07		1.56		2.44
Total market debt		2.28		1.37		1.35		2.03		2.18

Source: Public Accounts of Canada 2023 (Volume 1, Table 6.5).

(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, 2023.

SCHEDULE OF MARKETABLE BOND AND NOTE REPAYMENTS

(millions of dollars)

	Total Principal and Interest(1)
For years ended December 31,	Canadian Currency Debt(2)		Foreign Currency Debt(3)
2023		23,509		188
2024		176,615		442
2025		181,432		9,168
2026		93,224		4,975
2027-2031		334,338		5,738
2032-2036		113,303		—
2037-2041		43,539		—
2042-2046		30,916		—
2047-2051		77,821		—
2052-2056		43,203		—
2057-2061		1,203		—
2062-2066		9,472		—

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 1.3581, EUR 1.00 = CAD 1.4359; the closing rates on September 29, 2023.

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 $317,834 million as at March 31, 2023. 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, 2023.

FINANCIAL INFORMATION REGARDING CROWN CORPORATIONS AND OTHER ENTITIES

(millions of dollars)

	Consolidated Crown corporations		Other entities		Enterprise Crown corporations		Total
Assets
Total assets		21,716		834		895,705		918,255
Liabilities
Liabilities to other than Government
Borrowings		229		—		328,099		328,328
Other		14,272		182		374,370		388,824
		14,502		182		702,469		717,153
Net assets		7,214		652		193,236		201,102
Financial interest of the Government
Obligations to the Government		3,302		2		143,384		146,688
Net equity of the Government		3,912		650		49,851		54,414
Total financial interest		7,214		652		193,236		201,102
Contingent liabilities		(1)		(1)		8,134		8,134

Source: Public Accounts of Canada 2023 (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: Pending and threatened litigation and other claims - provision accrued: $20.8 million; disclosure only: $1.5 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, 2023 are summarized as follows.

CONTINGENT LIABILITIES (WITH RESPECT TO NET EXPOSURE UNDER GUARANTEES)

(millions of dollars)

Guarantees provided by the Government
Guaranteed borrowings of enterprise Crown corporations and other government business enterprises	$	317,834
Loan guarantees		23,343
Insurance programs managed by the Government		261,211
Other explicit guarantees		—
Total gross guarantees		602,388
Less: allowance for guarantees		473
Net exposure under guarantees	$	601,915

Source: Public Accounts of Canada 2023 (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, 2023.

AGENT ENTERPRISE CROWN CORPORATION INSURANCE PROGRAMS

(millions of dollars)

	Insurance in force		Net claims(1)		5-year average of net claims paid		Closing balance of Fund
Canada Deposit Insurance Corporation		1,081,987		—		—		6,031
Canada Mortgage and Housing Corporation:
Mortgage Insurance Fund		400,000		71		155		11,240
Mortgage-Backed Securities Guarantee Fund		481,000		—		—		1,502
Export Development Canada:
Export insurance contracts entered into on its own behalf		33,572		118		149		—
Farm Credit Canada		5,041		8		7		15

Source: Public Accounts of Canada 2023 (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 assets and securities, which include: gold, silver, nickel and other coins; gold and silver bullion; foreign currencies; SDRs issued by the IMF; and 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 open accounts with other central banks, or in the Bank for International Settlements (“BIS”). The Bank may accept deposits from: the Government or any of its corporations or agencies; any province; 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 infrastructures. 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. Since May 16, 2022, Government of Canada deposits have ceased accruing interest. 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 payment 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 system is one where the Bank supplies limited settlement balances and actively manages its balance sheet to maintain a targeted level of settlement balances on a daily basis through the  auctioning  of  Government  of  Canada  cash  balances.  The  Bank  implemented this approach between 1999 and March 23, 2020. Alternatively, the Bank can operate in the floor system where the Bank does not target a specific level of settlement balances but ensures that the level is more than enough to meet demand from financial institutions. In the floor system, the Bank sets the deposit rate equal to the target rate. This system was implemented in March 2020 to reinforce the overnight target rate, and on April 13, 2022, the Bank announced that the floor system would remain in place. The following paragraph describes the floor system more fully.

The floor system has a simpler operational framework and can function effectively in both normal and exceptional circumstances (e.g., market-wide demand for liquidity). 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. When the Bank provides an ample amount of settlement balances, 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 concerning the monetary policy to be followed. 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 the Bank’s oversight. 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 to remedy the situation.

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 and act as central counterparty to the participants. More generally, the Bank has the power to participate in any eligible clearing and settlement system – participating in its loss sharing mechanism, act as custodian and/or settlement agent for a clearing house and accept and pay interest on deposits from the systems and their participants. 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.

Under the Retail Payment Activities Act (“RPAA”), the Bank will also be responsible for registering and supervising payment service providers (“PSPs”). In November 2023, the Department of Finance published final regulations to support the RPAA. The registration portion of the mandate comes into force on November 1, 2024, with other parts coming into force in 2025. This framework will give the Bank responsibility to supervise PSPs to determine if they comply with the RPAA, promote compliance, monitor, and evaluate trends and issues in the payment system.

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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 bank subsidiaries. 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 November 30, 2023, the banking system consisted of 35 domestic banks, 15 foreign bank subsidiaries, 27 full-service foreign bank branches, and 4 foreign bank lending branches. Foreign bank lending branches are prohibited from accepting deposits or otherwise borrowing money except from financial institutions. Generally, foreign bank full-service branches may not in Canada accept deposits of less than $150,000. Deposits at foreign bank branches are not insured by the Canada Deposit Insurance Corporation (“CDIC”). Moreover, foreign branches are not subject to the capital requirements of domestic banks. Foreign bank branches are required to deposit and maintain a minimum amount of unencumbered assets with a an approved financial institution in Canada.

