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who does canada owe money to ?

### Who Does Canada Owe Money To?

Canada, like many countries around the world, has a national debt. This debt is the sum of all the money that the government has borrowed to finance various activities and services. Understanding who holds this debt can help clarify some of the financial dynamics at play in Canada.

#### What is Canadian Public Debt?

Canadian public debt, or general government debt, consists of the liabilities of Canada’s government sector, including both the federal and provincial governments. It’s primarily made up of Treasury bonds and loans, but it also includes other financial liabilities such as pension obligations for public sector employees.

According to [Wikipedia](https://en.wikipedia.org/wiki/Canadian_public_debt), Canadian government gross debt includes financial claims requiring future interest and/or principal payments. Another reliable source, [Commodity.com](https://commodity.com/data/canada/debt-clock), mentions that the national debt includes all public debts of the federal government and of the provinces and territories.

#### Ownership of Canada’s Debt

According to [a popular financial blog post on Quora](https://www.quora.com/Who-owns-Canadas-debt?share=1), approximately 68% of Canada’s debt is owned by Canadian citizens and Canadian financial institutions. Non-residents hold around 32%. This means that large portions of the debt are held by Canadians, which may mitigate some of the concerns over foreign ownership.

#### Breakdown of Debt Ownership

– **Canadian Citizens and Institutions (68%)**: Investors in Canadian government bonds, financial institutions, and high net-worth individuals are common holders of Federal debt.
– **Foreign Ownership (32%)**: Non-residents, hedge funds, and foreign governments.

In a broader sense, the Canadian government has borrowed extensively over the years and the debt is owned by a diverse range of investors, both domestically and internationally.

#### The Scale of Canada’s Debt

The magnitude of Canada’s debt is significant. As of 2021, Canada’s national debt was over $1.2 trillion [The Fool](https://www.fool.ca/2020/07/13/canadas-debt-to-hit-1-2-trillion-what-does-this-mean-for-investors/). This amount translates to roughly $31,000 per Canadian resident, including children and non-taxpayers. The [Debt.ca blog](https://www.debt.ca/blog/how-much-debt-does-canada-have) further explained that the rise in federal borrowing was partly due to efforts by the Bank of Canada to make government borrowing more affordable.

#### Provincial Debts

In addition to the federal debt, each province has its own debt. For example, according to [CBC](https://www.cbc.ca/news/politics/national-debt-map-canada-1.3557745), Ontario’s debt stands at approximately $296 billion (about $21,470 per person). Quebec’s debt is around $187 billion (about $22,641 per person), and Newfoundland and Labrador’s debt is considerably lower at $14.6 billion.

#### Contextual Information

Some aspects of this debt are noteworthy. According to [Debt Canada](https://www.taxpayer.com/media/WhoOwnesCanadasDebt.pdf), Canada’s national debt per capita is roughly $32,506, which is $3,813 worse than the United States.

Furthermore, Canada is a significant contributor to international financial institutions like the World Bank. The annual contribution to the World Bank’s International Development Association (IDA), which provides low-interest loans or grants to the world’s poorest countries, is substantial, totaling over $441 million on average annually from fiscal year 2012-2013 to 2019-2020.

#### Who Owns the National Debt?

Eric Stone of The Guardian explains that the National Debt is essentially owed to the financial markets and investors who lend credit to the government, often creating it in the process. This can be by purchasing government bonds, which is a common investment practice among banks, institutional investors, and individuals.

#### Conclusion

While Canada’s national debt is substantial, it is owed primarily to Canadians and various financial institutions, both domestically and internationally. This diversity can be seen as a strength, spreading the financial risk across a broad base. However, the debt also presents ongoing financial obligations and requires prudent management.

Understanding who holds this debt and how it impacts the economy helps in forming an informed opinion on financial policies and economic decisions. As the country continues to grow and adapt to global economic trends, managing this debt effectively will be a key challenge for Canadian policymakers.

If you’re interested in learning more, you can visit the official websites of the [Government of Canada](https://www.canada.ca/en/financial-consumer-agency/services/debt/collection-agency.html), the [Bank of Canada](https://www.bankofcanada.ca/), or [Debt Canada](https://www.debt.ca/en/debt/what-you-can-do) for detailed analysis and updates.

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By analyzing these sources, we get a clear picture of Canada’s national debt, its holders, and its implications for the country’s financial stability. However, it’s essential to continue monitoring these figures and discussing how they’ll affect future generations of Canadians.