Federal government LEEFF program for loans to large businesses comes with high interest rates and strings, Professor Richard Leblanc tells BNN Bloomberg

Federal government LEEFF program for loans to large businesses comes with high interest rates and strings, Professor Richard Leblanc tells BNN Bloomberg

The LEEFF program was designed by the federal government to be a lender of last resort for large companies that have exhausted other lending options, which is something boards should consider carefully before deciding to use it, says School of Administrative Studies Professor Richard Leblanc, an expert in corporate governance and boards.

A one-size-fits-all program will not work well so it will be interesting to see how much flexibility the government allows to accommodate for differences in corporations. But in any case, board members will want to consider carefully the high interest rates their corporations will be charged, as well as other conditions they will have to meet, he says. Watch the interview here.