Canada’s federal and provincial government have agreed to backstop the restructuring plan for non-bank sponsored asset-backed commercial paper (ABCP), the federal government announced Friday.

“The Government of Canada has agreed to partner with the governments of Quebec, and Ontario in the provision of a senior funding facility to support a restructuring of non-bank asset backed commercial paper,” said Finance Minister Jim Flaherty, in a release.

“We expect that this will allow the investors and asset providers to achieve a stable and effective restructuring agreement,” Flaherty said.

Late Friday, Flaherty confirmed that the government of Alberta had also signed on to the agreeement.

IE