Canadian government borrowed a net $119B in 2025

The federal government borrowed a net $118.9 billion on the credit market in 2025, the highest level in five years, according to Statistics Canada.

In total, Canadian governments at all levels and corporations issued a net $242.5 billion of debt securities in 2025, down from $281.7 billion in 2024.

Provincial and territorial governments issued a net $79.8 billion of debt securities in 2025, a similar level to the $83 billion in 2024. Nearly half of the funds were raised on foreign markets, compared with 20% the year prior.

Canadian non-financial corporations issued a net $64.4 billion in debt securities in 2025, down from $72.1 billion in 2024. Proceeds mainly supported debt refinancing, investment and acquisition activity. Meanwhile, financial corporations repaid a net $23.4 billion in debt securities in 2025, led by chartered banks.

Fourth quarter of 2025

Canadian governments and corporations borrowed a net $55.9 billion in debt securities in the fourth quarter, down from net issuances of $88.5 billion in the previous quarter. Borrowing in the fourth quarter was largely in long-term instruments and led by the government sector.

Canadian governments issued a net $53.2 billion of debt securities in the fourth quarter, with provincial and territorial governments accounting for $33.5 billion of it. Meanwhile, federal government borrowing declined with net issuances of $18.5 billion in the fourth quarter, the lowest quarterly amount recorded in 2025.

Canadian non-financial corporations raised $13.7 billion on the credit market, led by the mining industry. At the same time, Canadian financial corporations repaid a net $10.9 billion of debt securities in the fourth quarter. Chartered banks accounted for the bulk of the repayment, mostly from retiring residential mortgage-backed covered bonds.

The total amount of debt securities owed by Canadian entities rose by $24.1 billion in the fourth quarter, reaching $6.4 trillion. The new borrowing activity was moderated by a downward revaluation of the debt from the appreciation of the Canadian dollar against foreign currencies, the national statistical agency reported.

Jonathan Got

Jonathan Got is a reporter with Advisor.ca and its sister publication, Investment Executive. Reach him at jonathan@newcom.ca.