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ECB won't announce another round of TLTROs, say traders

(Reuters) - The European Central Bank will not announce another round of long-term cheap loans after the current ones expire next month, according to all 19 euro money market traders polled by Reuters, citing weak demand.

Unveiled last March as a potential tool to aid a credit recovery, the aim of the Targeted Long-Term Financing Operations (TLTRO II) was to push banks in the currency block to lend to the real economy.

Banks rolled over nearly all of their old ECB loans into the TLTRO facility but, amid a dearth of viable borrowers, net new take-up has been at the bottom end of expectations, at around 100 billion euros in three operations up to December (?), just a tiny fraction of what was available.

The final TLTRO is scheduled for March 23.

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In a regular survey on the ECB's weekly refinancing operations, 22 traders said they expected banks to borrow on 30.0 billion euros ($31.7 billion), according to a median estimate, slightly less than the 30.8 billion euros maturing from last week.

All 19 traders who answered a supplementary questions about TLTROs said they did not expect the central bank announce another cheap loan programme at its March meeting.

"The market is not expecting anything and the demand at these operations (TLTROs) has not been very inspiring. It is very clear that banks are not interested in the additional cash," said one trader at a large dealer.

"The ECB's asset purchases programme seems to be a better bet."

($1 = 0.9452 euros)

(Reporting by Rahul Karunakar and Shrutee Sarkar; Polling by Vartika Sahu)