By - FRANKFURT
Category - La Jolla Cove Attractions
Posted By - San Diego Hampton Inn
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| La Jolla Cove Attractions |
ECB President Mario Draghi said after the May policy meeting that the ECB is ready to cut borrowing costs further if the economy deteriorates, including the deposit rate now at zero, which would mean charging banks to hold their money overnight.
Since then economic data have painted a bleak picture of the recession-stricken economy. The euro zone wallowed in recession for a sixth straight quarter at the start of this year and economists do not expect growth until next year.
The ECB also decided at its May meeting to extend its provision of unlimited funds to banks, saying it would prime them with as much liquidity as they need until at least July 2014. This gives banks more funding assurance.
Banks took over 1 trillion euros of three-year loans from the ECB in two long-term refinancing operations (LTROs) in December 2011 and February 2012, of which the first matures in January 2015.
Banks now have the option to repay the loans early and on Friday, the ECB said five banks would repay 6.208 billion euros from the first LTRO on May 29 and four banks would repay 1.915 billion euros from the second.
A Reuters poll of euro money market traders had expected banks to return a total of 2 billion euros next week.
Announcements on details of LTRO early repayments (bln euro) First LTRO (Dec. 2011) Second LTRO (Feb. 2012)
Jan. 25, 2013 137.1591
Feb. 1, 2013 3.4840
Feb. 8, 2013 4.9925
Feb. 15, 2013 3.7900
Feb. 22, 2013 1.7440 61.092
March 1, 2013 4.1760 8.319
March 8, 2013 1.3360 2.894
March 15, 2013 0.385 6.432
March 22, 2013 1.565 0.371
March 28, 2013 3.845 3.160
April 5, 2013 4.092 3.972
April 12, 2013 6.555 4.238
April 19, 2013 8.874 2.068
April 26, 2013 1.661 0.615
May 3, 2013 0.008 0.608
May 10, 2013 1.205 5.152
May 17, 2013 1.020 0.104
May 24, 2013 6.208 1.915
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Amount outstanding as of May 24
281.554 424.480 ($1 = 0.7751 euros) (Writing by Paul Carrel; Editing by Catherine Evans)
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