Banks to return 991 mln eur of crisis loans to ECB next week

Fri Jan 17, 2014 11:20am GMT

FRANKFURT, Jan 17 (Reuters) - Banks will return 990.5
million euros ($1.35 billion) in crisis loans to the European
Central Bank next week, slowing the pace with which liquidity
gets drained out of the financial system.
    The amount banks will repay on Jan. 22 is less than this
week's repayments of 2.566 billion euros and well below the 3.5
billion euros that was forecast in a Reuters poll.
  
    The speed with which banks repaid the long-term loans they
took from the ECB in late 2011 and early 2012 to ride out a
period of strained funding conditions accelerated towards the
end of last year, which was the cut-off point for an ECB
snapshot of banks' balance sheets that it will assess this year.
    ECB President Mario Draghi last Thursday pointed to the
possibility of some short-term deleveraging as banks prepare for
the assessment, which will look at whether lenders have set
aside sufficient capital to cope with the risk on their books.
    Such developments should, however, be seen in a longer-term
context, Draghi added, saying that by the end of this year, the
banking system would be stronger and more transparent.
    The slowdown in repayments also slows a drain in excess
liquidity, easing upward pressure on bank-to-bank lending rates
at a time when the euro zone recovery is slowly beginning to
take hold. 
    Excess liquidity, or cash beyond what lenders need to cover
their day-to-day operations, stood at 131 billion euros on
Friday.
    Although the connection between money market rates and
excess liquidity is difficult to pin down, Draghi stressed last
week that the ECB would monitor developments closely and was
ready to consider all available instruments.
    On Friday, the ECB said four banks would repay 632 million
euros from the first LTRO on Jan. 22, and four banks will pay
back 358.5 million euros from the second LTRO.
    Announcements on details of LTRO early repayments (bln euro)
    First LTRO (Dec. 2011)  Second LTRO (Feb. 2012) 
 
    Jan. 25, 2013     137.1591                   
    Feb. 1, 2013        3.4840   
    Feb. 8, 2013        4.9925   
    Feb. 15, 2013       3.7900   
    Feb. 22, 2013       1.7440            61.092     
    March 1, 2013       4.1760             8.319     
    March 8, 2013       1.3360             2.894     
    March 15, 2013      0.385              6.432     
    March 22, 2013      1.565              0.371     
    March 28, 2013      3.845              3.160    
    April 5, 2013       4.092              3.972    
    April 12, 2013      6.555              4.238   
    April 19, 2013      8.874              2.068   
    April 26, 2013      1.661              0.615  
    May 3, 2013         0.008              0.608 
    May 10, 2013        1.205              5.152 
    May 17, 2013        1.020              0.104 
    May 24, 2013        6.208              1.915
    May 31, 2013        2.810              0.271
    June 7, 2013        2.800              0.130
    June 14, 2013       3.008              0.180
    June 21, 2013       5.030              0.208
    June 28, 2013       2.025           0.035
    July 5, 2013        0                  2.095
    July 12, 2013       0.513              0.702
    July 19, 2013       2.182              0.200
    July 26, 2013        1.064              0.451 
    Aug. 2, 2013        1.800              0.333
    Aug. 9, 2013        0.516              0.200
    Aug. 16, 2013       0.204              0.450
    Aug. 23, 2013       0.100              0.205
    Aug. 30, 2013       0.100              4.545
    Sept. 6, 2013       3.705              2.200
    Sept. 13, 2013      0.741              2.375
    Sept. 20, 2013      2.650              5.260
    Sept. 27, 2013      1.535              1.622
    Oct. 4, 2013        4.610              3.065
    Oct. 11, 2013       0.597              0.250
    Oct. 18, 2013       0.105           5.094
    Oct. 25, 2013       1.445              0.311
    Nov. 1, 2013        5.288              5.363
    Nov. 8, 2013        2.910              2.857
    Nov. 15, 2013        3.155              0.431
    Nov. 22, 2013        2.841              5.0815
    Nov. 29, 2013       5.105              2.130
    Dec. 6, 2013        3.138              3.932
    Dec. 13, 2013       3.320             19.330
    Dec. 20, 2013         4.050          16.675
    Jan. 10, 2014       0.980              1.586
    Jan. 17, 2014       0.632              0.359    
    ===============================================   
    Amount outstanding as of Jan. 16   
                      206.936            334.910
($1 = 0.7352 euros)

 (Reporting by Frankfurt newsroom)
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