Frustrated Italians vote in crucial election for euro zone

ROME (Reuters) - Italians voted on Sunday in one of the most closely watched and unpredictable elections in years, with pent-up fury over a discredited elite adding to concern it may not produce a government strong enough to lead Italy out of an economic slump.

The election, which concludes on Monday afternoon, is being followed closely by investors; their memories are still fresh of the potentially catastrophic debt crisis that saw Mario Monti, an economics professor and former bureaucrat, summoned to serve as prime minister in place of Silvio Berlusconi 15 months ago.

A weak Italian government could, many fear, prompt a new dip in confidence in the European Union's single currency.

Opinion polls give the center-left a narrow lead but the result has been thrown completely open by the prospect of a huge protest vote against the painful austerity measures imposed by Monti's government and deep anger over a never-ending series of corruption scandals. Berlusconi's centre-right has also revived.

"I'm not confident that the government that emerges from the election will be able to solve any of our problems," said Attilio Bianchetti, a 55-year-old builder in Milan, who voted for the anti-establishment 5-Star Movement of comic and blogger Beppe Grillo.

The 64-year-old Grillo, heavily backed by a frustrated generation of young Italians hit by record unemployment, has been one of the biggest features of the last stage of the campaign, packing rallies in town squares up and down Italy.

"He's the only real new element in a political landscape where we've been seeing the same faces for too long," said Vincenzo Cannizzaro, 48, in the Sicialian capital Palermo.

Italians started voting at 8 a.m. (0700 GMT). Polling booths will remain open until 10 p.m. on Sunday and open again between 7 a.m. and 3 p.m. on Monday. Exit polls will come out soon after voting ends and official results are expected by early Tuesday.

Snow in northern regions is expected to last into Monday and could discourage some of the 47 million people eligible to vote in Italy to head out to polling stations, though the Interior Ministry has said it is fully prepared for bad weather.

Monti and his wife cast their votes at a polling booth in a Milan school on Sunday morning and centre-left leader Pier Luigi Bersani, the leader opinion polls suggest will have to form a new government, voted in his home town of Piacenza.

A small group of women's rights demonstrators greeted former prime minister Berlusconi when he voted in Milan. They bared their breasts in protest at the conservative leader, who is on trial at present for having sex with an underage prostitute.

Whichever government emerges from the election will have to tackle reforms needed to address problems that have given Italy one of the most sluggish economies in the developed world for the past two decades.

But the widespread despair over the state of the country, where a series of corruption scandals has highlighted the stark divide between a privileged political elite and millions of ordinary Italians, has left deep scars.

"It's our fault, Italian citizens. It's our closed mentality. We're just not Europeans," said Luciana Li Mandri, a 37-year-old public servant in Palermo.

"We're all about getting favors when we study, getting a protected job when we work. That's the way we are and we can only be represented by people like that as well," she said.

FRUSTRATION

Final polls published two weeks ago showed center-left leader Bersani with a 5-point lead, but analysts disagree about whether he will be able to form a stable majority that can make the economic reforms they believe Italy needs.

While the center left is still expected to gain control of the lower house, thanks to rules that guarantee a strong majority to whichever party wins the most votes nationally, a much closer battle will be fought for the Senate, which any government also needs to control to be able to pass laws.

The euro zone's third-largest economy is stuck in deep recession, struggling under a public debt burden second only to Greece in the 17-member currency bloc and with a public weary of more than a year of austerity policies.

Bersani is now thought to be just a few points ahead of media magnate Berlusconi, the four-times prime minister who has promised tax refunds and staged a media blitz in an attempt to win back voters.

Think-tank consultant Mario, 60, who was on his way to vote in Bologna, said Bersani's Democratic Party was the only serious grouping that could help solve the country's economic woes.

"They're not perfect," he said. "But they've got the organization and the union backing that will help them push through the structural reforms."

A strong fightback by Berlusconi, who has promised to repay a widely hated housing tax, the IMU, imposed by Monti last year, saw his support climb during a campaign that relentlessly attacked the "German-centric" austerity policies of the former European Union commissioner.

"I won't vote for Monti, and I don't think a lot of people will. He made a huge blunder with IMU," said 35-year-old hairdresser Marco Morando, preparing to vote in Milan.

But the populist frustration Berlusconi's campaign tapped into has also benefitted Grillo and many pollsters said his 5-Star Movement, made up of political novices, was challenging the center-right for the position as second political force.

