Eurozone banks to borrow €250B from ECB

Eurozone banks are expected to borrow about €250B in cheap four-year money from the European Central Bank in September and December under the ECB’s "targeted long-term financing operations".

The new loans would come on top of the more than €1T in cheap finance the ECB pumped into the financial system between late 2011 and 2012 to avert a financial crisis.

The new funds are expected to boost lending to the region’s credit-starved businesses.

Europe’s economic outlook has not been pretty. Last week, figures outlined a slowdown in Germany and France and Italy in recession.

Related stocks: SAN, DB, IRE, CS, ING, BBVA, BCS, RBS, HSBC, LYG


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Comments (3)
  • DeepValueLover
    , contributor
    Comments (11388) | Send Message
    Never a bad idea to borrow at rates that haven't been seen for hundreds of years.


    Buyback time!!


    Reducing the stock float is accretive for shareholders.
    18 Aug 2014, 04:17 AM Reply Like
  • stoj
    , contributor
    Comments (788) | Send Message
    These loans are not allowed for buybacks of common stock, but for stimulating small/middle business growth. However, it's not going to work, if the ECB itself doesn't grow its balance sheet, by even greater amounts. ( which it can't, since the stronger economies block that, which means the whole operation is temporary and half of the Banks do not even want the money they are indirectly being forced to borrow )
    18 Aug 2014, 05:12 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (7341) | Send Message
    And now the big boys are fleeing European stocks. They loved them a few months ago.
    18 Aug 2014, 07:56 AM Reply Like
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