FRANKFURT (AFP) - The European Central Bank said Friday it was launching a 28-day liquidity-providing operation with an intended volume of 25 billion dollars, in line with an announcement on May 2.

The operation is being carried out together with the US central bank, the Federal Reserve, and is part of a series of steps to provide liquidity to encourage lending between banks in the wake of the subprime mortgage crisis and an ensuing credit crunch.

The ECB said on May 2 it would increase its participation in such initiatives from 15 to 25 billion dollars and has said it plans a further operation also valued at 25 billion dollars.

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