Canada has been selected to host a multinational bank to provide “long-term, low-cost financing” for defence projects by NATO members and allies, the federal government said Wednesday.
The Globe and Mail newspaper first reported the decision following the end of multinational negotiations earlier Wednesday that were hosted in Montreal.
A news release issued late Wednesday says the defence bank will allow member countries, including Canada, to leverage shared resources to “meet today’s defence challenges.”
National Defence Minister David McGuinty, in the release, called it a “resilient and responsive defence industrial base — for Canada and our allies.”
A source with direct knowledge told The Canadian Press there’s still a lot to discuss and sort through — and cautioned there’s still a world in which it doesn’t happen.
Toronto, Ottawa, Vancouver and Montreal are all competing to have the Defence, Security and Resilience Bank located in their jurisdictions.
Canada’s Big Six banks have all put their support behind the proposed international defence financing vehicle, which would be aimed at lowering borrowing costs for military spending.
The Canadian Chamber of Commerce applauded the news, saying the defence industry is a major economic driver and will become a growing force as it attracts more investment.
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“Canada is the right home for this new initiative,” said David Pierce, vice-president of government relations at the Canadian Chamber of Commerce. “In a world where conflict is an ever-present concern, we are grateful our allies have seen the merit in this move.”
Pierce said Canada’s defence industry is an attractive partner, ready to lead on the world stage.
“Our world-class defence industry is a major driver in the economy right now, which will be a growing economic force as we increasingly invest in it,” he said. “We hope to see more details and confirmation soon because it’s going to be all hands on deck to get this right.”
Ontario Premier Doug Ford said on social media that the defence bank is an opportunity to put Canada at the centre of global defence finance and manufacturing.
“As our nation’s financial capital, with a skilled workforce and unparalleled global connectivity, there’s no better place for the bank to be headquartered than Toronto,” said Ford.
If anyone understands leveraging it’s Mark max maduro carnage.
Russell Mathews put a video out in you tube about 4 weeks back called Canada just started a $1000000000000 war bank that was very informative and does not make you warm and fuzzy about the implications. Global removed my comment with the link. Please check it out. It is alarming.. and a pattern we should all be wary of, and Global fails to tell.
Toronto council put on your business hat and support this. These are top paying jobs and bring top class business trips to the city,
NWO garbage.
I see there’s no word about where the money is coming from. Let me guess, western Canadian tax dollars?
Pros
Economic Impact and Jobs: Hosting the DSRB is expected to create approximately 3,500 jobs in defence finance, cybersecurity, and specialized research.
Boost to Domestic Defence Industry: The bank will help Canadian defence startups and companies access financing that is currently difficult to obtain due to ESG (Environmental, Social, and Governance) investing restrictions, acting as a catalyst for innovation in AI, drones, and cyberinfrastructure.
Strengthened Alliances: The bank, often described as “NATO+” financing, helps allies with tighter budgets afford necessary military equipment, strengthening collective security.
Geopolitical Influence: By hosting the headquarters, Canada cements its position as a key player in global defence finance and technological innovation.
Strengthening Local Finance Hubs: Cities like Vancouver, Toronto, Ottawa, and Montreal are competing for the headquarters, which would boost the winning city’s reputation as a global financial center.
Cons
High Financial Risk/Investment: Canada is expected to contribute over
billion in funding and another
billion in “callable capital” (funds provided if the bank is in crisis).
Questionable Financial Benefits to Canada: Unlike other countries with lower credit ratings, Canada already has a AAA rating and may not benefit from lower borrowing costs themselves. The bank primarily benefits allies with higher default risks.
Focus on Rearmament: The institution is dedicated to accelerating weapons procurement, which brings potential ethical concerns and debates over prioritizing military spending over social initiatives.
Potential for High Debt: While the bank offers “low-cost” financing, it is still funded by national balance sheets, adding to the financial burden of participating countries.
@Ben – What are the other wins? I don’t see anything wrong with this before doing research, but seriously…. what are the other wins?
Another win for Carney’s approach and his leadership. I expect the conservatives and Poilievre to complain.