3
FRIDAY, AUGUST 4, 1989
ANOTHER DEVELOPMENT IN THIS AREA IS THE
TO ISSUE EXCHANGE FUND BILLS LATER THIS YEAR.
GOVERNMENT'S
PROPOSAL
"ONE OF THE PURPOSES OF THIS DEVELOPMENT IS THAT OF PROVIDING THE BANKING SYSTEM WITH A LOW RISK LIQUID ASSET WHICH CAN READILY BE ENCASHED IN CASE OF NEED.
"INDEED, THERE WILL, IN EFFECT, BE A DISCOUNT WINDOW FOR THESE INSTRUMENTS AS THE EXCHANGE FUND WILL ALWAYS BE PREPARED TO BUY THEM BACK AT MARKET RELATED PRICES, HE SAID.
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AS FOR MR AU'S CONCEPT OF AN AUTOMATIC FACILITY WHEREBY BANKS COULD "LIQUIDATE OR PLEDGE THEIR ASSETS IN EMERGENCY" WITH A GOVERNMENT BODY, MR NENDICK SAID THIS WENT FAR BEYOND WHAT WAS CONCEIVED INTERNATIONALLY AS HAVING ACCESS TO A DISCOUNT WINDOW.
"APART FROM THE COMPLEXITIES OF ASSIGNMENT ETC. I WOULD SEE MAJOR PROBLEMS BOTH IN THE CREDIT RISK WHICH WOULD HAVE TO BE ASSUMED BY THE BODY CONCERNED IN ACQUIRING AND HOLDING ASSETS SUCH AS COMMERCIAL LOANS AND ALSO IN DETERMINING WHETHER OR NOT THE SITUATION BEING ADDRESSED WAS REALLY ONE OF A SHORTAGE OF LIQUIDITY OR OF INSOLVENCY.
"IN ANY EVENT IT WOULD SEEM UNLIKELY THAT THE EXCHANGE FUND HAS THE NECESSARY POWERS TO UNDERTAKE SO WIDE A ROLE, HE ADDED.
TWO REAPPOINTED TO EXECUTIVE COUNCIL
A GOVERNMENT SPOKESMAN ANNOUNCED TODAY
(FRIDAY)
THAT THE MEMBER OF THE
GOVERNOR HAS REAPPOINTED MR WILLIAM PURVES AS A EXECUTIVE COUNCIL UNTIL DECEMBER 31, 1991, AFTER THE EXPIRY OF HIS PRESENT APPOINTMENT ON AUGUST 31, 1989.
THE GOVERNOR HAS ALSO REAPPOINTED MR DONALD LIAO, SECRETARY FOR DISTRICT ADMINISTRATION, AS A MEMBER OF THE EXECUTIVE COUNCIL UNT NOVEMBER 30, 1989, AFTER THE EXPIRY OF HIS PRESENT APPOINTMENT ON AUGUST 31, 1989.
THE GOVERNOR PAID TRIBUTE TO THE VALUABLE CONTRIBUTION OF MR PURVES, PARTICULARLY ON FINANCIAL AND ECONOMIC ISSUES.
THE GOVERNOR ALSO PAID TRIBUTE TO MR LIAQ'S IMPORTANT CONTRIBUTION TO THE WORK OF THE EXECUTIVE COUNCIL.