Consistent with its commitments under the G7 Plan of Action, the Bank of Canada announced on 14 October measures to provide exceptional liquidity to the Canadian financial system. Further to these measures, the Bank today announced plans for a Canadian Dollar Term Loan Facility (TLF).

The TLF will be transacted through a single price auction process with direct participants in the Large Value Transfer System (LVTS) who have completed the necessary legal arrangements. The TLF auctions will be held according to the following schedule:

Auction Date Settlement Date Minimum Amount (millions) Term (Days) Maturity Date
19 November 20 November $2,000 26 16 December
24 November 25 November $2,000 28 23 December
1 December 2 December $2,000 28 30 December
8 December 9 December $2,000 28 6 January 2009

Eligible collateral will be the non-mortgage loan portfolio as accepted on a temporary basis for LVTS and standing liquidity facility purposes. Further terms and conditions for the TLF are available at http://www.bankofcanada.ca/en/notices_fmd/2008/term_tlf_121108.html.

By providing greater flexibility for liquidity provision with respect to eligible collateral, the TLF will facilitate further improvement in money and credit markets.

The Bank will continue to provide additional term liquidity as long as conditions in financial markets warrant.

For further information, please contact:
Jeremy Harrison
613 782-8782