Regulation BCL 2013/No. 14 of 7 March 2013 implementing the ECB Guideline of 23 January 2013 amending Guideline ECB/2012/18 on additional temporary measures concerning Eurosystem refinancing operations and collateral eligibility (ECB/2013/2)

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BANQUE CENTRALE DU LUXEMBOURG
Regulation of the Central Bank of Luxembourg 2013/ No. 14 of 7 March 2013 implementing the European Central Bank Guideline of 23 January 2013 amending Guideline ECB/2012/18 on additional temporary measures concerning Eurosystem refinancing operations and collateral eligibility (ECB/2013/2) The Directorate of the Central Bank of Luxembourg; Having regard to the Treaty on the Functioning of the European Union and in particular Article 127(2), first indent; Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Article 3.1, first indent, and Articles 12.1, 14.3 and 18.2; Having regard to Article 108bis of the Constitution; Having regard to the Law of 23 December 1998 on the monetary status and the Central Bank of Luxembourg (hereinafter the "Central Bank") as amended, in particular Articles 2(1), 2(2) and 34(1); Whereas Article 2 of Guideline ECB/2012/18 of 2 August 2012 on additional temporary measures concerning Eurosystem refinancing operations and collateral eligibility 1 provides that the Eurosystem may decide that counterparties may, before maturity, reduce the amount of certain longer-term refinancing operations or terminate them (this reduction in amount or such termination is hereinafter collectively referred to as "early repayment"). Article 2 further specifies that the conditions relating to such early repayment are published in the relevant tender announcement or in another form deemed adequate by the Eurosystem.

1 OJ L 218 of 15.8.2012, p. 20.

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Whereas it is appropriate that the procedure applicable to early repayment by counterparties be further clarified in order to ensure that the same conditions are applied to early repayment by all national central banks of the Member States whose currency is the euro (hereinafter the "NCBs"). In particular, the pecuniary sanction mechanism provided for in Appendix 6 of Annex I to Guideline ECB/2011/14 of 20 September 2011 concerning the instruments and procedures of monetary policy of the Eurosystem 2 should apply when counterparties do not pay the full or part of the amount to be repaid to the relevant NCB at the fixed maturity date, when they have chosen early repayment. Whereas the implementation of this modification by the Central Bank implies that the Central Bank Regulation 2012/ No. 12 of 12 September 2012 implementing the European Central Bank Guideline of 2 August 2012 on additional temporary measures concerning Eurosystem refinancing operations and collateral eligibility (ECB/2012/18) (hereinafter "Regulation 2012/ No. 12"), first amended by Regulation 2012/ No. 13 of 9 November 2012 implementing the European Central Bank Guideline of 10 October 2012 (ECB/2012/23), must also be amended.

2 OJ L 331 of 14.12.2011, p. 1.

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Art. 1. Amendment
Regulation 2012/ No. 12 is amended as follows:
Article 2 is replaced by the following text:
"Article 2. Option to reduce the amount of longer-term refinancing operations or to terminate them

1. The Eurosystem may decide that, under certain conditions, counterparties may, before maturity, reduce the amount of certain longer-term refinancing operations or terminate them (this reduction in amount or such termination is hereinafter collectively referred to as "early repayment"). The tender announcement specifies whether the option to reduce the amount of the operations in question or to terminate them before maturity applies, as well as the date from which this option may be exercised. This information may also be provided in another form deemed adequate by the Eurosystem.
2. A counterparty may exercise the option to reduce the amount of longer-term refinancing operations or to terminate them before maturity by notifying the Central Bank of the amount it intends to repay under the early repayment procedure, as well as the date on which it intends to make this early repayment, at least one week before the date of this early repayment. Unless otherwise specified by the Eurosystem, an early repayment may be made on any day coinciding with the settlement day of a Eurosystem main refinancing operation, provided that the counterparty carries out the notification referred to in this paragraph at least one week before that date.
3. The notification referred to in paragraph 2 becomes binding on the counterparty one week before the early repayment date to which it refers. Failure by a counterparty to pay the full or part of the amount due under the early repayment procedure at the fixed maturity date may result in the imposition of a pecuniary sanction as provided for in Section 5.7.1 of Annex 8 of the General Conditions of the Central Bank's operations. The provisions of Section 5.7.1 of Annex 8 which apply in case of non-compliance with the rules relating to tender operations apply when a counterparty does not pay the full or part of the amount due on the early repayment date referred to in paragraph 2. The imposition of a pecuniary sanction is without prejudice to the right of the Central Bank to exercise the remedies provided for in the event of a default as provided for in the General Conditions of the Central Bank's operations."
   Art. 2. Entry into force
   This Regulation shall enter into force on the day of its publication.

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Art. 3. Publication
This Regulation shall be published in the Mémorial and on the website of the Central Bank (www.bcl.lu).
BANQUE CENTRALE DU LUXEMBOURG
The Directorate