CALGARY: Export Development Canada (EDC) said it would provide up to C$750 million ($554 million) to Canadian companies to help support the Canadian oil and natural gas sector, which has been hit by a slump in oil prices.
Canada's export agency said on Thursday that the funding would focus on small- and medium-sized enterprises (SMEs), where it can be most effective helping sustain employment and strengthening the economy.
Mairead Lavery, senior vice president, business development, at the EDC said the prolonged downturn in the price of oil had had a profound impact on Canada's smaller oil and gas supply and service companies.
Industry bodies estimate around 100,000 workers have lost their jobs in Canada's oil and gas sector and companies have slashed capital spending and deferred nearly 20 major oil sands projects in a bid to weather the downturn.
"Our goal is to make sure that well run companies have the financial tools they need to get through this downturn.
We want them to be ready to take advantage of the turnaround when it happens," Lavery said in a statement.
The EDC said particular focus would be placed on helping companies increase productivity, investing in infrastructure and new technology and building the sector's environmental sustainability.
Comments
Comments are closed.