BANGALORE (Reuters) - Banks will repay 4 billion euros (3.18 billion pounds) next week of the long-term loans they took from the European Central Bank, slightly less than what they will pay back this week, a Reuters poll showed on Monday.
The ECB loaned banks a little over one trillion euros in December 2011 and February 2012 at the peak of the euro zone sovereign debt crisis, to avert a credit crunch and save the currency bloc.
Banks are repaying those crisis loans early as they go through the final stages of the ECB’s Europe-wide health checks.
The outstanding amount of the two loans is down to 368.9 billion euros, including this week’s repayments of 4.15 billion euros.
The regular survey of 21 money market traders showed banks are expected to borrow 105.0 billion euros at the ECB’s weekly tender, less than the 107.92 billion euros maturing this week.
THREE-YEAR LTRO REPAYMENTS
ECB WEBSITE www.ecb.int
Reporting by Sarmista Sen; Polling by Ashrith Rao Doddi; Editing by Larry King