In the latest attempt to mitigate the eurozone debt crisis, banks took another 530 billion euros worth of cheap three-year loans from the European Central Bank.
The goal is that the cash will flow to businesses and help ease government borrowing costs. But some claim that the money from the first round of cheap loans didn’t reach small businesses, but instead went primarily to banks in northern Europe.
Many hope that round two of the loans will find its way to private businesses, households and individuals, boosting the economy from the bottom-up.
(For more on the ECB’s loans to European banks, see this column by WSD’s Martin Denholm.)