To strengthen Canada’s bank resolution toolkit, the Government implemented a bail-in regime for Canada’s systemically important banks. The objectives of the bail-in regime are to: preserve financial stability by empowering the Governor in Council and CDIC to quickly restore a failed systemically important bank to viability and allow it to remain open and operating, even where the bank has experienced severe losses; reduce government and taxpayer exposure in the unlikely event of a failure of a systemically important bank; and reduce the likelihood of a failure of a systemically important bank and increase market discipline by reinforcing that bank shareholders and creditors are responsible for the bank’s risks – not taxpayers. As part of the implementation of the statutory bail-in regime, the Superintendent of Financial Institutions was given responsibility for the designation of domestic systemically important banks (“D-SIBs”). The Superintendent has legally designated Canada’s six largest banks (Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada and Toronto-Dominion Bank) as D-SIBs. The bail-in power allows the Canada Deposit Insurance Corporation (Canada’s bank resolution authority), if directed to do so by the Governor in Council, to convert some of a failing systemically important bank’s debt into common shares in order to recapitalize the bank.

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 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. Budget 2022 announced the Government’s intention to launch a financial sector legislative review. As part of this review, the Government launched public consultations on the federally regulated financial institution statutes, on October 5, 2023. The consultation is entitled “Consultation on Upholding the Integrity of Canada’s Financial Sector” and will remain open until December 4, 2023.

27

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 (Guideline B-20), affecting all mortgages underwritten by Federally Regulated Financial Institutions (“FRFIs”), which include a mortgage rate stress test for uninsured mortgage borrowers. 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 International Financial Reporting Standards (“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, OSFI 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. In June 2022, OSFI issued a supplementary advisory to Guideline B-20 that clarified treatment of certain innovative real estate secured lending products. For combined loan plans, OSFI expects that any and all lending above the 65% Loan-to-Value (“LTV”) limit, which cannot exceed 80% LTV, will be both amortizing and non-readvanceable. In September 2023, OSFI issued a regulatory notice on commercial real estate risk management in response to heightened risks.

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 2021, the Government and the Bank renewed the flexible inflation-targeting framework for 2022 to 2026. The Government of Canada and the Bank of Canada believe that the best contribution of monetary policy to the well-being of Canadians is to continue to focus on price stability. The Government and the Bank also agree that monetary policy should continue to support maximum sustainable employment, recognizing that maximum sustainable employment is not directly measurable and is determined largely by non-monetary factors that can change through time. Further, the Government and the Bank agree that because well-anchored inflation expectations are critical to achieving both price stability and maximum sustainable employment, the primary objective of monetary policy is to maintain low, stable inflation over time. The next review of the inflation-control framework will be in 2026.

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. 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. 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 2022, as the economy moved into excess demand and inflation increased, the Bank has departed from the effective lower bound and gradually increased its target for the overnight rate, reaching 5.00% in July 2023. The Bank continued to pursue quantitative tightening as a complement to the increases in the policy interest rate.

In the October 2023 Monetary Policy Report, the Bank expects economic growth to slow from 1.2% in 2023 to 0.9% in 2024 and then pick up to 2.5% in 2025. Inflation is projected to slow in 2024 and approach the 2% target in 2025. Higher interest rates, lower food costs, and decreased demand for goods excluding energy and food are expected to bring CPI inflation down to 3.3% by the end of 2023.

The Bank is concerned that inflationary risks have increased and is prepared to raise the policy rate further if needed to return inflation to the 2% target. The Bank Remains resolute in its commitment to restoring price stability for Canadians.

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Selected Interest Rates

29

Membership in International Economic Organizations

As of September 30, 2023, Canada’s paid-up quota in the IMF was SDR  11,024 million.  On September 29, 2023,  one  SDR  equaled $1.78. 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, 2023, Canada’s NAB commitment was SDR 7,747 million, with SDR 22 million 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. In May 2023, the IMF Executive Board agreed to extend the 2020 BBAs to end-2024, which is subject to the consent of individual creditor countries. Canada provided its consent to the IMF in June 2023. As of September 30, 2023, Canada’s bilateral credit line to the IMF was SDR 3,532 million.

Canada is also a member of the Organization for Economic Cooperation and Development, a party to the WTO 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, 2023
	Subscription
	Total		Paid-in(1)
	(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		7,771		389
Inter-American Development Bank		7,026		242
Caribbean Development Bank		157		34
African Development Bank		8,087		369
European Bank for Reconstruction and Development		1,080		225
Asian Infrastructure Investment Bank(2)		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 29, 2023.

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

(2) On June 14, 2023, the Government of Canada halted all government-led activity at the Asian Infrastructure Investment Bank (AIIB) until further notice.

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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, 2023.

	2023 (millions of dollars)
Claims
Pending and threatened litigation and other claims		42,702
Specific claims		23,559
Comprehensive land claims		9,265
Provision for guarantees provided by the Government		473
Total provision recorded		75,999

Source: Public Accounts of Canada 2023 (Volume 1, Section 2).

Claims

Where the Government has assessed a claim as likely and measurable, an estimated provision 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.

The Government has claims for which the outcome is likely to result in a liability, but the Government cannot reasonably measure the amount as at March 31, 2023, the financial statement date. These claims are continually reassessed as they progress through the legal process. Until more information becomes available which would allow for a reasonable estimate of the liability or the extent, no amount is accrued or disclosed.

As of March 31, 2023, claims for which the outcome was not determinable and for which an amount had not been accrued were estimated at $3,375 million ($4,186 million in fiscal year 2022). The resolution of these claims may result in a liability, if any, that differs from the estimated amount.

