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Canadian Banks restructure debt | Globe & Mail

Reported in the Business section today, the Canadian financial institutions have agreed on a restructure of $33 Bn in Asset Backed Commercial Paper (ABCP). That ABCP has been frozen and not able to be traded since August, when the US Subprime crunch hit.

The deal includes a $14 Bn credit facility, and basically exchanges short term notes for longer dated paper.

Interestingly the spokesperson for the group that arranged the deal, is a Toronto lawyer, Purdy Crawford. The group is called Pan-Canadian Investors. Based on conversations with a colleague, I suspect this is all a front for the Bank of Canada attempting to calm the markets, by replacing short term pressure on the market with longer terms.

Written by Colin Henderson

December 24, 2007 at 10:06

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