Whats New in Canada-Update on CA

[mycan]

A new economic analysis says Canada is a land becoming more and more divided between the prosperous West, blessed by its natural resources, and everyone else.

The Bank of Montreal says the two western provinces of Alberta and Saskatchewan will lead the rest of Canada in economic growth this year and next by a wide margin.

The BMO report predicts the two provinces will both record three per cent or more economic growth this year — about one point higher than the national average — and again in 2012.

The report says Ontario and Quebec and the four Atlantic provinces will likely struggle with sub-two per cent growth next year as government austerity and export challenges due to the high dollar weigh on their economies.

On average, Canada’s economy is expected to continue with moderate growth of two per cent in 2012 — not strong but not a disaster given the weak U.S. economy, Europe’s debt crisis and the slowdown in emerging markets.

The western provinces’ benefits are natural resources, which are still much in demand across the world.

 

[CarribRN]

Increased screening for foreigners travelling to Canada

Canada, 9th December: Foreigners from Europe or nations not requiring visitor visas will have to undergo advanced checks before flying to Canada.

This new step comes as Canada enters into a deal with the US for increasing security checks for curbing terrorism.

ETA—The ETA(electronic travel authorization) system forms part of the process to introduce new security checks under the latest Canada-US border deal. It will be applicable to those wanting to come to North America. The new advanced ETA process will apply to travelers hailing from European and other nations not requiring visitor visas for coming to Canada.

Such foreign travelers will have to fill out an electronic form before purchasing an air ticket. Majority of foreigners will be given authority instantly while those involved in fraud or crime will be denied permission to fly to Canada, Canadian officials revealed.

Risk sharing by Canada and the US--Both Canada and the US will join together in sharing risk and target details regarding potential terrorism threats by using a common approach for screening them. Canada will use similar methods for identifying potential threats and refusing entry as adopted by the US.

Both nations will have the facility to counter-check whether any foreigner making application for getting into the nation has been denied entry, visa, faced deportation earlier by the other nation or not.

For this, new computer systems will be created by Canada and the US to seek details from each other's database. Meanwhile, Canadians or Americans will not be affected by the new move. Some earlier reports had hinted at US checks for everyone wanting to come to Canada. But, there is no truth in such reports.

New Canada-US border deal to expedite entry of legitimate travelers, businesses—While the main motive of the new Canada-US border deal is to crack down on travelers considered a threat to the nation's security, it will also facilitate entry of legitimate American and Canadian travelers as well as businesses. It will ease security at the US-Canada border by building a greater wall of protection around the Canada-US perimeter.

Highlights of the US-Canada border deal—

• Greater tracking of foreign travelers in both nations;

• Increased opportunities for travelers from Canada to get NEXUS card for faster entry at border crossings;

• Opening up of more lanes for facilitating faster clearance by land and air;

• Grant of trusted status to firms in the US or Canada involved in shipping goods across the border to facilitate pre-screening at the factories itself rather than at the border.

I wonder if this set-up will enable Canadian permanent residents to travel to the US without a US visa? Or at least make it easier for them to get a US visa despite being a newly landed immigrant.

 

[mycan]

Canadian immigrant settlement money to be reduced during 2012

The federal government will cut $31.5 million from immigrant settlement services in Ontario in 2012 making it the second year in a row the province has lost settlement funding from Ottawa. At the same time, federal funding for services that help immigrants with language, jobs and housing will go up in every other province and territory.

The government earmarked $583 million for settlement services across Canada for 2011-12, down from $622 million the year before. That amount will drop another $6 million for 2012-13 to a total of $577 million across Canada.

For the current year, Citizenship and Immigration Canada budgeted $346.5 million for Ontario, a decrease from $390 million the previous year. For 2012-13, it'll drop again to $314.9 million. A loss of $31.5 million. The federal government argues it's adjusting its funding to fit changing migration patterns.

