Canada reacts to credit crisis by buying mortgages

TORONTO (AP) - Canada's finance minister says the government is buying up to $25 billion Canadian ($21 billion) in mortgages form the country's banks in an effort to maintain the availability of credit.

Finance Minister Jim Flaherty said Friday the action will help consumers, homebuyers and businesses in Canada get loans.

Flaherty says Canada's banks are sound, well-capitalized and less leveraged than their international peers. He says the program does not involve troubled assets, but high-quality assets that are already backed by a government guarantee.

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