First river of money arriving from Frankfurt. This morning the European Central Bank disbursed 489,19 billion euros in favor of commercial banks operating in the euro area. Refinancing is super extended maturity (3 years) and inaugurates the strategy decided at the beginning of December by the Eurotower, which guaranteed credit institutions additional liquidity at favorable conditions (rates are fixed at 1 per cent). Analysts were expecting that today a much lower figure would arrive from the ECB, between 250 and 300 billion euros. The ECB has specified that it has received requests for refinancing from 523 banks.
The news immediately had a positive effect on the financial markets, with the euro soaring to 1,3172 dollars. At first the Stock Exchanges reacted in a euphoric way, but then came the slowdown. Around 12, in any case, the indices all remain positive: Milan gains 30%, Frankfurt and Paris advance by 0,81% and 0,45%. London instead marks a +0,68%. The most negative data, however, comes from government bonds: the spread between ten-year BTPs and the corresponding German Bunds has risen again to 0,37 points (at 474 it was 9), while yields on our 30-year bonds have widened again up to 447%.
In any case, it seems that the ECB's operation has restored some confidence on the markets, spreading the belief that at least in part the banks can use these low-cost funds to buy government bonds of the countries of the euro area, making money on the spread returns.
For the CEO of Unicredit, Federico Ghizzoni it is "an important step: the funds will now be allocated to support the real economy, businesses and families".
Fourteen Italian banks they issued and listed on the Mot 38,4 billion of bonds guaranteed by the State which will serve as collateral for the ECB loans.
