ECB Lends 140.6 Billion Euros to European Banks for Three Months
The European Central Bank said it will lend banks 140.6 billion euros ($191.7 billion) for three months as tensions in money markets persist.
The Frankfurt-based ECB said 214 banks asked for the three- month funds, which will be lent at the average of its benchmark interest rate over the period of the loan. Currently, the benchmark stands at 1.5 percent. The ECB fills all bids against eligible collateral. Banks tomorrow need to repay 132.2 billion euros in maturing three-month loans.
Financial institutions are wary of lending to each other after Europe’s sovereign debt crisis fueled concern that some governments may struggle to refinance their debts, prompting investors to shun bonds sold by nations including Greece, Italy and Spain.
In a separate tender today, the ECB allotted $500 million to one bidder in a regular seven-day loan. The ECB doesn’t identify the banks it lends to.
To contact the reporter on this story: Christian Vits in Frankfurt at cvits@bloomberg.net
To contact the editor responsible for this story: Matthew Brockett at mbrockett1@bloomberg.net
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