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Banks in the euro zone will repay €214 billion ($242 billion) of European Central Bank funding early, the ECB said on Friday, probably to roll the cash into a new facility at even more favourable terms. The ECB will offer a three-year loan called a targeted longer-term refinancing operation (TLTRO) on June 18 with a rate as low as minus 1 per cent if banks then loan the cash onto the real economy. Market expectations for take up in next week’s tender are around €1.4 trillion, ECB board member Isabel Schnabel said earlier, making it by far the ECB’s biggest single lending operation, although over half of this could be cash rolled over from various existing ECB facilities.
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