European Central Bank loan 'is not a panacea'

The European Central Bank (ECB) has loaned 489bn euros to 523 banks for three years in an effort to steady the financial system which is under pressure from the eurozone debt crisis.

It is the biggest ECB infusion of credit into the banking system in the euro's 13 year history.

Colin Ellis is the Chief Economist at British Venture Capital and Private Equity Association and he told the BBC that the loan is ''is not a panacea'' and that the banks hope it ''will feed through in all sorts of ways'' to small businesses in the eurozone.

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