BANQUE CENTRALE DU LUXEMBOURG

Regulation of the Central Bank of Luxembourg 2014/ No. 18

of 21 August 2014

implementing the European Central Bank Guideline of 9 July 2014 on temporary additional measures concerning Eurosystem refinancing operations and collateral eligibility and amending ECB Guideline 2007/9 (recast) (ECB/2014/31)

The Directorate of the Central Bank of Luxembourg,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 127(2), first indent;

Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Articles 3.1, first indent, and Articles 5.1, 12.1, 14.3 and 18.2 thereof;

Having regard to Article 108bis of the Constitution;

Having regard to the Law of 23 December 1998 on the monetary status and the Central Bank of Luxembourg (hereinafter referred to as the 'Central Bank'), as amended, in particular Articles 2(1), 2(2) and 34(1);

Whereas:

(1) ECB Guideline 2013/4¹ was substantially amended and, for reasons of clarity, recast by ECB Guideline 2014/31. ECB Guideline 2013/4 was implemented at national level by Regulation BCL/2013/15, as amended by Regulation BCL/2014/16 implementing ECB Guideline 2014/12.

¹ ECB Guideline 2013/4 of 20 March 2013 on temporary additional measures concerning Eurosystem refinancing operations and collateral eligibility and amending ECB Guideline 2007/9 (OJ L 95, 5.4.2013, p. 23).

It is therefore appropriate to implement ECB Guideline 2014/31, which brings together the temporary additional measures concerning Eurosystem refinancing operations and collateral eligibility, by a new regulation of the Central Bank.

(2) Under Article 18.1 of the Statute of the European System of Central Banks and of the European Central Bank, the European Central Bank (ECB) and the national central banks (NCBs) of Member States whose currency is the euro (hereinafter 'NCBs') may conduct credit operations with credit institutions and other market participants on the basis of appropriate collateral for loans. The general conditions under which the ECB and NCBs are willing to conduct credit operations, including the criteria determining the eligibility of collateral for Eurosystem credit operations, are set out in Annex I to ECB Guideline 2011/14².

² ECB Guideline 2011/14 of 20 September 2011 on the instruments and procedures for monetary policy implementation (OJ L 331 of 14.12.2011, p. 1).

(3) On 8 December 2011 and 20 June 2012, the Governing Council decided to take additional enhanced credit support measures in order to support the provision of bank credit and liquidity in the euro area money market, including the measures defined in Decision ECB/2011/25³.

³ Decision ECB/2011/25 of 14 December 2011 on temporary additional measures concerning Eurosystem refinancing operations and collateral eligibility (OJ L 341 of 22.12.2011, p. 65).

(4) Decision ECB/2012/4⁴ provided that NCBs should not be required to accept as collateral for Eurosystem credit operations bank bonds eligible for collateral purposes guaranteed by a Member State subject to an EU/IMF programme, or by a Member State whose rating does not meet the Eurosystem reference for the definition of its high credit quality standard.

⁴ Decision ECB/2012/4 of 21 March 2012 amending Decision ECB/2011/25 on temporary additional measures concerning Eurosystem refinancing operations and collateral eligibility (OJ L 91 of 29.3.2012, p. 27).

(5) Decision ECB/2011/12⁵ also reviewed the derogation from the close links prohibition provided for in Section 6.2.3.2 of Annex I to ECB Guideline 2011/14 concerning bank bonds guaranteed by a State, used by counterparties as collateral for their own account.

⁵ Decision ECB/2012/12 of 3 July 2012 amending Decision ECB/2011/25 on temporary additional measures concerning Eurosystem refinancing operations and collateral eligibility (OJ L 186 of 14.7.2012, p. 38).

(6) On 2 August 2012, Decision ECB/2011/25 was replaced by ECB Guideline 2012/18⁶, which was transposed by NCBs into their contractual or regulatory provisions. ECB Guideline 2012/18 also authorised counterparties participating in Eurosystem credit operations to increase the amounts of bank bonds guaranteed by a State for their own use, which they held on 3 July 2012, subject to prior approval by the Governing Council, in exceptional circumstances. Applications submitted to the Governing Council for prior approval had to be accompanied by a financing plan.

