European Central Bank to Lend Euro 111 Billion to Banks for Six Days

The European Central Bank has confirmed that it would lend € 111 billion to banks for six days to help them to honor the expiry of their 12-month loans. As per sources more than 75 banks have approached the European Central Bank asking for short term funds as they need to repay Euro 442 billion of 12 month loans. Apart from this banks have also asked for additional 3 months loan from ECB. The ECB funding is at benchmark interest rate of 1 percent. The markets in Europe reacted & the European Banking Stocks fell across the board.