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European central banks put $120b into markets
European central banks offered another $120 billion (Dh440.8 billion) in overnight cash to markets yesterday, in an effort to keep a strained financial system flush with cash.
- Agencies
- Published: 23:53 October 10, 2008
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Frankfurt: European central banks offered another $120 billion (Dh440.8 billion) in overnight cash to markets yesterday, in an effort to keep a strained financial system flush with cash.
The European Central Bank (ECB) offered $100 billion, the Bank of England (BoE) $10 billion, and the Swiss National Bank $10 billion.
The ECB's and the BoE's offers mature on Monday. The SNB did not post details of its offers in the morning.
The short term liquidity offers are similar to those in past weeks and the banks will post more details on the offering later in the day.
The central banks have been offering cash to markets on an almost daily basis for in recent weeks as the financial sector has become wary of lending to anyone - including other banks - and credit has become more scarce as a result.
Spain
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Spain will buy up to 30 billion euros (Dh148.5 billion) in investment grade bank debt in the fourth quarter, and a further 20 billion euros in 2009 to boost financial sector liquidity and kickstart lending, the government said yesterday.
Total purchases will not exceed 50 billion euros and the fund is a temporary measure so banks can issue long-term debt they cannot sell during the global credit crisis, Economy Secretary David Vegara said.
Dutch
The Dutch government will set aside 20 billion euros to inject capital into the country's financial companies if and when necessary, Finance Minister Wouter Bos and central bank governor Nout Wellink said on Thursday.
Bos told a late-night news conference that the money was immediately available to protect healthy financial companies amid the market turmoil.
Canada
Canada plans to buy up to C$25 billion (Dh77.1 billion) in insured mortgages in a bid to help cushion the blow from the global financial crisis and address the "scarcity" of private sector lending, Finance Minister Jim Flaherty said on Friday.
Flaherty stressed that the the program is not a bank bailout because the government is not buying equity.
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