News

ECB Pays Greek Banks To Fund Households And Businesses

Date: 06.06.2019 / By Evgenia Tzortzi / Ekathimerini.com / Comments (0)

To date, Greece’s four systemic banks have drawn liquidity totaling 8.4 billion euros through the instruments provided by the European Central Bank known as targeted longer-term refinancing operations (TLTRO), and they will draw more.

They are low-interest long-term loans that are issued to the banks as an incentive to increase the financing of businesses and households. The rate on these loans is currently negative, at -0.4 percent, which means that the ECB practically pays the banks to fund the economy.

Bank data show that Alpha has drawn loans of 3.1 billion euros from the Eurosystem, National follows with 2.3 billion, Piraeus with 1.7 billion and Eurobank with 1.3 billion euros.

To draw cheap liquidity, lenders mainly offer bonds as collateral, and according to estimates by bank officials, the activation of the new TLTRO program the ECB announced this week will be used by local credit institutions either to extend the existing credit, depending on the terms, or to draw fresh liquidity.

“The conditions of the new round of TLTRO funding announced by the ECB are positive for euro area banks,” commented Fabio Ianno, vice president and senior credit officer at Moody’s. “Despite the conditions being less advantageous than the previous operations, they remain very favorable compared to alternative market funding sources. This is particularly the case for Southern European banks, which are more reliant on ECB funding and have a higher cost of market funding than their Northern European peers,” he added.

Contrary to typical monetary policy interventions, the amount of funding banks can receive through the TLTRO programs and the cost of borrowing depend on the amount of loans they issue to the real economy.



http://www.ekathimerini.com/241379/article/ekathimerini/business/ecb-pays-greek-banks-to-fund-households-and-businesses

Reviews & Comments


GPE360.com (GreekPropertyExchange.com) has relaunched as the top Greek real estate and property website portal dedicated to Greece and Cyprus’ industry. GPE360.com’s members include top real estate agents, realtors, individual sellers, FSBO, sale by owners, architects, developers, construction companies, lawyers, notaries and others that advertise residential (house, home, land, apartments, flats, villas, land, parcels and commercial listings for those looking to buy, sell and rent across all of the Hellenic Republic. GPE360.com is like the MLS database portal that is advertised in the top Greek diaspora and international markets around the world to those looking to invest - including Australia, the United States, Canada, United Kingdom, Germany, France, Spain, France, Europe, South Africa, Russia and everywhere else. Most foreigners start their home search in popular destinations like Mykonos, Chania, Crete, Athens, Thessaloniki, Cyclades, Santorini, Rhodes, Corfu, Ios, Lefkada and many more cities, prefectures and regions in Greece. GPE360.com has been featured in most Greek news media outlets and in some of the leading international publications in newspapers, magazines, websites, online news portals, television and radio. Notable publications featuring GPE360.com and its founder, Georgios Stroumboulis include the Wall Street Journal, G1 Brasil, India Today, Barron’s, El Mundo, Naftemporiki, Kerdos, Isotimia, Vradyni, Elefterotypia, Elefteros Typos, Imerisia, Ta Nea, Ethnos, Neos Kosmos, GreekReporter.com, PappasPost.com, Voria.gr, Parapolitika.gr, MetroGreece.gr, People Greece, NewsBeast.gr, Radio Neo Show, Antenna ANT1 Satellite TV, MEGA TV, Makedonia TV, Channel 9 (Το Α και το Ω των ακινήτων). GPE360.com is the only real estate website to have produced its own reality TV show called Hellenic Home Hunting (www.HellenicHomeHunting.com). Created, produced and edited by George Stroumboulis’ media company, BouliBrand (www.BouliBrand.com), this TV show caused an international media storm for controversy during the unstable economy period in Greece. Visit www.GPE360.com for the latest property listings and start your search, register for an account to sell or simply browse our news. Stay connected with us on Facebook (www.facebook.com/gpe360), Twitter (twitter.com/gpe360), LinkedIn (https://www.linkedin.com/company/greek-property-exchange-gpe-), YouTube (https://www.youtube.com/user/gpe360), and Instagram (www.instagram.com/gpe360/). Use the hashtag #GPE360 and #HellenicHomeHunting.



featured on the front page of

The Only TV Show Promoting
Greek Real Estate to the World!
WATCH FIRST SEASON