The European Central Bank has reported a rather low take-up of loan money in its latest stimulus package.<br /><br />ECB head Mario Draghi is hoping the four-year loans to banks will help head off deflation and revive the flagging eurozone economy.<br /><br />Of the 400 billion euros on offer, 82.6 billion euros was lent out to 255 eurozone banks. <br /><br />They will have a second chance in December to apply for the cash, which is granted on condition that it is lent on to businesses.<br /><br />The scheme is central to the ECB’s efforts to coax reluctant banks to lend more to boost the bloc’s economy. <br /><br />But previous rounds of ultra-cheap ECB loans – and borrowing costs close to zero – have done little to boost lending to companies, with much of the money instead used to buy government bonds. Critics fear a similar fate for the new scheme.<br /><br />with Reuters