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, 2023, there were 698 (677 in 2022) 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, 2023, there were 83 (84 in 2022) 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, 2023, an amount of $6,753 million ($5,634 million in 2022) was being appealed to the courts, for which the likelihood of an adverse outcome was not determinable or for which an amount could not be reasonably estimated. 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.

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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, 2023
2023 — Nov. 1	0.50	2021: Aug. 9, Aug. 23, Sep. 17, Oct. 8		M763		16,500,000,000
2024 — Feb. 1	0.75	2021: Oct. 22, Nov. 19, Dec. 15; 2022: Jan. 17, Feb. 4		M920		17,450,000,000
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		36,980,000,000
2024 — May 1	1.50	2022: Feb. 22, Mar. 14, Apr. 19, May 11		N423		15,600,000,000
2024 — Jun. 1	2.50	2013: Jul. 2, Aug. 19, Oct. 7; 2014: Feb. 10, Apr. 28		B451		13,700,000,000
2024 — Aug. 1	2.75	2022: May 24, Jun. 8, Jul. 5, Jul. 18		N910		16,200,000,000
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, Oct. 27, Nov. 24		M508		14,000,000,000
2024 — Nov. 1	3.00	2022: Aug. 15, Aug. 31, Sep. 19, Oct. 17		P402		16,000,000,000
2025 — Feb. 1	3.75	2022: Nov. 2, Dec. 2, Dec. 19; 2023: Jan. 16		P659		15,000,000,000
2025 — Mar. 1	1.25	2019: Oct. 11, Nov 8; 2020: Feb. 3, Feb. 21, Mar. 25		K528		17,300,000,000
2025 — Apr. 1	1.50	2022: Jan. 24, Mar. 21, Apr. 22, Jun. 24		N340		12,000,000,000
2025 — May 1	3.75	2023: Feb. 10, Mar. 3, Mar. 20, Apr. 17		Q319		15,250,000,000
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 — Aug. 1	3.50	2023: May 12, Jun. 2, Jun. 19, Jul. 21		Q640		19,000,000,000
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
2025 — Oct. 1	3.00	2022: Jul. 25, Aug. 22, Oct. 24, Nov. 21		P246		10,000,000,000
2025 — Nov. 1	4.50	2023: Aug. 4, Aug. 21, Sep. 15		Q806		14,250,000,000
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 — Apr. 1	3.00	2023: Jan. 20, Feb. 17, Apr. 26, May 19		P816		10,000,000,000
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		9,449,002,500	(2)
2027 — Mar. 1	1.25	2021: Oct. 15, Nov. 15; 2022: Jan. 14, Feb. 24		M847		17,000,000,000
2027 — Jun. 1	1.00	2016: Aug. 3, 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
2027 — Aug. 24	3.245	2022: Dec. 2		P733		500,000,000
2027 — Sep. 1	2.75	2022: May 13, Jun. 10, Jul. 22, Sep. 28		N837		16,000,000,000
2028 — Mar. 1	3.50	2022: Oct. 21, Nov. 14; 2023: Jan. 13, Mar. 22		P576		15,000,000,000
2028 — Jun. 1	2.00	2017: Aug. 1, Oct. 30; 2018: Feb. 23, Apr. 27, Jun. 22		H235		13,500,000,000
2028 — Sep. 1	3.25	2023: Apr. 21, Jun. 5, Jul. 7, Aug. 28		Q491		20,000,000,000
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
2029 — Dec. 1	2.25	2022: Mar. 29		N670		5,000,000,000
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	1.50	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	1.50	2021: Oct. 25, Nov. 3, Dec. 1, Dec. 22; 2022: Jan. 10, Feb. 7, Mar. 2		N266		32,000,000,000
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		10,032,608,000	(2)
2032 — Jun. 1	2.00	2022: Mar. 16, Apr. 25, May 4, May 27, Jun. 27, Jul. 11		N597		24,000,000,000
2032 — Dec. 1	2.50	2022: Aug. 8, Aug. 29, Sep. 26, Oct.7, Nov. 7, Dec. 28		P329		21,000,000,000
2033 — Jun. 1	2.75	2023: Feb. 6, Feb. 27, Mar. 17, Apr. 10, May 26		Q236		19,000,000,000
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
2033 — Dec. 1	3.25	2023: Jun. 26, Aug. 8, Sep. 1, Sep. 29		Q723		13,000,000,000
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		8,978,521,500	(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		9,309,253,000	(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		10,528,903,000	(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		9,872,170,000	(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, Dec. 4; 2021: Feb. 12		G997		9,243,348,000	(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, Nov. 1, Nov. 26, Dec. 20; 2022: Jan. 31, Feb. 28, Apr. 4, May 2, Jul. 4, Aug. 2, Oct. 10, Oct. 31, Nov. 25		M680		32,000,000,000
2054 — Dec. 1	0.25	2021: Jun. 4, Sep. 3, Dec. 3; 2022: Mar. 11, May 30, Sep. 6		M433		2,376,654,000	(2)
2055 — Dec. 1	2.75	2023: Jan. 30, Apr. 3, Apr. 28, Jul. 4, Jul. 31, Sep. 25		P998		8,000,000,000
2064 — Dec. 1	2.75	2014: May 1, Jul. 15, Nov. 25; 2017: Sep. 1, Nov. 20; 2021: May 20, Sep. 27, Nov. 8; 2022: Mar. 25		C939		8,750,000,000
Total Unmatured Marketable Bonds Payable in Canadian Dollars:						1,022,983,828,000

32

Unmatured Market Debt (Continued)

TREASURY BILLS

Maturity date(s)	Yield %	Issue dates	Outstanding at      September 30, 2023
Various maturity dates from Oct. 12, 2023 to Sept. 12, 2024	4.314 to 5.352	Various issue dates from Oct. 13, 2022 to Sept. 28, 2023	$	257,400,000,000
Total Unmatured Market Debt Payable in Canadian Dollars			$	1,232,215,043,000

