Bank of Lithuania

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 four years. With these operations, the Eurosystem aims to stimulate bank lending to households and non-financial corporations.

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.

Useful information

Last update: 01-02-2018