ECB lends more than $50 billion to eurozone banks

7th December 2011, Comments 0 comments

The European Central Bank said Wednesday it awarded more than $50 billion in dollar loans to eurozone banks in its first offering since it slashed the cost of borrowing dollars last week.

The ECB said in a statement it allotted $1.602 billion in seven-day loans to five banks and a further $50.685 billion in 84-day loans to 34 banks in a sign that some banks are finding it difficult to drum up dollar funding as the debt crisis worsens.

Before the ECB -- in a concerted move with the central banks of Britain, Canada, Japan, Switzerland and the United States -- lowered the cost of dollar borrowing last week, the volume of such loans had been much lower at around $1.0 billion.

© 2011 AFP

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