Division 2 Calculation of mandatory early repayments

Participants that have borrowed in the TLTROs but whose eligible net lending in the period from 1 May 2014 to 30 April 2016 is below the benchmark will be required to pay back their borrowing in September 2016.

The mandatory early repayment in September 2016 of a participant is:

F1 $\mathrm{MR}=\sum _{k=1}^8{C}_k$ , if ${\mathrm{BE}}_8>{\mathrm{CNL}}_8$

This means that if the total eligible net lending granted by the participant in the period from 1 May 2014 to 30 April 2016 is lower than the benchmark for the allotment reference month of April 2016, then the full amount of borrowing in all TLTROs must be repaid in September 2016.

If BE ₈ ≤ CNL ₈ but $\sum _{j=3}^8{C}_j>{\mathrm{AA}}_8$ , then in September 2016 the participant must repay $\left(\sum _{j=3}^8{C}_j\right)-{\mathrm{AA}}_8$ from the last six TLTROs. In other words, if a participant's total borrowing in the TLTROs conducted from March 2015 to June 2016 $\left(\sum _{j=3}^8{C}_j\right)$ exceeds the basis for the calculation of the additional allowance for the allotment reference month of April 2016 (AA ₈), then the amount of this excess must be repaid in September 2016.