The ECB has prepared a mechanism for providing liquidity problem banks

The European Central Bank is finalizing a new mechanism that will allow troubled banks to obtain liquidity in the euro area term. The source of the ECB told Reuters on Saturday that this mechanism will first be "perekroennoy assistance program for Irish banks," and probably the announcement it will be next week in conjunction with the results of new stress-testing banks. "It will replace the ELA (Emergency provision of liquidity), which now carries the Irish Central Bank - a source said on condition of anonymity. - It would probably be similar to the bond buyback program by the ECB in the sense that it will not be limited timeframe. Whereas previously stipulated period maturity in five or ten years, debtors could ignore the problem before the deadline. " The mechanism will monitor the Governing Council of the ECB, which will set the parameters of the loans for each case separately. Financial aid package from the European Union and the International Monetary Fund (IMF) has not helped Ireland to resolve the banking crisis, and after the outflow of deposits and the reluctance of other banks to lend to them day to day operations of Irish lenders were based on the central bank. At the end of February, six banks of Ireland should be about 150 billion euros (210 billion U.S. dollars), the ECB and the central bank of the country. About 70 billion euros has been allocated under the program ELA. It is expected that the stress tests indicate the need for banks such as Bank of Ireland, Allied Irish Banks, Irish Life & Permanent and EBS Building Society, to 25 billion euros, according to the poll Reuters. On materials RIA Novosti