In particular, the Long Term Refinancing Operation by the European Central Bank has stoked concerns European banks might be close to collapse, while unemployment on the continent continues to climb. The European Central Bank initiated its second loan scheme this week, called the Long Term Refinancing Operation (LTRO.) The scheme is intended to provide European banks unlimited loans for three years at just 1.00%, and since round one in December has been widely credited with preventing a credit crunch in Europe. In the event this second round proved more popular than the first, with 800 banks borrowing €529.5 billion. On the one hand this is testament to the willingness of the ECB to … [Read more...] about Pound to euro rate rises on ECB loan scheme