The allotments with a 16-month maturity were made under the ECB’s so-called ‘pandemic emergency longer-term refinancing operations’ plan, or PELTRO. The facility mainly targets smaller banks and those who are not eligible for a separate program with targeted lending criteria. PELTRO loans are subject to an interest rate 25 basis points below the ECB’s main refinancing rate, which is currently at zero.
A separate program known as targeted longer-term refinancing operations offers banks more generous terms in return for providing credit to the real economy, though the next allotment under that facility doesn’t take place until June 2020.
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