(B) PAYABLE IN FOREIGN CURRENCY ^(1) (3)

CANADA BILLS

Maturity date(s)	Yield(s) %	Original issue amount	Issue date(s)	Outstanding at September 30, 2023
Various maturity dates from Oct. 3, 2023 to May 24, 2024	5.00 to 5.33	USD 1,877,362,000	Various issue dates from May 11, 2023 to Sept. 29, 2023	$	2,549,645,332

OTHER MARKETABLE BONDS PAYABLE IN FOREIGN CURRENCIES

Maturity date	Coupon %	Original issue amount	Issue date	Outstanding at September 30, 2023
2025 — Jan. 22	1.625	USD  3,000,000,000	2020 — Jan. 22	$	4,074,300,000
2026 — May 19	0.75	USD  3,500,000,000	2021 — May 19		4,753,350,000
2025 — Apr. 28	2.875	USD  3,500,000,000	2022 — April 28		4,753,350,000
2028 — Apr. 26	3.750	USD  4,000,000,000	2023 — April 26		4,753,350,000
Total				$	19,013,400,000
Total Unmatured Market Debt Payable in Foreign Currency				$	21,563,045,332
Total Unmatured Market Debt				$	1,301,946,873,332

33

Unmatured Market Debt (Continued)

(C) CROSS CURRENCY SWAPS

For the cross currency swaps listed below (outstanding as of September 30, 2023), 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
2023 — Oct. 20	2.74130	$    207,880,000	SOFR	USD  200,000,000
Oct. 20	2.61040	103,000,000	SOFR	100,000,000
Oct. 20	2.61040	51,500,000	SOFR	50,000,000
Oct. 20	2.61040	25,750,000	SOFR	25,000,000
Oct. 20	2.61040	25,750,000	SOFR	25,000,000
Dec. 13	1.3323	197,550,000	Fixed	150,000,000
2024 — Jan. 20	2.53160	78,345,000	SOFR	75,000,000
Jan. 20	2.58780	105,250,000	SOFR	100,000,000
Jan. 20	2.63700	104,850,000	SOFR	100,000,000
Jan. 20	2.64000	104,900,000	SOFR	100,000,000
Feb. 20	2.44240	78,120,000	SOFR	70,000,000
Feb. 20	2.57680	117,390,000	SOFR	107,500,000
Feb. 20	2.61220	109,600,000	SOFR	100,000,000
Mar. 20	2.36450	111,100,000	SOFR	100,000,000
Mar. 20	2.40440	111,350,000	SOFR	100,000,000
Apr. 20	2.49320	84,000,000	SOFR	75,000,000
May 20	2.38680	65,899,650	SOFR	60,100,000
May 20	2.44830	137,212,500	SOFR	125,000,000
May 20	2.47500	50,458,500	SOFR	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	SOFR	126,550,000
Aug. 20	2.11440	107,360,000	Fixed	100,000,000
Aug. 20	2.14130	107,370,000	SOFR	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	SOFR	100,000,000
Sep. 20	2.08840	109,380,000	SOFR	100,000,000
Sep. 20	2.10840	109,150,000	SOFR	100,000,000
Oct. 20	2.08440	54,375,000	SOFR	50,000,000
Nov. 20	2.02720	111,800,000	SOFR	100,000,000
Nov. 20	1.95800	112,300,000	SOFR	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	SOFR	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	SOFR	100,000,000
Jan. 20	2.04600	114,150,000	Fixed	100,000,000
Jan. 22	1.4957	121,050,000	SOFR	100,000,000
Jan. 22	1.6175	59,780,000	Fixed	50,000,000
Jan. 30	1.3553	124,490,000	SOFR	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

34

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

35

Unmatured Market Debt (Continued)

	Canadian dollar liability		U.S. dollar liability
Maturity date	Coupon %	Notional amount	Basis	Notional amount
Jul. 9	2.1297	$      65,660,000	Fixed	USD    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
Jul. 24	2.1723	65,645,000	Fixed	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. 10	1.4432	123,830,000	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. 3	1.6085	123,670,000	Fixed	100,000,000
Nov. 19	2.37805	132,310,000	Fixed	100,000,000
Nov. 24	1.608	126,710,000	Fixed	100,000,000
Nov. 26	1.668	152,472,000	Fixed	120,000,000
Nov. 29	1.6896	253,860,000	Fixed	200,000,000
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. 15	1.36	204,432,000	Fixed	160,000,000
Dec. 17	1.3394	257,540,000	Fixed	200,000,000
Dec. 18	2.116	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
Mar. 25	2.31	125,600,000	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
Jun. 6	2.9538	252,460,000	Fixed	200,000,000
Jul. 17	1.59960	130,250,000	Fixed	100,000,000
Jul. 20	3.117	323,750,000	Fixed	250,000,000
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

36

Unmatured Market Debt (Continued)

