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Bank of Canada announces new term liquidity action

28/11/08

TORONTO (Reuters) - The Bank of Canada announced on Friday a series of new term loan facility transactions and term purchase and resale agreements for the rest of December and January.

The actions are part of liquidity measures the bank has undertaken and are in addition to several actions previously announced.

"The bank will continue to provide additional term liquidity as long as conditions in financial markets warrant," the Bank of Canada said in a statement.

The central bank said it would hold six additional term PRAs for private sector money market instruments with minimum amounts of C$1 billion ($812 million) offered at each.

The Bank of Canada also said a minimum of C$2 billion will be offered at each future term loan facility transaction. Seven new TLFs were announced on Friday.

The next private sector money market term PRA will be held on December 1, as will a C$2 billion term loan facility transaction.

(Reporting by Ka Yan Ng; editing by Rob Wilson)

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