Article 1 Amendments

Decision (EU) 2019/1311 (ECB/2019/21) is amended as follows:

1. (1)

   Article 4 is amended as follows:

   1. (a)

      paragraph 2 is replaced by the following:

      ‘2.

      Each participant’s borrowing allowance shall equal 50 % of its total reference outstanding amount, less any amount previously borrowed by that TLTRO-III participant under TLTROs‐II pursuant to Decision (EU) 2016/810 (ECB/2016/10) and still outstanding on the settlement date of a TLTRO-III having regard to any legally binding notification for early repayment submitted by the participant in accordance with Article 6 of Decision (EU) 2016/810 (ECB/2016/10). The relevant technical calculations are outlined in Annex I.’;

   2. (b)

      paragraph 4 is replaced by the following:

      ‘4.

      Each participant’s bid limit for each TLTRO-III shall be equal to its borrowing allowance reduced by the amounts borrowed under previous TLTROs-III. This amount shall be considered to represent a maximum bid limit for each participant and the rules applicable to bids exceeding the maximum bid limit, as laid down in Article 36 of Guideline (EU) 2015/510 (ECB/2014/60), shall apply. The relevant technical calculations are outlined in Annex I.’;

2. (2)

   in Article 5a, paragraph 1 is replaced by the following:

   ‘1.

   From September 2021, starting 12 months after the settlement of each TLTRO-III, participants shall, on a quarterly basis, have the option of terminating or reducing the amount of TLTRO-III concerned before maturity.’;

3. (3)

   in Annex I, Section 1, the third paragraph is replaced by the following:

   ‘The borrowing allowance equals 50 % of the reference outstanding amount relating to the participant^f1 minus the amounts borrowed by the participant in the targeted longer-term refinancing operations pursuant to Decision (EU) 2016/810 (ECB/2016/10) (TLTROs-II) and still outstanding at the settlement date of the respective TLTRO-III, or zero if such amount is negative, i.e.:

   for k = 1,…,7.’;

4. (4)

   in Annex I, Section 1, the fifth paragraph is replaced by the following:

   ‘The bid limit applicable to each participant in each TLTRO-III is its borrowing allowance BA_k less the amounts borrowed under previous TLTROs-III. Let be the borrowing of a participant in TLTRO-III k, then where BL_k is the bid limit for this participant in operation k that is defined as follows:

   

   for k = 2,…,7.’.