Bank of Canada Announces Extension of Temporary Liquidity Facilities

The Bank of Canada is announcing the following extensions to its temporary liquidity facilities:

• auctions of regular term Purchase and Resale Agreement (PRA) will continue through to at least the end of January 2010;
• the Bank will continue to accept, for a temporary period until at least 1 February 2010, an assignment of non-mortgage loan portfolios as eligible collateral for LVTS and standing liquidity facility purposes (see https://www.bankofcanada.ca/en/notices_fmd/2008/not171008_doc.html for more details).

As previously announced, weekly auctions of the Bank of Canada Term Loan Facility (TLF) and of term PRA for Private Sector Instruments will continue through to at least the end of October 2009.

New schedules of operations for the Bank of Canada term liquidity facilities for operations commencing the week of 27 July 2009 will be released on 21 July 2009.

Further details on the Bank of Canada term liquidity facilities are available in the Terms and Conditions for the Term PRA Facility, the Terms and Conditions for the Term PRA Facility for Private Sector Instruments, and the Terms and Conditions for the Term Loan Facility.

In addition, the Bank of Canada and the U.S. Federal Reserve have agreed to extend their swap facility (reciprocal currency arrangement) to 1 February 2010.

The Bank of Canada continues to closely monitor global market developments and remains committed to providing liquidity as required to support the stability of the Canadian financial system and the functioning of financial markets.

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