ECB second liquidity injection

Wednesday, 29 February 2012 03:07

Today’s ECB movement dominated markets’ attention in Europe. Within refinancing program LTRO (Long Term Repo Operation) European Central Bank lent EUR530 billion in a 3-year loans.

Analysts estimated the amount for about 470 billion euro.

The program is suppose to restore liquidity and confidence among European banks.

ECB has given a chance to 800 commercial banks among Euro zone to borrow money on a low (benchmark 1.00%) interest rate.

It is a second action taken by European Central Bank after in December 2011 523 banks received EUR489.2 billion.

After ECB decision Euro currency was traded lower against most rivals. EUR/USD hit 1.3430.