Ottawa [Canada], December 14: The Canadian federal government announced Friday it will remove the cap that currently restricts Canadian pension funds from owning more than 30 percent of the voting shares of a Canadian entity.
According to a news release issued by the Finance Ministry, Ottawa aims to grow the economy and boost productivity, while strengthening the robust retirement incomes for Canadians, by unlocking Canadian pension funds, which have more than 3 trillion Canadian dollars (2.1 trillion U.S. dollars).
The federal government is launching a fourth round of the Venture Capital Catalyst Initiative with 1 billion Canadian dollars (703 million U.S. dollars) in funding; providing up to an aggregate of 1 billion Canadian dollars (703 million U.S. dollars) to invest in mid-cap growth companies; and unlocking up to 45 billion Canadian dollars (32 billion U.S. dollars) in aggregate loan and equity investments for certain artificial intelligence data center projects.
The federal government will also consult airports and pension funds on potential ways to further incentivize investment on airport lands, the release said.
According to local media, Canadian Finance Minister Chrystia Freeland said Canada is "in a global fight for capital," especially as the incoming U.S. administration of President-elect Donald Trump seeks to create "economic uncertainty outside the United States as a strategy to discourage investment anywhere other than the United States."
Source: Xinhua News Agency