Fitch is satisfied that the debt service reserve fund, the only legally required reserve
fund, is sized to provide timely payment of principal and interest on the bonds under various gas pricing levels, swap counterparty default, FGU participant default, and the possible short-term disruptions of gas supply resulting from a UBS non-delivery or Force Majeure.
As a result, the reduction in required reserves
associated with sweep accounts has implied a nearly equivalent reduction in aggregate required reserve
balances; estimates suggest that the $12 billion dollar decline in OCDs this year translates to a reduction in required reserve
balances of nearly $1.
In addition, released funds from the defeasance will be used to fund required reserve
accounts and the cost of issuance.
3) At present, the required reserve
ratio on nontransaction accounts is zero, while the requirement on transaction deposits is 10 percent, which is near the legal minimum.
Subsequent to refunding bonds from other resolutions, lendable funds will be transferred to this resolution and, together with remaining bond proceeds, will be used to continue CDA's single-family, first-time homebuyer program and fund a required reserve
The above estimated ending general fund balances do not reflect the statutory required reserve
of $65 million.
The transferred funds, as well as the proceeds from the 2006 series I and J bonds, will be used to make or purchase mortgage loans and to fund a required reserve
As of Friday, the required reserve
ratio for foreign-exchange deposits with maturities of one month to one year was reduced from 12 percent to 11.
times and increased the required reserve
ratio of the country's lenders eight
The move increases the required reserve
ratio for the country's biggest banks to a record 20.
5 percent, and increased the required reserve
ratio by 200 basis points to ensure an overall tightening of monetary policy.
25% and reduce the required reserve
ratio by 2 percentage points to 6 percent as of April 1, 2010.