ECB creates history: lenders will be paid for borrowing

DraghiFirst in Sweden and Switzerland, and now in the whole of the Euro Area borrowing has become a good business. The European Central Bank with Mario Draghi in charge announced on March 10th that the benchmark interest rate is cut to 0,00 which is a maximum interest rate of loans within the frame of TLTRO II programme. However, the banks that will be really active on the credit market, will be able to borrow money from the ECB on the negative rate (up to minus 0,4 per cent), so literally they will be given cash by the ECB for taking its money!

Continue reading