Canada unveils aid for businesses, families amid COVID-19 crisis

Canada is prepared to spend up to C$82 billion (US$57 billion) to help its citizens and businesses in response to the COVID-19 crisis.

Prime Minister Justin Trudeau announced Wednesday an aid package that includes C$27 billion in direct financial support and another C$55 billion to boost business liquidity through tax deferrals, representing more than 3 percent of Canada's GDP.

"These are extraordinary times, our government is taking extraordinary measures," said Trudeau from outside his home at Rideau Cottage in Ottawa, where he's in self-isolation.

Among the "extraordinary" measures unveiled: deferring the tax deadline, boosting the Canada Child Benefit, wage subsidies for small businesses and targeted assistance for vulnerable demographics to help "bridge to better times".

"While we are taking a significant step today to help families get through these challenging times, our government is prepared to do more," Trudeau said, adding that the relief measures will ensure that Canada's economy rebounds after the pandemic.

Trudeau also announced Wednesday that Canada and the United States have agreed to restrict nonessential travel across the border as both countries try to slow the spread of COVID-19, but shipments, trade and commerce will not be affected by this new restrictions.

Trudeau announced Monday that he was closing Canada's border to all travelers except for Canadian citizens, permanent residents and Americans. All international flights to Canada are being directed to one of four airports — Montreal, Toronto, Calgary and Vancouver — to ensure better passenger-screening.

It is the third time the PM has addressed the country about the COVID-19 pandemic since his wife, Sophie Grégoire Trudeau, contracted the virus last week.

Ahead of Trudeau's unveiling of the massive aid package, the Bank of Canada made a surprise cut to its trend-setting interest rate by half a percentage point to 0.75 percent from 1.25 percent on Friday — the second such unexpected cut in nine days to stimulate the economy.

"It is clear that the spread of the coronavirus is having serious consequences for Canadian families, and for Canada's economy," the central bank said in a statement.

In addition, the bank said low oil prices will "weigh heavily" on growth, especially in energy-heavy regions.

As of Wednesday morning, there were 648 confirmed coronavirus cases in Canada, with nine related deaths, which indicates a "sharp rise" in the number of cases and indicates community spread, according to Canada's Chief Public Health Officer Dr Theresa Tam.

Three Canadian provinces — Alberta, British Columbia and Ontario — have declared states of emergency as the number of coronavirus cases in the country rises steadily.