The TFF does this by providing a guaranteed source of funding to ADIs for 3 years at the low cost of 25 basis points, with an incentive to increase lending to businesses, especially small and medium-sized enterprises (SMEs). Funds provided under the TFF are secured against collateral, as is the case with the Bank's other facilities.
Owing to the topping-up of provisions for general risks – which my colleague Dr Weidmann has already explained – the net result of financial operations closed the year with a net expense of € million, following net income of € million in the previous year.