ECB emergency borrowing triggers euro zone fears

first_img Emergency overnight borrowing from the European Central Bank remained exceptionally elevated for the second day running, strengthening fears that a euro zone bank could be facing serious funding problems.ECB figures showed banks borrowed more than 16bn euros in high-cost emergency overnight funding – the highest amount since June 2009. The sum compared with the 1.2bn euros borrowed before the figures spiked to more than 15bn.The ECB gives no breakdown of the borrowing figures and declined to comment when asked for an explanation for the sudden spike.Traders remained unsure whether the jump was down to a serious funding issue or whether a bank had made an error earlier in the week by not borrowing enough at the ECB’s regular weekly tender.“One can assume it’s a bank or a group of banks which cannot easily get money on the open market at a good rate,” one trader said.A number of banks, mainly from the euro zone’s most debt-strained countries but also troubled banks in core countries, remain barred from open money markets and almost completely dependent on the ECB for funding.The extra 0.75 percent banks have to pay for overnight funding normally means it is used only as a last resort.The surprise jump came just days after banks received their regular injection of weekly ECB funding.If a bank missed this week’s ECB tender, the distortion could last until Tuesday when the next one is scheduled.The last time before this week that overnight borrowing exceeded 10bn was on 24 June, 2009, when it was 28.7bn euros, the highest ever. This year, emergency overnight borrowing has been above 1 billion euros only twice.The central bank reported the following daily data on liquidity provision, in millions of euros. Click for full details. More From Our Partners Astounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgMan on bail for murder arrested after pet tiger escapes Houston homethegrio.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comFort Bragg soldier accused of killing another servicewoman over exthegrio.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgKansas coach fired for using N-word toward Black playerthegrio.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgFans call out hypocrisy as Tebow returns to NFL while Kaepernick is still outthegrio.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comPorsha Williams engaged to ex-husband of ‘RHOA’ co-star Falynn Guobadiathegrio.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comColin Kaepernick to publish book on abolishing the policethegrio.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comKiller drone ‘hunted down a human target’ without being told tonypost.comLA news reporter doesn’t seem to recognize actor Mark Currythegrio.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.com ECB emergency borrowing triggers euro zone fears Show Comments ▼ Share whatsapp Friday 18 February 2011 4:16 am John Dunne whatsapp Tags: NULLlast_img read more

Continue reading

Telenor in key ruling to stop Vimpelcom dilution

first_imgTuesday 1 March 2011 7:29 pm Telenor in key ruling to stop Vimpelcom dilution Read This NextNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe Wrap’Black Widow’ First Reactions: ‘This Is Like the MCU’s Bond Movie’The Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe Wrap whatsapp whatsapp Tags: NULL NORWAY’S Telenor faced a London court for a second time yesterday, seeking to protect its voting rights in Russian cellphone company Vimpelcom.Telenor is asking for an injunction to prevent the dilution of its 36 per cent stake in Vimpelcom, which is buying $6bn (£3.7bn) in telecom assets from Naguib Sawiris’s Wind Telecom.Telenor is resisting that deal ahead of a special general meeting to vote on the transaction on 17 March. “A ruling against Telenor means that the deal will probably get done. A ruling in favour gives them a fighting chance,” said an investment banker.If the deal is approved, Sawiris will receive 30.6 per cent of Vimpelcom voting stock, reducing Telenor’s holding to 25 per cent.If Telenor wins the injunction, Vimpelcom must put enough new shares into an escrow account so that Telenor’s stake would not change if the deal is voted through by investors. Show Comments ▼ KCS-content Sharelast_img read more

Continue reading