⁶ ECB Guideline 2012/18 of 2 August 2012 on temporary additional measures concerning Eurosystem refinancing operations and collateral eligibility and amending ECB Guideline 2007/9 (OJ L 218 of 15.8.2012, p. 20).

(7) ECB Guideline 2012/18 was amended on 10 October 2012 by ECB Guideline 2012/23⁷, which temporarily relaxed the asset eligibility criteria to be used as collateral in the context of Eurosystem monetary policy operations, by accepting that negotiable instruments denominated in sterling, yen or US dollars constitute eligible assets for monetary policy operations. A haircut reflecting the historical volatility of the relevant exchange rates was applied to these negotiable instruments.

⁷ ECB Guideline 2012/23 of 10 October 2012 amending ECB Guideline 2012/18 on temporary additional measures concerning Eurosystem refinancing operations and collateral eligibility (OJ L 284 of 17.10.2012, p. 14).

(8) ECB Guideline 2013/2⁸ clarifies the procedure applicable to the early repayment of longer-term refinancing operations by counterparties in order to ensure the application of identical conditions by all NCBs. In particular, the sanction mechanism provided for in Appendix 6, Annex 1, to ECB Guideline 2011/14 applies when a counterparty that has chosen early repayment fails to pay the full or part of the amount to be repaid to the relevant NCB at the fixed maturity date.

⁸ ECB Guideline 2013/2 of 23 January 2013 amending ECB Guideline 2012/18 on temporary additional measures concerning Eurosystem refinancing operations and collateral eligibility (OJ L 34 of 5.2.2013, p. 18).

(9) ECB Guideline 2012/18 was further amended to incorporate the content of Decision ECB/2012/34⁹ and to ensure that NCBs are not required to accept as collateral for Eurosystem credit operations eligible unsecured bank bonds that are: a) issued by the counterparties using them or by entities closely linked to the counterparty; and b) fully guaranteed by a Member State that does not have the Eurosystem's high credit quality standard and that the Governing Council considers to be complying with an EU/IMF programme.

⁹ Decision ECB/2012/34 of 19 December 2012 on temporary amendments to the rules applicable to the eligibility of foreign currency-denominated collateral (OJ L 14 of 18.1.2013, p. 22).

(10) For reasons of clarity and simplification, ECB Guideline 2012/18 was replaced on 20 March 2013 by ECB Guideline 2013/4, which was integrated by NCBs into their contractual or regulatory provisions.

(11) For reasons of clarity and simplification, the content of Decisions ECB/2011/4¹⁰, ECB/2011/10¹¹ and ECB/2012/32¹² was incorporated into ECB Guideline 2013/4 as well as all other temporary measures concerning Eurosystem refinancing operations and collateral eligibility.

¹⁰ Decision ECB/2011/4 of 31 March 2011 on temporary measures concerning the eligibility of negotiable instruments issued or guaranteed by the Irish Government (OJ L 94 of 8.4.2011, p. 33).
¹¹ Decision ECB/2011/10 of 7 July 2011 on temporary measures concerning the eligibility of negotiable instruments issued or guaranteed by the Portuguese Government (OJ L 182 of 12.7.2011, p. 31).
¹² Decision ECB/2012/32 of 19 December 2012 on temporary measures concerning the eligibility of negotiable instruments issued or fully guaranteed by the Hellenic Republic (OJ L 359 of 29.12.2012, p. 74).

(12) ECB Guideline 2013/4 was amended on 5 July 2013 by Decision ECB/2013/22¹³ and on 12 March 2014 by ECB Guideline 2014/12¹⁴ to take into account euro area Member States considered by the Governing Council to be complying with an EU/IMF programme, and to reflect changes made to the Eurosystem collateral framework. Due to subsequent changes to the list of euro area Member States complying with an EU/IMF programme, it proved necessary to make further adjustments to ECB Guideline 2013/4.

