The European Central Bank (ECB) announced today that it lent € 82,601,570,000, to four years and a fixed rate of 0.15%, to 255 euro area banks to mandatorily grant loans to companies and households.
The ECB awarded the amount, which was much lower than expected, the 255 commercial banks in the euro zone with the condition that it be granted to firms and households.
This was the first of two financing transactions that four years the ECB held this year, which can reach a maximum value of € 400 billion. The second operation will take place on December 11.
June 5, in addition to cutting the director interest rate by 0.10 percentage points to 0.15%, the ECB announced the completion of these two liquidity injections of long-term (four years), in September and December this year, the maximum value of € 400 billion, to be lent by commercial banks to businesses and families.
In these two operations, banks can borrow a maximum of 7% of their loans to businesses and households, excluding mortgages, German banks may request a maximum of EUR 95,000 million, 77,000 million French Euro, Italian Euro 75,000 million and 54,000 million euros of Spanish.
The ECB said that these operations will have a “significant impact” on its balance sheet.
“The program is designed to improve the functioning of the transmission mechanism of monetary policy to support bank lending to the real economy,” according to the ECB.
The interest rate applied by the ECB to these operations will be fixed for the entire duration of each operation and the same director for weekly auctions increased by 0.10 percentage point rate.
The ECB came in early September the director rate by 0.10 percentage points to a historic low of 0.05%.
* This article was written under the new orthographic agreement applied by Lusa Agency
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