ECONOMY

Banks set to request 6.1 bln under TLTRO

Greek banks are expected to request 6.1 billion euros from the European Central Bank’s temporary liquidity offer program for small and medium-sized enterprises that is set to launch on Thursday.

This estimate concerns the amount expected to be drawn during Thursday’s auction and the next in December, as well as those due to follow next year, with the maximum amount to be drawn from the Targeted Long Term Refinancing Operation, or TLTRO, set at 10 billion euros.

Piraeus Bank is expected to ask for 2.5 billion euros, National will follow with 1.6 billion, while Alpha and Eurobank will request 1 billion euros apiece.

The funds drawn will be used exclusively for the financing of SMEs.

The credit issued will have a four-year maturity period.

The terms will be particularly favorable, as the interest will be the benchmark ECB rate of 0.05 percent plus 10 basis points – 0.15 percent.