¹³ Decision ECB/2013/22 of 5 July 2013 on temporary measures concerning the eligibility of negotiable instruments issued or fully guaranteed by the Government of the Republic of Cyprus (OJ L 195 of 18.7.2013, p. 27).
¹⁴ ECB Guideline 2014/12 of 12 March 2014 amending ECB Guideline 2013/4 on temporary additional measures concerning Eurosystem refinancing operations and collateral eligibility and amending ECB Guideline 2007/9 (OJ L 166 of 5.6.2014, p. 42).

(13) Decision ECB/2013/36¹⁵ adjusts the haircuts and debt service continuity provisions applicable to asset-backed securities admitted in accordance with the temporary additional measures concerning Eurosystem refinancing operations provided for in ECB Guideline 2013/4 and modifies the eligibility criteria of this Guideline applied to other private claims.

¹⁵ Decision ECB/2013/36 on temporary additional measures concerning Eurosystem refinancing operations and collateral eligibility (OJ L 301 of 12.11.2013, p. 13).

(14) For reasons of clarity and simplification, the content of Decisions ECB/2013/22 and ECB/2013/36 was integrated into ECB Guideline 2014/31.

(15) On 22 May 2014, the Governing Council decided that, in addition to certain other private claims already provided for in ECB Guideline 2013/4, NCBs may accept certain short-term negotiable instruments issued by non-financial corporations that would not meet the Eurosystem eligibility criteria applicable to negotiable assets, provided that they comply with the eligibility criteria and risk control measures specified by the Governing Council. This decision led to further amendments to ECB Guideline 2013/4.

(16) The additional measures set out in ECB Guideline 2014/31 must apply temporarily, until such time as the Governing Council of the ECB considers that they are no longer necessary to ensure the proper functioning of the monetary policy transmission mechanism.

(17) The implementation of ECB Guideline 2014/31 by the Central Bank implies that Regulation BCL/2013/15 implementing ECB Guideline 2013/4 and Regulation BCL/2014/16 implementing ECB Guideline 2014/12 are repealed and replaced by the following regulation.

HAS ADOPTED THIS REGULATION:

Article 1. Additional measures concerning refinancing operations and eligible collateral

1. The rules applicable to the conduct of Eurosystem monetary policy operations and the collateral eligibility criteria provided for in this Regulation apply in conjunction with the General Conditions of Operations of the Central Bank.

2. In the event of any conflict between this Regulation and the General Conditions of Operations of the Central Bank, this Regulation shall prevail. The provisions of the General Conditions of Operations of the Central Bank shall apply without modification, unless otherwise provided for in this Regulation.

3. For the purposes of Article 6(1) and Article 8, the Hellenic Republic and the Republic of Cyprus shall be considered as euro area Member States complying with an EU/IMF programme.

Article 2. Option to reduce the amount of longer-term refinancing operations or to terminate them

1. The Eurosystem may decide that, under certain conditions, counterparties may, before maturity, reduce the amount of certain longer-term refinancing operations or terminate them before maturity (this reduction in amount or termination is hereinafter collectively referred to as 'early repayment'). The announcement of the tender specifies whether the option to reduce the amount of the operations in question or to terminate them before maturity applies, as well as the date from which this option may be exercised. This information may also be provided in another form that the Eurosystem deems adequate.

2. A counterparty may exercise the option to reduce the amount of longer-term refinancing operations or to terminate them before maturity by notifying the Central Bank of the amount it intends to repay under the early repayment procedure, as well as the date on which it intends to make this early repayment, at least one week before the date of this early repayment. Unless otherwise specified by the Eurosystem, an early repayment may be made on any day coinciding with the settlement day of a main refinancing operation of the Eurosystem, provided that the counterparty carries out the notification referred to in this paragraph at least one week before this date.

