Guideline of the European Central Bank of 21 November 2008 on temporary changes to the rules relating to eligibility of collateral (ECB/2008/18)
Date: 2008-11-21
Institutions: European Central Bank
Subjects: European Economic Area, Japan, United Kingdom, United States, bond, central bank, documentation, euro area, financial institution, loan, national currency, single monetary policy

L 314/14

EN

Official Journal of the European Union

25.11.2008

GUIDELINES

EUROPEAN CENTRAL BANK

GUIDELINE OF THE EUROPEAN CENTRAL BANK

of 21 November 2008

on temporary changes to the rules relating to eligibility of collateral

(ECB/2008/18)

(2008/880/EC)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

HAS ADOPTED THIS GUIDELINE:

Having regard to the Treaty
Community
in particular
and
Article 105(2) thereof,

establishing the European
indent of
first
to the

Having regard to the Statute of the European System of Central
the European Central Bank and in particular
Banks and of
Article 12.1 and Article 14.3,
in conjunction with the first
indent of Article 3.1 and Article 18.2 and the first paragraph
of Article 20 thereof,

Whereas:

(1)

(2)

To enhance on a temporary basis the provision of
liquidity to counterparties
for Eurosystem monetary
policy operations, the criteria determining the eligibility
of collateral that counterparties for Eurosystem monetary
policy operations provide to the Eurosystem to obtain
liquidity should be widened. The criteria determining
the eligibility of collateral are laid down in Guideline
ECB/2000/7 of 31 August 2000 on monetary policy
instruments and procedures of the Eurosystem (1).

The Governing Council of the European Central Bank
(ECB) decided on 15 October 2008 to widen temporarily
the rules relating to the eligibility of collateral for the
operations of the Eurosystem. The Governing Council
furthermore decided that the date of entry into force of
its decision as well as any further measures regarding
such widened eligibility criteria would be communicated
as soon as possible,

(1) OJ L 310, 11.12.2000, p. 1.

Article 1

Widening of certain eligibility criteria for collateral

The eligibility criteria for collateral laid down in Annex I
1.
to Guideline ECB/2000/7 (hereinafter the ‘General Documen­
tation’) shall be widened in accordance with Articles 2 to 7.

2.
In the event of any discrepancy between this Guideline
and the General Documentation, as implemented at national
level by the NCBs, the former shall prevail. The NCBs shall
continue to apply all provisions of the General Documentation
unaltered unless otherwise provided for in this Guideline.

Article 2

Admission of collateral denominated in US dollars, pounds
sterling or Japanese yen as eligible collateral

1. Marketable debt instruments as described in Chapter 6.2.1
if denominated in US dollars,
of the General Documentation,
shall constitute eligible
sterling or
pounds
the purposes of Eurosystem monetary policy
collateral
for
(i) they are issued and held/settled
operations, provided that:
in the euro area; and (ii)
the issuer is established in the
European Economic Area.

Japanese yen,

An additional haircut of 8 % shall be imposed by the

2.
Eurosystem on all such marketable debt instruments.

Article 3

Admission of syndicated loans as eligible collateral

1.
Syndicated loans shall only constitute eligible collateral for
the purposes of Eurosystem monetary policy operations
provided that they comply with Chapters 6.2.2 and 6.3.3 and
Appendix 7 of the General Documentation.

25.11.2008

EN

Official Journal of the European Union

L 314/15

and irrevocable guarantee payable on first demand on these
assets, as further defined in Chapter 6.3.2 of the General Docu­
mentation.

2.
An additional haircut of 10 % shall be imposed by the
Eurosystem on all such assets, with a further 5 % valuation
markdown in the event of a theoretical valuation.

Article 7

Admission of fixed-term deposits as eligible collateral

Fixed-term deposits as described in Chapter 3.5 of the General
Documentation from eligible counterparties shall be eligible as
collateral for all refinancing operations of the Eurosystem.

Article 8

Further implementation measures

The Governing Council has delegated the competence to take
its
any further decisions which are necessary to implement
decision of 15 October 2008 to the Executive Board.

Article 9

Verification

The NCBs shall forward to the ECB by 25 November 2008 at
the latest details of the texts and means by which they intend to
comply with this Guideline.

Article 10

Final provisions

This Guideline shall enter into force on 25 November

1.
2008.

This Guideline shall apply from 1 December 2008 until

2.
31 December 2009.

Article 11

Addressees

This Guideline is addressed to the NCBs of participating
Member States.

Done at Frankfurt am Main, 21 November 2008.

For the Governing Council of the ECB
The President of the ECB

Jean-Claude TRICHET

laid

down

in Decision

syndicated loans
2. Without prejudice to paragraph 1,
governed by the laws of England and Wales which have been
accepted by 30 November 2008 in accordance with the
requirements
of
14 November 2008 on the implementation of Regulation
ECB/2008/11 of 23 October 2008 on temporary changes to
the rules relating to eligibility of collateral (1) for the purposes of
Eurosystem monetary policy operations shall remain eligible
collateral for the duration of the Eurosystem monetary policy
operation for which they have been accepted as eligible
collateral.

ECB/2008/15

Article 4

of

Admission
credit
institutions, which are traded on certain non-regulated
markets as eligible collateral

instruments

issued

debt

by

1.
Debt instruments issued by credit institutions, which are
traded on certain non-regulated markets as specified by the ECB,
shall constitute eligible collateral for the purposes of Eurosystem
monetary policy operations.

An additional haircut of 5 % shall be imposed by the

2.
Eurosystem on all such debt instruments.

The

Article 5
Admission of collateral with a ‘BBB-’ credit assessment and
above as eligible collateral
Eurosystem’s minimum requirement
the
1.
assessment of the credit standard of assets eligible as collateral
for the purposes of Eurosystem monetary policy operations
shall be a ‘BBB-’ equivalent credit assessment. This change to
to both
requirement
the
marketable and non-marketable assets, with the exception of
asset-backed securities as described in Chapter 6.3 of
the
General Documentation, for which the requirement for high
credit standards shall remain unchanged.

assessment

credit

apply

shall

for

2.
An additional haircut of 5 % shall be imposed by the
Eurosystem on all eligible assets with a credit assessment
below ‘A-’.

Article 6

Admission of subordinated assets with adequate guarantees
as eligible collateral

1.
The requirement of non-subordination relating to the elig­
ibility of marketable assets as collateral for the purposes of
Eurosystem monetary policy operations
as described in
Chapter 6.2.1 of the General Documentation shall not apply
when a financially sound guarantor provides an unconditional

(1) OJ L 309, 20.11.2008, p. 8.