Merler, Silvia, (2016), “ECB TLTRO 2.0 – Lending at negative rates”, Bruegel Blog, 11 March
The ECB first announced its targeted long-term refinancing operations (TLTRO) in summer 2014, and operations started in September 2014. Under the first version of the programme, banks could borrow an initial allowance of 7% of their outstanding loans to the euro area non-financial private sector. They could then borrow additional funds in a second wave in March 2015 and June 2016, depending on their net lending to the real economy. ECB President Mario Draghi said on March 10 that the TLTRO has been successful. In terms of total outstanding ECB liquidity, TLTROs have substituted for part of the liquidity drained by the redemptions of 3-year LTROs, keeping the total liquidity allocated through refinancing operations above 500 billion euros.
Relevant Posts
- Gerba, Eddie, Macchiarelli, Corrado, (2016), “Policy options and risks of an extension of the ECB’s quantitative easing programme: An analysis”, European Parliament, February
- Bibow, Jörg, (2016), “As The Euro Time Bomb Ticks Away The ECB Turns Desperate”, Social Europe, 9 March.