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ECB pumps up bank lending, bond buys to cushion virus impact

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AFP Frankfurt am Main
Last Updated : Mar 12 2020 | 7:22 PM IST

The European Central Bank on Thursday followed other major central banks with a flurry of measures to cushion the impact of the coronavirus, including increased bond purchases and cheap loans to banks, but surprised observers by leaving key interest rates unchanged.

Policymakers agreed a new round of cheap loans to banks, known as long-term refinancing operations (LTROs) "to provide immediate support to the euro area financial system," a spokesman said.

They also eased conditions on an existing "targeted" LTRO programme, aiming to "support bank lending to those affected most by the spread of the coronavirus, in particular small- and medium-sized enterprises."

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First Published: Mar 12 2020 | 7:22 PM IST

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