Home / World News / Euro zone banks return nearly $308 billion in cheap ECB funding

Euro zone banks return nearly $308 billion in cheap ECB funding

The move is part of ECB efforts to fight record-high inflation in the euro zone by raising the cost of credit and it is its first step towards mopping up even more liquidity

The headquarters of the European Central Bank (ECB) are pictured in Frankfurt

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ECB policymakers will look at how the market digests this sudden drop in cash to gauge how fast they can proceed with reversing the ECB’s $3.3-trillion Asset Purchase Programme

Reuters

3 min read Last Updated : Nov 18 2022 | 10:42 PM IST

Euro zone banks are set to repay nearly $310 billion in loans to the European Central Bank next week, the ECB said on Friday, the biggest cash withdrawal from the euro zone’s financial system in the euro's 22-year history.

The move is part of ECB efforts to fight record-high inflation in the euro zone by raising the cost of credit and it is its first step towards mopping up even more liquidity next year by trimming its multi-trillion-euro bond portfolio.

The euro zone’s central bank said lenders would repay 296 billion euros worth of the 2.1-trillion-euros, multi-year credit they have taken under

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Topics : Inflation Euro zone Euro zone economy European Central Bank Europe Banking

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