Just a day after the US unveiled its plan to provide $17.4 billion to cash-strapped General Motors and Chrysler, Canada has announced its intentions to provide $4 billion of emergency loans to support the Canadian subsidiaries of the Big Three automakers. Harper also announced that auto parts suppliers will get improved insurance while vehicle buyers will get more access to credit.

“We will extend additional account-receivable insurance coverage for automotive suppliers through the Export Development Corp. And we will create a new facility to support access to credit for consumers. Taken together, these measures demonstrate that Canada is taking a holistic approach along the supply chain — manufacturers, suppliers and consumers,” he said.

Ontario will provide $1.3 billion with the rest funded by Ottawa. During his speech, Harper made clear that this was not a “blank cheque,” and by March 31st, 2009, the automakers must show that solid restructuring plans are underway. In another excerpt from his speech:

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