Instruction (Historical) No. 3/2026

Instruction No. 3/2026
BO No. 3/2026 Supplement • 2026/03/26
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Topics
Markets :: Money Markets
Mod. 99999940/T – 01/14
Index
Index
Text of the Instruction
Text of the Instruction
Subject: Implementation of European Central Bank Guideline (EU) 2026/691, (ECB/2026/3), amending ECB Guideline ECB/2014/31 on additional temporary measures concerning Eurosystem refinancing operations and the eligibility of collateral assets

Considering that:
(1) In accordance with Article 18-1 of the Statutes of the European System of Central Banks and of the European Central Bank, the European Central Bank (ECB) and the national central banks of the Member States whose currency is the euro (hereinafter 'NCBs') may, in order to achieve the objectives of the European System of Central Banks, conduct credit operations with credit institutions and other market participants, with loans granted on the basis of adequate collateral assets. The general conditions for the conduct of credit operations by the ECB and NCBs, including the criteria determining the eligibility of collateral assets for the purposes of Eurosystem credit operations, are set out in European Central Bank Guideline (EU) 2015/510 (ECB/2014/60) 1. European Central Bank Guideline ECB/2014/31 establishes additional temporary measures concerning Eurosystem refinancing operations and the eligibility of collateral assets 2.

1 European Central Bank Guideline (EU) 2015/510 of 19 December 2014 on the framework for the implementation of the monetary policy of the Eurosystem (General Documentation Guideline) (ECB/2014/60) (OJ L 91 of 2.4.2015, p. 3, ELI: http://data.europa.eu/eli/guideline/2015/510/oj.) 2 European Central Bank Guideline ECB/2014/31 of 9 July 2014 on additional temporary measures concerning Eurosystem refinancing operations and the eligibility of collateral assets and amending Guideline ECB/2007/9 (OJ L 240 of 13.8.2014, p. 28, ELI: http://data.europa.eu/eli/guideline/2014/528/oj).

(2) The Governing Council of the European Central Bank decided, on 29 November 2024, to promote greater harmonisation and simplification of the Eurosystem collateral framework, while preserving its breadth. This decision implies, inter alia, the integration into the general collateral framework of certain types of assets accepted under the temporary framework, namely a) tradable assets denominated in US dollars, British pounds and Japanese yen; and b) securitised debt instruments with a second-best credit quality assessment of level 3 on the Eurosystem harmonised rating scale and which meet the eligibility criteria stipulated in the temporary collateral framework.

(3) It is therefore necessary to amend Guideline ECB/2014/31 accordingly.

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, the Bank of Portugal approves the following Instruction:

Article 1.
Object
This Instruction amends Bank of Portugal Instruction No. 7/2012 of 15 March.

Article 2.
Amendments

1. Article 2 is amended as follows:
   a) In paragraph 4, point (c) shall have the following wording:
   ‘(c) That they are aggregated in a pool of credit rights, if the law governing the credit right or the debtor (or guarantor, where applicable) in question belongs to any other Member State other than that in which the NCB accepting the credit right is established.’ b) Paragraph 7 is repealed;

2. Article 3 is amended as follows:
   a) Paragraph 1 shall have the following wording:
   ‘1. The Bank accepts that Eurosystem credit operations be secured by individual credit rights that:
   (a) subject to the remaining Eurosystem eligibility requirements, meet a minimum credit quality assessment corresponding to a probability of default (PD), for a 1-year horizon, not exceeding 0.4%; (b) were granted under the economic support lines - COVID 19, and benefit from a guarantee. The guarantee, to be eligible, must cover up to 80% or 90% of the principal, must be issued by a Mutual Guarantee Society and counter-guaranteed 100% by the Mutual Counter-Guarantee Fund. The guarantee does not require legal confirmation regarding its legal validity, binding effect and enforceability. It must also comply with the remaining requirements set out in Instruction No. 3/2015, namely Article 114. For the purposes of valuing credit rights, only the guaranteed amount is considered.’;

b) Paragraph 2 shall have the following wording:
‘2. The Bank accepts that, for the assessment of the credit quality of additional individual credit rights, the credit assessment sources provided for in Article 119 of Instruction No. 3/2015 are complemented with an extension to the Bank of Portugal’s Internal Credit Assessment System (SIAC), to a credit quality assessment of non-financial companies carried out through a statistical process, without the intervention of an analyst.’;

c) Paragraph 4 shall have the following wording:
‘4. Whenever a credit assessment produced by a complete SIAC (C-SIAC), of the Bank or another NCB of the Eurosystem, is available, accepted in accordance with the criteria set out in Title V, Part IV, of Instruction No. 3/2015, the Bank will use the C-SIAC as the main source of credit assessment to determine the credit quality of debtors and guarantors of additional individual credit rights.’;