3. The notification referred to in paragraph 2 becomes binding on the counterparty one week before the early repayment date to which it refers. Failure by a counterparty to settle the full or part of the amount due under the early repayment procedure at the fixed maturity date may result in the imposition of a pecuniary sanction as provided for in Section 5.7.1 of Annex 8 of the General Conditions of Operations of the Central Bank. The provisions of Section 5.7.1 of Annex 8 which apply in case of failure to comply with the rules relating to tender operations apply when a counterparty fails to pay the full or part of the amount due on the early repayment date referred to in paragraph 2. The imposition of a pecuniary sanction is without prejudice to the right of the Central Bank to exercise the remedies provided for in the event of default as provided for in the General Conditions of Operations of the Central Bank.

Article 3. Admission of certain other asset-backed securities

1. In addition to asset-backed securities eligible under Chapter 4 of Annex 8 of the General Conditions of Operations of the Central Bank¹⁶, asset-backed securities that do not meet the credit assessment obligations provided for in Section 4.5.2 of Annex 8 of the General Conditions of Operations of the Central Bank¹⁷, but otherwise meet all other eligibility criteria applicable to asset-backed securities under the General Conditions of Operations of the Central Bank¹⁸, are eligible assets accepted as collateral for Eurosystem monetary policy operations, subject to having at least two ratings equal to or higher than 'BBB'¹⁹, at issuance and at any time thereafter. They also meet all of the following requirements:

a) the assets generating the cash flows to which the securities are backed belong to one of the following categories of assets: i) mortgage claims; ii) loans to small and medium-sized enterprises (SMEs); iii) commercial real estate loans; iv) car loans; v) finance leases; vi) consumer credit; vii) credit card receivables;

b) there is no mixing of assets from different categories within the assets generating the cash flows;

c) the assets generating the cash flows to which the securities are backed do not contain loans that:
i) are non-performing at the time of issuance of the asset-backed securities; ii) become non-performing when they are included in the asset-backed securities during the life of the securities, for example upon substitution or replacement of the assets generating the cash flows; iii) at any time, are structured, syndicated or leveraged loans;

d) the documents concerning the asset-backed security transaction provide for debt service continuity provisions.

2. The asset-backed securities referred to in paragraph 1 that have at least two ratings equal to or higher than 'A'²⁰ are subject to a 10% haircut.

3. The asset-backed securities referred to in paragraph 1 that do not have at least two ratings equal to or higher than 'A' are subject to a 22% haircut.

4. A counterparty cannot pledge as collateral asset-backed securities eligible under paragraph 1 if the counterparty, or any third party with which it has close links, acts in the capacity of interest rate risk hedging provider in relation to the asset-backed securities.

5. The Central Bank may accept as collateral for Eurosystem monetary policy operations asset-backed securities, the underlying assets of which comprise either mortgage claims or loans to small and medium-sized enterprises (SMEs), or both, and which do not meet the credit assessment requirements provided for in Section 4.5.2 of Annex 8 of the General Conditions of Operations of the Central Bank²¹ nor the requirements referred to in paragraphs 1(a) to (d) and paragraph 4 above, but which otherwise meet all eligibility criteria applicable to asset-backed securities under the General Conditions of Operations of the Central Bank²² and have at least two ratings equal to or higher than 'BBB'. Only asset-backed securities issued before 20 June 2012 are concerned, which are subject to a 22% haircut.

6. Asset-backed securities with debt service continuity provisions in accordance with Regulation BCL/2013/15²³ which were on the list of eligible assets before 1 October 2013 remain eligible until 1 October 2014.

7. For the purposes of this Article, the following definitions apply:

a) 'mortgage claim': in addition to loans backed by mortgage claims, residential real estate loans secured (without mortgage claim) where the security gives rise to rapid payment after default. These securities can be provided in different contractual configurations, including insurance contracts, provided they are granted by a public sector entity or a financial institution subject to public supervision. The credit assessment of the guarantor for the purposes of this guarantee must correspond to credit quality step 3 in the Eurosystem harmonised rating scale, for the duration of the transaction;

b) 'small enterprise' and 'medium enterprise': any entity carrying out an economic activity, regardless of the legal status of this entity, when the declared turnover for the entity, or when the entity is part of a consolidated group, for the consolidated group, is less than EUR 50 million;

c) 'non-performing loans': loans where the repayment of interest or principal is overdue for 90 days or more and where the debtor is in default, as defined in Article 178 of Regulation (EU) No 575/2013 of the European Parliament and of the Council²⁴, or loans where there are good grounds to doubt that they will be fully repaid;

d) 'structured loan': a structure involving subordinated private claims;

e) 'syndicated loan': a loan granted by a group of lenders grouped within a banking syndicate;