	Canadian dollar liability		U.S. dollar liability
Maturity date	Coupon %	Notional amount	Basis	Notional amount
2030 — Mar. 28	2.3565	$    314,350,000	Fixed	USD    250,000,000
May 11	3.0564	258,500,000	Fixed	200,000,000
Jun. 22	3.3531	325,875,000	Fixed	250,000,000
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	0.5965	132,660,000	Fixed	100,000,000
Oct. 16	0.5815	131,250,000	Fixed	100,000,000
Oct. 18	3.5106	138,440,000	Fixed	100,000,000
Oct. 18	3.537	277,460,000	Fixed	200,000,000
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 — Mar. 25	2.3489	314,900,000	Fixed	250,000,000
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
Oct. 4	3.12	341,875,000	Fixed	250,000,000
Oct. 5	1.4758	126,700,000	SOFR	100,000,000
Oct. 6	3.0656	341,325,000	Fixed	250,000,000
Oct. 7	3.1678	340,350,000	Fixed	250,000,000
Nov. 4	1.719	124,000,000	Fixed	100,000,000
Nov. 5	1.7159	155,212,500	SOFR	125,000,000
Nov. 12	1.5906	149,412,000	SOFR	120,000,000
Nov. 17	1.667	156,575,000	SOFR	125,000,000
Nov. 19	1.7309	144,670,000	SOFR	115,000,000
Dec. 2	1.5398	165,971,000	SOFR	130,000,000
Dec. 3	1.578	223,037,500	SOFR	175,000,000
Dec. 3	1.5906	159,337,500	SOFR	125,000,000
Dec. 6	1.4832	224,420,000	SOFR	175,000,000
Dec. 7	1.528	254,940,000	SOFR	200,000,000
Dec. 13	1.5121	253,740,000	Fixed	200,000,000
Dec. 13	1.5258	158,562,500	SOFR	125,000,000
Dec. 14	1.5218	190,770,000	SOFR	150,000,000
Dec. 16	1.4338	256,660,000	Fixed	200,000,000
Dec. 20	1.3889	255,640,000	Fixed	200,000,000
Dec. 20	1.3677	319,900,000	Fixed	250,000,000
Dec. 21	1.3289	384,990,000	Fixed	300,000,000
Dec. 22	1.3078	271,824,000	Fixed	210,000,000
2032 — Jan. 6	1.6113	126,910,000	Fixed	100,000,000
Jan. 10	1.6739	261,641,500	SOFR	205,000,000
Jan. 11	1.7143	266,385,000	SOFR	210,000,000
Jan. 18	1.7179	187,350,000	SOFR	150,000,000
Jan. 20	1.8788	250,120,000	Fixed	200,000,000
Jan. 24	1.8458	124,820,000	Fixed	100,000,000
Jan. 31	1.7826	253,720,000	Fixed	200,000,000
Jan. 31	1.7811	254,000,000	Fixed	200,000,000
Feb. 1	1.7526	255,840,000	Fixed	200,000,000
Feb. 2	1.7696	191,010,000	SOFR	150,000,000
Feb. 7	1.8043	190,290,000	SOFR	150,000,000
Feb. 11	1.8539	190,215,000	Fixed	150,000,000
Feb. 15	1.9473	190,185,000	SOFR	150,000,000
Feb. 17	1.9494	127,210,000	SOFR	100,000,000

37

Unmatured Market Debt (Continued)

