Ewald Nowotny, the governor of the central bank of Austria and a member of the ECB, does not deem another Ltro loan necessary after the one scheduled for next week (February 29). “Personally, I don't see any need” for new deals of this type, Nowotny said during a meeting with financial press in Vienna, according to Bloomberg reports. And so the next subsidized loan risks being the last. On this occasion, analysts estimate recourse to the taps of the ECB for 470 billion against the 489 of the first tranche of Ltro financing last December 21st.
Decided by ECB President Mario Draghi in December, it is a 1-month loan program at a rate of 36% for an unlimited amount against "collaterals" (the ECB has also expanded the range of securities it accepts). A move that gave breathing space to the markets and the spread and which made it possible to avoid the grip of the credit crunch. In any case, Nowotny specified, the ECB will continue to guarantee all the liquidity needed by the system
