ČNB loans collateralised by state bonds fall

Prague, Nov 19 (CTK) - Interest of Czech financial institutions in loans provided by the Czech National Bank (CNB) with state bonds being put up as collateral is decreasing, according to CNB data. While shortly after interest rates were cut in early November banks borrowed over Kc10bn from CNB, Wednesday their interest was zero, CNB said. CNB has so far granted Kc45.5bn worth of such loans. As of mid-October, banks can borrow money from the CNB for a fortnight, putting up state bonds as collateral. The central bank thus wants to set the bond market in motion. It plans to supply money onto the market in this way until the end of the first half of 2009 at least. The situation on the bond market is gradually calming down but it is still too early to talk about a full return to "normal," CNB Bank Board member Eva Zamrazilova has... [read full story]                    

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