That's a good question.
First, let me clarify one thing, Mr. Chair. The $12 billion is neither a loan, nor money from taxpayers. Basically, we recommended that the Business Development Bank of Canada buy back the financing contracts and leases of these financial companies. Normally, these companies would sell these contracts and leases on the open market in exchange for liquidities. The Business Development Bank of Canada would buy back these leases as securities and would then have the receivables associated with these financial documents. In essence, the taxpayer would benefit as a result of this transaction.
We're not taking taxpayer dollars and giving them it directly to this sector. This is not a loan. We are buying back an asset from Toyota Financial Services or from GMAC, which cannot currently sell these securities on the open market. Normally, they would turn to life insurance companies, to pension fund companies that would buy these securities in exchange for liquidities. SInce there are no such buyers, whether life insurance companies or pension funds, in the current market, the government has agreed to step in for these companies temporarily. This is a temporary situation, since the average length of these contracts and leases is about 33 months. We are confident that over the next two to three years, the market and the economy will recover to the point where the government can let market conditions play out and our companies can again experience the capitalization level they have enjoyed in the past.
Therefore, this is neither a loan nor money that comes from taxpayers. We are purchasing an asset, whether a financial contract or a lease, and in the process, reintroducing liquidities into the system.