"I'm very worried. There seems to be no way out from a political point of view, or from being able to govern," said Calogero Giallanza, a 45-year-old musician in Rome, who voted for Bersani's Democrats.

"There's bound to be a mess in the Senate because, as far as I can see, the 5-Star Movement is unstoppable."

(Additional reporting by Cristiano Corvino, Lisa Jucca, Jennifer Clark, Matthias Baehr and Sara Rossi in Milan, Stephen Jewkes in Bologna, Wladimir Pantaleone in Palermo, Stefano Bernabei and Massimiliano Di Giorgio in Rome; Editing by Robin Pomeroy and Alastair Macdonald)

Read More..

Pope celebrates emotional last Sunday prayer

VATICAN CITY: Pope Benedict XVI delivered an emotional last Sunday prayer in St Peter's Square, saying God had told him to devote himself to prayer but assuring supporters he would not "abandon" the Church.

Tens of thousands of supporters turned out for the historic prayers ahead of the pope's formal resignation on Thursday, often interrupting the pope with their clapping, cheering and chanting.

"The Lord is calling me to climb the mountain, to dedicate myself even more to prayer and meditation. But this does not mean abandoning the Church," the pope told the crowd from the window of his residence in the Apostolic Palace in the Vatican.

"If God is asking me to do this, it is precisely so I can continue to serve with the same dedication and love as before but in a way that is more appropriate for my age and for my strength."

The 85-year-old leader of the world's 1.2 billion Catholics has said he will step down because he no longer has the strength of mind and body to carry on.

His shock resignation ended an eight-year pontificate dominated by the priest child sex abuse scandal and efforts to counter rising secularism in the West.

He thanked the crowd with a final unscripted call, telling them: "We will always be close!"

The Vatican and Rome police estimated the numbers at more than 100,000 people -- many times more than usually attend the traditional Sunday prayer.

"Holy Father, We Love You", read one banner seen in the crowd. One read: "Thank You, Your Holiness" and another said: "Dear Father, We'll Miss You".

"I have come to support the pope and to ask for his blessing," said Joao-Paulo, a 26-year-old trainee priest from Brazil who came with fellow seminarians.

Birgit Marschall, 37, a teacher from Germany, said: "He is an intellectual who speaks in simple language, who writes what we have in our hearts."

Claire Therese Heyne, a 34-year-old theology student from the United States, said the pope "must have had a very strong reason" to leave.

"It is an act of courage and humility," she said.

Benedict will be only the second pope to resign of his own free will in the Church's 2,000-year history, and the first to do so since the Middle Ages.

But Gianpaolo, 33, said Benedict had been "less courageous" than his predecessors, and many people looked ahead to the pope's successor and stressed the need for major reforms.

"The Church has to have a major reflection after this resignation. Something has changed inside the Church and this decision reflects this," said Gianpaolo, who came with his two sons.

Forty-five-year old Linda came from Wales in Britain for the event, saying: "He was not so open as the last popes before him. A new pope should be more open to people, to new ideas."

There was tight security in and around the Vatican, with more than 100 police officers and snipers on surrounding buildings, as well as two field clinics and hundreds of volunteers to help pilgrims.

The security is being seen as preparation for the pope's final general audience in St Peter's on Wednesday where around 200,000 people are expected.

Some Italian media have speculated his health may be far worse than the Vatican revealed, and others have said an explosive report into the "Vatileaks" scandal may be to blame.

The Vatican's Secretariat of State -- effectively the government of the Catholic Church -- took the unusual step on Saturday of issuing a formal statement condemning "completely false news stories".

The Panorama news weekly and the Repubblica daily said a report by a committee of cardinals into the leaks of confidential papal papers last year had uncovered allegations of intrigue, corruption and blackmail in the Vatican.

No clear favourite has emerged to succeed Joseph Ratzinger. But many observers say the cardinals, who make the choice, may plump for a much younger candidate who is a more pastoral figure than the academic Benedict.

A series of meetings of cardinals starting Friday will determine the date of the start of the conclave to elect a new pope. The Vatican has hinted that it could be brought forward to early March since there is no papal funeral.

Conclaves can last for days before a candidate wins a two-thirds majority.

The Vatican has said Benedict will retire to the papal summer residence of Castel Gandolfo near Rome for the next two or three months while a former monastery inside the Vatican is renovated.

Benedict has said he will live "hidden from the world" but Vatican spokesman Federico Lombardi has said he could provide "spiritual guidance" to his successor and will likely continue to publish his theological research.

- AFP/fa

Read More..

