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ECB's net take-up of €45bn for fifth TLTRO

The ECB conducts the fifth TLTRO programme on 24 September. According to the base-case scenario, outstanding loans to the non-financial private sector (excluding housing loans) would increase by €45bn per quarter over the 2015-16 period, argues Societe Generale. 

The TLTRO take-up, net of adjustments to MRO and 3m LTRO, will be close to that amount. In other words, the total of monetary operations (MRO, TLTRO) are expected to increase by €45bn between end August and end-October, added Societe Generale. This outcome would be similar to the 18 June TLTRO, when the gross take up printed at €73.8bn but the net increase in monetary operations between end-May (€496bn) and end-July (€544bn) was only €48bn.

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