Results of the second auction LTRO-3 also fell short of the full market expectations, although not proven so a failure, as the results of the first auction.
In fact, as the figure shows, all credits will be used to repay loans LTRO-1 and LTRO-2. In January and February 86 and will have to repay 184 billion. Euros respectively.
After that, the total debt of the banks will be only 212 billion. Euros, and it is very small.
Thus, today's auction is a negative for the EURO.
The ECB remains in the active position and will be forced to act in other ways. McAuley NICHOLAS LUDANOV