Senior government sources say they're simply adapting the funding to the fact that fewer immigrants are going to Ontario as a proportion of the national total. Immigration experts argue that the Ontario government is partly to blame, because it hasn't worked hard enough to bring in newcomers. The experts are quoted as saying:

“Ontario has failed to select the number of immigrants provincially, relative to the size of the population of the province. How is it that smaller provinces than Ontario can select more immigrants provincially than Ontario?”

Many immigrants going west
British Columbia is getting $109.8 million, a slight increase over $105.6 million for 2011-12.

Thomas Tam, head of a B.C. organization that helps immigrants integrate, says the federal government is making the right move by boosting funding to B.C. and other western provinces. Tam says migration patterns are changing dramatically.

“That's a very important additional resources for us. In the last couple of years, we've been seeing more and more immigrants into the province, particularly from Asia. There's a great demand for language training and labour market integration programs.”

In fact, not only are immigrants increasingly going west, they're also going to smaller towns and cities. For example, Tam's organization is now expanding its services to the northern B.C. town of Fort St. John. The funding is justified, as immigrants head to smaller communities in the west and the east, where settlement services are sparse.

“It's very good news for the recipients of settlement funding in Canada's hinterland, in western Canada, and of course the Maritimes, to include the idea of retaining immigration. The more settlement funding you can toss into the Maritimes the better chance you have of retaining immigrants in that region,” he said.

Federal fund for immigrant settlement services, by province
2011-12 2012-13
Nfld. & Labrador $2,223,039 $2,512,975
P.E.I. 3,946,142 5,218,024
Nova Scotia 7,012,146 7,078,944
New Brunswick 5,179,369 5,664,069
Ontario 346,521,868 314,950,874
Manitoba 32,027,618 36,539,512
Saskatchewan 14,255,519 17,995,061
Alberta 64,071,989 74,978,539
B.C. 105,558,092 109,813,233
N.W.T. 672,976 723,998
Nunavut 463,377 469,800
Yukon 709,534 932,632

 

[L7]

Dear L7,

+1 to you for your regular contributions.
These are very informative & motivating.

mycan

Thank you

 

[L7]

Canada Moves to strip thousands of fraudulent citizenships


December 11, 2011: Canada is moving to shed of thousands of citizenships that have been fraudulently earned by the immigrants just to stay and settle in the country.

Recently expose fraudulent citizenship scam is posing threatening situations for the country. It has been estimated that as much of 6500 immigrants belonging to more 100 countries are suspected to be involved in getting their citizenship through illegal means.

Biggest Citizenship scam:

Shocking for the authorities this is supposed to be the biggest citizenship scam turned up in the history of country, before this crackdown only 67 citizenships were suspected on the same grounds. The Immigration minister, Jason Kenney was moved by such discovery, that Canadian citizenship is by no means for any sale and it is that the no doubt Canadian government believes in gentility and welcomes immigrants from all over the world but will definitely not take things easily with those who do not respect countries rules and regulations and try to achieve citizenship through wrong means.

Governments Reaction:

With the uplifting of such a fact, the government authorities are ready to move with some strict actions to confiscate fraudulent citizenship. Announcement of such a crackdown is supposed to follow by the deep and proper investigation for the suspected immigrants by the Department of Citizenship and Immigration. The authorities have also encouraged citizens to help authorities finding out the fraudulent citizens and chuck them out of country.

The authorities have straightaway ordered to strip of 2,100 immigrants citizenships, confirmed they got it through illegal means. 4,400 of others having permanent residency will be covered under serious investigation to clarify the charges.

Even the consultants found guilty of helping immigrants to get permanent residencies and citizenships have been arrested.

Guilt Cost:

Those consultants as well as the citizens found guilty have to pay for their deeds. According to the sources the government is will now be levying penalties in shape of fines and imprisonment for the consultants who had played with country’s rules and regulations.

