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Presumably, most of those (green) "securities purchased under resale agreements" were CMHC-insured mortgages??

At the peak, the Federal government had about an extra $30 million deposits at the BoC. I'm trying to get my head around what the offsetting liability would have been on the government's balance sheet. Presumably, it issued more Tbills and bonds to the public than it would otherwise have done??

I think that's how it worked: the govt borrowed money and deposited the proceeds at the Bank.

Just to clarify, this wouldn't show up as an increase in the government's *net* debt - it was offset by the increased deposits at the Bank of Canada.

And the increased supply of a highly-liquid asset - in the form of government T-bills - would have complemented the exercise.

You can get an idea of which assets were accepted as part of the "green" securities by looking at the monthly reports entitled "Supplementary Information of Balance Sheet Loans and Receivables" on the Bank's web page http://www.bankofcanada.ca/en/about/index.html

CMHC-insured mortgages are not broken out but are included as part of "Securities issued or guaranteed by the Government of Canada". This is the largest single item, but large contributions are also made by provincial securities and, looking at the various there was some corporate and ABCP paper as well.

Looking at the Bank of Canada's Balance sheet is somewhat misleading as outright purchase of MBS was done by the Canada Mortgage and Housing Corporation -I think to the tune of 75 billion. The Bank of Canada, much in contrast to the Fed in the U.S. or the Bank of England, did not engage in outright purchase of MBS, it only engaged in SPRA using a wide range of securities.

A post on CMHC balance sheet would be warranted.

Why can the Bank of Canada not pay off the outstanding debt of the Canadian government for a zero percent loan to be repaid over 20-years?

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