British banks and the Spanish Government are analysing the feasibility of certain emergency measures to provide liquidity to financial entities and to jump-start the capital markets.
In Spain, one of the initiatives on the table consists in requesting that the Central European Bank grants a greater term for financial operations with the purpose being to provide more stability to financial entities.
Another of the measures being discussed involves the Spanish Government and the Public Authorities being able to guarantee certain securitisations.
Specifically, this proposal has materialised in the form of the 3,000 million securitised VPO debts (subsidised housing) that have already been guaranteed by the ICO (Official Credit Institute of Spain).
In the United Kingdom, during the months of May, June and July, the Bank of England will exchange up to 50,000 million Sterling in securit ies in securities backed by mortgage debt by public debt, in other words, Treasury bonds.
With this action, the Central Bank of the United Kingdom intends to improve the liquidity situation of the banking system and raise confidence in the financial markets.
Authorised entities will have six months to exchange the assets for mortgage loans during an initial period of one year that may be extended to three.
Those interested in doing so, will also be required to pay a commission resulting from the difference between the three-month Libor rate and the official price of money at three months.
In Spain, one of the initiatives on the table consists in requesting that the Central European Bank grants a greater term for financial operations with the purpose being to provide more stability to financial entities.
Another of the measures being discussed involves the Spanish Government and the Public Authorities being able to guarantee certain securitisations.
Specifically, this proposal has materialised in the form of the 3,000 million securitised VPO debts (subsidised housing) that have already been guaranteed by the ICO (Official Credit Institute of Spain).
In the United Kingdom, during the months of May, June and July, the Bank of England will exchange up to 50,000 million Sterling in securit ies in securities backed by mortgage debt by public debt, in other words, Treasury bonds.
With this action, the Central Bank of the United Kingdom intends to improve the liquidity situation of the banking system and raise confidence in the financial markets.
Authorised entities will have six months to exchange the assets for mortgage loans during an initial period of one year that may be extended to three.
Those interested in doing so, will also be required to pay a commission resulting from the difference between the three-month Libor rate and the official price of money at three months.
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