ECB Says Banks to Repay Less Than Forecast of Second Loan
This article is for subscribers only.
The European Central Bank said banks will repay only half the amount of emergency loans economists forecast, indicating financial institutions remain wary of lending to each other.
Some 356 banks will hand back 61.1 billion euros ($80.5 billion) of the ECB’s second three-year loan on Feb. 27, the first opportunity for early repayment, the central bank said in a statement today. That compares with a forecast of 122.5 billion euros in a Bloomberg News survey of economists. The euro fell almost half a cent after the report to $1.3157.