Rules on Central Bank Facilities for Financial Undertakings amended
The Central Bank has decided to offer its counterparties special temporary credit facilities in the form of collateralised loans. The first auction will be held on 22 April 2020. The collateralised lending facilities are part of the Bank’s response to the unprecedented situation currently prevailing and are intended as a means of offering financial institutions increased access to liquidity on a temporary basis, against collateral deemed eligible by the Bank.
In line with its 8 April 2020 press release, the Central Bank has amended its Rules on Central Bank of Iceland Facilities for Financial Undertakings, no. 1200/2019. The amended Rules have been published in the Law and Ministerial Gazette (Stjórnartíðindi). Furthermore, the list of instruments deemed eligible as collateral for Central Bank facilities has been updated to accord with the amendments. The updated list can be found here.
No. 12/2020
17 April 2020