Rules to get Citizenship:
To get a citizenship the immigrant must be living in the country since three years from a total of four year time lag and also they should be living in Canada for at least two years from five years to continue with their residency status.

Experts Support:

The immigration attorneys seem to be very supportive towards the authority’s decision and are also praising the steps taken by them to stop such practices. They feel it is positive signal to restore country’s immigration policies.

 

[L7]

Canada Makes Immigration easy though Investor Category

December 11, 2011: Where for the general immigrants it takes years to pave their way for getting U.S. visa, the wealthy immigrants can easily bypass the long time lags to get visa to the country.

EB-5 Visa Program:

According to the EB-5 visa program a scheme launched by the government authorities in starting of 1990’s, the immigrants who are investing around $500,000 to $ 1 million for setting up a business at new location in the country earns eligibility to their green card for settling down in the country. Limited to only 10,000 in number it is the fastest way to legalize one’s residency status, under this green card is converted into the permanent residency as soon as the investor completes two years successfully.
As per the program, the investment made should be through the center and the investing person has no real management over it for using the funds, but for this they have virtue to stay in country wherever they want to.

Why supporting this scheme:

Government is in view the people coming in through this path will help in the development of the country by investing at the new locations in the country. They will also bring in new entrepreneurial skills as well will also be employing at least 10 new employees hence increasing the employment opportunities for the residents.

Current Situation:

Now days for those immigrants who can afford to invest in the country by at least $500,000, to establish a business or put it in the American enterprise, it is a popular form of getting entry into the country. Currently such investments are helping the country to initiate new projects across the different parts country setting up for social welfare programs. According to the stated statistics around $ 48 million got from this source has helped to finance the Washington and around $ 4.6 billion for reconstructing highway and other social welfare activities.

As per with the implementation of EB-5 capital visa scheme have brought the country an expansion of total $1.2 billion in the country has experienced a hype from last year that made a count of $ 845 million.

The Immigrants participating in it:

Most the immigrants are the financers from China, who look in for the opportunity to invest and also side by side earning the residency status that too also within short period of time. Around 40 per cent of the total belongs to China. As per a recent research conducted by China Merchants Bank and Bain Co. it was observed that as much of 60 per cent of the rich Chinese investors are seriously considering to invest in this plan.

 

[L7]

Mentorship Schemes for settling in Canada

December 10, 2011: This year polls reveal that Canadians prefer "Culture over Cash"!

Canadian Values – Perhaps there is a unanimous view of Canadians that new immigrants should accustom to their values, instead of focusing on making themselves financially sound. These are the results of a poll conducted by the Pierre Elliott Trudeau Foundation in association with Dalhousie University. In fact, most of the immigrants also think this way.

The Statistics – When Canadians were asked what they expect out of these immigrants, a staggering 97% of them stressed on accustoming to Canadian values of gender equality and the acceptance of people around them. Almost the same percentage was matched by immigrants. On the contrary, just less than 2/3rd of the surveyed held that these immigrants must become economically self-sufficient inside the first year they come into Canada. Yet again, the same proportion was matched when immigrants were quizzed.

History – A lot of people believe that immigration is indigenous to Canada.

“For it defines our history. So, it is important to understand that one takes a closer look at how it can shape the country’s future," said Dr. Pierre-Gerlier Forest, President of the Pierre Elliott Trudeau Foundation. "A conference staged lately by ‘The Trudeau Foundation’, focuses on this kind of study, makes an informed arena for some of the world's foremost specialists to press on our knowledge of critical public issues like immigration", he added.

Quite Optimistic – By and large, the poll explains that Canadians will welcome immigrants and are quite optimistic instead of being doubtful regarding the overall affect on Canada's venerable practice of accepting newcomers. By a 3-1 score, the Canadians say that immigration has helped Canada be a better place (47%) and not a place worsen-off (16%); the rest believe that it hardly matters or are unresponsive (29%) or can’t find a substantial argument to support their stand (8%).

