Poll: European banks to repay $167bn to ECB on 27 Feb

12 February 2013

European banks are planning to repay some €125 billion ($167 billion) they took out in cost-effective loans from the European Central Bank (ECB) before the end of the month.

That is according to a poll of experts carried out by Reuters, which has shown there is an expectation in the industry that financiers will look to reimburse this sum to the central institution at the earliest opportunity on 27 February.

In December 2011 and February 2012, the ECB offered ailing banks from across the continent the opportunity to take on three-year lending arrangements at favourable interest rates in order to prevent the banking system from collapsing.

In total, around €1 trillion was taken on by struggling lenders under this programme, with the second tranche of this totalling some €530 billion.

And Reuters has established that just below a quarter of this sum will be repaid on 27 February - a marginally lower figure than the €134 billion reimbursed from the first tranche of loans on 30 January.

By Asim Shah

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