	Canadian dollar liability		U.S. dollar liability
Maturity date	Coupon %	Notional amount	Basis	Notional amount
Feb. 18	1.9783	$    126,990,000	SOFR	USD  100,000,000
Feb. 28	1.9304	257,200,000	SOFR	200,000,000
Mar. 1	1.9341	350,625,000	SOFR	275,000,000
Mar. 7	1.8011	252,800,000	Fixed	200,000,000
Mar. 9	1.709	254,840,000	Fixed	200,000,000
Mar. 9	1.6941	255,480,000	Fixed	200,000,000
Mar. 10	1.7894	257,360,000	SOFR	200,000,000
Mar. 10	1.8237	193,080,000	SOFR	150,000,000
Mar. 14	1.9257	159,937,500	SOFR	125,000,000
Mar. 15	1.9721	254,480,000	Fixed	200,000,000
Mar. 16	2.097	127,450,000	SOFR	100,000,000
Mar. 21	2.1836	253,420,000	SOFR	200,000,000
Mar. 21	2.1696	221,550,000	SOFR	175,000,000
Mar. 28	2.3912	250,780,000	Fixed	200,000,000
Mar. 30	2.4793	188,625,000	Fixed	150,000,000
Apr. 6	2.4131	312,325,000	Fixed	250,000,000
Apr. 6	2.4559	124,850,000	Fixed	100,000,000
Apr. 7	2.4816	248,880,000	Fixed	200,000,000
Apr. 7	2.5076	187,050,000	Fixed	150,000,000
Apr. 8	2.5719	249,760,000	Fixed	200,000,000
Apr. 8	2.5546	125,120,000	Fixed	100,000,000
Apr. 8	2.5484	312,600,000	Fixed	250,000,000
Apr. 11	2.5845	188,805,000	Fixed	150,000,000
Apr. 12	2.6206	251,680,000	SOFR	200,000,000
Jun. 7	3.005	188,520,000	SOFR	150,000,000
Jul. 28	2.7616	321,800,000	SOFR	250,000,000
Jul. 29	2.7853	193,185,000	SOFR	150,000,000
Jul. 29	2.76	193,425,000	SOFR	150,000,000
Aug. 2	2.636	257,140,000	SOFR	200,000,000
Aug. 3	2.6568	257,060,000	SOFR	200,000,000
Aug. 4	2.55	128,730,000	Fixed	100,000,000
Aug. 5	2.745	128,500,000	SOFR	100,000,000
Aug. 5	2.7449	192,675,000	SOFR	150,000,000
Aug. 8	2.6884	128,420,000	Fixed	100,000,000
Aug. 8	2.6764	128,640,000	Fixed	100,000,000
Aug. 8	2.685	128,580,000	Fixed	100,000,000
Aug. 26	3.0725	129,810,000	SOFR	100,000,000
Aug. 26	3.1025	129,800,000	SOFR	100,000,000
Aug. 26	3.0897	259,520,000	SOFR	200,000,000
Aug. 29	3.0957	258,860,000	SOFR	200,000,000
Aug. 29	3.0844	129,380,000	SOFR	100,000,000
Aug. 29	3.1019	258,340,000	SOFR	200,000,000
Aug. 29	3.0705	129,440,000	SOFR	100,000,000
Aug. 31	3.0794	260,400,000	SOFR	200,000,000
Aug. 31	3.102	130,000,000	SOFR	100,000,000
Sep. 1	3.087	262,000,000	SOFR	200,000,000
Sep. 1	3.071	131,000,000	SOFR	100,000,000
Oct. 13	3.4111	345,175,000	Fixed	250,000,000
Oct. 20	3.38	137,850,000	Fixed	100,000,000
Nov. 3	3.2291	273,000,000	SOFR	200,000,000
Nov. 3	3.2274	136,480,000	SOFR	100,000,000
Nov. 8	3.47	270,560,000	SOFR	200,000,000
Nov. 14	3.4708	336,250,000	Fixed	250,000,000
Nov. 16	3.1596	132,720,000	Fixed	100,000,000
Nov. 18	3.0839	133,290,000	Fixed	100,000,000
Nov. 21	3.0946	334,750,000	Fixed	250,000,000
Nov. 25	3.037	134,150,000	Fixed	100,000,000
Nov. 25	3.025	133,960,000	Fixed	100,000,000
Nov. 25	3.02	133,870,000	Fixed	100,000,000
Nov. 28	2.9782	334,575,000	Fixed	250,000,000
Nov. 28	2.9856	133,970,000	Fixed	100,000,000
Nov. 29	2.96	133,780,000	Fixed	100,000,000
Dec. 1	2.9978	135,510,000	Fixed	100,000,000
Dec. 1	2.99	135,420,000	Fixed	100,000,000
Dec. 1	2.98	135,660,000	Fixed	100,000,000
Dec. 1	2.9926	135,880,000	Fixed	100,000,000
Dec. 5	2.8769	336,125,000	Fixed	250,000,000
Dec. 6	2.822	134,700,000	Fixed	100,000,000
2033 — Jan. 12	3.124	134,350,000	Fixed	100,000,000
Jan. 19	2.874	133,950,000	Fixed	100,000,000
Feb. 14	3.1042	200,385,000	Fixed	150,000,000
Feb. 27	3.396	338,375,000	SOFR	250,000,000
Feb. 27	3.338	271,200,000	SOFR	200,000,000
Feb. 28	3.3934	136,340,000	Fixed	100,000,000
Mar. 3	3.346	272,660,000	SOFR	200,000,000
Mar. 3	3.3245	407,730,000	SOFR	300,000,000
Mar. 3	3.3965	136,060,000	SOFR	100,000,000
Apr. 20	3.0569	267,820,000	Fixed	200,000,000
Apr. 24	3.027	134,750,000	Fixed	100,000,000
Apr. 24	3.0021	201,765,000	Fixed	150,000,000
Apr. 26	2.92	135,470,000	SOFR	100,000,000
May 3	2.8692	149,160,000	SOFR	110,000,000
May 4	2.841	204,360,000	SOFR	150,000,000
May 5	2.7805	272,420,000	SOFR	200,000,000
May 9	2.9129	150,337,600	SOFR	112,000,000
Jun. 5	3.1661	274,922,900	SOFR	203,000,000
Jun. 13	3.3941	202,768,000	SOFR	152,000,000
Jun. 27	3.3527	132,030,000	SOFR	100,000,000
Jun. 28	3.283	328,850,000	SOFR	250,000,000
Jun. 29	3.2953	328,925,000	SOFR	250,000,000
Jul. 19	3.3951	488,437,000	Fixed	370,000,000
Aug. 3	3.5811	266,000,000	Fixed	200,000,000
Aug. 4	3.6346	133,460,000	Fixed	100,000,000
Aug. 9	3.5806	267,020,000	Fixed	200,000,000
Aug. 10	3.461	269,480,000	Fixed	200,000,000
Aug. 30	3.6587	204,120,000	Fixed	150,000,000
Sep. 1	3.5816	270,520,000	SOFR	200,000,000
Sep. 5	3.5575	270,900,000	Fixed	200,000,000
Sep. 11	3.6807	136,510,000	Fixed	100,000,000
Sep. 11	3.673	136,700,000	Fixed	100,000,000
Sep. 14	3.7123	203,325,000	Fixed	150,000,000
		$      71,619,763,650		USD       55,518,300,000

38

Unmatured Market Debt (Continued)

For the cross currency swaps listed below (outstanding as of September 30, 2023), 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
2023 — Oct. 20	2.69570	$	138,800,000	Fixed		EUR  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
Oct. 20	2.12130		105,652,500	Fixed		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
Mar. 22	2.0333		139,220,000	Fixed		100,000,000
Apr. 28	1.52260		295,440,000	Fixed		200,000,000
May 20	2.8798		135,120,000	Fixed		100,000,000
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
Nov. 17	3.19000		276,800,000	Fixed		200,000,000
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
Oct. 21	1.6202		216,090,000	Fixed		150,000,000
2032 — Jan. 7	1.5788		215,955,000	Fixed		150,000,000
Jan. 12	1.7333		215,430,000	Fixed		150,000,000
Jan. 13	1.7145		214,830,000	Fixed		150,000,000
Jan. 20	1.8176		355,825,000	Fixed		250,000,000
Mar. 23	2.2826		138,880,000	Fixed		100,000,000
Mar. 24	2.3852		208,470,000	Fixed		150,000,000
Mar. 24	2.3948		83,208,000	Fixed		60,000,000
Jul. 7	3.0701		100,245,000	Fixed		75,000,000
Nov. 10	3.56260		134,900,000	Fixed		100,000,000
Nov. 10	3.49840		135,110,000	Fixed		100,000,000
2033 — Jan. 5	3.24000		143,980,000	Fixed		200,000,000
Jan. 13	3.05330		288,380,000	Fixed		100,000,000
Feb. 3	2.90280		145,580,000	Fixed		200,000,000
Feb. 15	3.12630		285,900,000	Fixed		100,000,000
Aug. 2	3.51890		145,410,000	Fixed		200,000,000
Aug. 31	3.58500		147,400,000	Fixed		100,000,000
Aug. 31	3.58240		147,430,000	Fixed		100,000,000
Sep. 1	3.55990		295,700,000	Fixed		100,000,000
Sep. 21	3.83060		143,470,000	Fixed		200,000,000
Oct. 3	4.11900		142,620,000	Fixed		100,000,000
		$	17,582,978,496			EUR    11,972,000,000

