Bank Of Canada Ensures Availability Of Funds For Loans By Infusing Up To $20 Billion Cash The Money Markets

Ottawa, Ontario (AHN) - The Bank of Canada will flush the country's financial system with cash of up to $20 billion to ensure Canadians will have access to loans.

The infusion of extra funds has been taking place the past few weeks as Canada's response to the global financial crunch triggered by the collapse of several large Wall Street companies.

Since Sept. 19, the Canadian central bank has flooded the money markets of up to $8 billion made in three tranches. The added $12 billion will be released weekly until the end of 2008, according to the Bank of Canada's website. The bank promised to announce ahead the minimum amount it will make available.

The bank also said it will take in more different types of collateral, such as bank-sponsored asset-backed commercial paper and other securities deemed as acceptable. It pledged to continue providing term liquidity as long as financial markets' conditions warrant it.