ANNUAL REPORT 2008 - Polymer Bank Notes of the World

y the respective NCBs will also be eligibleto participate in quick tenders, i.e. the tenderprocedure normally used for fine-tuningoperations. The NCBs may announce furtherdetails applicable for institutions established inthe respective Member States, where necessary.7 OCTOBER 2008SUPPLEMENTARY LONGER-TERM REFINANCINGOPERATIONToday the Governing Council of the ECBdecided to increase from €25 billion to€50 billion the allotment amount in the sixmonthsupplementary longer-term refinancingoperation that was pre-announced in the pressrelease of 4 September 2008 and will be allottedon 8 October 2008. Accordingly, a maximumbid amount of €5 billion will be applied inthis operation.8 OCTOBER 2008GENERAL ANNOUNCEMENT ON LIQUIDITY POLICYThe Governing Council of the ECB todaydecided, by means of a teleconference, onthe following two measures: As from theoperation settled on 15 October, the weeklymain refinancing operations will be carriedout through a fixed rate tender procedure withfull allotment at the interest rate on the mainrefinancing operation, i.e. currently 3.75%. Asof 9 October, the ECB will reduce the corridorof standing facility rates from 200 basis pointsto 100 basis points around the interest rate onthe main refinancing operation. Therefore, as of9 October, the rate of the marginal lendingfacility will be reduced from 100 to 50 basispoints above the interest rate on the mainrefinancing operation, i.e. currently to 4.25%,and the rate of the deposit facility will beincreased from 100 to 50 basis points below theinterest rate on the main refinancing operation,i.e. currently to 3.25%. The two measures willremain in place for as long as needed, and atleast until the end of the first maintenance periodof 2009, on 20 January. The ECB will continueto steer liquidity towards balanced conditions ina way which is consistent with the objective tokeep short-term rates close to the interest rate onthe main refinancing operation.9 OCTOBER 2008FINE-TUNING OPERATIONThe operation implements the decision ofyesterday (see press release of 8 October) tosatisfy all demand of counterparties, i.e. fullallotment, for refinancing at the main refinancingrate of 3.75% against eligible collateral, foras long as needed, and at least until the endof the first maintenance period of 2009, on20 January.15 OCTOBER 2008SUPPLEMENTARY LONGER-TERM REFINANCINGOPERATIONS/SPECIAL-TERM REFINANCINGOPERATION 3The Governing Council of the ECB todaydecided, by means of a teleconference, that asfrom the operation settling on 30 October 2008and until the end of the first quarter of 2009,the provision of longer-term refinancing bythe Eurosystem will be enhanced as follows,consistent with the temporary expansion of thecollateral pool:All longer-term refinancing operations will,until March 2009, be carried out through afixed rate tender procedure with full allotment.The two three-month supplementary longertermrefinancing operations (LTROs) maturingin February and in March 2009 will be rolledover and an additional three-month operationwill be conducted in January 2009. Theoutstanding six-month supplementary LTROmaturing in January 2009 will be rolled over,and four additional six-month supplementaryLTROs will be carried out in November 2008,3 Announcements on the fixed rate applied in the LTROs,supplementary LTROs and special-term refinancing operationsbetween 30 October and 31 December 2008 are not included inthis list. They are available on the ECB’s website.ECBAnnual Report2008263