ANKARA
Lending in the Eurozone saw a significant improvement in the first quarter thanks to a recently launched asset-buying program, according to an ECB's Euro Area bank-lending survey.
The central bank launched a €1 trillion ($1.06 trillion) bond-purchasing scheme, known as quantitative easing, early last month to boost the Eurozone economy, on top of record interest rate cuts aimed at encouraging lending.
The ECB said: "Euro-area banks indicated that they have used additional liquidity from their sales of marketable assets related to the asset-purchase program over the past six months. in particular for granting loans.
"The asset- purchase program seems to be effective in supporting lending to the euro-area economy."
The ECB Monetary Policy Committee is scheduled to hold a meeting on Wednesday, but no significant policy decision is expected.
According to the survey, additional liquidity provided by the bond-buying program is largely used for loans to companies, mortgages, consumer credit and other lending to households.
“Specifically, 28 percent of the euro area banks indicated that they have used the funds for granting loans to enterprises, while 17 percent and 18 percent respectively indicated that they have used the funds for granting housing loans and consumer credit and other lending to households” the ECB said.
