ECB provides 530bn euros of loans

Thank you for using rssforward.com! This service has been made possible by all our customers. In order to provide a sustainable, best of the breed RSS to Email experience, we've chosen to keep this as a paid subscription service. If you are satisfied with your free trial, please sign-up today. Subscriptions without a plan would soon be removed. Thank you!

29 February 2012 Last updated at 05:53 ET

The ECB hopes the loans will ease the eurozone debt crisis

Continue reading the main story

• Greece debt cut: Who loses out?
• Europe struck by growth slowdown
• Germany: Reasons to be cheerful
• Q&A: Greek debt crisis

The European Central Bank (ECB) has provided a further 530bn euros ($713bn; £448m) of low-interest loans to 800 banks across the European Union.

It is the second time the ECB has offered such three-year loans and comes after 489bn euros was lent in December.

The loans are aimed to help continue to ease the eurozone debt crisis, and help banks improve their liquidity.

They have also helped such countries as Italy, as some banks have used the bonds to buy government bonds.

The markets appear to have welcomed the announcement, with banking shares rising strongly.

In Germany, Commerzbank was the biggest riser, up 3.6%, followed by Deutsche Bank, ahead by 1.7%.

Credit Agricole saw the biggest gains in France, adding 4.5%, followed by Societe Generale, which rose 2.3%.

Commentators said that the amount of money lent, and the number of banks which had taken part, was in line with expectations.

Banking analyst Luca Cazzulani of Unicredit said: "This will increase the level of excess liquidity pretty sharply, which is ultimately positive or very positive for risk trades.

"Italian and Spanish bonds are likely to benefit from this and equity markets as well."

29 Feb, 2012

-
Source: http://www.bbc.co.uk/go/rss/int/news/-/news/business-17203134
--
Manage subscription | Powered by rssforward.com