LTRO and TARGET balances.wmv

The video tutorial explains how long-term refinance operations (LTRO) can assist with managing outstanding Target 2 balances, which are significant in the settlement accounts of deficit and surplus National Central Banks, like Italy and Germany. These large balances are causing issues in the payment system. LTROs allow deficit banks to replace discounts with long-term operations, offering a way to settle accounts by canceling and replacing balances with more acceptable terms for institutions like the Bundesbank.

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