Banks will pay back 4.993 billion euros next week of the 3-year loans they took from the European Central Banka year ago, bringing the total payback of the first 489 billion in loans to 146 billion.
The latest repayments by 21 banks, announced by the ECB on Friday, were above the forecast of 3 billion euros from a Reuters poll of traders.
The early return of some of the 3-year funds the ECB pumped into the system in late 2011 and early 2012 to avert a credit crunch marks the beginning of an unwinding of the ECB’s crisis measures – the opposite of action being taken by other central banks.
The early paybacks are voluntary and do not thus represent intentional policy tightening by the ECB.
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