Barclays has confirmed that it has secured €8.2 billion (£6.7 billion) of the European Central Bank’s (ECB’s) long-term refinancing operation three-year facility, provided last week.
The facility will be used to manage risk associated with “mismatches” between Barclays euro-denominated assets and deposits in markets where the group has significant local operations.
That is to say, €6.2 billion of the funds will be accessed via the Banco de España and the remaining €2 billion via the Banco de Portugal, for Barclays operations in the respective markets.
The move should provide funding stability while the bank works at reducing current funding mismatches and restructures them in line with “the new market reality”.
Until the ECB loan is fully repaid, any funding benefit that might arise from the facility (versus Barclays’ cost of funding) will be ring fenced in the group’s financial results and will not contribute to the remuneration of any personnel.
Barclays previously disclosed that it did not take part in the ECB’s prior allotment of its three-year facility, in December of last year.