OSLO, Norway - The Norwegian government plans to offer new government bonds worth $55.4 billion US to banks to help improve liquidity in the market.
The government said Sunday it will ask for authorization from parliament to issue the new bonds on Friday and hopes to implement the issue no later than Nov. 1.
The bonds will have a maturity of three years.
The government said banks will be offered the new bonds in exchange for bonds secured against Norwegian mortgages. They can then use the bonds as a security for loans.
At the same time, the Norwegian Central Bank will issue fixed-interest rate loans with two years maturity directed toward smaller banks.
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