The Federal Reserve Board has voted to establish a Century Date Change Special Liquidity Facility, a program for lending to depository institutions from Oct. 1, 1999, through April 7, 2000. The facility will help ensure that depository institutions have adequate liquidity to meet any unusual demands and enable them to more confidently commit to supplying loans to other financial institutions and businesses through the Y2K rollover period.
The interest rate charged on loans from the special facility will be 150 basis points higher than the Federal Open Market Committee's intended federal funds rate. Although collateral requirements will be the same as for regular discount window loans, there will be no restrictions on the use and duration of loans from the special facility while it is in operation. Moreover, borrowers will not be required to seek funds elsewhere first.
For more information, call Harold Slingerland at (314) 444-8752.
The St. Louis Fed has announced the following staff additions to its Business Development function: