ECB will receive 4.15 billion euros in crisis loans next week
The European Central Bank will receive 4.15 billion euros ($5.56 billion) in long-term loans from Banks. The money will be given next week following charges of the ECB for holding banks; excess cash overnight and promised more long-term loans.
The amount due to be paid on August 13, overcomes this week’s crisis-loan repayments of 3.21 billion euros.
ECB took several meausures to boost lending to euro zone companies, among others keeping the deposit rate below zero and promised to do more including fighting the risk of Japan-like deflation. Moreover, a four-year loan scheme is possible.
Banks continue to repay LTRO funds they took from the ECB in late 2011 and early 2012 as they are going through ECB health checks, which are in their final stages now with a Europe-wide bank stress test.
The ECB said that four banks would repay 2.32 billion euros from the first LTROs on Aug. 13 and six banks would pay back 1.830 billion from the second LTRO.
Source: Reuters
