Longer-term refinancing operations

The Eurosystem conducts monthly longer-term refinancing basic tender operations with a three-month maturity in order to steady the supply of liquidity and to assist banks which are active in the money market in the security of their operations.

The operational features of the longer-term refinancing operations can be summarised as follows:

  • They are liquidity-providing transactions.
  • They take place regularly each month (in accordance with the pre-announced tender calendar).
  • They are executed in a decentralised manner by the individual national central banks as standard tenders.
  • All counterparties which satisfy the general eligibility criteria may submit bids for the longer-term refinancing operations.
  • All assets included in the single framework for eligible assets of the Eurosystem (see Eligible assets in the Eurosystem) are eligible as collateral for longer-term refinancing operations.

In addition to the regular basic tender operations, the Eurosystem is conducting supplementary longer-term refinancing operations owing to the current financial market turmoil. With these operations, the Eurosystem aims to support the normalisation process and the smooth functioning of the euro money market.

In order to support bank lending to the real economy, eight targeted longer-term refinancing operations (TLTROs) have been carried out since September 2014, with a term of up to four years and early repayment possibilities.