Just cos we got nothing else going on today the ECB decided to launch its first instalment of the TLTRO’s ( Targeted Long-Term Refinancing Operations) announced at the June meeting amongst a package of measures that the Draghster says will boost its balance sheet to as much as EUR 3 trillion from EUR 2 trillion
Due at 09.15 GMT Draghi said the policy will
support bank lending to households and non-financial corporations.
- Banks that increase their lending will be rewarded with cheap long-term funding.
In othe words the ECB will provide cheap financing to banks who agree to pass on cheap borrowing to the non-corporate financial sector and households (but not mortgage lending).
Someone tell me when it’s all over.
Today’s take-up is expected to be low though with many analysts looking at EUR 100-150 bln so its effectiveness will be questionable
Full timetable is
- 18 September 2014, TLTRO 1 allotment – fixed rate of 0.15% and mature in Sep 26, 2018, with the option of repayment after 24-months.
- 24 September 2014: TLTRO 1 settlement
- 11 December 2014: TLTRO 2 allotment
- 17 December 2014: TLTRO 2 settlement
- March 2015 to June 2016: 6 additional TLTROs will be held
- September 2018: All TLTROs to mature
