Banks to repay euro 4 bn of ECB's crisis loans: Poll

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Reuters
Last Updated : Jun 04 2013 | 2:44 AM IST
Banks are expected to repay euro 4 billion ($5 billion) of their three-year crisis loans to the European Central Bank next week, according to a Reuters poll of euro money market traders taken on Monday.

The poll of 20 dealers showed banks will repay euro 2 billion of the first three-year operation and euro 2 billion of the second. The combined amount is higher than the euro 3 billion will repay this week.

The central bank flooded money markets with over a trillion euros through two long-term tenders in December 2011 and February 2012. Banks have returned roughly a quarter of the amount since repayment started in January 2013.

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The wider poll of 24 money market traders showed the ECB is expected to allot euro 102 billion in its seven-day refinancing auction this week compared with euro 103 billion maturing from last week's tender.

Forecasts ranged from euro 98 billion to euro 110 billion.

Results of the weekly tender will be announced on Tuesday and the amount allotted on Wednesday.

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First Published: Jun 04 2013 | 12:14 AM IST

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