Greater Support – 33% of Canadians believe that there should be easier policies for temporary foreign workers. 72% believe that immigrants should now be evenly distributed in all parts of the country. Earlier Toronto, Montreal and Vancouver have been the immigration hub. Further, a 35% also hold the belief that immigrants living with families should be given a higher while 51% believe the same for those who come based on employment and education.

Timing – Perhaps the timing of the poll couldn’t have been any better, for the immigrants at least. The poll has revealed results just when the efforts on part of the federal government have been looming. The federal government has suggested setting off on a nationwide reflection concerning Canada's immigration policy. Unquestionably, the results of the polls can have a substantial affect how the government changes its policy in the near future.

 

[L7]

25 out of 29 occupations in demand in Canada Federal.

December 11, 2011: "New settlements visas under the Federal program of the popular skilled workers (FSWP) have been exposed by Transcend Consultants that are presently vulnerable for many jobs in limited number.

They boost the experts such as physiotherapists, psychologists, dentists, architects, chefs, cooks, electricians and more to rub in directly."

The Canada has been a prevalent purpose for settlers from all parts of the domain, together and so that it accepts abundant wishes whiles supplementary than it can grip or consent in a year. The Canada has acknowledged about 250-280 000 colonizers a year for numerous years, and the surfeit has agreed more than a million in 2008. The consequential submissions, order book has led to time of conduct enlarged from a few months to 7 years in some countries.

To apply for permanent resident visa as skilled workers by the federal program, the candidate must reach a sufficient number in the points assessment, which includes the demonstration of language proficiency and meet at least one of the following requirements:

• exercise of the 29 occupations considered most in demand by the federal government,
• agreed to have a job offer,
• Have lived legally in Canada for a minimum of one year as temporary foreign worker or international student.

The 29 eligible occupations were determined with the participation of all provinces, territories, business and unions after analyzing the Canadian labor market in order to meet the real needs of local labor.

This list of occupations does not apply to those who leave the province of Quebec
The list of 29 occupations most in demand for the federal program took effect on June 26, 2010.
Therefore, applications for skilled workers who have been introduced as from 26/06/2010 will be evaluated according to the eligibility criteria described above. No applications will be processed introduced since that date that does not meet those requirements.
Thus, the federal government seeks to avoid delays in processing visas and get approval within a maximum of 12 months.

The Canadian Government endures to receive requests in its general package of Federal skilled workers (FSWP) currently in 25 of the 29 occupations registered in governmental way. Shares for sure open occupations achieve earlier than others.

The Federal skilled worker (FSWP) suite is the utmost widespread for several years in Canadian immigration program, as it bargains passes for dwelling everlasting experts trained universally in the sphere, centered on their skills in such factors as teaching, profession, linguistic assistances, etc. package is mentioned to as the "points system" in many groups such as the assortment is based on the score of points in each 6 factors and their ability to achieve pass marks (points) - fixed at 67 100 possible.

General Priority list of professions to emigrate from Canada Federal:

Every profession is presented with its National Occupational Classification number (NOC).
0631 Managers of restaurants and food services
0811 Managers of primary production (except agriculture)
1122 Professional occupations in business services for the management
1233 Insurance adjusters and claims assessors
2121 Biologists and related scientists
2151 Architects
3111 Medical specialists
3112 General practitioners and family
3113 Dentists
3131 Pharmaceutical
3142 Physiotherapists
3152 Registered Nurses
3215 Medical radiation technicians
3222 Dental hygienists and therapists
3233 Unqualified nurses authorized
4151 Psychologists
4152 Social Workers
6241 Chefs
6242 Cooks
7215 Carpentry Contractors and supervisors
7216 Mechanical Contractors and supervisors
7241 Electricians (except industrial electricians and power systems)
7242 Industrial Electricians
7251 Plumbers
7265 Welders and related machine operators
7312 Mechanical equipment for heavy duty
7371 Crane
7372 Drillers and explosives experts in surface mining, excavation and construction
8222 Supervisors for drilling and oil and gas service

For the detail in the description of each occupation and its various titles and offices, should consult the official website of the National Occupational Classification NOC.