3. In Article 4, paragraph 1, the table shall have the following wording:

Credit Quality	Level 1 and 2		Level 3
Residual Maturity (years) (*)	Fixed Rate	Variable Rate	Fixed Rate	Variable Rate
Less than 1 year	8	8	16	16
1 to 3 years	11.5	8	25	16
3 to 5 years	15	8	35	16
5 to 7 years	20	11.5	42	25
7 to 10 years	26	15	46	35
10 to 15 years	33	20	48	42
15 to 30 years	38	26	50	46
More than 30 years	40	33	52	48

4. Article 5 shall have the following wording:

Article 5.
Aggregated additional credit rights (portfolios) Credit rights on loans granted to companies that do not have the nature of financial companies (“Renewable Credit”, “Non-renewable Credit”, “Real Estate Financial Leasing”, “Movable Financial Leasing”, “Business Activity Financing” and “Car Credit” according to the classification in the Technical and Operational Support Guide, complementary to Bank Instruction No. 17/2018) are admitted, for which no minimum value is established.”;

5. Article 6 shall have the following wording:

Article 6.
Credit rights portfolios

1. Credit rights portfolios may be constituted by credit rights of the types referred to in Article 5.

2. Credit rights portfolios must be homogeneous, i.e., constituted by credit rights with the same purpose (credit granted to companies - EMPR).

3. Credit rights portfolios granted to companies may not include syndicated loans or project finance.

4. Credit rights portfolios must be constituted by credit rights without credit incidents.”;

5. Article 7 is amended as follows:
   a) In paragraph 1, point (b) shall have the following wording:
   ‘(b) Using the C-SIAC or the Bank’s E-SIAC:
   i. The Bank of Portugal applies, to each of the credit rights included in the credit rights portfolios, the probability of default (Probability of Default – PD) for a 1-year horizon assigned by the C-SIAC or E-SIAC and the value of 60% for losses given default (Loss Given Default – LGD).’;
   b) Paragraph 2 shall have the following wording:
   ‘2. Whenever a credit assessment produced by a C-SIAC, of the Bank or another NCB of the Eurosystem, is available, accepted in accordance with the criteria set out in Title V, Part IV, of Guideline (EU) 2015/510 (ECB/2014/60), the Bank will use, whenever possible without excessive operational costs, the C-SIAC as the main source of credit assessment to determine the credit quality of the debtors of the aggregated additional credit rights.’;

6. In Article 9, paragraph 2, point (e), Tables 1 and 2 are repealed;

7. Articles 12 to 16 are repealed;

8. Part IV (“Tradable assets denominated in British pounds, yen or US dollars”) is repealed;

9. Annex I shall have the following designation:
   ‘Aggregated additional credit rights pledge contract (loans to companies) secured by mortgage in the form of bank loans for monetary policy operations.’;

10. Annex II shall have the following designation:
    ‘Aggregated additional credit rights pledge contract (loans to companies) in the form of bank loans for monetary policy operations.’;

11. Annex IV is amended as follows:
    a) Section II – “Aggregated Additional Credit Rights (credit rights portfolios)” – shall have the following wording:
    ‘Counterparties, in accordance with the stipulated in Article 11 of this Instruction, must comply with the procedures for the use of credit rights established in Annex XIV of Instruction No. 3/2015 and with the operational requirements defined in the Communication Manual. With regard to reporting to the CRC, the stipulated in the GATO shall apply.’; b) In section 1.E – “Information Reporting” –, point (j) shall have the following wording:
    ‘(j) The Counterparty must report the portfolio to a data repository designated by the Eurosystem, in accordance with the defined in number Error! Reference source not found. of this annex.’; c) Section F – “Documentation Requirements” – shall have the following wording:
    ‘(a) “Semi-annually, where applicable, the listing attached to portfolio contracts must be updated in accordance with the defined in the Communication Manual, without prejudice to the Bank being able to request a new listing at any time. (b) In accordance with Instruction No. 3/2015, quarterly, within 30 days after each calendar quarter-end, a quarterly certificate must be sent to the Bank, in accordance with the defined in Articles 101 and 101 A of Instruction No. 3/2015. (c) The certificate referred to in the previous point may be digitally signed. (d) If the Counterparty has mobilised individual credit rights simultaneously, the certificate referred to in point (b) must cover both types of credit rights. (e) Annually, within 90 days after the end of the reference period, an annual report must be sent to the Bank, in accordance with the defined in Article 101 A of Instruction No. 3/2015 and in section 2 of Annex XIV to the same Instruction (Ex post verifications). (f) If the Counterparty has also mobilised individual credit rights, the report referred to in point (e) must cover both types of credit rights. (g) With regard to the constitution of the sample for verification, the table in section 2.2 of Annex XIV to Instruction No. 3/2015 will be applied separately to portfolios and to individual credit rights (i.e., in the case of a counterparty using portfolios and individual credit rights, two samples will be constituted).

