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As has often been the case in these matters, Mr Ackermann’s comments echoed the views of the German authorities. Last week, a letter from Bundesbank president, Jens Weidmann, to Mr Draghi was leaked, revealing the German’s scepticism about the terms of the LTRO. The programme, first launched in December, has seen Europe’s banks raise more than €1 trillion of funding at an interest rate of just 1 per cent.
Mr Draghi has been widely hailed by the banking industry and eurozone officials for cutting government bond yields and thawing frozen commercial funding markets, although there have been concerns about longer-term market distortions the LTRO could cause.
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