The European Central Bank announced that it will launch an exceptional refinancing procedure for the following six days, accepting unlimited demands in Euros from banks, with a 3.75% fixed interest, AFP informs. CEB promises to satisfy all requests of the banks facing lack of cash, the institution informed in a press release.
Unlimited financing operations are rarely seen at a CEB level. A similar decision was taken before only in August 2007, at the beginning of the subprime crisis in the US.
The key interest rate of the Frankfurt institute was reduced on Wednesday at 3.75%, within a common move of several central banks in Western Europe.
CEB floods the market with US Dollars, as agreed with Federal Reserve, in order to stabilize the markets threatened by the financial crisis.