Decision (EU) 2020/614 (ECB/2020/25)

In forceThis text since 30 Apr 2020law://eu/dec/2020/614/rct_3@2026-11-11

(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 certain key parameters of TLTRO-III. On 16 March 2020, the Governing Council adopted Decision (EU) 2020/407 of the European Central Bank (ECB/2020/13)^note to implement some of these changes. This Decision is necessary to implement the additional changes decided by the Governing Council, in particular to provide for a temporary reduction in interest rates applied to all TLTROs-III and to lower the lending performance threshold under certain conditions.

Source: EUR-Lex, © European Union, 1998-2026. Reuse authorised under Decision 2011/833/EU.

Key facts

Type: Decision · (EU) 2020/614
Adopted: 30 Apr 2020
In force: 5 May 2020
Made by: European Central Bank
Official: EUR-Lex 32020D0614 · ELI

Topics

credit institution disclosure of information euro area financial legislation financial transaction interest loan long-term financing Economic and Monetary Union European Central Bank (ECB)Financial provisions General framework

History · 1 version

30 Apr 2020Reading

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Cited by 2: Decision (EU) 2021/752 (ECB/2021/21); Decision (EU) 2021/124 (ECB/2021/3)
Cites 1: Decision (EU) 2020/407 (ECB/2020/13)

Defined terms · 5

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benchmark net lending
means the amount of eligible net lending that a participant needs to exceed in the second reference period and, optionally, in the special reference period, in order to qualify for an interest rate on the participant’s borrowing that is lower than the initial rate applied and which is calculated in accordance with the principles and the detailed provisions set out in Article 4 and Annex I, respectively’;
interest rate incentive adjustment
means the reduction, if any, in the interest rate to be applied to amounts borrowed under TLTROs-III, expressed as a fraction of the average difference between the relevant maximum possible interest rate and the relevant minimum possible interest rate, as calculated in accordance with the detailed provisions set out in Annex I’;
rest of the life of the respective TLTRO-III
means the period from the settlement date of the respective TLTRO-III until 23 June 2020 and the period from 24 June 2021 until its maturity date or early repayment date, as applicable, thus excluding the special interest rate period;
special interest rate period
means the period from 24 June 2020 to 23 June 2021;
special reference period
means the period from 1 March 2020 to 31 March 2021.’.