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2016-04-21 — cnbc.com
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These targeted long-term refinancing operations, or TLTRO IIs, advance on a previous model announced by the central bank in 2011 and effectively give free money to the banks to lend to the real economy.
They're a series of four loans - conducted between June 2016 and March 2017 - and will have a fixed maturity of four years. The interest rate will start at nothing, but could become as low as the current deposit rate, which is currently -0.40 percent, if banks meet their loan targets. This means the banks will be receiving cash for borrowing from the central bank.
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