The Honourable Carolyn Bennett, Minister of Crown-Indigenous Relations, announced today that First Nations with existing loans under the First Nations Finance Authority (FNFA) will receive interest payment relief as a result of a $17.1 million support from the Government of Canada.
The COVID-19 pandemic is having a significant impact on First Nation families, communities and businesses. The measures in place to protect the health of all people in Canada are also affecting the revenue sources which are used to pay interest and principal on loans which have been taken out to support community development, such as initiatives to build infrastructure projects on reserve.
In response to the impact of on these First Nations, the Government of Canada is working collaboratively with the First Nations Finance Authority to provide financial relief so that the First Nations can focus on the health and safety needs of their communities during the COVID-19 pandemic.
This funding will directly help First Nations to maintain financial stability and lessen the economic impacts of COVID-19, as well as allocate financial resources to other critical needs during this crisis. Furthermore these investments will support the stability of the First Nations Fiscal Management Act regime and the First Nations Finance Authority's credit rating which was recently increased.
The First Nations Finance Authority is a non-profit, Indigenous-run institution that provides First Nation governments with access to long-term loans with preferable interest rates for essential infrastructure and economic development. It is anticipated that this investment will provide financial relief to 58 First Nations borrowers.