(h) External auditors must, within the scope of carrying out audit actions, certify that counterparties are acting in accordance with the operational and regulatory rules established by the Bank, using the reporting model to the Bank presented (i) in section 3 of this Annex in the case of credit rights mobilised in portfolio or (ii) in section 2 of Annex XIV of Instruction No. 3/2015 for individual credit rights, which must be sent by the counterparty after each verification by external auditors. (i) The result of the analysis of the report referred to in the previous point will be transmitted to the counterparty.”; d) In section 3 (Verification Reporting Model), point 2 shall have the following wording:
‘2. Verifications
2.1. Characterisation and existence of credit rights
2.1.1. Existence of bank loans
Objective: Verification that the credit rights pledged to the Bank exist, are valid and that no encumbrance, charge, limitation (namely subordinated loans) or restriction applies to them. Result: Situations in the sample where the credit rights do not exist:
IEB Observations
PTEB...
...
Comments or other relevant observations:

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2.1.2. Exclusive mobilisation guarantee in favour of the Bank of Portugal
Objective: Verification that the credit rights pledged to the Bank are not mobilised simultaneously for other purposes, namely as underlying assets for bond issuances or securitisations. Result: Situations in the sample where the credit rights are mobilised simultaneously for other purposes:
IEB Observations
PTEB...
...
Comments or other relevant observations:

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2.1.3. Eligibility of bank loans
Objective: Verification that the credit rights pledged meet the eligibility criteria and are reflected in the contracts concluded between the counterparty and the debtors. Result (non-exhaustive list):
2.1.3.1. Situations in the sample where the debtors of the credit right do not coincide with the information reported to the Bank.
IEB Observations
PTEB...
...
2.1.3.2. Situations in the sample where the type of credit presented does not correspond to an eligible/accepted credit type, namely a housing loan in a corporate portfolio:
IEB Observations
PTEB...
...
2.1.3.3. Situations in the sample where the residence/headquarters of the debtor of the credit right is not accepted:
IEB Observations
PTEB...
...
2.1.3.4. Situations in the sample where the nominal value at the date the credit right was mobilised did not meet the defined minimum value (where applicable):
IEB Observations
PTEB...
...
2.1.3.5. Situations in the sample where the nominal value of the credit right at the reference date did not correspond to the nominal value communicated to the Bank:
IEB Observations
PTEB...
...
2.1.3.6. Situations in the sample where the law(s) governing the submitted credit right do not correspond to the accepted law(s), or exceed the maximum number allowed:
IEB Observations
PTEB...
...
2.1.3.7. Situations in the sample where the denomination of the credit right is not the euro:
IEB Observations
PTEB...
...
2.1.3.8. Situations in the sample where the maturity date of the credit right was not communicated correctly to the Bank:
IEB Observations
PTEB...
...
2.1.3.9. Situations in the sample where the credit right bears variable interest and the index was not communicated correctly to the Bank:
IEB Observations
PTEB...
...
2.1.3.10. Situations in the sample where the contract does not contemplate the absence of restrictions regarding banking secrecy, mobilisation and enforcement of the credit right:
IEB Observations
PTEB...
...
2.1.3.11. Situations in the sample where the contract does not contemplate the waiver of the debtor’s rights of set-off against the Bank of Portugal and the credit institution:
IEB Observations
PTEB...
...
2.1.3.12. Situations in the sample where the credit right is part of an Extrajudicial Procedure for the Regularisation of Default Situations (PERSI), under Decree-Law No. 227/2012, or an Extraordinary Regime, under Law No. 58/2012:
IEB Observations
PTEB...
...
2.1.3.13. Situations in the sample where the principal and/or interest amounts do not respect the established in Article 90 of Bank Instruction No. 3/2015:
IEB Observations
PTEB...
...
2.1.3.14. Situations in the sample where the loan is of the Project Finance and/or Syndicated type and was not communicated as such to the Bank:
IEB Observations
PTEB...
...
2.1.3.15. Situations in the sample where the credit right or the relevant participant for eligibility is classified as “in default”, according to the notion established in Article 178 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013:
IEB Observations
PTEB...
...
2.1.3.16. Situations in the sample where the credit assessment (via IRB method) and the respective assessment date of the debtor or the loan do not coincide with the information sent to the Bank:
IEB Observations
PTEB...
...
2.1.3.17. Situations in the sample where the model used in the production of the PD and LGD resulting from the application of an internal ratings-based method does not correspond to a segment approved for capital requirements:
IEB Observations
PTEB...
...
2.1.3.18. Situations in the sample where the debtor(s) of the bank loan is/are in a situation of insolvency:
IEB Observations
PTEB...
...
2.1.3.19. Other situations (indicate which)
IEB Observations
PTEB...
...
Comments or other relevant observations:

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Article 3.
Entry into force

1. This Instruction enters into force on 30 March 2026.
2. Bank of Portugal Instruction No. 7/2012, with the wording introduced by this Instruction, is republished in its entirety, being available at https://www.bportugal.pt/instrucao/72012.