Markets unnerved by ECB loan fears

Article reports that fears that the European Central Bank was scaling back emergency support to eurozone banks too soon sparked sharp falls in financial markets on the 29 June 2010, with the euro tumbling to an eight-and-a-half year low against the Japanese yen.

Bankers warned that the ECB’s decision not to renew one-year loans to financial institutions had stoked concern about the ability of some eurozone banks to access interbank borrowing markets for funding.

ESO: Background information: Spanish banks rage at end of ECB offer http://www.europeansources.info/record/spanish-banks-rage-at-end-of-ecb-offer/

BBC News, 29.6.10: Shares slump on European bank fears http://news.bbc.co.uk/1/hi/business/10444577.stm

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