The Bank of Canada should be reinstated to its original mandated purposes
John Ryan / March 21, 2018
[R]estore the use of the Bank of Canada to its original purpose, by exercising its public statutory duty and responsibility. That purpose includes making interest-free loans to the municipal/provincial/federal governments for ‘human capital’ expenditures (education, health, other social services) and/or infrastructure expenditures.
The BND is able to make 2% loans to North Dakota communities for local infrastructure — half or less the rate paid by local governments in other states. For example, in 2016 it extended a $200,000 letter of credit to the State Water Commission at 1.75% … Since 50% of the cost of infrastructure is financing, the state can cut infrastructure costs nearly in half by financing through its own bank, which can return the interest to the state… .The profits return to the bank, which either distributes them as dividends to the state or uses them to build up its capital base in order to expand its loan portfolio.