Targeted longer-term refinancing operations
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 10 December 2020 the Governing Council of the European Central Bank (ECB) decided to launch three additional TLTRO-III operations between June and December 2021. More details are available on 10 December 2020 ECB press release.
On 7 March 2019 (along with 12 September 2019, 12 March 2020 and 30 April 2020 amendments), the Governing Council of the 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 minimum possible interest rate may be 50 basis points below the average interest rate on the deposit facility rate (DFR), the maximum possible interest rate of the operation may be the average interest rate on the main refinancing operations (MRO).
The specific interest rate to be applied will depend on the participant's net lending performance over the life of the operation.
More details are available on 30 April 2020 ECB press release.