NIB joins EBRD and Baltic central banks to develop commercial paper market

The Nordic Investment Bank is joining the European Bank for Reconstruction and Development and the central banks of Estonia (Eesti Pank), Latvia (Latvijas Banka), and Lithuania (Lietuvos Bankas) in the joint effort to develop a regional market for commercial papers.

Commercial papers are short-term unsecured promissory notes issued by companies with a fixed-term maturity and used to address short-term liquidity or working capital needs. Demands for such alternative sources of finance are rapidly increasing in the current coronavirus pandemic. 

Promoting the regional CP market will contribute to diversifying sources of finance for local corporates, supporting the development of tradeable securities and improving the regional debt capital market and mobilising funds from institutional investors.