Jean-Claude Trichet will be replace by Italian central banker Mario Draghi (Photo: European Commission)

ECB offers new loans to banks in 'worst crisis since WWI'

The European Central Bank has announced new loans to banks amid mounting fears across Europe of a fresh credit crunch paralysing the continent’s economy.

In his last press conference as president of the Frankfurt-based institution, Frenchman Jean-Claude Trichet on Thursday (6 October) said that the ECB would be providing unlimited 12-month and 13-month loans to banks and that the bank would purchase some €40 billion in covered bonds - debt securities backed by cash flows from mortgages ...

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