Extension of TLTROs in 2022?
Covered bonds are one of the largest asset classes submitted to the ECB at mid-year 2021, with a portfolio of almost € 700 billion. Within the framework of the targeted long-term refinancing operations (TLTRO 3), issuers are offered very favourable conditions and an interest premium of 1 % from June 2021 to June 2022 if they achieve certain benchmarks in their lending business.
Will the ECB extend further tranches of TLTRO 2022 and/or grant the 1% interest rate premium beyond June 2022?
No, the ECB will neither tender further TLTRO 3 tenders nor grant the interest rate premium beyond June 2022.
No, the ECB will not extend any further TLTRO 3 tenders, but it will grant the interest rate premium beyond June 2022.
Yes, the ECB will extend new TLTRO 3 tranches in 2022 and continue to grant the interest rate premium beyond June 2022.