These savings have the potential to facilitate projects that stimulate greater economic activity and fuel growth. Today, the Bank is concerned about the current global uncertainty, created in part by geopolitical tensions, surrounding the price of oil. Significant increases in the price of oil now that we are stabilising the economy represent a distinct downside risk that could offset our economic recovery efforts.
For banks whose eligible net lending exceeds a benchmark, the rate applied in TLTRO III will be lower, and can be as low as the average interest rate on the deposit facility prevailing over the life of the operation plus 10 basis points. A press release with further details of the terms of TLTRO III will be published at 15:30 CET today.