39

Unmatured Market Debt (Continued)

For the cross currency swaps listed below (outstanding as of September 30, 2023), 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
2023 —Oct. 18	2.39750		$          115,473,441	Fixed		JPY      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
Nov. 1	1.4694		108,837,614	Fixed		10,000,000,000
Nov. 2	1.4495		108,613,012	Fixed		10,000,000,000
Dec. 1	1.4723		112,069,932	Fixed		10,000,000,000
2029 — May 18	2.8375		150,037,509	Fixed		15,000,000,000
Jun. 9	3.058		239,762,156	Fixed		25,000,000,000
Jun. 15	3.251		141,362,737	Fixed		15,000,000,000
Jun. 29	3.31		190,476,190	Fixed		20,000,000,000
Jul. 5	3.32		141,576,215	Fixed		15,000,000,000
2030 — Jun. 7	2.958		292,568,754	Fixed		30,000,000,000
Jun. 8	3.026		192,400,192	Fixed		20,000,000,000
Jun. 13	3.158		285,008,550	Fixed		30,000,000,000
Jun. 23	3.4525		189,933,523	Fixed		20,000,000,000
Oct. 17	3.48200		188,679,245	Fixed		20,000,000,000
Oct. 17	3.46630		187,160,771	Fixed		20,000,000,000
2032 — Feb. 1	1.8023		165,892,502	Fixed		15,000,000,000
Mar. 17	2.115		108,695,652	Fixed		10,000,000,000
Apr. 28	2.733		150,890,252	Fixed		15,000,000,000
May 6	2.7275		150,285,543	Fixed		15,000,000,000
May 9	2.8249		147,174,254	Fixed		15,000,000,000
May 16	2.97		149,820,216	Fixed		15,000,000,000
May 27	2.7945		150,966,184	Fixed		15,000,000,000
2033 — Jun. 30	3.25640		91,886,428	Fixed		10,000,000,000
			$     9,725,316,965			JPY  879,950,000,000

40

Unmatured Market Debt (Continued)

For the cross currency swaps listed below (outstanding as of September 30, 2023), 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
2024 — Sep. 8	1.3753		$    133,510,000	Fixed		GBP    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
2031 — Dec. 21	1.31128		255,435,000	Fixed		150,000,000
2032 — Jan. 21	1.8856		169,960,000	Fixed		100,000,000
Feb. 1	1.7566		256,905,000	Fixed		150,000,000
May 5	2.9046		241,395,000	Fixed		150,000,000
Jun. 10	3.2311		157,130,000	Fixed		100,000,000
Aug. 24	2.9565		192,025,000	Fixed		125,000,000
Sep. 2	3.0631		228,600,000	Fixed		150,000,000
Sep. 2	3.0694		152,490,000	Fixed		100,000,000
Sep. 6	3.1809		227,940,000	Fixed		150,000,000
2033 — Jan. 17	2.86050		163,700,000	Fixed		100,000,000
Jan. 18	2.87480		245,175,000	Fixed		150,000,000
Apr. 19	3.07000		166,070,000	Fixed		100,000,000
Apr. 25	2.97000		167,870,000	Fixed		100,000,000
May 15	2.80500		168,710,000	Fixed		100,000,000
May 25	3.21500		167,830,000	Fixed		100,000,000
May 26	3.22000		168,070,000	Fixed		100,000,000
May 29	3.27500		168,100,000	Fixed		100,000,000
Jul. 27	3.50700		169,370,000	Fixed		100,000,000
Aug. 1	3.58000		170,050,000	Fixed		100,000,000
Aug. 8	3.69500		169,150,000	Fixed		100,000,000
Aug. 18	3.72500		171,910,000	Fixed		100,000,000
Aug. 22	3.70200		172,650,000	Fixed		100,000,000
			$     12,355,068,800			GBP 6,924,000,000

41

Unmatured Market Debt (Continued)

(D) FOREIGN EXCHANGE SWAPS

For the foreign exchange swaps listed below (outstanding as of September 30, 2023), the Government swapped Canadian dollars for U.S. dollars.

	Canadian dollar		U.S. dollar
Maturity date	Notional amount		Notional amount
2023 — Oct. 6	$	367,608,675		USD    277,421,965

(E) FOREIGN EXCHANGE FORWARDS

The  Government  entered  into  transactions  to  purchase  (outstanding  as  of  September  30,  2023):  EUR 1,207,000  in  exchange  for USD 1,308,255,  JPY 43,400,000  in  exchange  for  USD 301,267, GBP 261,000  in  exchange  for  USD 328,527,  and  CNH 3,550,000 in  exchange  for  USD  488,967; USD  2,103,332,099  in  exchange  for  EUR  1,913,418,000,  USD  481,548,391  in  exchange  for JPY 68,860,700,000, USD 526,660,078 in exchange for GBP 413,972,000, and USD 778,386,576 in exchange for CNH 5,627,270,000.

