The coronavirus pandemic is a major source of uncertainty for the global economy. This is stated in the bulletin of the European Central Bank. According to the EU financial regulator, the eurozone's GDP in the second quarter fell by 11.8%. In the third quarter, the indicators may improve, experts say, but will not reach the pre-crisis level.
The ECB decided to support the financial institutions of the eurozone by issuing targeted loans for super-cheap lending to banks at a negative rate – minus 1%. A total of 338 banks received 174.5 billion euros.
The ECB believes that during the coronavirus crisis, these three-year loans are the main tool for stabilizing the economy. Essentially, the regulator subsidizes banks to lend to companies and households, and thus stimulate economic activity and job creation.
In August, inflation in the eurozone, according to Eurostat, went into negative territory and amounted to 0.2% in annual terms.
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