FIFA president’s latest comments on National Debt

FIFA president Sepp Blatter has warned that if the country cannot meet its obligations on its debts it will have to seek a restructuring of its sovereign debt. 

“It’s a real risk for Canada,” Blatter said in a wide-ranging interview with the Financial Times published on Sunday. 

The FIFA president was responding to a question on the possibility of Canada seeking a bailout from the World Cup host country if it cannot pay its bills.

“If the government does not fulfil its debt obligations and there are no other countries that will do so, then you will have a situation in which the government will have no other options but to seek another loan, but it would be a very difficult and costly process,” Blatt said.

Blatter said he was “very, very worried” about the prospects for Canada’s debt situation.

“It would be very difficult to do without the support of the international community,” he said. 

He added that it was up to the Canadian government to determine whether it would accept a bailout. 

In a letter to Blatter, Prime Minister Justin Trudeau said he will not accept a Canadian bailout if Canada cannot meet the obligations of its debt.

“Canada’s debt is not sustainable and it is unacceptable to make this decision for Canada in the light of the financial conditions we are facing,” Trudeau said in the letter.

“The Government of Canada is committed to a balanced and sustainable financial position and to delivering the economic recovery Canadians have been promised. 

A similar offer from European countries has been made, but these offer will not be considered,” Trudeau added. 

Blatter also addressed criticism from some in Canada that he has not been able to meet the debt obligations imposed by the host country, which is due to be repaid in 2019. 

Canada’s last sovereign debt payment was in 2015, but the country is on course to repay its entire $2.4 trillion sovereign debt in 2024.


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