Decision (EU) 2022/2128 of the European Central Bank of 27 October 2022 amending Decision (EU) 2019/1311 on a third series of targeted longer-term refinancing operations (ECB/2019/21) (ECB/2022/37)

1 The interest rate applicable to amounts borrowed under each of the first seven TLTROs-III by participants whose eligible net lending during the special reference period equals or exceeds their benchmark net lending and whose eligible net lending during the additional special reference period is lower than their benchmark net lending shall be calculated as follows, subject to the conditions set out in Article 6(3a): (a) during the special interest rate period, the interest rate shall be the average interest rate on the deposit facility over that period minus 50 basis points. The resulting interest rate shall not, in any case, be higher than minus 100 basis points; (b) during the additional special interest rate period, the interest rate shall be the lower of the following rates: (i) the average interest rate on the main refinancing operations over that period minus 50 basis points; (ii) the average interest rate on the deposit facility over the main interest rate period of the respective TLTRO-III; (c) during the pre-SIRP and post-ASIRP interest rate periods of the respective TLTRO-III, the interest rate shall be the average interest rate on the deposit facility over the main interest rate period of the respective TLTRO-III; (d) during the last interest rate period of the respective TLTRO-III, the interest rate shall be the average interest rate on the deposit facility over that period.

2 The interest rate applicable to amounts borrowed under each of the first seven TLTROs-III by participants whose eligible net lending during the special reference period and during the additional special reference period is lower than their benchmark net lending but whose eligible net lending during the second reference period exceeds their benchmark net lending shall be calculated as follows: (a) during the special interest rate period, the interest rate shall be the lower of the following rates: (i) the average interest rate on the main refinancing operations over that period minus 50 basis points; (ii) the interest rate calculated depending on the deviation from the benchmark outstanding amount, as set out in point (c); (b) during the additional special interest rate period, the interest rate shall be the lower of the following rates: (i) the average interest rate on the main refinancing operations over that period minus 50 basis points; (ii) the interest rate calculated depending on the deviation from the benchmark outstanding amount, as set out in point (c); (c) during the pre-SIRP and post-ASIRP interest rate periods of the respective TLTRO-III, the interest rate shall be lower than the average interest rate on the main refinancing operations over the main interest rate period of the respective TLTRO-III, and may be as low as the average interest rate on the deposit facility over the main interest rate period of the respective TLTRO-III, depending on the deviation from the benchmark outstanding amount; (d) during the last interest rate period of the respective TLTRO-III, the interest rate shall be lower than the average interest rate on the main refinancing operations over that period, and may be as low as the average interest rate on the deposit facility over that period, depending on the deviation from the benchmark outstanding amount.

3 The interest rate applicable to amounts borrowed under each of the first seven TLTROs-III by participants whose eligible net lending during the second reference period, the special reference period and the additional special reference period is lower than their benchmark net lending shall be calculated as follows: (a) during the special interest rate period, the interest rate shall be the average interest rate on the main refinancing operations over that period minus 50 basis points; (b) during the additional special interest rate period, the interest rate shall be the average interest rate on the main refinancing operations over that period minus 50 basis points; (c) during the pre-SIRP and post-ASIRP interest rate periods of the respective TLTRO-III, the interest rate shall be the average interest rate on the main refinancing operations over the main interest rate period of the respective TLTRO-III; (d) during the last interest rate period of the respective TLTRO-III, the interest rate shall be the average interest rate on the main refinancing operations over that period.

3a The interest rate applicable to amounts borrowed under each of the first seven TLTROs-III by participants whose eligible net lending during the additional special reference period equals or exceeds their benchmark net lending shall be calculated as follows, subject to the conditions set out in Article 6(3b): (a) during the pre-SIRP interest rate period of the respective TLTRO-III, the interest rate shall be calculated according to paragraph 1(c), paragraph 2(c) or paragraph 3(c), as applicable; (b) during the special interest rate period, the interest rate shall be calculated according to paragraph 1(a), paragraph 2(a) or paragraph 3(a), as applicable; (c) during the additional special interest rate period, the interest rate shall be the average interest rate on the deposit facility over that period minus 50 basis points. The resulting interest rate shall not, in any case, be higher than minus 100 basis points; (d) during the post-ASIRP interest rate period of the respective TLTRO-III, the interest rate shall be the average interest rate on the deposit facility over the main interest rate period of the respective TLTRO-III; (e) during the last interest rate period of the respective TLTRO-III, the interest rate shall be the average interest rate on the deposit facility over that period.

