(August 3 – 16:20 ET) – The Department of Finance today released its Retail Debt Plan for 2000-2001.
Retail debt has become a scarce commodity, and Finance confirms it intends to continue reducing market debt over time. Nevertheless, Canada Investment and Savings says its mandate is, “to develop a vibrant, creative, and cost-effective Retail Debt Program for the Government that provides value to Canadians and contributes to a diversified investor base.”
With the government not looking tissue debt, it is instead focusing on distribution, to get more of its shrinking debt into retail hands. It will continue the telephone sales program that was tested in February and March. The program allowed investors to buy Canada Savings Bonds and Canada Premium Bonds over the phone directly from the government.
It is enhancing the Payroll Savings Program with a new secure Web site option for small- and medium-sized employers. Firms involved with this program will now be able to deliver employees purchase data over the Internet. The Web option is intended to, “substantially reduce employer workload in administering the program while continuing to offer employees a simple and easy way to save money.” A new online application form will also be introduced, allowing individuals to sign-up with the payroll savings program from their desktop computers.
CSBs and CPBs will be available for purchase concurrently for six months between Oct. 2, 2000 and April 1, 2001.
It appears that the Bank of Canada is looking to give up its back office job for retail debt. The release notes the Bank is, “exploring more efficient and manageable means of meeting its responsibilities for delivering back office operational support.” The Bank though will remain accountable for paying interest, the privacy of accounts, and customer service.
The url for the Canada Investment and Savings Web site is www.cis-pec.gc.ca.
-IE Staff