PM greets Jayalalithaa on 65th birthday

CHENNAI: Prime Minister Manmohan Singh on Sunday greeted Tamil Nadu chief minister J Jayalalithaa on her 65th birthday.

A statement issued by the state government here said the prime minister greeted Jayalalithaa over the phone on her birthday.

Tamil Nadu governor K Rosaiah, leader of opposition in the Lok Sabha Sushma Swaraj of the BJP, Communist Party of India national secretary D Raja, many MPs, members of the Tamil Nadu assembly, industrialists and others also greeted Jayalalithaa.

At the AIADMK party headquarters here, senior leaders, state ministers and others were present when a cake weighing 65 kg was cut and distributed.

Across the state, AIADMK leaders and cadres celebrated Jayalalithaa's birthday. The chief minister is also the general secretary of the AIADMK.

Read More..

FDA approves new targeted breast cancer drug

WASHINGTON (AP) — The Food and Drug Administration has approved a first-of-a-kind breast cancer medication that targets tumor cells while sparing healthy ones.

The drug Kadcyla from Roche combines the established drug Herceptin with a powerful chemotherapy drug and a third chemical linking the medicines together. The chemical keeps the cocktail intact until it binds to a cancer cell, delivering a potent dose of anti-tumor poison.

Cancer researchers say the drug is an important step forward because it delivers more medication while reducing the unpleasant side effects of chemotherapy.

"This antibody goes seeking out the tumor cells, gets internalized and then explodes them from within. So it's very kind and gentle on the patients — there's no hair loss, no nausea, no vomiting," said Dr. Melody Cobleigh of Rush University Medical Center. "It's a revolutionary way of treating cancer."

Cobleigh helped conduct the key studies of the drug at the Chicago facility.

The FDA approved the new treatment for about 20 percent of breast cancer patients with a form of the disease that is typically more aggressive and less responsive to hormone therapy. These patients have tumors that overproduce a protein known as HER-2. Breast cancer is the second most deadly form of cancer in U.S. women, and is expected to kill more than 39,000 Americans this year, according to the National Cancer Institute.

The approval will help Roche's Genentech unit build on the blockbuster success of Herceptin, which has long dominated the breast cancer marketplace. The drug had sales of roughly $6 billion last year.

Genentech said Friday that Kadcyla will cost $9,800 per month, compared to $4,500 per month for regular Herceptin. The company estimates a full course of Kadcyla, about nine months of medicine, will cost $94,000.

FDA scientists said they approved the drug based on company studies showing Kadcyla delayed the progression of breast cancer by several months. Researchers reported last year that patients treated with the drug lived 9.6 months before death or the spread of their disease, compared with a little more than six months for patients treated with two other standard drugs, Tykerb and Xeloda.

Overall, patients taking Kadcyla lived about 2.6 years, compared with 2 years for patients taking the other drugs.

FDA specifically approved the drug for patients with advanced breast cancer who have already been treated with Herceptin and taxane, a widely used chemotherapy drug. Doctors are not required to follow FDA prescribing guidelines, and cancer researchers say the drug could have great potential in patients with earlier forms of breast cancer

Kadcyla will carry a boxed warning, the most severe type, alerting doctors and patients that the drug can cause liver toxicity, heart problems and potentially death. The drug can also cause severe birth defects and should not be used by pregnant women.

Kadcyla was developed by South San Francisco-based Genentech using drug-binding technology licensed from Waltham, Mass.-based ImmunoGen. The company developed the chemical that keeps the drug cocktail together and is scheduled to receive a $10.5 million payment from Genentech on the FDA decision. The company will also receive additional royalties on the drug's sales.

Shares of ImmunoGen Inc. rose 2 cents to $14.32 in afternoon trading. The stock has ttraded in a 52-wek range of $10.85 to $18.10.

Read More..

Crash at Daytona Exposes Risks to Fans

The risks of racing extend beyond the drivers.

Fans can wind up in the danger zone, too.

A horrifying crash on the last lap of a race at Daytona International Speedway injured at least 30 fans Saturday and provided another stark reminder of what can happen when a car going nearly 200 mph is suddenly launched toward the spectator areas.

The victims were sprayed with large chunks of debris — including a tire — after rookie Kyle Larson's machine careened into the fencing that is designed to protect the massive grandstands lining NASCAR's most famous track.

"I love the sport," said Shannan Devine, who witnessed the carnage from her 19th-row seat, about 250 feet away. "But no one wants to get hurt over it."

