ECB announced yesterday to start a new quarterly targeted longer-term refinancing operations (TLTRO-III). in September. That’s three month later than some expected. Some lenders might start to face a funding gap in June already. ECB Governing Council member Ewald Nowotny said “to make this a successful program, it has to be well-prepared.” Meanwhile, Nowotny also hailed that “what the ECB did was the correct reaction” to risks in the external situation.
Another ECB Governing Council member Vitas Vasiliauskas said the central bank has time up until September to decide details of the TLTRO-III. He added that the program won’t be extended to mortgages.
