December 4, 1998 (1:30 p.m. EST) No. 285

MARCHI WELCOMES HONGKONG BANK OF CANADA'S INVESTMENT IN NORTHSTAR TRADE FINANCE

International Trade Minister Sergio Marchi today welcomed the announcement by Hongkong Bank of Canada of a substantial equity investment in Northstar Trade Finance Inc., a partnership between the public and private sector that supports the export financing needs of Canadian small and medium-sized businesses.

"I am delighted that Hongkong Bank of Canada is adding its capital and international business expertise to help meet the export financing needs of the Canadian small business community as an investor in Northstar," said Mr. Marchi at a ceremony held in Toronto to announce the new investment. "Broadening the base of Canadian exporters is a personal priority. I want more companies exporting more goods and services to more countries."

Northstar Trade Finance Inc. was formed in 1994 as a partnership of public and private sector organizations, including the federal government, to provide medium-term finance to foreign buyers in support of export transactions in the $100 000 to $5 million range -- a market niche that, although not being served by conventional sources of trade finance, is critical to the success of smaller Canadian companies in world markets.

"As a public-private sector partnership, Northstar is an excellent example of the Team Canada approach in action," said the Minister. "The addition of Hongkong Bank of Canada to the team will enhance access to competitive export financing for Canada's small and medium-sized companies."

Catherine Swift, President of the Canadian Federation of Independent Business said, "Small and medium-sized businesses are increasingly looking to expand their activities in foreign markets, but accessing export financing remains a challenge. The activities of Northstar Trade Finance are a welcome addition to the marketplace."

In addition to Hongkong Bank of Canada, other Northstar shareholders are the Bank of Montreal, the Royal Bank of Canada and the Government of British Columbia. The Government of Ontario provided initial capital, and the Government of Canada provides support through the Western Economic Diversification Program, the Business Development Bank of Canada, and the Export Development Corporation (EDC). As a Crown corporation reporting to Parliament through the Minister for International Trade, EDC has provided insurance on all Northstar loans.

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For further information, media representatives may contact:

Leslie Swartman

Office of the Minister for International Trade

(613) 992-7332

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

This document is also available on the Department's Internet site: http://www.dfait-maeci.gc.ca