The fencing served its primary purpose, catapulting what was left of Larson's car back onto the track. But it didn't keep potentially lethal shards from flying into the stands.

"There was absolute shock," Devine said. "People were saying, 'I can't believe it, I can't believe it. I've never seen this happen, I've never seen this happen. Did the car through the fence?' It was just shock and awe. Grown men were reaching out and grabbing someone, saying, 'Oh my gosh! Oh my gosh!' It was just disbelief, absolute disbelief."

From Daytona to Le Mans to a rural road in Ireland, auto racing spectators have long been too close to the action when parts start flying. The crash in the second-tier Nationwide race follows a long list of accidents that have left fans dead or injured.

The most tragic incident occurred during the 1955 24 Hours of Le Mans, when two cars collided near the main stands. The wreck sent debris hurtling into the crowd, while one of the cars flipped upside down and exploded in a giant fireball.

Eighty-three spectators and driver Pierre Levegh were killed, and 120 fans were injured.

The Daytona crash began as the field approached the checkered flag and leader Regan Smith attempted to block Brad Keselowski. That triggered a chain reaction, and rookie Kyle Larson hit the cars in front of him and went airborne into the fence.

The entire front end was sheared off Larson's car, and his burning engine wedged through a gaping hole in the fence. Chunks of debris from the car were thrown into the stands, including a tire that cleared the top of the fence and landed midway up the spectator section closest to the track.

"I thought the car went through the fence," Devine said. "I didn't know if there was a car on top of people. I didn't know what to think. I'm an emotional person. I immediately started to cry. It was very scary, absolutely scary. I love the speed of the sport. But it's so dangerous."

The fencing used to protect seating areas and prevent cars from hurtling out of tracks has long been part of the debate over how to improve safety.

Three-time Indianapolis 500 winner Dario Franchitti lost close friend Dan Wheldon at Las Vegas in the 2011 IndyCar season finale, when Wheldon's car catapulted into the fencing and his head struck a support post. Since his death, IndyCar drivers have called for studies on how to improve the safety barriers.

Franchitti renewed the pleas on Twitter after the Daytona crash, writing "it's time (at)Indycar (at)nascar other sanctioning bodies & promoters work on an alternative to catch fencing. There has to be a better solution."

Another fan who witnessed the crash said he's long worried that sizable gaps in the fencing increase the chances of debris getting through to the stands.

Read More..

Abe vows to revive Japanese economy, sees no escalation with China

WASHINGTON (Reuters) - Japanese Prime Minister Shinzo Abe told Americans on Friday "I am back and so is Japan" and vowed to get the world's third biggest economy growing again and to do more to bolster security and the rule of law in an Asia roiled by territorial disputes.

Abe had firm words for China in a policy speech to a top Washington think-tank, but also tempered his remarks by saying he had no desire to escalate a row over islets in the East China Sea that Tokyo controls and Beijing claims.

"No nation should make any miscalculation about firmness of our resolve. No one should ever doubt the robustness of the Japan-U.S. alliance," he told the Center for Strategic and International Studies.

"At the same time, I have absolutely no intention to climb up the escalation ladder," Abe said in a speech in English.

After meeting U.S. President Barack Obama on his first trip to Washington since taking office in December in a rare comeback to Japan's top job, he said he told Obama that Tokyo would handle the islands issue "in a calm manner."

"We will continue to do so and we have always done so," he said through a translator, while sitting next to Obama in the White House Oval Office.

Tension surged in 2012, raising fears of an unintended military incident near the islands, known as the Senkaku in Japan and the Diaoyu in China. Washington says the islets fall under a U.S.-Japan security pact, but it is eager to avoid a clash in the region.

Abe said he and Obama "agreed that we have to work together to maintain the freedom of the seas and also that we would have to create a region which is governed based not on force but based on an international law."

Abe, whose troubled first term ended after just one year when he abruptly quit in 2007, has vowed to revive Japan's economy with a mix of hyper-easy monetary policy, big spending, and structural reform. The hawkish leader is also boosting Japan's defense spending for the first time in 11 years.

"Japan is not, and will never be, a tier-two country," Abe said in his speech. "So today ... I make a pledge. I will bring back a strong Japan, strong enough to do even more good for the betterment of the world."

'ABENOMICS' TO BOOST TRADE

The Japanese leader stressed that his "Abenomics" recipe would be good for the United States, China and other trading partners.

"Soon, Japan will export more, but it will import more as well," Abe said in the speech. "The U.S. will be the first to benefit, followed by China, India, Indonesia and so on."

