Under targeted longer-term refinancing operations (TLTROs), credit institutions may borrow from the Bank of Lithuania or other Eurosystem central banks under favourable terms for periods of up to three years.
Third series of targeted longer-term refinancing operations (TLTRO III)
On 7 March 2019 (along with 12 September amendments), the Governing Council of the European Central Bank (ECB) decided to launch a new series of quarterly targeted longer-term refinancing operations (TLTRO-III), starting in September 2019 and ending in March 2021, each with a maturity of three years. These new operations will help to preserve favourable bank lending conditions and the smooth transmission of monetary policy. The interest rate in each operation will now be set at the level of the average rate applied in the Eurosystem's main refinancing operations over the life of the respective TLTRO. For banks whose eligible net lending exceeds a benchmark, the rate applied in TLTRO III operations will be lower, and can be as low as the average interest rate on the deposit facility prevailing over the life of the operation.
After 2 years of operation counterparties will be subject to early repayments.
Second series of targeted longer-term refinancing operations (TLTRO II)
On 10 March 2016, the Governing Council of the European Central Bank (ECB) decided to further incentivise bank lending to the real economy and launch four second series targeted longer-term refinancing operations (TLTRO II). All of the new operations have a four-year maturity. These operations are conducted from June 2016 at a quarterly frequency.
The interest rate applied to amounts borrowed may range from the main refinancing rate to the deposit facility rate depending on the counterparty's lending performance.
Counterparties will be able to repay the amounts borrowed under TLTRO II at a quarterly frequency starting two years from the settlement of each operation. Counterparties will not be subject to mandatory early repayments.
Targeted longer-term refinancing operations (TLTRO I)
On 5 June 2014, the Governing Council of the ECB decided to conduct a series of targeted longer-term refinancing operations (TLTROs) over a window of two years. The operations had a four-year maturity. In carrying out these operations, the Eurosystem aimed to stimulate bank lending to households and non-financial corporations (excluding lending to households for the purpose of house purchase). These operations were conducted from September 2014 to June 2016.
Revised indicative calendar for TLTRO III, published 12 September 2019
Indicative calendar for TLTRO-II voluntary early repayments as of June 2019
TLTRO III reporting template (17.9 KB )
Decision ECB/2019/28 of September 2019 amending Decision ECB/2019/21
Decision ECB/2019/21 of 22 July 2019 on a thrid series of targeted longer-term refinancing operations
ECB: Decision (ECB/2016/11) amending Decision ECB/2014/34 on measures relating to targeted longer-term refinancing operations
ECB: Press release on TLTRO
Decision (ECB/2014/34) on measures relating to targeted longer-term refinancing operations
Decision (ECB/2015/5) amending Decision ECB/2014/34 on measures relating totargeted longer-term refinancing operations
ECB: Decision on TLTRO II (ECB/2016/10)