ECB’s Nowotny Says Europe Will Avoid Cliff

The European Central Bank will provide more liquidity to avoid a “cliff” effect once long-term refinancing operations (LTROs) – the bank’s cheap loans to euro zone banks – come to an end, Governing Council member Ewald Nowotny told CNBC.

“Concerning the liquidity, the main challenge is of course that a large part of our liquidity provision is via the LTRO, the long-term liquidity provision,” Nowotny told CNBC in an interview.

“What we want to avoid of course is that at the ending of this program we have some sort of cliff effect. There are several ways to avoid this, but it’s quite clear that we are careful not to have some kind of sudden effects. But this is something that will come.”

via CNBC

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