NEW YORK (CNNMoney) -- After unleashing a wave of liquidity earlier this year, the European Central Bank is set to offer European banks another chance to soak up billions of euros in cheap loans.
On Wednesday, the ECB will announce the results of its second Long-Term Refinancing Operation, in which banks will be able to borrow money for 3-years at interest rates as low as 1%.
In December, the ECB allotted nearly €500 billion under the first round of the operation, which went to 523 banks in the eurozone.
Officially, the loans are part of the ECB's effort to prevent a credit crunch in Europe, where banks have been struggling to fund themselves since late last year amid concerns about exposure to bad sovereign debt.
Read more: http://money.cnn.com/2012/02/28/markets/ecb_ltro/index.htm?iid=Lead
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