ECB published Decision 2021/752 to amend Decision 2019/1311 on the third series of targeted longer-term refinancing operations or TLTRO III. The amendments include changes to sanctions for non-compliance with reporting and auditing requirements as well as changes to provisions for treatment of corporate reorganizations occurring after March 31, 2021, for the purpose of calculating TLTRO-III interest rates. Decision 2021/752 shall enter into force on the day following that of its publication in the Official Journal of the European Union.
As explained in the introductory text to Decision 2021/752, the sanctions related to non-compliance with the deadlines set for submitting reports and auditor evaluations should be adjusted to make the sanctioning regime more proportionate while still aiming to ensure that participants comply with the deadlines set. In addition, the cases in which participants are permitted to switch from individual to group participation or join existing TLTRO-III groups as well as the procedure to be followed in such cases should be clarified. A provision should also be made for an exemption from the obligation to submit an auditor’s evaluation in relation to reports revised due to corporate reorganizations or changes in the composition of TLTRO-III groups. Finally, the reporting requirements and relevant interest rate calculations in the event of a change in the TLTRO-III group composition or of a corporate reorganization that occurs between April 01, 2021 and December 31, 2021 should be clarified. In this context, ECB has amended the Decision 2019/1311.
Keywords: Europe, EU, Banking, TLTRO III, Reporting, COVID-19, Liquidity Risk, Decision 2021/752, ECB
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