Banks to repay 2 billion euros of ECB's crisis loans next week - Reuters poll

Reuters

BANGALORE (Reuters) - Banks will return 2 billion euros (1.6 billion pounds) of their three-year crisis loans to the European Central Bank next week, according to a Reuters poll of euro money market traders taken on Monday.

The ECB flooded the euro money markets with more than 1 trillion euros in two long-term refinancing operations (LTROs) to ease banks' funding strains in December 2011 and February last year.

Since January this year, banks have repaid a little over a third of those crisis loans.

The poll of 22 traders showed banks will repay 1 billion euros of the first three-year operation and 1 billion euros of the second. The combined amount is more than double the 0.85 billion euros they will return this week.

The regular survey of 24 traders showed the ECB is expected to allot 94 billion euros at its weekly refinancing operation, similar to the 93.4 billion euros maturing this week.

(Reporting by Rahul Karunakar; Polling by Diptarka Roy and Shaloo Shrivastava; Editing by Catherine Evans)

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