Instruction (Archive) No. 6/2024

Instruction No. 6/2024 BO No. 4/2024 Supplement • 2024/05/02 .................................................................................................................................................................................................. Topics Markets :: Money Markets Mod. 99999940/T – 01/14 Index Text of the Instruction Text of the Instruction Subject: Implementation of monetary policy – Additional temporary measures On 8 February 2024, the Governing Council of the ECB approved the Guideline (EU) 2024/XX of the European Central Bank, amending Guideline (EU) 2014/528 of the European Central Bank (ECB/2014/31), on additional temporary measures concerning Eurosystem refinancing operations and the eligibility of collateral assets (ECB/2024/6). With this decision, it is intended to introduce some clarifications regarding the treatment of interest rate reference indices in the context of the eligibility of collateral assets for the purposes of Eurosystem monetary policy operations, as well as to revoke the provisions that allow National Central Banks (NCBs) to accept, as eligible collateral assets subject to a specific margin assessment framework, tradable debt securities issued by the central administration of the Hellenic Republic that do not meet the Eurosystem credit quality standards applicable to tradable assets, but that meet all other eligibility criteria applicable to tradable assets, as these will be revoked, given that on 8 September 2023 the issuer rating of the Hellenic Republic was updated to credit quality level 3 on the Eurosystem harmonized rating scale. Thus, in exercise of the competence attributed to it by Articles 12, 15, 16 and 24 of its Organic Law, approved by Law No. 5/98 of 31 January, in its current version, the Bank of Portugal determines the following: Instruction No. 7/2012 (BO No. 3, of 15-03-2012) is amended as follows:

1. Article 18(2) is amended, to read as follows:
2. Tradable debt instruments, described in Article 17, which have coupons associated with only one money market rate whose use is permitted in the Union in accordance with Regulation (EU) 2016/1011 of the European Parliament and of the Council (*) in their denomination currency, or with an inflation index that does not contain discrete ranges, range accrual, ratchet effect or similar complex structures for their respective country, are also eligible collateral assets for the purposes of Eurosystem monetary policy operations.

Instruction No. 6/2024 BO No. 4/2024 Supplement • 2024/05/02 Topics Markets :: Money Markets .................................................................................................................................................................................................. Mod. 99999940/T – 01/14 (*) Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as reference values in the context of financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171 of 29.6.2016, p. 1). 2. Part VI is revoked. 3. This Instruction enters into force on 6 May 2024. 4. This Instruction is republished in its entirety, and is available at https://www.bportugal.pt/instrucao/72012