3b The interest rate applicable to amounts borrowed under the eighth or subsequent TLTROs-III by participants whose eligible net lending during the additional special reference period equals or exceeds their benchmark net lending shall be calculated as follows, subject to the conditions set out in Article 6(3b): (a) during the additional special interest rate period, the interest rate shall be the average interest rate on the deposit facility over that period minus 50 basis points. The resulting interest rate shall not, in any case, be higher than minus 100 basis points; (b) during the post-ASIRP interest rate period of the respective TLTRO-III, the interest rate shall be the average interest rate on the deposit facility over the main interest rate period of the respective TLTRO-III; (c) during the last interest rate period of the respective TLTRO-III, the interest rate shall be the average interest rate on the deposit facility over that period.

3c The interest rate applicable to amounts borrowed under the eighth or subsequent TLTROs-III by participants whose eligible net lending during the additional special reference period is lower than their benchmark net lending shall be calculated as follows: (a) during the additional special interest rate period, the interest rate shall be the average interest rate on the main refinancing operations over that period minus 50 basis points; (b) during the post-ASIRP interest rate period of the respective TLTRO-III, the interest rate shall be the average interest rate on the main refinancing operations over the main interest rate period of the respective TLTRO-III; (c) during the last interest rate period of the respective TLTRO-III, the interest rate shall be the average interest rate on the main refinancing operations over that period.

4 Further details on interest rate calculations are laid down in Annex I. The final interest rate and the relevant data pertaining to its calculation shall be communicated to participants in accordance with the indicative calendar for TLTROs-III published on the ECB’s website.

5 Interest shall be settled in arrears on the maturity of each TLTRO-III or on early repayment as provided for in Article 5a, as applicable.

6 If, due to the exercise of remedies available to an NCB in accordance with its contractual or regulatory arrangements, a participant is required to repay outstanding amounts in one of the first seven TLTROs-III before the interest data related to the second and the special reference periods are communicated to that participant, the interest rate applicable to the amounts borrowed by that participant under each of the first seven TLTROs-III and subject to mandatory repayments shall be: (a) for the special interest rate period, the average interest rate on the main refinancing operations over that period minus 50 basis points; (b) for the additional special interest rate period, the average interest rate on the main refinancing operations over that period minus 50 basis points; and (c) for the pre-SIRP interest rate period, the average rate on the main refinancing operations over the main interest rate period of the respective TLTRO-III up to the date on which the repayment was required to be made by the NCB. If such repayment is required after the interest data related to the second and the special reference periods have been communicated to the participant but before the interest rate related data of the additional special reference period have been communicated to the participant, the interest rate applicable to the amounts borrowed by that participant under each of the first seven TLTROs-III and subject to mandatory repayments shall be set in accordance with paragraphs 1 to 3. If such repayment is required after the interest related data of the additional special reference period have been communicated to the participant, the interest rate applicable to the required repayment amounts borrowed by that participant under each of the first seven TLTROs-III shall be set in accordance with paragraphs 1 to 3a. If due to the exercise of remedies available to an NCB in accordance with its contractual or regulatory arrangements, a participant is required to repay outstanding amounts in the eighth or subsequent TLTROs-III before the resulting interest rate for the additional special reference period has been communicated to the participant, the interest rate applicable to the amounts borrowed by that participant under the eighth or subsequent TLTROs-III and subject to mandatory repayment shall be set in accordance with paragraph 3c. If such repayment is required after the interest related data of the additional special reference period have been communicated to the participant, the interest rate applicable to the amounts borrowed by that participant under the eighth or subsequent TLTROs-III and subject to mandatory repayment shall be set in accordance with paragraphs 3b and 3c.

7 If counterparties voluntarily repay early amounts borrowed in one of the first seven TLTROs-III in line with Article 5a before the interest related data of the additional special reference period have been communicated to them, the interest rate for the additional special interest rate period shall be calculated in accordance with paragraphs 1(b), 2(b) and 3(b).’;

This Decision shall enter into force on 8 November 2022.