Termination of the Transportation Loan Program for Refugees

Year
2009
Number
B177
Sponsor(s)
Surrey

WHEREAS Canada, as part of its national humanitarian program for Government Assisted Refugee GAR immigrants is the only country worldwide that issues interest bearing loans to refugee immigrants to cover their pre-entry medical examination and transportation costs to resettle to Canada; AND WHEREAS the burden of the transportation loans is having a detrimental impact on thousands of refugees and on Canadian society, undermining refugees ability to integrate and to contribute to their full potential in their new homes: THEREFORE BE IT RESOLVED that the Union of BC Municipalities urges the Government of Canada to immediately cancel all outstanding refugee transportation and pre-entry medical loan debt and to cease seeking repayment of the transportation and pre-entry medical costs for new Government Assisted Refugees coming to Canada.

Federal Response

Citizenship Immigration Canada Canada has a proud history of opening its doors to people from around the world and providing safe haven to those in need of protection. Loans can be given to government-assisted or privately-sponsored members of the Convention Refugees Abroad, Country of Asylum and Source Country classes, and may be approved to pay for: - the costs of medical examinations abroad; - travel documents; and - transportation to Canada. Assistance loans are also available to newcomers to cover expenses such as housing rental, telephone deposits and work tools. Interest is charged on the loans, which are approved according to the applicants needs and ability to repay. The interest rate is set each January by the Department of Finance. A loan means recipients will have to repay the total amount to the Government. In practice, Citizenship and Immigration Canadas CICs Loans Collection unit normally mails the first notice requesting repayment several months after the refugee enters Canada. Therefore, once refugees have come to Canada, they will have the chance to work to support themselves and their family before they start repaying the loan. Repayment of their loans ensures that the finances are available to assist other people in similar situations. More information on the Immigration Loans Program can be found on our Web site at: www.cic.gc.caenglishrefugeesoutsideresettle-assist.asp Immigration and visa officers use sound judgment and discretion in evaluating an applicants potential ability to repay before approving a loan. In addition, funds from the Resettlement Assistance Program are set aside annually to pay the transportation and medical admissibility costs of some refugees with special needs including seniors, single parents with large families, and persons with serious health challenges. In 2007, 734,000 was used for this purpose. Ninety percent of all refugees successfully repay their loans. In cases when they are unable to do so, clients can request a deferral of repayment because of financial hardship. Under special circumstances, an officer of Collection Services, Finance, at National Headquarters, may authorize such a deferral, taking into consideration the persons income, assets and liabilities. Deferral may include delaying the commencement of repayment, postponing payments, varying the monthly amount or extending the repayment period. For Convention refugees or members of the Humanitarian Protected-Persons Abroad classes who have been selected in Canada or abroad, the deferral of payment may be up to 24 months. For any other person, payments may be delayed up to six months. At any time, clients facing hardships, such as loss of employment or inability to pay, can request a review of their repayment arrangement so as not to create an undue burden. Clients have access to a toll-free number 1-800-667-7301 to discuss any matter regarding the repayment of their loan.

Convention Decision
Endorsed