The European Central Bank (ECB) has today allotted €82.6bn to 255 counterparties, in a bid to boost lending to the real economy.
The ECB’s targeted long-term refinancing operation (TLTRO) consists of an eight stage lending programme totalling one trillion, to be conducted between September 2014 and June 2016.
In the first two tenders, banks and groups of banks are entitled to an initial borrowing allowance equal to 7% of the total amount of their loans to the euro area non-financial private sector, excluding loans to households for house purchase, outstanding on 30 April 2014.
A total of 382 entities were deemed elegible for the first TLTRO by the ECB, representing 1372 credit insituttions. The second TLTRO will be announced on 9 December and allotted on 11 December.
The operation is expected to increase the ECB balance sheet by a third, from two to three trillion.