ECB liquidity falls in two auctions
The European institutions requested at least about 37 billion euros from the European Central Bank on Tuesday
European banks have requested 36,923.18 million euros from the European Central Bank (ECB) in the two liquidity auctions that the issuing institute has carried out on Tuesday, while the daily dollar auction, which is part of the ‘swap agreement’ with the United States Federal Reserve (Fed), has been settled without requests.
Most of the funds have been requested in the seventh round of long-term financing operations (TLTRO) that the ECB announced to respond to liquidity demands from banks until June.
A total of 74 entities have requested 36,657.18 million euros from the ECB, almost double that in the previous round. The interest rate will be the one applied to the deposit facility rate, currently situated at -0.5%, so the banks will charge 183.29 million to the ECB to borrow these funds.
The entities will receive the funds this Wednesday and the due date will be June 24, when the fourth round of the TLTRO-III auctions will be awarded. Since these operations began, banks have requested a total of € 312,198.97 million from the issuing institute.
On its side, the ECB’s ordinary weekly auction has resulted in liquidity requests worth 266 million euros from 13 financial institutions, to which will be applied the reference interest rate for refinancing operations, currently located at 0%.
K. Tovar
Source: dpa
