The initial borrowings were at 25 basis points, while from November 2020 the borrowing rate was lowered to 10 basis points for new drawdowns. This is materially below the cost of banks obtaining 3-year funding in the market.
In the first phase of the program, the bulk of the funds were drawn down in the weeks leading up to the end of September 2020 deadline (Graph 9). We expect borrowing under the TFF to ramp up in the coming weeks as the end June deadline approaches.