¹⁶ Chapter 6 of Annex I to ECB Guideline 2011/14.
¹⁷ Section 6.3.2 of Annex I to ECB Guideline 2011/14.
¹⁸ Annex I to ECB Guideline 2011/14.
¹⁹ A 'BBB' rating corresponds to a rating of at least 'Baa3' according to Moody's, 'BBB-' according to Fitch or Standard & Poor's or a rating equal to 'BBBL' according to DBRS.
²⁰ An 'A' rating corresponds to a rating of at least 'A3' according to Moody's, 'A-' according to Fitch or Standard & Poor's or a rating equal to 'AL' according to DBRS.
²¹ See supra, note 14.
²² See supra, note 15.
²³ ECB Guideline 2013/4.
²⁴ Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176 of 27.6.2013, p. 1).

f) "leveraged loan": a loan granted to a company with a considerable level of indebtedness, for example to finance a buyout or takeover, which is used to acquire the capital of a company that is also a debtor of the loan;

g) "debt service continuity provisions": provisions contained in the legal documentation concerning an asset-backed security that relate either to the successor servicer (hereinafter the "substitute servicer") or to assistance in the appointment of a substitute servicer (in the absence of a provision providing for a substitute servicer). In the case of provisions concerning assistance in the appointment of a substitute servicer, the assistant must be appointed and must be tasked with finding a competent substitute servicer within 60 days following a trigger event in order to ensure that payments and collection of the asset-backed security are carried out on time. These provisions also mention the trigger events for the replacement of the servicer and the appointment of a substitute servicer. These triggers are based on a rating or not, such as for example the non-performance of obligations by the current servicer.

Article 4. Admission of certain other private claims

1. NCBs may accept as collateral for Eurosystem monetary policy operations private claims that do not meet the Eurosystem eligibility criteria.

2. NCBs that decide to accept private claims in accordance with paragraph 1 determine the eligibility criteria and risk control measures for this purpose, specifying the points on which derogation is made from the requirements set out in Annex I to Guideline ECB/2011/14. These eligibility criteria and risk control measures include the criterion that the private claims are governed by the law of the Member States of the NCBs establishing the eligibility criteria and risk control measures. The eligibility criteria and risk control measures are subject to prior approval by the Governing Council.

3. In exceptional circumstances, NCBs may, subject to prior approval by the Governing Council, accept private claims:
   a) under the eligibility criteria and risk control measures established by another NCB pursuant to paragraphs 1 and 2; or b) governed by the law of a Member State other than the Member State in which the accepting NCB is established; or c) which are included in a portfolio of private claims or asset-backed if the law governing the private claims or the debtor concerned (or the guarantor, if any) is that of a Member State other than that in which the accepting NCB is established.

4. Another NCB shall only support an NCB accepting private claims pursuant to paragraph 1 in the event of a bilateral agreement concluded between the two NCBs and subject to prior approval by the Governing Council.

Article 5. Acceptance of certain short-term debt instruments

1. NCBs may accept as collateral for Eurosystem monetary policy operations short-term debt instruments that do not meet the eligibility criteria applicable to marketable assets set out in Annex I to Guideline ECB/2011/14.

