CONFIDENTIAL
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23.
Performing its role as the lender of last resort, the
Fund provided late overnight assistance on 15 occasions in 1991,
with the amount varying from $50 million to $450 million. During
the short-lived bank runs in July and August, the Fund provided
liquidity support to the banks affected also in the form of
standby credit facility and deposit placement.
THE EXCHANGE FUND BILLS PROGRAMME
24.
The Exchange Fund Bills Programme was introduced in
March 1990 with the issue of 91-day Bills. These Bills are
tendered for weekly on Tuesdays. In total, 52 issues were
arranged in 1991. Tenders for the Bills were oversubscribed at an
average rate of 2.62 times and the Bills were issued at an average
margin of 57 basis points below 3-month HIBOR during the year.
The issue size was raised from $400 million to $500 million on 14
August 1991 and remained at this level for the rest of the year.
25.
The 182-day Bills, which were introduced on 31 October
1990, are issued at fortnightly intervals with an issue size of
$200 million. 26 issues were arranged in 1991. Tenders for the
Bills were oversubscribed at an average rate of 3.24 times and the
Bills were issued at an average margin of 62 basis points below
6-month HIBOR. The issue size was maintained at $200 million
throughout the year.
26.
As both the 91-day and 182-day Bills were well received
by the market, the Programme was further extended on 27 February
1991 to include the issue of 364-day Bills. Tenders for these
Bills are held once every four weeks. 11 issues were arranged in
1991. Tenders for the Bills were oversubscribed at an average
rate of 2.87 times and the Bills were issued at an average margin
of 76 basis points below 1-year HIBOR. Since inception, the issue
size has been maintained at $200 million.
CONFIDENTIAL