Abe said Obama welcomed his economic policy, while Deputy Chief Cabinet Secretary Katsunobu Kato said the two leaders did not discuss currencies, in a sign that the U.S. does not oppose "Abenomics" despite concern that Japan is weakening its currency to export its way out of recession.

The United States and Japan agreed language during Abe's visit that could set the stage for Tokyo to join negotiations soon on a U.S.-led regional free trade agreement known as the Trans-Pacific Partnership.

In a carefully worded statement following the meeting between Obama and Abe, the two countries reaffirmed that "all goods would be subject to negotiations if Japan joins the talks with the United States and 10 other countries.

At the same time, the statement envisions a possible outcome where the United States could maintain tariffs on Japanese automobiles and Japan could still protect its rice sector.

"Recognizing that both countries have bilateral trade sensitivities, such as certain agricultural products for Japan and certain manufactured products for the United States, the two governments confirm that, as the final outcome will be determined during the negotiations, it is not required to make a prior commitment to unilaterally eliminate all tariffs upon joining the TPP negotiations," the statement said.

Abe repeated that Japan would not provide any aid for North Korea unless it abandoned its nuclear and missile programs and released Japanese citizens abducted decades ago to help train spies.

Pyongyang admitted in 2002 that its agents had kidnapped 13 Japanese in the 1970s and 1980s. Five have been sent home, but Japan wants better information about eight who Pyongyang says are dead and others Tokyo believes were also kidnapped.

Abe also said he hoped to have a meeting with new Chinese leader Xi Jinping, who takes over as president next month, and would dispatch Finance Minister Taro Aso to attend the inauguration of incoming South Korean President Park Geun-hye next week.

(Additional reporting by Jeff Mason and Doug Palmer; Editing by David Brunnstrom and Paul Simao)

Read More..

Maldivain ex-leader exits Indian embassy: New Delhi

NEW DELHI: Former Maldives president Mohamed Nasheed left the Indian embassy in the capital Male on Saturday, an Indian official said, 10 days after he sought refuge in the mission in a bid to avoid arrest.

Nasheed's exit came after a Maldivian court earlier this week postponed his trial for abuse of power when he was in office and India sent an envoy to the nation of 330,000 Sunni Muslims to try and end the political standoff.

"He (Nasheed) entered India's mission on February 13th of his own volition and decided to leave on his own," Indian foreign ministry spokesman Syed Akbaruddin said in New Delhi.

Nasheed, 45, is accused of abusing his powers after he won the first free elections in 2008 in the Indian Ocean holiday destination. The pro-democracy campaigner was ousted last year following a mutiny by police and troops.

"He is not planning to go back (to the embassy). He has ended seeking refuge there," Nasheed's Maldivian Democratic Party spokeswoman Shauna Aminath told AFP.

Nasheed, a famed global warming activist, has condemned the charges of abuse of power against him as a "politically motivated sham".

The Maldivian court postponed the hearing scheduled for last Wednesday after police said they were unable to arrest the former president and bring him before the magistrate, according to Nasheed's party.

Presidential spokesman Masood Imad had confirmed the hearing had been cancelled but said that the case was still pending.

Nasheed's taking refuge at the Indian embassy in Male had strained relations between India and its tiny neighbour.

The Maldivian foreign ministry last weekend summoned Indian High Commissioner (ambassador) D.M. Mulay and accused India of allowing Nasheed to use its embassy for political activities.

India had appealed to its neighbour to guarantee "the integrity of the electoral process" before the presidential election set for September, but had strongly denied interfering in politics in the Maldives.

-AFP/fl

Read More..

Won't tolerate any tampering with Ram Setu: BJP

NEW DELHI: BJP today warned the government against going ahead with the Sethusamudram project, saying the sentiments of crores of Hindus are attached to the issue and it will not tolerate any tampering with the Ram Setu.

"We would like to warn the government on the Ram Setu issue. It is ignoring the recommendations of the R K Pachauri Committee report and going ahead with the project. This is an issue related to Hindu sentiments and beliefs," party spokesperson Ravi Shankar Prasad told reporters here.

The principal opposition party demanded scrapping of the project.

The Pachauri Committee, which submitted its report to the Supreme Court, has said the Sethusamudram shipping channel project is not viable on economic and ecological grounds.

Government has rejected the report and maintained that it intends to pursue the project which will cut through the Adam's Bridge, popularly known as Ram Setu.

"BJP and the nation will not tolerate any tampering with the Ram Setu. Why is cutting through it the only solution?" Prasad asked.

