The Reserve Bank will provide term funding.....>

RBNZ: The Reserve Bank will provide term funding to banks at a very low interest

rate under the previously announced Term Lending Facility (TLF), to help them

support the Govt's Biz Finance Guarantee Scheme & promote lending to businesses.

The RBNZ today outlined the operational details of the TLF, which will be

available to banks from 26 May. Under the facility, the RBNZ will offer to lend

funds to banks at the OCR of 0.25%, fixed for 3 years. "The Reserve Bank has

designed the TLF to give the Government's Business Finance Guarantee Scheme

(BFGS) the best chance of success," Asst. Gov. Hawkesby says. "We expect these

low cost of funds to be passed through to low lending rates for business

customers." Access to the funds will be linked to each banks' lending under the

BFGS & the facility will require approved eligible collateral to be pledged

against the funds. The facility will be available to use for 6 months, starting

26 May & ending on 29 October.

- TLF Schedule, Offering 10:00am - 12:00pm and 1:00pm - 3:00pm:

- 26 May '20 - 28 May '20, 25 Jun '20 - 29 Jun '20, 24 Jul '20 - 28 Jul '20, 26

Aug '20 - 28 Aug '20, 24 Sep '20 - 28 Sep '20 & 27 Oct '20 - 29 Oct '20.