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TEXT-ECB statement on extra longer-term refinancing operations

Thu, Sep 4 2008, 14:03 GMT
http://www.afxnews.com

FRANKFURT, Sept 4 (Reuters) - The European Central Bank on Thursday issued the following statement on the continuation of the central bank's supplementary longer-term refinancing operations:

The Governing Council today decided to renew the outstanding six-month supplementary longer-term refinancing operation (LTRO) of EUR 25 billion that was allotted on 2 April, and that will mature on 9 October 2008. It also decided to renew the two three-month supplementary LTROs (EUR 50 billion) that will mature on 13 November and 11 December 2008, respectively.

The renewal of these supplementary LTROs is aimed at supporting the further normalisation of the euro money market. The renewal will not affect the regular LTROs. The supplementary LTROs will be carried out as follows:

The two supplementary three-month LTROs will be carried out through variable rate tenders, each with a preset amount of EUR 50 billion. The first operation will be settled on 13 November 2008 and will mature on Thursday, 12 February 2009. The second operation will be settled on 11 December 2008 and will mature on Thursday, 12 March 2009.

The supplementary six-month LTRO will be carried out through variable rate tender, with a preset amount of EUR 25 billion. The operation will be settled on 9 October 2008 and will mature on Thursday, 9 April 2009. As in previous cases, a maximum bid amount of EUR 2.5 billion will be applied in the six-month supplementary LTRO.

The supplementary LTROs will be carried out through a standard tender procedure with their announcement and allotment taking place two days and one day, respectively, before settlement.

In addition to the indicative calendar for the Eurosystem's regular tender operations, a calendar listing the various supplementary operations conducted by the Eurosystem can be accessed via the open market operations site on the ECB's website.

Keywords: ECB/REFINANCING

tf.TFN-Europe_newsdesk@thomsonreuters.com

wj

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