ECB extends pandemic emergency longer-term refinancing operations

• ECB to offer four additional pandemic emergency longer-term refinancing operations in 2021 allotted on a quarterly basis, each with a tenor of one year.
• Additional operations provide liquidity backstop to preserve the smooth functioning of the money market during the extended pandemic period.

The Governing Council of the European Central Bank (ECB) today decided to offer four additional pandemic emergency longer-term refinancing operations (PELTROs) on a quarterly basis during 2021. Each operation will have a tenor of approximately one year. These operations will serve as a liquidity backstop to the euro area banking system and contribute to preserving the smooth functioning of money markets during the extended pandemic period.

The PELTROs will be conducted as fixed rate tender procedures with full allotment. The operations will be offered at accommodative terms. The interest rate will be 25 basis points below the average rate applied in the Eurosystem’s main refinancing operations (currently 0%) over the life of the respective PELTRO.

The PELTROs will be conducted in accordance with the indicative calendar shown below.