WASHINGTON — The Central Liquidity today provided $2.9 billion in additional in additional money to credit unions participating in the Credit Union System Investment Program, bringing the total to almost $8 billion.
Under SIP, credit unions borrow from the CLF and invest the funds in corporate credit union debt guaranteed by the NCUSIF. Corporate credit unions use the funds to pay down borrowing outside the credit union system, freeing collateral for future contingency liquidity needs.
"The continuing commitment of the credit union industry to the SIP program is both impressive for its size, as well as for what it says about the recognition of the need for everyone's help during this critical time. Stabilized liquidity is one of the cornerstones of NCUA's approach to dealing with the difficulties in the corporate system, and I encourage credit unions to utilize this important tool as we move forward together," NCUA Chairman Michael E. Fryzel said in a statement.
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