Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/241236 
Year of Publication: 
2021
Series/Report no.: 
Bank of Canada Staff Working Paper No. 2021-13
Publisher: 
Bank of Canada, Ottawa
Abstract: 
This paper analyzes the effectiveness of debt-relief programs targeting short-run household liquidity constraints implemented in Canada in response to the COVID-19 pandemic. These programs allowed individuals to push off mortgage and credit card payments and cut in half interest rates on credit card debt. Using credit bureau data, we document that, despite potential savings above $4 billion, enrollment was limited: 24% for mortgages and 7% for credit cards. By exploiting the richness of our data set, we provide evidence that close to 80% of individuals were unaware of the credit card relief program while others faced important fixed nonmonetary costs preventing uptake.
Subjects: 
Credit and credit aggregates
Coronavirus disease (COVID-19)
Debt management
JEL: 
H5
G31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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