The Canadian government uses the National Occupational Classification system called (National Occupational Classification NOC). This system categorizes occupations in demand in the Canadian job market based on the following criteria:

• "O" in management occupations, positions in the management, coordination and supervision.
• Proficiency Level "A": occupations that usually require college education.
• Proficiency "B" occupations that require technical education (college) or specialized learning.
• Proficiency "C" occupations that require secondary education (high school) or specific training.
• Proficiency "D" occupations where training is given directly in the work.

National Occupational Classification:

The following is a condensed version of the major professions, specialties and professions that require the Canadian labor market, on the basis of the "National Occupational Classification." Professions are included only in the categories "O", "A" and "B", as these take into account the Canadian point system that evaluates the capabilities of potential immigrants.

The general areas of competence of this classification are:
• Business, Finance and Administration
• Natural and applied sciences and related occupations
• Health
• Social Sciences, Education, Government Service and Religion
• Arts, Culture, Recreation and Sport
• Trade, Transport, Equipment Operation, and related professions
• Raw Materials Industry
• Processing, Manufacturing and Utilities

Computer professionals and highly skilled Systems
During 1997, established a pilot program that enables Canadian employers, attract highly qualified professionals in the technical areas of Computing and Systems (software). This approach facilitates the recruitment of these staff on a temporary basis, without the necessary validation of a Human Resource Center.

This plan responds to the shortage of workers exists in Canada in these specialties and the prevailing demand industries quickly get highly qualified professionals and computer technicians.
Graduates in branches of Engineering, Information Systems or other technology-related areas are encouraged to perform a formal validation of Canadian institutions that apply.

Nursing:
Nursing is a profession with the highest occupational demand in Canada. The public health system needs to attract as many technical and health professionals. Therefore, the government makes great efforts for recruitment. It is expected that by 2011, the national deficit of nurses in Canada amount to 80 thousand professionals. This is a great opportunity for foreign workers who have experience in the area.
Care Workers and Health Care at Home ("Caregivers")

There is special interest in working in Canadian homes remain full-time care of children, disabled people and, especially, the elderly. Over 4 million people in Canada are over 65. In fact, 1 in 7 Canadians is part of the so-called third age. Professionals in the field of health and health care are scarce in Canada, which opens up to foreign employment opportunities in this field.

To gain approval, you must also demonstrate that you have enough money to support. There are many other options to immigrate to Canada as a skilled worker. If you do not meet the criteria required by the Federal Government, we invite you to read our other sections on the various provincial programs and
A complement MI - 4 has made permissible for global PhD students to put on for enduring habitation in FSWP, however missing the further features of the unaffected FSWP.

It stood experiential that certain works fulfill additional nippily than others. As of December 8, 2011, masses have been decided for four of the 29 occupations. This shows that the applicants to these occupations could no longer rub in further down the FSWP, till the CAP is re-established in July 2012.

Though, the 25 additional occupations are exposed now. Certain of them such as GPs and dentists are probable to be the next, with 350 requests previously putative by the CIC. Applicants for these occupations must act rapidly to safe a location in the lot of pay for this time.

 

[L7]

I wonder if this set-up will enable Canadian permanent residents to travel to the US without a US visa? Or at least make it easier for them to get a US visa despite being a newly landed immigrant.

I hope so.

 

[L7]

B.C. on way to attract more immigrants

December 12, 2011: The government is now establishing a panel of experts to review current programs, so as to attract more immigrants to fill the vacancies that will come up in near future.

Recently as declared by Premier Christy Clark, it is the need of the hour revise the skilled immigrants and foreign investment programs for the consistent development of the province as well as the country.

