July 10, 2020 / 3:38 PM / in a month

Italian banks took almost one fifth of ECB's TLTRO3 funds

MILAN, July 10 (Reuters) - Italian banks borrowed 249 billion euros ($282 billion) last month from the European Central Bank at its latest targeted-longer term refinancing operation (TLTRO3), the Bank of Italy said on Friday.

Italy’s take-up accounts for nearly one fifth of the 1.31 trillion euros in TLTRO3 funds the ECB allotted on June 18.

Launched six years ago, the ECB’s TLTRO tenders were redesigned this year to help the economy cope with the COVID-19 crisis. Banks can borrow funds with a three-year maturity for a rate as low as minus 1%.

On the same day the TLTRO3 tender was settled, Italian banks repaid 132 billion euros in TLTRO2 funds, the Bank of Italy said in its monthly economic bulletin.

Italian banks last month also borrowed 14 billion euros out of a total of 15.6 billion in funds the ECB allotted at its second pandemic emergency longer-term refinancing operations (PELTRO).

PELTRO auctions are held on a near monthly basis and mature in the third quarter of 2021. ($1 = 0.8835 euros) (Reporting by Valentina Za; Editing by Toby Chopra)

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