ECB is rushing to assure markets that the expiration of its EUR440B 12-month liquidity facility will go off this Thurs

ECB is rushing to assure markets that the expiration of its EUR440B 12-month liquidity facility will go off this Thurs w/o a hitch; the ECB is making liquidity available on similar terms (albeit w/3-month maturities instead of 12); European banks have been preparing for this expiration by hoarding cash; the upcoming 3-month refinancing operation could see demand top EU250B; The ECB has said it will provide funds for three months at an interest rate of 1% on Wednesday. It also will carry out a special six-day-loan operation on Thursday. (DJ)