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) Converted at USD 1.00 = CAD 1.3581, EUR 1.00 = CAD 1.4359 the closing rates on September 29, 2023.

42

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, 2023
	Canadian dollar borrowings		Foreign currency borrowings (2)		Total borrowings
	(millions of dollars)
Canada Mortgage and Housing Corporation	$	261,664	$	—	$	261,664
Canada Post Corporation		998		—		998
Export Development Canada		554		53,618		54,172
Farm Credit Canada		—		947		947
Freshwater Fish Marketing Corporation		29		—		29
Royal Canadian Mint		24		—		24
Total	$	263,269	$	54,565	$	317,834

Source: Public Accounts of Canada 2023 (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, 2023 (MILLIONS OF DOLLARS)
Guaranteed borrowings of enterprise Crown corporations and other government business enterprises
Agent enterprise Crown corporations		317,834
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		1,436
Loans to farmers under the Canadian Agricultural Loans Act		79
Employment, Workforce Development and Disability Inclusion
Department of Employment and Social Development
Canada Student Loans Act		—	(1)
Finance
Department of Finance
European Bank for Reconstruction and Development		53
International Bank for Reconstruction and Development		159
Global Affairs
Export Development Canada—Canada Account
Canada Development Investment Corporation—Trans Mountain Corporation		9,646
Indigenous Service
Department of Indigenous Services
Indian Economic Development Guarantee Program		—	(1)
On-Reserve Housing Guarantee Program
Canada Mortgage and Housing Corporation		1,655
Other approved lenders		286
Innovation, Science and Industry
Department of Industry
Canada Small Business Financing Act		1,137
College of Patent Agents and Trademark Agents		—
Natural Resources
Department of Natural Resources
Lower Churchill Hydro Electric Projects		8,892
Total—Loan guarantees		23,343
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		261,211
Natural Resources
Department of Natural Resources
Nuclear Liability Account		—
Total—Insurance programs managed by the Government		261,211
Other explicit guarantees
Agriculture and Agri-Food
Department of Agriculture and Agri-Food
Price Pooling Program—Agricultural Marketing Programs Act		—
Total—Other explicit guarantees		—
Total—Gross guarantees		602,388
Less: allowance for guarantees		473
Net exposure under guarantees		601,915

Source: Public Accounts of Canada 2023 (Volume 1, Table 11.6).

Note: Amounts may not add due to rounding.

(1) Less than $500,000.

43

Supplementary Information

MARKETABLE BONDS (DOMESTIC)

From October 1, 2023 through  November  30,  2023,  Government  of  Canada  domestic  marketable  bonds  outstanding  increased  by $11,275 million to $1,013,018 million. New issues and retirements during this period are detailed below.

Issue or Maturity Date	Coupon (%)		Maturity Date		Issue Amount		Maturing Amount
October 6, 2023		4.50		November 1, 2025	$	5,500,000,000
October 13, 2023		4.00		March 1, 2029		4,000,000,000
October 23, 2023		3.25		December 1, 2033		4,000,000,000
November 1, 2023		0.50					$	16,500,000,000
November 1, 2023		4.50		February 1, 2026		5,500,000,000
November 6, 2023		2.75		December 1, 2055		1,250,000,000
November 10, 2023		4.00		March 1, 2029		4,000,000,000
November 17, 2023		4.50		February 1, 2026		5,500,000,000
					$	29,750,000,000	$	16,500,000,000

From October 1, 2023 through November 30, 2023, three repurchase operations were held and the following bonds were purchased by the Government. Repurchased bonds are typically cancelled shortly after their settlement.

Repurchase Settlement Date	Coupon (%)		Maturity Date		Amount Repurchased
October 5, 2023		1.50		May 1, 2024		100,000,000
October 5, 2023		2.75		August 1, 2024		50,000,000
October 19, 2023		1.50		May 1, 2024		250,000,000
October 19, 2023		2.75		August 1, 2024		500,000,000
October 19, 2023		3.00		November 1, 2024		500,000,000
October 19, 2023		3.75		February 1, 2025		250,000,000
November 16, 2023		3.00		November 1, 2024		200,000,000
November 16, 2023		1.50		April 1, 2025		125,000,000

TREASURY BILLS

From October 1, 2023 through November 30, 2023, treasury bills outstanding decreased by $3,200 million to $254,200 million.

CANADA BILLS

From October 1, 2023 through November 30, 2023, Canada Bills outstanding increased by U.S.$948,980,000 to U.S.$2,826,342,000.

CROSS CURRENCY SWAPS

From October 1, 2023  through  November  30,  2023,  Canadian  dollar  liabilities  of  $1,374,110,000  were  swapped  into  liabilities  of USD 1,000,000,000; Canadian dollar liabilities of $166,910,000 were swapped into liabilities of GBP 100,000,000; and Canadian dollar liabilities of $274,248,103 were swapped into liabilities of JPY 30,000,000,000.

FOREIGN EXCHANGE FORWARDS

As of November 30, 2023, the Government had outstanding transactions to purchase: EUR 6,599,000 in exchange for USD 7,197,361, JPY 237,500,000 in exchange for USD 1,607,025,  GBP  1,428,000  in  exchange  for  USD  1,775,677  and  CNH  19,410,000  in  exchange  for USD 2,705,511; USD 1,977,913,694 in exchange for  EUR  1,816,337,000,  USD  439,008,391  in  exchange  for  JPY  65,366,800,000, USD 489,461,869 in exchange for GBP 392,967,000, and USD 740,129,329 in exchange for CNH 5,341,760,000.

FOREIGN EXCHANGE SWAPS

As of November 30, 2023, 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
2023 – Jan. 9	$	379,888,188		USD 276,613,771

44