Asked about the government's contention that over Rs 800 crore has already been spent on the project, the BJP leader said it is not a question of what amount was spent but why this expenditure was incurred in the first place.

"Without the Ram Setu you cannot think of the Ramayana," Prasad said, adding that sentiments of crores of Hindu are attached to the issue.

Ram Setu is the mythical bridge on which Lord Ram and his army crossed the sea to invade Ravan's kingdom.

BJP has always been opposed to the Sethusamudram project which envisages dredging of a shipping channel, proposed to be 30 m wide, 12 m deep and 167 km long, across the Palk Straits between India and Sri Lanka.

Read More..

Cyberattacks Bring Attention to Security Reform

Recent accusations of a large-scale cyber crime effort by the Chinese government left many wondering what immediate steps the president and Congress are taking to prevent these attacks from happening again.

On Wednesday, the White House released the administration's Strategy on Mitigating the Theft of U.S. Trade Secrets as a follow-up to the president's executive order. The strategy did not outwardly mention China, but it implied U.S. government awareness of the problem.

"We are taking a whole of government approach to stop the theft of trade secrets by foreign competitors or foreign governments by any means -- cyber or otherwise," U.S. Intellectual Property Enforcement Coordinator Victoria Espinel said in a White House statement.

As of now, the administration's strategy is the first direct step in addressing cybersecurity, but in order for change to happen Congress needs to be involved. So far, the Cyber Intelligence Sharing and Protection Act (CISPA) is the most notable Congressional legislation addressing the problem, despite its past controversy.

Last April, CISPA was introduced by House Intelligence Committee Chairman Mike Rogers, R-Mich., and Rep. Dutch Ruppersberger, D-Md. The act would allow private companies with consumer information to voluntarily share those details with the NSA and the DOD in order to combat cyber attacks.

Peter Parks/AFP/Getty Images

The companies would be protected from any liabilities if the information was somehow mishandled. This portion of the act sounded alarm bells for CISPA's opponents, like the ACLU, which worried that this provision would incentivize companies to share individuals' information with disregard.

CISPA passed in the House of Representatives, despite a veto threat from the White House stemming from similar privacy concerns. The bill then died in the Senate.

This year, CISPA was reintroduced the day after the State of the Union address during which the president declared an executive order targeting similar security concerns from a government standpoint.

In contrast to CISPA, the executive order would be initiated on the end of the government, and federal agencies would share relevant information regarding threats with private industries, rather than asking businesses to supply data details. All information shared by the government would be unclassified.

At the core of both the executive order and CISPA, U.S. businesses and the government would be encouraged to work together to combat cyber threats. However, each option would clearly take a different route to collaboration. The difference seems minimal, but has been the subject of legislative debates between the president and Congress for almost a year, until now.

"My response to the president's executive order is very positive," Ruppersberger told ABC News. "[The president] brought up how important information sharing is [and] by addressing critical infrastructure, he took care of another hurdle that we do not have to deal with."

Addressing privacy roadblocks, CISPA backers said the sharing of private customer information with the government, as long as personal details are stripped, is not unprecedented.

"Think of what we do with HIPAA in the medical professions; [doctors do not need to know] the individual person, just the symptoms to diagnose a disease," Michigan Gov. John Engler testified at a House Intelligence Committee hearing in an attempt to put the problem into context.

Read More..

ECB says banks to repay US$80.5b in ultra-cheap loans

FRANKFURT: The European Central Bank said on Friday that 356 eurozone banks will repay early 61.1 billion euros ($80.5 billion) of a second batch of ultra-cheap three-year loans made available to them a year ago in emergency liquidity measures.

Under the ECB's special long-term refinancing operations or LTROs, which it launched to avert a looming credit crunch in the single currency area, banks had the option of repaying any part of the money after just one year.

"Accordingly, on February 27 ... 61.1 billion will be repaid in the tender by 356 counter parties," the ECB said in a short statement.

The LTROs, injections of liquidity into the banking system with ultra-long maturities of three years, were launched in two batches -- 468 billion euros in December 2011 and 529 billion euros in February 2012.

At the time, they were widely credited with pulling Europe back from the brink of a dangerous credit crunch.

Both rounds of LTRO included provisions to allow early repayment after one year, if banks so chose, with the first repayment window opening on January 30, and the second on February 27. After that, repayments can continue on a weekly basis, depending on demand.

At the first repayment of the first batch on January 30, 278 banks repaid 137 billion euros.

- AFP/al

Read More..