The longer term refinancing operations of the ECB

One of the main focuses of this blog is the tracking of the ECB's LTROs.

On November 25th 2010, one LTRO becomes to maturity.

The LTRO that comes to maturity has the following characteristics:
Start date: August 26th 2010
Duration: 91 days
Amount allotted: 19083,85 million Euros.



It will be replaced by the following one:
Start date: November 25th 2010
Duration: 91 days
Amount allotted: 38210,74 million Euros.

 The ECB liquidity in circulation due to LTROs is 345249,55 million Euros.

Remember that on May 27th 2010 the ECB liquidity in circulation due to LTRO operation was 701793,30 million Euros.

Maybe something is going better, for the liquidity market, since May 2010 re the banks does not need so much liquidity because the real economy does not need it. Who knows...

The PIIGS problems does not allow to the ECB to proceed quickly to tighten its monetary policy.

The ECB can't raise the interest rate and shall be very cautios to provide to the banks all the liquidity they needs, through the MROs and the LTROs...obviously at the fixed rate of 1%.

One of the major signals we have to waiting fore, to be sure that the crisis is really over, is the return to the auction system for the assignement of the funds through the MROs and the LTROs.