The European Central Bank will offer liquidity worth 489 billion euros to 523 European banks to ease their funding pressures.

The financial support, the largest ever in the ECB’s history, is seen as a positive indication that the central bank will reach out a helping hand to the European financial industry facing hardships amid the euro zone fiscal crisis.

The three-year loans will be provided at the interest rate of one percent on eased collateral conditions. Many banks are expected to put up a bid to receive the financial help.

The ECB’s first extra-long, large-scale liquidity will help ease the funding pressures of euro zone banks in the short term and stabilize the state bond market.