Banks across Europe are taking full advantage of the generous loan terms on offer from the European Central Bank (ECB) at present, experts in the financial industry have said.
Last year, the central institution decided to provide financiers struggling due to the eurozone debt crisis with the opportunity to take out cost-effective three-year lending arrangements in order to boost the banking sector.
And, according to a number of specialists speaking to Bloomberg, the majority of lenders across the continent are eager to make sure they benefit fully from the ECB's policy.
The loans carry an interest rate of one per cent annually - a figure significantly below that attached to standard arrangements - and, as a result, more than 500 companies have agreed terms on a package.
Arnd Schaefer, economist at WestLB AG, told the news source the deals are "very much a free lunch", while Richard Reid of the International Centre for Financial Regulation said the loans represent "unbelievably cheap money".
By Gary Cooper
