Regulatory Alerts2020-04-20
Added · Updated
Instruction No. 11/2020
The Bank of Portugal amends Instruction No. 7/2012 to implement temporary ECB monetary policy measures, updating haircuts for credit rights portfolios and introducing dynamic calculation formulas based on stressed Probability of Default (PD) and Loss Given Default (LGD). The regulation accepts Greek central government debt as collateral under specific haircut schedules and modifies reporting obligations for credit portfolios, including quarterly validation and loan-level data submission. Additionally, it suspends the banking loan interest rates specified in Circular Letter No. 3/2015/DMR during the transitional period of these exceptional collateral measures.
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