×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: ECB | banks | loans | repay

ECB Says European Banks to Repay 7 Billion Euros of 3-Year Loans

Thursday, 28 March 2013 07:41 AM

The European Central Bank said banks will repay 7 billion euros ($9 billion) of 3-year loans next week.

Some 5 banks will return 3.8 billion euros borrowed in the first of the so-called Longer Term Refinancing Operations, and 6 will repay 3.2 billion euros of the second tender, the Frankfurt-based ECB said in a statement today. That takes the total amount of money repaid early to 244.7 billion euros, or 24 percent of the amount lent.

The ECB’s 3-year loans helped prevent a credit crunch last year as European banks shied away from lending in the midst of a worsening debt crisis. With excess liquidity in the financial system still around 365 billion euros, some banks are choosing to take the option to repay the funds, offered at the average of the ECB’s benchmark rate over their duration, early.

ECB President Mario Draghi said on March 7 that the repayments “reflect improvements in financial-market confidence over the last few months and receding financial-market fragmentation,” adding that monetary policy will remain accommodative for “as long as needed.”

The central bank still allows banks to borrow as much money as they want against eligible collateral for periods of one week, one month and three months.

© Copyright 2022 Bloomberg News. All rights reserved.


FinanceNews
The European Central Bank said banks will repay 7 billion euros ($9 billion) of 3-year loans next week.
ECB,banks,loans,repay
203
2013-41-28
Thursday, 28 March 2013 07:41 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved