Jan. 24 (Bloomberg) -- Lloyds Banking Group Plc, Britain’s second-biggest taxpayer-assisted lender, next month plans to repay most of the 11.4 billion pounds ($18 billion) of three-year loans borrowed from the European Central Bank last year, according to a person with knowledge of the plan.
The bank will repay about 8 billion pounds of the money at the first opportunity on Feb. 27, said the person who declined to be identified because the matter is private.
Lloyds was one of 800 banks that took an unprecedented 529.5 billion euros ($706.8 billion) from the Frankfurt-based central bank when it held its second Longer Term Refinancing Operation in March. About 523 institutions borrowed 489 billion euros in the previous operation in December. Lloyds didn’t take any funds from the ECB’s first auction.
The ECB, based in Frankfurt, has been providing the banking system with cheap money over three years in an effort to avert a credit crunch after the market for unsecured bank debt seized up. Any bank in the region can borrow an unlimited amount, provided it pledges eligible collateral.
The move was first reported by Reuters.
To contact the reporter on this story: Gavin Finch in London at firstname.lastname@example.org
To contact the editor responsible for this story: Edward Evans at email@example.com