Arab Today, arab today ecb readies cash bonanza for banks
Last Updated : GMT 14:25:05
Arab Today, arab today
Arab Today, arab today

ECB readies cash bonanza for banks

Arab Today, arab today

Arab Today, arab today ECB readies cash bonanza for banks

Frankfurt - AFP

The European Central Bank is set to flood eurozone banks Wednesday with a new bonanza of cheap cash aimed at averting a credit crunch in the euro area. As part of a series of recent measures, the ECB decided to lend as much as banks wanted at a rock-bottom interest rate of 1.0 percent for a period of three years so as to keep credit flowing in Europe at a time when the banks are increasingly wary of lending to each other. At the first long-term refinancing operation (LTRO), affectionately dubbed \'Big Bertha\' by ECB chief Mario Draghi in December, some 523 banks lined up to borrow a record 489.2 billion euros ($658 billion). While some analysts believe the banks could borrow as much as 1.0 trillion euros at the second, and most likely last, three-year LTRO on Wednesday, the majority are more conservative and forecast a similar amount to the first. The ECB is scheduled to announce the results at around midday Wednesday. Tensions in the banking system appear to have eased as a result of the first LTRO, suggesting that the \'Big Bertha\' approach -- taken by some to be a reference to a massive World War I German artillery piece -- may be working, at least for now. Borrowing costs for debt-wracked countries such as Spain and Italy have come down, stock markets across Europe have rallied and confidence is on the rise although a final resolution of the eurozone debt crisis seems some way off yet. The offer Wednesday could be skewed, however, by the ECB\'s announcement on Tuesday that it will temporarily refuse to accept Greek government bonds as collateral for loans after rating agency Standard & Poor\'s declared that Greece is in \"selective default\". That will make it harder for Greek banks in particular to take advantage of the new ultra-cheap loans because in order to qualify for them, banks must put up collateral, including in the form of sovereign bonds. Nevertheless, any banks unable to do so because of the suspension of the Greek bonds will still be able to borrow cash from their national central bank under emergency assistance provisions, the ECB said. Ever since the eruption of the debt crisis, the ECB has come under intense political pressure to step in and save eurozone countries sinking under huge mountains of debt. But the bank has argued from the very beginning that it is up to overspending governments to get their finances in order and restore the markets\' confidence in their ability to repay their debts so as to remedy the underlying cause of the eurozone\'s current ills. While ECB chief Draghi said the aim of the new funding was for banks to lend to households and businesses, there have been concerns that banks are simply hoarding the cash instead. For weeks, the banks have been parking record amounts of cash in the central bank\'s overnight storage facility, earning paltry returns rather than take the risk of lending the funds on to earn more. In its regular quarterly bank lending survey, the ECB calculated that growth in loans to the private sector slowed substantially in December, tying in with other data showing the eurozone economy shrank 0.3 percent in the last quarter. With the economy forecast to be in mild recession for all this year, shrinking 0.3 percent in all, the eurozone needs all the help it can get from the ECB.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today ecb readies cash bonanza for banks Arab Today, arab today ecb readies cash bonanza for banks

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today ecb readies cash bonanza for banks Arab Today, arab today ecb readies cash bonanza for banks

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israeli court convicts Palestinians of 2016

GMT 04:39 2017 Tuesday ,17 October

Israeli court convicts Palestinians of 2016
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday