ECB Puts $713 Billion Into Circulation
February 29, 2012 by UPI - United Press International, Inc.
FRANKFURT, Germany (UPI) — The European Central Bank said its emergency liquidity program loaned $713 billion to 800 banks, numbers that exceeded the banks’ December loan bonanza.
In December, 523 banks participated in a low-interest loan program that put $655 billion into circulation, The New York Times reported Wednesday.
The latest round of borrowing involved collateral-backed loans at 1 percent interest with no limit set for the amount borrowed.
The terms also included extending the normal one-year duration to three years, a move intended to give banks and investors confidence the liquidity in the financial system will not evaporate soon.
The bank has not said whether a third round of lending would be made available. The latest program was offered, in part, to offset a tighter capital market that is expected due to the $170 billion bailout of Greece.