The ECB awarded €489 bn ($645 bn) in three-year
loans, compared to previous expected estimate of €293 bn. In
total 523 Euro Zone banks called for cash which will be provided at a cost
equal current benchmark 1%. European debt turmoil has amplified risk of bank
and government defaults, therefore financials became more reluctant to lend
driving up borrowing costs. By providing cheap cash, ECB expects banks to expand
lending.