2. NCBs that decide to accept short-term debt instruments in accordance with paragraph 1 determine the eligibility criteria and risk control measures for this purpose, in compliance with the minimum standards specified by the Governing Council. These eligibility criteria and risk control measures include the following criteria, applicable to short-term debt instruments.
   a) They are issued by non-financial companies 25 established in the euro area. The guarantor of the short-term debt instrument (if there is one) must also be a non-financial company established in the euro area, unless the guarantee is not required for the short-term debt instrument to comply with the high credit quality provisions as specified in point d). b) They are not admitted to trading on a market considered accepted by the Eurosystem as defined in section 6.2.1.5 of Annex I to Guideline ECB/2011/14. c) They are denominated in euros. d) They meet the high credit quality requirements defined by the competent NCB which apply in place of the requirements of sections 6.3.2 and 6.3.3 of Annex I to Guideline ECB/2011/14. e) In addition to the provisions of points a) to d), they comply with the Eurosystem eligibility criteria applicable to marketable assets provided for in Annex I to Guideline ECB/2011/14.

3. An NCB shall not accept, except within the framework of a bilateral agreement concluded with another NCB, short-term debt instruments compliant with paragraphs 1 and 2 that are issued in the euro area:
   a) to that other NCB; or b) to a central securities depository which i) has been recognized as eligible by the Eurosystem regarding the standards and procedures described in the "Framework for assessing settlement systems and links to determine their eligibility for Eurosystem credit operations" 26 and ii) is established in a Member State of the euro area in which the other NCB is established.

4. For the purposes of this Article, a "short-term debt instrument" is a debt instrument with a maturity not exceeding 365 days at issuance and at any time thereafter.

25 Non-financial companies are defined in the European System of Accounts 1995 (ESA 95).
26 Available on the ECB website at the following address: www.ecb.europa.eu.

Article 6. Acceptance of bank bonds guaranteed by a State

1. The Central Bank is not obliged to accept as collateral for Eurosystem credit operations eligible unsecured bank bonds that: a) do not meet the Eurosystem's high credit quality requirements; b) are issued by the counterparty using them or by entities closely linked to the counterparty; and c) are fully guaranteed by a Member State: i) whose rating does not meet the Eurosystem's high credit quality requirements for issuers and guarantors of marketable assets pursuant to sections 4.5.1 and 4.5.2 of Annex 8 to the General Conditions of the Central Bank's operations 27; and ii) which complies with an European Union/International Monetary Fund programme, according to the assessment of the ECB Governing Council.

2. When the Central Bank decides not to accept as collateral the securities described in paragraph 1, it informs the ECB Governing Council.

3. Counterparties may not present as collateral for Eurosystem monetary policy operations unsecured bank bonds, issued by themselves or by entities having close links, and guaranteed by an entity of the public sector of the European Economic Area authorized to levy taxes for an amount greater than the nominal value of these bonds already presented as collateral on July 3, 2012.

4. In exceptional cases, the ECB Governing Council may decide to derogate from the temporary provisions provided for in paragraph 3, for a maximum duration of three years. The request for derogation is accompanied by a financing plan indicating the steps planned for the gradual elimination of the own use, by the requesting counterparty, of state-guaranteed unsecured bank bonds, at the latest within three years following the granting of the derogation. Any derogation granted since July 3, 2012 continues to apply until the moment of its review.

Article 7. Admission of certain assets denominated in sterling, Japanese yen or US dollars, as eligible collateral

1. The negotiable debt instruments described in section 4.1.1 of Annex 8 to the General Conditions of the Central Bank's operations 28, if they are denominated in sterling, yen or US dollars, constitute eligible collateral for the purposes of Eurosystem monetary policy operations, provided: a) that they are issued and held/settled in the euro area, b) that the issuer is established in the European Economic Area, and c) that they meet all other eligibility criteria set out in section 4.1.1 of Annex 8 to the General Conditions of the Central Bank's operations.

27 Sections 6.3.1 and 6.3.2 of Annex I to Guideline ECB/2011/14.
28 Section 6.2.1 of Annex I to Guideline ECB/2011/14.

2. The Eurosystem applies the following haircuts to these negotiable debt instruments: a) a haircut of 16 % for assets denominated in sterling or US dollars, and b) a haircut of 26 % for assets denominated in yen.

3. The negotiable debt instruments described in paragraph 1, with coupons indexed to a single money market rate in the currency in which the instruments are denominated, or indexed to an inflation index that does not contain complex structures such as those where coupons are defined as in the case of exotic options ("discrete range", "range accrual", "ratchet") or other complex structures, for the country concerned, also constitute eligible collateral for the purposes of Eurosystem monetary policy operations.

