Question
Should a 0% outflow rate be applied to the cash outflow from the early repayment of the TLTRO facility by a bank, which will occur within 30 days?
Background on the question
Article 23, Paragraph 3 of the Delegated Regulation (EU) 2015/61 states that “By way of derogation from the first subparagraph, where the counterparty to the securities financing transactions or capital market-driven transaction is the domestic central bank of the credit institution, the outflow rate shall be 0 %”. Does this continue to apply to the early repayment of the TLTRO facility by a bank, where the repayment has been notified to the domestic Central Bank, and a cash outflow will occur within 30 days?
Answer
This question has been rejected because the issue it deals with is already explained or addressed in the second subparagraph of Article 28(3) of Delegated Regulation (EU) 2015/61.The Single Rule Book Q&A tool has been established to provide explanations and non-binding interpretations on questions relating to the practical application or implementation of the provisions of legislative acts referred to in Article 1(2) of the EBA’s founding Regulation, as well as associated delegated and implementing acts, and guidelines and recommendations, adopted under these legislative acts.For further information on the purpose of this tool and on how to submit questions, please see “Additional background and guidance for asking questions”.