facebook
twitter
search
search

ECB puts $713 billion into circulation

Feb. 29, 2012 at 10:43 AM

FRANKFURT, Germany, Feb. 29 (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.

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Latest Headlines
Top Stories
Bleak outlook for oil has Russian investors pulling back
Shoot-from-the-hip, around corner sighting capability unveiled
Rhode Island to get offshore wind farm
Oil prices off slightly after China stock market decline
Airbus Helicopters announces factory acceptance of training aircraft