UPDATE 1-Norway says not seeking more cash for banks

* 2008 350 bln crowns bank rescue plan towards an end

* Gvt's 2010 financing requirement NOK 44.2 bln

(Adds comments, details)

OSLO, Nov 6 (Reuters) - Norway said on Friday it will no longer supply liquidity to banks through swap facilities introduced during the financial crisis, as it is scaling back the massive 2008 rescue plan for the financial sector.

Norway unveiled last year a 350 billion crowns ($61.68 billion) plan to secure funding for banks during the global crisis as liquidity dried up in the wake of the international turbulence.

Under the plan, new government securities were issued in exchange for covered debt including mortgage-backed bonds, deemed necessary as high funding costs threatened Norway's otherwise apparently sound banking system.

But as the road to recovery has started, access to liquidity has improved.

"This means we will not ask for an authorisation to make new deals in the swap agreement -- there will be no new auctions in 2010," spokesman Hans Christian Tronstad at the Finance Ministry told Reuters.

"There are outstanding agreements...but the volume will not increase," Tronstad said.

The Ministry of Finance said it proposed to Parliament an authorisation for central government borrowing of up to 50 billion crowns in new long-term bonds in 2010.

"The government's gross financing requirement for 2010 is 44.2 billion Norwegian crowns," the Finance Ministry said in a statement.

It said the financing requirement would be covered by borrowing in the domestic market and by drawing on cash reserves.

The maximum outstanding of short-term market instruments (Treasury bills) was proposed at 350 billion crowns.

The Ministry of Finance and Norges Bank will publish an auction calendar in December for the issuance of government bonds and Treasury bills in 2010, it said.

(Reporting by Oslo newsroom; Editing by Victoria Main)