Banks May Flock to ‘Free Money’ as ECB Awards 3-Year Loans
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The European Central Bank is set to flood euro-area banks with cheap cash as they flock to its offer of three-year loans today.
Banks will ask the ECB for 293 billion euros ($384 billion) of the 1,134-day funds, according to the median of 14 forecasts in a Bloomberg News survey of economists. Estimates range from 150 billion euros to as much as 600 billion euros. The money will be lent at the average of the ECB’s benchmark rate -- currently 1 percent -- over the period of the loan. Results are due at 11:15 a.m. in Frankfurt and the loans start tomorrow.