Eurozone Banks Now Enjoying Negative Interest

Eurozone

 

Well kids, it's official: The eurozone economy is so bad that the European Central Bank has implemented a negative interest rate on deposits.

"The interest rate on the deposit facility will be decreased by 10 basis points to -0.10%, with effect from 11 June 2014."

In other words, if banks in the eurozone  choose to hang onto their money instead of lending it out, they will pay a penalty.

The Prime Rate in the eurozone was lowered to 0.15%.  Let's see if Mario Draghi and company have the courage to lower Prime to zero if the eurozone economy continues to show little improvement...

http://www.ecb.europa.eu/press/pr/date/2014/html/pr140605.en.html

http://www.ecb.europa.eu/home/html/faqinterestrates.en.html