Eurozone banks have to pay back an additional $472 billion to the ECB

According to the ECB, eurozone banks need to repay loans from the European Central Bank earlier. The amount of early repayment is 447.5 billion euros ($472 billion). After that, the total reduction will be almost 800 billion euros in only a few weeks.

The ECB's Targeted Long-Term Refinancing Operations (TLTROs) were launched to stimulate lending and encourage economic activity. Until recently, they provided banks with 2.1 trillion euros in cash.

Last month, the ECB raised the cost of borrowing under TLTRO. Banks were expected to pay back the funds rather than pay extra interest. And at the moment, inflation is on the rise.

Last month, 296 billion euros of TLTROs were received from banks for repayment. The repayment amount is expected to be 52 billion euros in December. After that, the total reduction will be 796 billion euros.

Most of the balance will need to be repaid in June. It currently stands at 1.32 trillion.

It is expected that the cost of bank financing will increase and demand will decrease because of early repayment. This gives hope for lower inflation for everyone.