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THE EUROPEAN CENTRAL BANK has announced almost €530 billion in new loans to the eurozone’s banks, in a second attempt to ease the difficulties of European consumers and companies in borrowing cash.
The ECB this morning said 800 banks had sought €529.53 billion in medium-term loans, which will be issued tomorrow and mature in February 2015.
The ‘longer-term refinancing operation’ marks the second round of longer-than-usual loans from the ECB, which ordinarily lends cash for either one-month or three-month periods.
The longer loans are an attempt to encourage banks to increase their supply of credit to businesses and consumers, a problem which is generally accepted to be key in helping Europe to overcome the current debt crisis.
The first round of loans, announced just before Christmas, saw banks take €489 billion in loans – though figures in early January indicated that banks were hoarding this cash by storing it in the ECB, and accepting a modest loss, instead of lending it out into the markets.
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if the banks are insisting on hoarding it take it back and give it to me, i’ll spend it all!!
Taoiseach the Irish Bank are still not lending , not interested in SME or individuals , even though you have set up various devices . Our Government and the Irish People are being ignored the banks are hoarding cash and this is their unofficial policy !
Or they could give every EU citizen €1,000
Austrian Central bank governor, ” ECB has a problem with addicted banks”.
http://investmentwatchblog.com/nowotny-says-ecb-has-problem-of-addicted-banks/
The massive liquidity injections by Western Central banks (including todays ECB injection) are resulting in privations for the worlds poorest. Huge flows of cash from western nations are finding their way to emerging markets with inflationary effects. This is forcing up the price of basic commodities for the worlds poorest.
http://m.guardian.co.uk/business/2011/jun/29/how-world-paid-hidden-cost-america-quantitative-easing?cat=business&type=article
They are amoral Sean.
New cash?…my arse! Another €530 billion of computer generated money that we, the citizens of Europe will pay back in cash. Only then does that computer money become cash, and the gangsters at the top are wiping their arses with €50 notes!
if they’re hoping the banks will pass it on..they have a very questionable hold on reality.
All i need is 0.00008% of that and I’m sorted!! Back in the black.
So the Central Bank is HOPING that the extra money will be passed on?!?! Pull the other one. This press release is trying to make it seem like the ECB care about money being passed on,in loans. They don’t! They only care about what they can squeeze out of the countries they are supposed to be helping.
It’s a bit like the Irish government, HOPING that interest rate cuts will be passed on to customers!
have your say