The Implementation of Eurosystem Monetary Policy Framework (Amending) Directive of 2026

O.J. Part III(I)
No. 6011, 27.3.2026

Legal Act 152/2026

Number 152

DIRECTIVE AMENDING THE DIRECTIVE OF THE CENTRAL BANK OF CYPRUS OF 30 APRIL 2015 ON THE IMPLEMENTATION OF THE EUROSYSTEM MONETARY POLICY FRAMEWORK FOR THE PURPOSES OF COMPLIANCE OF THE CENTRAL BANK OF CYPRUS WITH THE PROVISIONS OF THE GUIDELINE OF THE EUROPEAN CENTRAL BANK OF 22 JANUARY 2026 EBC/2026/1, EBC/2026/2 AND EBC/2026/3

THE LAWS ON THE CENTRAL BANK OF CYPRUS OF 2002 TO 2024

Directive pursuant to Articles 20(3)(b), 39 and 43

The Central Bank of Cyprus, exercising the powers conferred upon it by the provisions of Articles 20(3)(b), 39 and 43 of the Laws on the Central Bank of Cyprus of 2002 to 2024, issues this Directive regarding the implementation of the Eurosystem monetary policy framework.

Short Title.

This Directive shall be known as the Implementation of the Eurosystem Monetary Policy Framework (Amending) Directive of 2026 and shall be read together with the Implementation of the Eurosystem Monetary Policy Framework Directives of 2015 to 2025 (hereinafter referred to as the "Basic Directives" and the Basic Directives and this Directive shall be referred to together as the Implementation of the Eurosystem Monetary Policy Framework Directives of 2015 to 2026.

Official Gazette, Appendix Three (I):
30.4.2015
(Legal Act 145/2015)
30.10.2015
(Legal Act 361/2015)
22.1.2016
(Legal Act 9/2016)
28.04.2016
(Legal Act 147/2016)
30.12.2016
(Legal Act 398/2016)
21.07.2017
(Legal Act 243/2017)
13.04.2018
(Legal Act 95/2018).
05.08.2019
(Legal Act 266/2019)
15.4.2020
(Legal Act 168/2020)
15.5.2020
(Legal Act 211/2020)
30.12.2020
(Legal Act 644/2020)
25.06.2021
(Legal Act 262/2021)
30.09.2021
(Legal Act 407/2021)
30.06.2022
(Legal Act 250/2022).

23.06.2023
(Legal Act 197/2023)
30.04.2024
(Legal Act 151/2024)
06.06.2025
(Legal Act 148/2025).

Amendment of paragraph 2 of the Basic Directives.

Paragraph 2 of the Basic Directives is amended as follows:
a) by adding, in the appropriate alphabetical order, the following new terms and their definitions:
"issuer group of companies" means, for the purposes of the climate factor, the group of companies operating as a single economic entity and constituting an entity providing data for the purposes of consolidated accounts, which includes the parent company and all its direct and indirect subsidiaries" "residual value risk" means the risk arising from payment within the framework of an asset that generates income flow in any of the following cases:
a) the payment is structured in such a way that it depends systematically on the sale or refinancing of the relevant goods without further recourse to the debtor in order to cover any potential deficit between the proceeds of the sale of the goods and the scheduled payments based on the specific asset or any potential deficit in these scheduled payments due to non-refinancing of the goods in whole or in part; b) the debtor has, among other things, the option to deliver the goods with full settlement of the relevant payment obligations, but not the obligation to cover any potential deficit between the proceeds of the sale of the goods and the scheduled payments based on the specific asset or any potential deficit in these scheduled payments due to non-refinancing of the goods in whole or in part; c) in the case of either item a) or item b), regardless of the existence of any repurchase obligation, provision of guarantee or other obligation of a third party or counterparty to make the scheduled payment or cover any potential deficit between the proceeds of the sale of the goods and the scheduled payments based on the specific asset or any potential deficit in these scheduled payments due to non-refinancing of the goods in whole or in part;" "climate factor" means the adjustment that may be applied to the value assigned to marketable assets issued by certain non-financial companies and their relevant issuer groups of companies and provided as collateral in Eurosystem credit operations, with the aim of mitigating the potential financial impacts related to the transition to climate;"

() Guideline (EU) 2016/65 of the European Central Bank of 18 November 2015 on haircuts in the application of the Eurosystem monetary policy framework (EBC/2015/35) (OJ L 14 of 21.1.2016, p. 30, ELI: http://data.europa.eu/eli/guideline/2016/65/oj)."
"risk mitigation measure" means any of the following:
a) imposition of a limit on the amount of liquidity provided after the lifting of the counterparty's access restriction to Eurosystem monetary policy operations with a standard duration of up to one week, even when the indicative calendar schedule of such operations provides for an extension of their duration by exception; b) restriction on the provision as collateral of held securitized exposures and covered bonds under Article 3 paragraphs 5 and 2a of Guideline (EU) 2016/65 of the European Central Bank (EBC/2015/35)(), respectively, or other assets considered not readily liquid by the Eurosystem; and c) imposition of an obligation to comply with additional own funds requirements specified by the competent authority under Article 104(1)(a) of Directive 2013/36/EU, beyond the own funds requirements of Article 92 of Regulation (EU) No 575/2013.

