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ABPA responds to the Liberal Government’s Announcement of a National Indigenous Loan Guarantee Program – Anishinabek News

November 28, 2023

ROBINSON-SUPERIOR TREATY AND FORT WILLIAM FIRST NATION TERRITORY, THUNDER BAY, ONTARIO (November 22, 2023) –  This week, the Liberal government announced the next steps for a long-awaited National Indigenous Loan Guarantee Program in the next year’s federal budget. However, Indigenous leaders are still waiting for details on how the program will work and whether the program would help communities invest in the natural resource sector and facilitate equity ownership in energy, mining, forestry, and other infrastructure projects.

Following is a statement from Jason Rasevych, President of the Anishnawbe Business Professionals Association, regarding the Government of Canada’s Economic Statement and commitment to National Loan Guarantee Program for Indigenous peoples:

“Indigenous leaders have been calling on this type of program for decades. We have seen some examples in Alberta, Saskatchewan, and Ontario, but there are some limitations on what type of project can be supported including the amount and timeline. The lessons learned from the successes and challenges of the current state and forecasting the market demand should be part the new program design and seek compliance with Indigenous-led values and the principles of Truth and Reconciliation Commission of Canada’s Calls to Action. The announcement of a national Indigenous loan guarantee is a positive commitment that protects lenders from potential defaults and derisks the weighted average cost of capital; however, much more needs to be considered on how it prioritizes applications by geography, industry, and deals with jurisdictional dissonance across the provinces permitting regimes. We need to make sure that the human rights risks inflated by financial programs that create a larger gap between the classes of have and have not Nations are minimized and not motivated by a government – political agendas. We need the loan guarantee program to enhance and support Indigenous communities looking to participate in various sectors at different financial thresholds of resource development and ownership of enabling infrastructure like corridors and facility ownership. These projects should be assessed to consider respect for the rights-holders throughout the financing and project lifecycle, and that the proponent has achieved the free, prior, informed consent of Indigenous peoples impacted as a condition for approval. If the mandate and decision to provide the loan guarantees is supporting government or partisan plans it will create more friction for Crown-Indigenous relations, especially on how those loan guarantee decisions are being made. Indigenous communities will also need grant funding to develop the business case and economic model for the loan guarantee applications and there should be a mechanism to consider backing Indigenous-owned or operated lenders and financial institutions for a multiplier effect.”

Read More: https://anishinabeknews.ca/2023/11/28/abpa-responds-to-the-liberal-governments-announcement-of-a-national-indigenous-loan-guarantee-program/

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