Introductory text
United Kingdom
Decision (EU) 2020/407 of the European Central Bank
of 16 March 2020
amending Decision (EU) 2019/1311 on a third series of targeted longer-term refinancing operations (ECB/2020/13)
THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,
Having regard to the Treaty on the Functioning of the European Union, and in particular the first indent of Article 127(2) thereof,
Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular the first indent of Article 3.1, Article 12.1, the second indent of Article 18.1 and the second indent of Article 34.1 thereof,
Having regard to Guideline (EU) 2015/510 of the European Central Bank of 19 December 2014 on the implementation of the Eurosystem monetary policy framework (General Documentation Guideline) (ECB/2014/60)f1,
Whereas:
(1)
Pursuant to Article 1(4) of Guideline (EU) 2015/510 (ECB/2014/60), the Governing Council may, at any time, change the tools, instruments, requirements, criteria and procedures for the implementation of Eurosystem monetary policy operations.
(2)
On 22 July 2019, in pursuing its price stability mandate and to preserve favourable bank lending conditions and support the accommodative stance of monetary policy in Member States whose currency is the euro, the Governing Council adopted Decision (EU) 2019/1311 of the European Central Bank (ECB/2019/21)f2. This Decision provided for a third series of targeted longer-term refinancing operations (TLTROs-III) to be conducted over the period from September 2019 to March 2021.
(3)
On 12 March 2020, in order to support bank lending to those most affected by the spread of the coronavirus disease (COVID-19), in particular small and medium-sized enterprises, the Governing Council decided to change three parameters of TLTRO-III, namely to increase the borrowing allowance from 30 % to 50 %, modify the maximum bid limit for individual TLTROs-III and, starting from September 2021, offer an early repayment option for amounts borrowed under TLTROs-III 12 months after the settlement of each operation, instead of 24 months.
(4)
In order to apply these adjusted parameters with immediate effect, this Decision should enter into force without delay.
(5)
Therefore, Decision (EU) 2019/1311 (ECB/2019/21) should be amended accordingly,
HAS ADOPTED THIS DECISION:
Annotations
Footnotes
- f1
- f2
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Decision (EU) 2019/1311 of the European Central Bank of 22 July 2019 on a third series of targeted longer-term refinancing operations (ECB/2019/21) (OJ L 204, 2.8.2019, p. 100).