Barclays Takes $10.9 Billion from ECB on LTRO

Barclays Plc has taken 8.2 billion euros ($10.9 billion) of the European Central Bank's (ECB) long-term refinancing operation (LTRO), which offers three-year loans to banks at a rate of 1 percent, in order to manage funding gaps in Spain and Portugal.

It has been reported that 6.2 billion euros of the funds will be accessed via Spain's Banco de Espana and the balance 2.0 billion euros via the Banco de Portugal for Barclays operations in those markets.

The bank has confirmed that any funding benefit will not be contributing to bonus pay outs.

This will be helping Barclays to lessen the existing funding disparities and restructure them to match the changed market situation.

Barclays Chief Executive Bob Diamond said last month that it had not taken any cash from the ECB's previous offer of such loans in December. The opinion was availing the credit could further impair the reputation of the bank.

The ECB stated Wednesday that 800 banks across the European Union had accessed 530 billion euros through its LTRO.

Earlier, Lloyds Banking Group Plc and HSBC Holdings Plc had said they had accessed €13.6 billion and €350 million respectively in funding from the ECB.