TCCUSF to Borrow Up to $4 Billion from Treasury

The NCUA Board today approved that the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) may borrow up to $4 billion from Treasury through the end of 2011.

The borrowings will be used to retire the Asset Management Estate (AME) $36 billion in promissory notes to the bridge corporate credit unions and to address any additional cash needs that may arise from the ultimate resolution of the bridge corporate credit unions.

NCUA expects to borrow between $3.1 billion and $3.5 billion from the U.S. Treasury to retire these promissory notes.

Later this year $2 billion in Medium Term Notes are coming due. Funding needed to retire these liabilities will be brought to the Board at a later date.

Read the board action memo.