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Fitch said the move will only 'delay' the collapse of weak banks (Photo: europarl.europa.eu)

ECB boosts loans to €1 trillion to stop credit crunch

The European Central Bank (ECB) will issue a second round of cheap three-year loans on Wednesday (29 February) in order to help cash-strapped eurozone banks.

In total, the bank is lending almost €1 trillion after it already injected some €500 billion into the system in December because euro-area banks became wary of lending to each other.

The programme has so far been used mainly by Spanish and Italian banks to shore up funding gaps and buy government bonds. But it has done littl...

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