Establishing a Panel:

As per to study the ongoing programs, an expert panel has been initiated by the government. With a budget of around $1,00, 000 this formed committee will consists of experts belonging to business and other community leaders. The group will be headed by John Yap, the Richmond Steveston MLA along with other members including the community experts like ,Tung Chan the Former CEO SUCCESS and also the Chinese community leader, Stockwell Day, the Government relations consultant also one the former minister and MP, Yuen Pau Woo the CEO Asia Pacific Foundation, Grace Wong the Assistant dean also UBC and vice-chair SUCCESS, Tim McEwan the CEO, Initiatives Prince George, Suki Badh the College instructor and South Asian community leader, Michael Hwang the Principal lawyer of Hwang, Company also founder and partner of Amicus Lawyers, Narindarpal Singh Kang the Founder of Kang and Company Law Firm.

Areas to be reviewed by the panel:

These community leaders and the experts are expected to deeply study and review the current Federal Skilled Worker Program, the Federal Immigrant Investor Program and the Canadian Experience Class program. The committee is expected to evaluate each of the program on basis how they are benefitting the province and the issues that require improvement in it, so that the province achieve best results out of these program. They will also discovering new ways to draw more number of skilled immigrants and the prospective investors to the place.

Need for the review:

It is expected that in coming decade the country will experience a favorable boost in the economy with around one million job vacancies. It is believed that country may face shortage of skilled workers that may bring problematic situations in the economic development of the country.To fill them the authorities will mostly have to rely on the foreign immigrants with skilled expertise and required qualifications. Hence keeping the demand of future in view B.C. panel is on their way to attract more of skilled immigrants and investors to the country.

Working of the committee:

The committee is supposed to start working vigorously on the above said cause and expected to come out with a public report by end of March next year.

 

[L7]

Europe debt crisis a high risk for Canada

Canada, 12th December: Canadian financial systems and the economy is at a great risk of being affected by recent Europe debt crisis.

This has been warned by the Bank of Canada. The BoC further states that already, Canada is facing severe effects of the debt crisis in Europe and Canadians are worried by the ability of such crisis in affecting their lives.

As per the semi-annual financial stability review released by the bank this Thursday, the risks have increased significantly in the period of last six months.

Trouble for Canadians with high houselhold debts—The report claimed Canadians with heavy household debts could be severely hit by the European debt crisis as it engulfs other nations as well rendering a big blow to the employment scenario globally. Global financial system has already been damaged severely by the ongoing European financial crisis, the statement maintained.

The result of this crisis will be felt in the form of increasing unemployment rates and slowdown in the economies the world over, even though the financial system of Canada does not have major exposure to the European debt, the statement further cautioned.

Canadian households will find it increasingly difficult to pay their debts as the rate of joblessness increases leading to reduction in aggregate growth of income, the bank said. This will give a big blow to the consumer confidence, net worth of Canadian households and Canadian housing market.

The ratio of household debt to income is going to increase calling for the need to immediate global efforts to restrict such debt crisis from spreading its wings to other nations.

Efforts to improve Canadian financial system—Meanwhile, continuous efforts are going on to help bring the much needed stability to the banking system of Canada, the Bank of Canada said.

This is being done through implementation of rules making it necessary for players to hold increased capital along with increased supervision.

Moreover, global regulators are being asked by the bank to chalk out ways to deal with the threat of failure of large banks in a bid to save the broader financial system.

The intensity of Europe debt crisis will weaken economic growth globally. A delicate global outlook risks increasing the likelihood of severe shocks to Canadian household incomes apart from impairing bank loan portfolios’ credit quality.

 

[L7]

Saskatchewan registers with highest provincial growth in 2011 and 2012

December 13, 2011: According to the recent figures received by the RBC economics reports that province Saskatchewan registers highest growth rates as compared to the other provinces.

