January 24, 2013 / 1:06 PM / 5 years ago

Lloyds to repay 8-10 bln eur of ECB long-term loan -source

LONDON, Jan 24 (Reuters) - Britain’s Lloyds Banking Group is to repay up to 10 billion euros ($13.3 billion) of the long-term cash it borrowed last year from the European Central Bank, a person close to the bank said.

Lloyds will repay 8-10 billion euros, or up to three-quarters of the 13.5 billion it borrowed in the ECB’s long-term refinancing operations (LTROs), as it has a strong balance sheet and liquidity position so doesn’t need the cash, the source said.

Lloyds took its cash in the ECB’s second LTRO offer, and plans to repay the cash when it is able to on Feb. 27, the source said. The UK bank, which borrowed the money through its Spanish, Irish and Dutch operations, will retain some of the loan as a currency hedge for some of its European assets, the source said.

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