Decision No. 2024-05 of the Governor amending Decision No. 2016-02 of 25 January 2016 on valuation haircuts applied in the implementation of the Eurosystem monetary policy

PUBLICATION DATE: April 30, 2024 Decision No. 2024-05 of April 29, 2024 amending Decision No. 2016-02 of January 25, 2016 on valuation haircuts applied in the implementation of the Eurosystem monetary policy

THE GOVERNOR OF THE BANK OF FRANCE

Having regard to:

• the Treaty on the Functioning of the European Union, and in particular Articles 127(1) and 127(2), first indent,
• the Statute of the European System of Central Banks and of the European Central Bank (ECB), and in particular Articles 3.1, first indent, 9.2, 12.1, 14.3, 18.2, and 20, first subparagraph,
• ECB Guideline (EU) 2015/510 of 19 December 2014 on the implementation of the Eurosystem monetary policy framework (ECB/2014/60), as amended,
• ECB Guideline (EU) 2016/65 of 18 November 2015 on haircuts applied in the implementation of the Eurosystem monetary policy (ECB/2015/35), as amended,
• ECB Decision (EU) 2024/1164 of 8 February 2024 amending ECB Guideline (EU) 2016/65 of 18 November 2015 on haircuts applied in the implementation of the Eurosystem monetary policy (ECB/2024/5),
• the Monetary Agreement between the European Union and the Principality of Monaco of 26 December 2001, as amended on 29 November 2011,
• the Monetary and Financial Code, and in particular Article L. 142-8,
• the Governor of the Bank of France Decision No. 2015-01 of 22 April 2015 on the implementation of the Bank of France's monetary policy and intraday credit, as amended,
• the Governor of the Bank of France Decision No. 2016-02 of 25 January 2016 on valuation haircuts applied in the implementation of the Eurosystem monetary policy, as amended.

DECIDES

Article 1 Modifications

Decision No. 2016-02 of 25 January 2016 on valuation haircuts applied in the implementation of the Eurosystem monetary policy (hereinafter "the Decision") is amended as follows:

1. The following paragraph 3 is added to Article 1: "3. No haircut shall apply to ECB notes and notes issued by NCBs before the date of adoption of the euro in their respective Member State whose currency is the euro."

2. Point (a) of Article 2 is replaced by the following text: "(a) debt securities issued by central governments, debt securities issued by the European Union and notes issued by NCBs of Member States whose currency is not the euro are included in Haircut Category I;"

3. The Annex is replaced by the Annex to this Decision.

Article 2 Entry into force and implementation

1. This Decision shall be published in the Official Publication Register of the Bank of France.

2. It shall enter into force on 6 May 2024.

3. This Decision shall apply in the overseas departments and regions, in Saint-Barthélemy, in Saint-Martin, in Saint-Pierre-and-Miquelon, as well as in the Principality of Monaco.

Done in Paris, on 29 April 2024

The Governor of the Bank of France François VILLEROY de GALHAU

ANNEX

The Annex to the Decision is replaced by the following text:

"ANNEX HAIRCUT RATES

Table 1 Haircut categories applicable to eligible marketable assets according to the type of issuer and/or the type of asset

Category I	Category II	Category III	Category IV	Category V
Debt securities issued by central governments	Debt securities issued by the European Union	Notes issued by NCBs of Member States whose currency is not the euro	Debt securities issued by local and regional authorities	Debt securities issued by entities (credit institutions or other than credit institutions) rated by the Eurosystem and which meet the quantitative criteria set out in Annex XII bis to Decision No. 2015-01
		Debt securities issued by multilateral development banks and international organisations other than the European Union	Secured bonds regulated	Multicédulas
		Debt securities issued by non-financial corporations, public sector entities and agencies other than credit institutions which do not meet the quantitative criteria set out in Annex XII bis to Decision No. 2015-01	Unsecured debt securities issued by credit institutions and agencies which are credit institutions which do not meet the quantitative criteria set out in Annex XII bis to Decision No. 2015-01	Unsecured debt securities issued by financial corporations other than credit institutions
				Asset-backed securities"