ECB official says banks' borrowing costs could increase

04/7/2010 | Reuters

Marko Kranjec, a member of the European Central Bank Governing Council, said banks in the eurozone could see their borrowing costs rise later this year when they are required to start paying back the central bank. "Due to already-announced measures of the European Central Bank, which will stop one-year lending without limits, the maturity of [funding] sources will shorten and banks will have to seek funding on the markets," Kranjec said. "Due to competition of states and debtors, it can happen that banks will have to pay higher prices for those loans."

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