The European Central Bank injected a record 529.5 billion euros ($712.2 billion) into commercial banks on Wednesday in an operation expected to keep them afloat and stimulate economic activity in the eurozone.
The ECB loans extended on Wednesday exceeded the 489 billion euros granted to European banking institutions in the first three-year lending operation in December and were the biggest single refinancing operation in the ECB’s history.
The liquidity injection, which has topped a trillion euros jointly with the first offering of cheap loans in December, is designed to boost demand for riskier assets, especially equities and peripheral European bonds, and help the governments of heavily-indebted eurozone countries to service their sovereign debts.
The funds were provided at a record low rate of 1 percent matching the ECB’s benchmark interest rate and banks have the option to repay them after a year.
