Steps taken by Norges Bank

Norges Bank is monitoring the current financial turbulence closely and assessing the need for further measures. The following are some of the measures already implemented. The summary was discontinued in October 2009.

2009

30 September
Experiences with the financial crisis
Lecture by Governor Svein Gjedrem at the Centre for Monetary Economics (CME)/BI Norwegian School of Management on 30 September 2009.

23 September
Key policy rate unchanged at 1.25 per cent
Norges Bank’s Executive Board decided today to keep the key policy rate unchanged at 1.25 per cent. Read the press release

12 August
Key policy rate unchanged at 1.25 per cent
Norges Bank’s Executive Board decided today to keep the key policy rate unchanged at 1.25 per cent. Read the press release

2 July
Norges Bank and the International Monetary Fund sign agreement on financial support for the IMF
The purpose of the proposed arrangement was to ensure that the Fund has sufficient lending capacity to assist countries experiencing balance of payments problems. Read more

1 July
Norges Bank has signed lending agreement with Seðlabanki Islands
Under the agreements the Nordic lenders stand ready to provide Iceland with long-term loans totalling EUR 1.775 billion. Read the press release

17 June
Key policy rate reduced by 0.25 percentage point to 1.25 per cent
Norges Bank’s Executive Board decided today to reduce the key policy rate by 0.25 percentage point to 1.25 per cent. Read the press release

6 May
Key policy rate reduced by 0.50 percentage point to 1.50 per cent
Norges Bank’s Executive Board decided today to reduce its key policy rate by 0.50 percentage point to 1.50 per cent. Read the press release

28 March
Norway offers to make financial resources available to the IMF
The Minister of Finance, Kristin Halvorsen, sent a letter to the Managing Director of the IMF, Dominique Strauss-Kahn, offering to make additional financial resources available to the IMF. Read more

25 March
Key policy rate reduced by 0.50 percentage point to 2.00 per cent
Norges Bank’s Executive Board decided today to reduce its key policy rate by 0.50 percentage point to 2.00 per cent. Read the press release

13 March
Hearing before the Standing Committee on Finance and Economic Affairs
Minister of Finance Kristin Halvorsen, Director General Bjørn Skogstad Aamo of The Financial Supervisory Authority of Norway and Governor of Norges Bank Svein Gjedrem at a public hearing before the Storting's Standing Committee of Finance and Economic Affairs. Introduction by Governor Svein Gjedrem

4 February
Key policy rate reduced by 0.50 percentage point to 2.50 per cent
Norges Bank’s Executive Board decided today to reduce its key policy rate by 0.50 percentage point to 2.50 per cent. Read the press release

2008

17 December
Key policy rate set at 3.00 per cent
Norges Bank’s Executive Board decided today to reduce its key policy rate by 1.75 percentage points to 3.00 per cent with effect from 18 December 2008. Read the press release

20 November
Norges Bank’s financing agreement with Sedlabanki Islands
In May 2008 Norges Bank and Sedlabanki Islands agreed on a swap facility entitling Sedlabanki Islands to borrow EUR 500 million when and if the need arises. The agreement was set to mature on 31 December 2008. Norges Bank announced on 3 November 2008 that the agreement would be extended to 31 December 2009 on certain conditions.  More

14 November
The swap arrangement for securities and two-year F-loan
In accordance with the mandate issued by the Storting (Norwegian parliament) on 24 October, the Ministry of Finance will implement an arrangement whereby the government and banks will swap government securities and covered bonds (OMF) for an agreed period. More

4 November
Guidelines for pledging securities as collateral for loans from Norges Bank
The guidelines in this circular will apply as from 3 November 2008 and replace the guidelines in Circular no. 5/2 October 2007, no. 3/6 October 2008 and no. 4/13 October 2008. This circular also includes the changes in collateral requirements published in a press release from Norges Bank on 29 October.

3 November
Norges Bank extends the financing agreement with Sedlabanki Islands
In May 2008 Norges Bank and Sedlabanki Islands agreed on a swap facility that gives Sedlabanki Islands the right to acquire EUR 500 million when and if the need arises. The agreement was set to mature on 31 December 2008, but has been extended to 31 December 2009. More

29 October
Key policy rate reduced by 0.50 percentage point to 4.75 per cent

Read the press release

29 October
Easing of collateral requirements
Norges Bank has decided to make temporary changes in the guidelines for pledging securities as collateral for loans from Norges Bank, in order to increase banks’ access to loans from Norges Bank.

24 October
Exchange of government securities for covered bonds
The Storting (Norwegian parliament) has authorised the Ministry of Finance to exchange government securities in return for Norwegian covered bonds (OMF). Read the press release (Stortinget)

22 October
Exchange of government securities for covered bonds
The Storting (Norwegian parliament) has today authorised the Ministry of Finance to exchange government securities in return for Norwegian covered bonds (OMF). The Ministry of Finance has published a press release containing further information about the swap arrangement. Read the press release

15 October
Key policy rate reduced by 0.5 percentage point to 5.25 per cent
Norges Bank’s Executive Board decided to reduce its key policy rate by 0.5 percentage point to 5.25 per cent with effect from 16 October 2008.

6 and 13 October
Changes in the guidelines for pladging securities as collateral for loans
Temporary changes have been made in the guidelines for pledging securities for pledging securities as collateral for loans at Norges Bank. Requirements regarding credit rating and listing on a stock exchange are being waived for covered bonds until further notice and the requirement regarding a minimum volume outstanding of NOK 300 million for securities (ISIN) issued in NOK by private issuers has been withdrawn.

8 October -
Krone liquidity is being supplied as necessary through foreign exchange swaps for US dollars and euros
Krone liquidity is being supplied to the Norwegian money market through foreign exchange swaps. This arrangement allows banks to use foreign currency as collateral for the supply of NOK. In addition, foreign banks active in the Norwegian money market can participate in these auctions.

29 September
Norges Bank can borrow up to USD 15 billion against collateral in NOK through a swap facility agreed with the Federal Reserve
A currency swap line has been established with the Federal Reserve, allowing Norges Bank access to up to USD 15 billion against collateral in NOK. The agreement expires in April 2009. Eight other central banks have also established swap lines with the Federal Reserve.

25 September
3-month loans provided to banks – maturity at beginning of 2009
Banks are being offered 3-month F-loans. These loans mature in January 2009. This measure will increase predictability in the supply of liquidity by the central bank.

16 September -
US dollars have been supplied to banks through foreign exchange swaps
US dollars have been supplied to banks established in Norway. Norwegian banks fund some of their activities using foreign currency, which is converted into NOK. The supply of foreign currency is therefore important for banks to be able to quote Norwegian money market rates.

15 September -
Norges Bank ensures that banks have ample liquidity
Liquidity is supplied to banks through fixed-rate loans (F-loans). Recently, Norges Bank has ensured that the amount of surplus liquidity is considerably larger than normal.

Published 10 October 2008 09:55