RegAlert2020-05-18
Added · Updated
Instruction No. 12/2020
The Bank of Portugal amends Instruction No. 7/2012 to implement temporary monetary policy measures by expanding the eligibility of certain tradable assets and securitized debt instruments as collateral for Eurosystem credit operations. The amendment allows assets issued on or before April 7, 2020, or after that date by eligible issuers, to remain eligible provided they maintain a minimum credit quality level 5 (or level 4 for specific securitized debt) and meet ongoing eligibility criteria. It establishes specific haircuts for these assets based on credit ratings and residual maturity, and clarifies that these provisions are independent of other ECB asset purchase programs.
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Instruction No. 12/2020
Official Gazette No. 5/2020 Supplement • 2020/05/18
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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 7 May 2020, the Governing Council of the ECB approved ECB Guideline (EU) 2020/634 amending ECB Guideline ECB/2014/31 on additional temporary measures relating to Eurosystem refinancing operations and the eligibility of collateral assets (ECB/2020/29). Accordingly, in exercise of the powers conferred on 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 (Official Gazette No. 3, of 15-03-2012), is amended as follows:
- A new paragraph, VIII, is added, which replaces the current paragraph VIII, establishing the following:
VIII. Acceptance of certain tradable debt securities and eligible issuers as of 7 April 2020
VIII.1 The technical terms used in this paragraph have the meaning attributed to them in Instruction No. 3/2015.
VIII.2 Notwithstanding the provisions of Articles No. 59, paragraph 3, 71 and 82, paragraph 1, letter a), of Instruction No. 3/2015, tradable assets – which are not securitized debt instruments – issued on 7 April 2020 or on a date prior to that, which on 7 April 2020 had a public credit rating of at least one accepted ECAI system that met the Eurosystem’s minimum credit quality requirements, constitute eligible collateral assets for Eurosystem credit operations provided that, after 7 April 2020, they continuously meet the following conditions:
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Source: Banco de Portugal — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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