The Norwegian government and the country's central bank announced Sunday that they would take measures to enhance confidence in the financial market in the country, according to reports reaching from Oslo.
The Norwegian government will issue up to 350 billion kroner (about 57.41 billion U.S. dollars) in new government bonds which can be used as collateral in Norwegian banks' funding operations, the Norwegian government said in a statement.
The Norwegian central bank Norges Bank will provide liquidity loans of two year maturity targeted at smaller banks.
Norwegian authorities are prepared to implement necessary measures to maintain confidence in the Norwegian banking system, Prime Minister Jens Stoltenberg said in a statement.
"We will follow developments closely and launch new measures if necessary," he told a press conference in Oslo.
The bonds will be made available to banks against collateral for periods of up to three years, the Norwegian Finance Ministry said in a statement.
Norwegian banks are affected by the turmoil in the international financial markets and their funding situation has deteriorated, even if they are fundamentally strong, according to the Norwegian government.
Source:Xinhua
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