European Bank Loan Repayments

According to the European Central Bank, in the week of Feb. 25, 2013, European banks are expected to pay back 61 Bn Euros worth of cheap, 3-year money that was pumped into the euro zone financial system a year ago, in the second round of the ECB's loan program.

Consensus forecasts had been for an initial repayment of 130 Bn Euros as the window officially opens to start repaying the 529 Bn Euros borrowed by 800 banks last February.

The actual expected amount to be repaid is slightly less than half of the consensus forecasts and less than 12% of the borrowed sum.

As one economist put it, "If banks still feel they need to hold on to liquidity offered when times were bad, rather than pay it back now that things are supposedly better, it's not a resounding vote of confidence."

haditaheri is also on twitter