4. The ECB may publish on its website at the following address: www.ecb.europa.eu a list of other acceptable foreign reference interest rates, in addition to those referred to in paragraph 3, after approval by the Governing Council.

5. Only Articles 1, 3, 6, 7 and 9 of this Regulation apply to marketable assets denominated in foreign currency.

Article 8. Suspension of credit quality threshold requirements for certain marketable securities

1. The Eurosystem's minimum credit quality threshold requirements, as specified by the rules of the Eurosystem credit assessment device applicable to marketable assets in section 5.3.2 of Annex 8 to the General Conditions of the Central Bank's operations 29, are suspended in accordance with paragraph 2.

2. The Eurosystem's credit quality threshold does not apply to negotiable debt instruments issued or fully guaranteed by the central administrations of Member States of the zone subject to an European Union/International Monetary Fund programme, unless the Governing Council decides that the Member State concerned does not comply with the conditions prescribed for financial support and/or the macroeconomic programme.

3. Negotiable debt instruments issued or fully guaranteed by the central administration of the Hellenic Republic and the Republic of Cyprus are subject to specific haircuts provided for in Annexes I and II of this Regulation.

Article 9. Entry into force and application

1. This Regulation enters into force on the day of its publication.

29 See supra note 14.

2. Article 6 applies until February 28, 2015.

Article 10. Repeal

The Central Bank Regulations BCL/2013/15 of May 3, 2013 implementing Guideline ECB/2013/4 and BCL/2014/16 of May 12, 2014 implementing Guideline ECB/2014/12 are repealed as of August 21, 2014.

Art. 11. Publication

This Regulation is published in the Mémorial and on the website of the Central Bank (www.bcl.lu).

CENTRAL BANK OF LUXEMBOURG
The Management

ANNEX I
TABLE OF HAIRCUTS APPLICABLE TO NEGOTIABLE DEBT INSTRUMENTS ISSUED OR FULLY GUARANTEED BY THE HELLENIC REPUBLIC

Maturity tranche
Haircuts applicable to fixed coupons and variable rate financial instruments Haircuts applicable to zero coupons

0-1
15,0
15,0

1-3
33,0
35,5

3-5
45,0
48,5

5-7
54,0
58,5

Greek Government Bonds (GGB)
7-10
56,0
62,0

10
57,0
71,0

Maturity tranche
Haircuts applicable to fixed coupons and variable rate financial instruments Haircuts applicable to zero coupons

0-1
23,0
23,0

1-3
42,5
45,0

3-5
55,5
59,0

5-7
64,5
69,5

7-10
67,0
72,5

State-guaranteed bank bonds (GGBB) and state-guaranteed private non-financial bonds >10 67,5 81,0

ANNEX II
TABLE OF HAIRCUTS APPLICABLE TO NEGOTIABLE DEBT INSTRUMENTS ISSUED OR FULLY GUARANTEED BY THE REPUBLIC OF CYPRUS

Maturity tranche
Haircuts applicable to fixed coupons and variable rate financial instruments Haircuts applicable to zero coupons

0-1
14,5
14,5

1-3
27,5
29,5

3-5
37,5
40,0

5-7
41,0
45,0

7-10
47,5
52,5

State bonds

10
57,0
71,0

Maturity tranche
Haircuts applicable to fixed coupons and variable rate financial instruments Haircuts applicable to zero coupons

0-1
23,0
23,0

1-3
37,0
39,0

3-5
47,5
50,5

5-7
51,5
55,5

7-10
58,0
63,0

State-guaranteed bank bonds and state-guaranteed private non-financial bonds >10 68,0 81,5

ANNEX III
REPEALED REGULATIONS

Regulation BCL/2013/15 of May 3, 2013 implementing Guideline ECB/2013/4.
Regulation BCL/2014/16 of May 12, 2014 implementing Guideline ECB/2014/12.