Eurozone banks make massive deposits at the ECB

Last Wednesday, the European Central Bank (ECB) made ​​an unprecedented operation and gave unlimited credits (three years) to try to protect the eurozone banking sector.

Between Monday and Tuesday, several eurozone banks that benefited from the huge loans decided to return to put their money, totaling about 452,000 million euros, the ECB due to distrust of the economic situation.

The euro, which was established as the official currency in the European Union nearly a decade ago (on January 1, 2002), is struggling to survive amid the European debt crisis, which affects 12 of the 17 countries the EU and has become more expensive.

The debt that began in Greece in 2010 spread to Italy and other countries using the currency that, as the European Commission, provides “stable prices for consumers, more security and opportunity for companies and markets.” Spain has also been affected by the crisis and is paying the highest interest rate for ten year bonds since the adoption of the euro.

The banks are waiting for the new year to use the loan funds, until then they prefer to leave them in the ECB, which only offers a rate of return of 0.25%, instead of lending money to other financial institutions.

(MS)