Banks to repay 2.93 bln euros of ECB crisis loans

FRANKFURT, June 7 Fri Jun 7, 2013 6:16am EDT

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FRANKFURT, June 7 (Reuters) - Banks will return 2.93 billion euros ($3.87 billion) of crisis loans ahead of time to the European Central Bank next week, after policymakers at the bank said its monetary stance would stay expansive.

The ECB cut its main refinancing rate to a record low of 0.5 percent in May. It also decided to extend its provision of unlimited funds to banks, saying it would prime them with as much as they need until at least July 2014.

This gives banks more funding assurance.

Banks took over 1 trillion euros of three-year loans from the ECB in two long-term refinancing operations (LTROs) in December 2011 and February 2012, of which the first matures in January 2015.

They now have the option to repay the loans early and have returned almost a quarter already.

On Friday, the ECB said six banks would repay 2.8 billion euros from the first LTRO on June 12 and four banks would repay 130 million euros from the second.

A Reuters poll of euro money market traders had expected banks to return 4 billion euros next week.

Announcements on details of LTRO early repayments (bln euro) First LTRO (Dec. 2011) Second LTRO (Feb. 2012)

Jan. 25, 2013 137.1591

Feb. 1, 2013 3.4840

Feb. 8, 2013 4.9925

Feb. 15, 2013 3.7900

Feb. 22, 2013 1.7440 61.092

March 1, 2013 4.1760 8.319

March 8, 2013 1.3360 2.894

March 15, 2013 0.385 6.432

March 22, 2013 1.565 0.371

March 28, 2013 3.845 3.160

April 5, 2013 4.092 3.972

April 12, 2013 6.555 4.238

April 19, 2013 8.874 2.068

April 26, 2013 1.661 0.615

May 3, 2013 0.008 0.608

May 10, 2013 1.205 5.152

May 17, 2013 1.020 0.104

May 24, 2013 6.208 1.915

May 31, 2013 2.810 0.271

June 7, 2013 2.800 0.130

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Amount outstanding as of June 6

272.537 422.294 ($1 = 0.7579 euros) (Reporting by Sakari Suoninen)

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