ECB’s Cheap-Loan Repayments Slow to €63 Billion in Latest Round

  • Economists had predicted that €213 billion would be given back
  • TLTRO reductions add to interest-rate hikes in inflation fight
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Euro-zone banks are returning another €62.8 billion in cheap long-term funding to the European Central Bank, significantly less than at previous opportunities that follow a toughening of the program’s conditions.

The repayment will further shrink the outstanding amount of the so-called TLTRO loans — currently about €1.3 trillion — and comes after banks already handed back almost €800 billion in November and December.