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Euro zone banks to repay 4.5 billion euros of LTRO money next week - traders
October 20, 2014 / 3:01 PM / 3 years ago

Euro zone banks to repay 4.5 billion euros of LTRO money next week - traders

(Reuters) - Banks in the euro zone will next week repay 4.5 billion euros (3.56 billion pounds) of the long-term loans taken roughly three years ago to weather the financial crisis, a Reuters poll of euro zone money market traders found.

The skyline of the banking district (C) and the new headquarters of the European Central Bank (R) is seen in Frankfurt, September 18, 2014. REUTERS/Kai Pfaffenbach

That is down from 5.8 billion to be repaid this week.

The European Central Bank’s asset quality review will enhance transparency and help restore confidence in the continent’s banking system, 16 of 21 traders polled said.

“All banks were treated with the same criteria and therefore it’s more transparent. Transparency is a trigger for confidence,” said a trader at a large dealer.

But with growth in the currency bloc slowing and inflation at very low levels, some traders were unsure about whether the review, the results of which are due out on Oct. 26, will be decisive in restoring confidence.

“Broadly it will be positive, but there’s going to have to be a lot more done for us to reach the level of confidence that we had pre-crisis,” said another trader.

At a regular weekly tender, the ECB will allot 82.8 billion euros to banks, slightly higher than last time’s allotment of 82.5 billion euros.

Reporting By Siddharth Iyer, Polling by Ashrith Doddi; Editing by Hugh Lawson

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