FDIC Approves More Guaranteed Loans

     WASHINGTON (CN) – The Federal Deposit Insurance Corporation has created an emergency credit facility for participants in the Debt Guarantee Program of the Temporary Liquidity Guarantee Program who find themselves unable to issue non-guaranteed debt to replace maturing senior unsecured debt due to market disruptions or other circumstances beyond their control.




     Access to the facility will be granted on a case-by-case basis after the FDIC reviews the depository institution’s application. If the application is approved, the FDIC will guarantee the applicant’s senior unsecured debt issued on or before April 30, 2010. Debt guaranteed under the emergency guarantee facility is subject to an annualized assessment rate equal to a minimum of 300 basis points.

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