Reflecting the improved conditions in funding markets, as evidenced by lower market-based funding costs and the lack of coverage in recent auctions for temporary liquidity facilities, the Bank of Canada is announcing that the following facilities will expire at the end of October 2009:

  • Term PRA Facility for Private Sector Instruments, after a final operation on 27 October 2009
  • Term Loan Facility (TLF), after a final operation on 28 October 2009

As previously announced, the Term Purchase and Resale Agreement (PRA) Facility will continue through to at least the end of January 2010. Operations under the new schedule for regular term PRA, which will be released on 20 October 2009, will be held on a bi-weekly basis, rather than weekly, commencing on 26 October 2009.

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.

In addition, effective immediately, a technical change is being made to the Terms and Conditions for the Term PRA Facility, whereby, on substitution dates, participants will have the right to substitute a maximum of three securities underlying all transactions, subject to notice by noon two business days prior to the substitution date, and in accordance with the Bank's Purchase and Resale Agreement. Further details on the Bank of Canada term Purchase and Resale Agreement (PRA) are available in the Terms and Conditions for the Term PRA Facility.

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