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Norway c.bank temporarily eases collateral rules

Wed, Oct 29 2008, 14:09 GMT
http://www.afxnews.com

OSLO, Oct 29 (Reuters) - Norway's central bank said it was temporarily easing collateral requirements for its liquidity operations on Wednesday and announced a new 2-year loan.

It said the changes, which will apply from Nov. 3, would "increase banks' access to laons from Norges Bank".

The changes include a suspension in the requirements for a credit rating and listing on the stock exchange for bonds issued by private Norwegian firms. Banks' claims on mortgage companies issuing covered bonds will now also be eligible as collateral.

Norges Bank also said it would offer banks a new liquidity loan, known as an "F-loan", with a two-year maturity and settlement on Feb. 1, 2009. The maximum bid for the loan will be 1 billion crowns.

Norges Bank said it would also consider offering another two-year F-loan with settlement on May 1, 2009.

(Reporting by Wojciech Moskwa) Keywords: NORWAY LIQUIDITY/COLLATERAL

tf.TFN-Europe_newsdesk@thomson.com

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