Wednesday, June 27, 2012

MRO - LTRO relationship

Some have asked to see a longer period chart of the MRO (main lending facility) balances at the ECB. Here is the chart from the beginning of 2010 comparing MRO and LTRO. Keep in mind that the LTRO program existed before Draghi took over the ECB. The difference is that the program in the past was mostly 3 months in maturity rather that the 3-year loans that Draghi introduced. Note that maturities/reductions in LTRO generally corresponded with increases in the MRO balances. And of course the recent LTRO loans reduced MRO balances to almost zero - until recently.
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