ECB launches new round of ultra-cheap loans for banks

AFP, FRANKFURT: The European Central Bank on Wednesday launched a new round of ultra-cheap loans for banks in a fresh move to kick-start
sluggish credit in the single currency area.
The ECB said that banks could submit bids for the funds—known as targeted long-term refinancing operations or TLTROs—from 1:30 pm (1130 GMT) until Thursday.
The results of the tender—the volume of bids received as well as the total loans allotted—are to be published on Friday.
Commerzbank analysts said demand for the new set of TLTROs would provide an “important indication of the state of health of the eurozone financial sector.”
A first version of the scheme—under which European banks can borrow funds from the ECB at very cheap rates on condition they lend the money on to the private sector—was originally launched in September 2014.
But the ECB has decided to launch a second new round, comprising this time of four TLTROs in all, each with a maturity of four years, where banks can borrow at even more competitive rates.

ECB launches new round of ultra-cheap loans for banks

AFP, FRANKFURT: The European Central Bank on Wednesday launched a new round of ultra-cheap loans for banks in a fresh move to kick-start sluggish credit in the single currency area. The ECB said that banks could submit bids for the fundsknown as targeted long-term refinancing operations or TLTROsfrom 1:30 pm (1130 GMT) until Thursday. The results of the tenderthe volume of bids received as well as the total loans allottedare to be published on Friday. Commerzbank analysts said demand for the new set of TLTROs would provide an important indication of the state of health of the eurozone financial sector. A first version of the schemeunder which European banks can borrow funds from the ECB at very cheap rates on condition they lend the money on to the private sectorwas originally launched in September 2014. But the ECB has decided to launch a second new round, comprising this time of four TLTROs in all, each with a maturity of four years, where banks can borrow at even more competitive rates.