ECB’s Guindos Expects ‘Sizable’ Repayments of Long-Term Loans

European Central Bank Vice President Luis de Guindos expects a “sizable” early repayment of its so-called TLTRO loans to banks, and reckons that will help ease a collateral shortage in the financial system.

“Always at year-end, as you know perfectly, we see more tensions in terms of the scarcity,” he told reporters Wednesday in Frankfurt, highlighting how policy makers have already taken action. Last week, they increased the amount of securities that euro-area central banks can lend out against cash collateral.