Report Says:

According to this new report, the result shows an overall GDP growth of the country and expects this consistently in the coming years also. The province Saskatchewan is going on successful way to economic growth; it is the highest of among the other provinces due to opening up with new avenues and opportunities.

The report states that the Saskatchewan is expected to witness a high growth increase in real GDP rates that is will be raising to approximately 4.2 per cent in the coming year 2012 and also expects a rise to 4.7 per cent by the year 2013. Paul Ferley, the assistant chief economist from RBC, feels that the current things are on progressive way for the province in number of new sectors and it is expected to continue with the same way in near future. The growth rates are expected to be closely followed by Alberta.

Reason for the boom:

It is due to the increase in number of immigration figures in the province which lead to the boom in the economy. Recently, the province has registered the highest number of immigrants coming in this year 2011 specifically hype in figures is noticed in the second quarter, it is the highest number ever noticed in the last four decades.

Growth of Sectors:

The province have experienced a hype with new openings in numbers of sectors like the agriculture sector, manufacturing and wholesale of trade activities, housing and other resources. As with the increase in number of immigrants have led to progress in many sectors like the new immigrants created the demand for the housing sector and also led to more activities in agricultural and other resource sectors. Even the natural resources have also been used to explore new avenues and openings like the mining in the sector will be witnessing growth in the coming years. It is also claimed that the provinces Saskatchewan and Alberta which are very much reliant on natural resources will be high on progressive steps.

Further expectations in future years:

With the country’s progress on chart, the country is looking forward for a constant increase in GDP from the current year’s 2.3 per cent with an approximate increase to 2.5 per cent in the next year and to around 2.6 per cent in the succeeding year. This will definitely a benefitting factor for the country, it will also help to control and reduce the unemployment rates also.

 

[shibu]

Has anyone clue about yesterday's meeting on backlog?

 

[advanta1]

The Top Source Countries for Canadian Immigrants in 2010 were China & India, followed by Philippines, Pakistan & USA:

 

[mayankpandya]

This is really alarming bell for JOB MARKET. ??? ??? ???

Lets see how this effect um-employment rate in canada.

Regards
Mayank

Europe debt crisis a high risk for Canada

Canada, 12th December: Canadian financial systems and the economy is at a great risk of being affected by recent Europe debt crisis.

This has been warned by the Bank of Canada. The BoC further states that already, Canada is facing severe effects of the debt crisis in Europe and Canadians are worried by the ability of such crisis in affecting their lives.

As per the semi-annual financial stability review released by the bank this Thursday, the risks have increased significantly in the period of last six months.

Trouble for Canadians with high houselhold debts—The report claimed Canadians with heavy household debts could be severely hit by the European debt crisis as it engulfs other nations as well rendering a big blow to the employment scenario globally. Global financial system has already been damaged severely by the ongoing European financial crisis, the statement maintained.

The result of this crisis will be felt in the form of increasing unemployment rates and slowdown in the economies the world over, even though the financial system of Canada does not have major exposure to the European debt, the statement further cautioned.

Canadian households will find it increasingly difficult to pay their debts as the rate of joblessness increases leading to reduction in aggregate growth of income, the bank said. This will give a big blow to the consumer confidence, net worth of Canadian households and Canadian housing market.

The ratio of household debt to income is going to increase calling for the need to immediate global efforts to restrict such debt crisis from spreading its wings to other nations.

Efforts to improve Canadian financial system—Meanwhile, continuous efforts are going on to help bring the much needed stability to the banking system of Canada, the Bank of Canada said.

This is being done through implementation of rules making it necessary for players to hold increased capital along with increased supervision.

Moreover, global regulators are being asked by the bank to chalk out ways to deal with the threat of failure of large banks in a bid to save the broader financial system.

The intensity of Europe debt crisis will weaken economic growth globally. A delicate global outlook risks increasing the likelihood of severe shocks to Canadian household incomes apart from impairing bank loan portfolios' credit quality.