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ECB sets conditions for securing loans at rebate rate

FRANKFURT, June 6 (Reuters) - Euro zone banks that grow their lending by at least 2.5 percent will get the best rate from the European Central Bank for borrowing cash via its targeted longer-term refinancing operations (TLTRO III), the ECB said on Thursday.

"Counterparties will receive the maximum rate reduction if they exceed their benchmark stock of eligible loans by 2.5% as at 31 March 2021," the ECB said.

"Below this limit, the size of the decrease in the interest rate will be graduated linearly depending on the percentage by which a counterparty exceeds its benchmark stock of eligible loans." (Reporting By Francesco Canepa; Editing by Catherine Evans)