(35)

the following new PART SEVEN A, containing Articles 187a to 187d, is inserted after Article 187: ‘PART SEVEN A SPECIAL PROVISIONS IN THE EVENT OF A TARGET2 DISRUPTION OVER SEVERAL BUSINESS DAYS Article 187a Prolonged TARGET2 disruption over several business days 1. The ECB may declare a disruption of the TARGET2 system which impairs the normal processing of payments to be a “prolonged TARGET2 disruption over several business days” if: (a) the contingency solution as referred to in point (86) of Article 2 of Guideline ECB/2012/27 is activated as a result of the interruption; and (b) the disruption lasts or is expected by the ECB to last more than one business day. Regular monetary policy operations may be delayed or cancelled upon activation of the contingency solution as referred to in point (a). 2. The declaration referred in paragraph 1 shall be communicated via the ECB’s website. As a part of such a declaration, or subsequent to it, the ECB shall communicate the consequences of the disruption for specific monetary policy operations and instruments. 3. Following a declaration made pursuant to this Article, special measures and provisions relating to certain monetary policy operations and instruments may apply, as specified in this Guideline and in particular in Articles 187b, 187c, and 187d. 4. Once the disruption of the TARGET2 system is resolved, the ECB shall issue a communication via the ECB’s website stating that the special measures and provisions adopted due to that prolonged TARGET2 disruption over several business days are no longer applicable. Article 187b Processing of Eurosystem monetary policy operations in the event of a prolonged TARGET2 disruption over several business days In the event of a declaration of a prolonged TARGET2 disruption over several business days pursuant to Article 187a, the following provisions may apply in relation to the processing of Eurosystem monetary policy operations. (a) The settlement of open market operations in euro as set out in Title III, Chapter 2 of this Guideline shall not be processed via the contingency solution as defined in point (86) of Article 2 of Guideline ECB/2012/27. As a consequence, the settlement of such operations may be delayed until normal TARGET2 operations resume. (b) The interest payments of such operations shall be calculated either (i) as if no delay had occurred in the settlement of the operations or (ii) according to the actual duration, whichever results in a lower payable or higher receivable interest amount for the counterparty. (c) The Eurosystem shall offset in the calculation of the interest payment calculated in accordance with point (b) any extra current account balance remuneration the counterparty is entitled to receive, or obliged to pay in case of negative rates, as a consequence of the delayed settlement. (d) The interest shall be paid out or received when the ECB issues the communication referred to in Article 187a(4). Article 187c Access to the marginal lending facility in the event of a prolonged TARGET2 disruption over several business days In the event of a declaration of a prolonged TARGET2 disruption over several business days pursuant to Article 187a, the following provisions may apply in relation to access to the marginal lending facility. (a) Notwithstanding Article 19(6), a negative balance on a counterparty's settlement account with its home NCB at the end of the day shall be treated as intraday liquidity and remunerated at an interest rate of zero. (b) An interest rate of zero shall be applied to any outstanding credit in the marginal lending facility as set out in Article 20 granted on the day before activation of the contingency solution. That interest rate shall be applied for the period of the disruption. Any credit granted under the marginal lending facility and settled in real time on the day of but before the declaration of the prolonged TARGET2 disruption over several business days shall be treated as credit granted on the business day when the prolonged TARGET2 disruption over several business days is resolved. Interest payable for any credit received under the marginal lending facility shall be payable together with repayment of the marginal lending facility credit only after the contingency solution is deactivated and the ECB has issued a communication pursuant to Article 187a(4). The calculation of the interest rate payment shall exclude the business day(s) during which the prolonged TARGET2 disruption persisted. Article 187d No imposition of sanctions in the event of a prolonged TARGET2 disruption over several business days No sanction shall be imposed on a counterparty pursuant to Article 154 if a prolonged TARGET2 disruption over several business days is declared pursuant to Article 187a which affects that counterparty’s ability to fulfil its obligations under this Guideline.’;