c) by deleting point (e) in the definition of the term "cross-border use" d) by deleting points (c) and (d) in the definition of the term "domestic use" e) by deleting the following terms and their definitions: "finance lease receivables", "data provision start date for ESMA", "Eurosystem-defined archive", "securitization register archive registered with ESMA", "non-marketable covered bonds covered by acceptable loan receivables" and "M2 account". z) by replacing the definitions of the terms "loan-level data archive", "Resolution Authority", "settlement account" and "non-marketable asset" with the following new definitions:

() Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation and amending Directives 2009/65/EC, 2009/138/EC and 2011/61/EU and Regulations (EC) No 1060/2009 and (EU) No 648/2012 (OJ L 347 of 28.12.2017, p. 35, ELI: http://data.europa.eu/eli/reg/2017/2402/oj)." "loan-level data archive" means the securitization register within the meaning of Article 2 point 23 of Regulation (EU) 2017/2402 of the European Parliament and of the Council(), which is registered with the European Securities and Markets Authority (ESMA) in accordance with Article 10 of that Regulation"

(*) Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 on the establishment of a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and of Directives 2001/24/EC, 2002/47/EC, "Resolution Authority" means the resolution authority as defined in Article 2 point 18) of Directive 2014/59/EU of the European Parliament and of the Council and the Single Resolution Board established in accordance with Article 42 of Regulation (EU) No 806/2014 of the European Parliament and of the Council()"

2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, as well as Regulations (EU) of the European Parliament and of the Council No 1093/2010 and (EU) No 648/2012 (OJ L 173 of 12.6.2014, p. 190, ELI: http://data.europa.eu/eli/dir/2014/59/oj). () Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014 establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Mechanism for Resolution and a Single Resolution Fund and amending Regulation (EU) No 1093/2010 (OJ L 225 of 30.7.2014, p. 1 ELI: http://data.europa.eu/eli/reg/2014/806/oj)."

(*) Guideline (EU) 2022/912 of the European Central Bank of 24 February 2022 on a new generation of pan-European Automated Real-Time Gross Settlement Express Transfer System (TARGET) and repealing Guideline 2013/47/EU (EBC/2012/27) (EBC/2022/8).
"settlement account" means the following accounts for settlement in euros:
a) main cash accounts (MCA) for the settlement of transactions with central banks; b) special cash accounts of continuous settlement (SCA of CSDP) and sub-accounts for interbank payments and customer payments in continuous time, as well as settlement of transactions with auxiliary systems (AS); c) technical accounts of the auxiliary system of continuous settlement (technical accounts of AS of CSDP), payments and customer payments in continuous time, as well as settlement of transactions with auxiliary systems (AS); d) special cash accounts of TARGET2-Securities (SCA of T2S) for cash payments within the framework of securities transactions; and e) special cash accounts of TARGET (SCA of TIPS) for the settlement of direct payments.

--- f) the reserve account maintained by the counterparty which is not an M2 account, provided that the use of this account for settlement does not conflict with Article 27 of the Guideline of the European Central Bank (EBC/2022/8) as amended or in any other relevant decision of the ECB or the CBC:"

"non-marketable asset" means deposits of specified duration and loan receivables"

Amendment of paragraph 10 of the Basic Directives.

Paragraph 10 of the Basic Directives is amended by replacing sub-paragraph (4) thereof with the following sub-paragraph (4):
"(4) Reverse transactions for the absorption of liquidity are covered by assets provided by the Eurosystem. The eligibility criteria for such assets are the same as those for acceptable assets used in reverse transactions for the provision of liquidity, according to Part IV. Haircuts or climate factors are not applied to reverse transactions for the absorption of liquidity."

Amendment of paragraph 30 of the Basic Directives.

Paragraph 30 of the Basic Directives is amended by replacing sub-paragraph (5) thereof with the following sub-paragraph (5):
"(5) The information included in the public announcement of the auction by the ECB is defined in Annex II of the Guideline EBC."

Replacement of paragraph 65 of the Basic Directives.

Paragraph 65 of the Basic Directives is replaced with the following new paragraph 65:
"65.
To be acceptable, securities must be denominated in one of the following currencies: euro, currency that was in force before the adoption of the euro in Member States with the euro as currency, British pounds, yen or US dollars."

Amendment of paragraph 66 of the Basic Directives.

Paragraph 66 of the Basic Directives is replaced with the following new paragraph:
"To be acceptable, euro-denominated securities must have been issued in the EEA and securities denominated in British pounds, yen or US dollars must have been issued in the euro area, in both cases through a CSD managed by i) an acceptable T2S or ii) a TSD connected to an acceptable coupling with an acceptable T2S."

Addition of new paragraph 66a to the Basic Directives.

The Basic Directives are amended by adding, immediately after paragraph 66 thereof, the following new paragraph 66a:
"66a
Form of issuance of certain marketable assets.
(1) The following eligibility criteria apply only to international securities issued through a CSD in the form of global notes and represented by a physical (printed) certificate or by an electronic (digital) copy of a printed global note.
(a) International securities issued in the form of global bearer notes must be issued as new global notes (NGN) and deposited with a common custodian which is a CSD or a CSD managing i) an acceptable T2S or ii) a TSD connected to an acceptable coupling with an acceptable T2S. This criterion applies to international securities issued in the form of global bearer notes as classical global notes before 1 January 2007 and to continuous issuances of fungible securities issued with the same ISIN regardless of the re-issuance date. (b) International securities issued in the form of global registered notes must be issued within the new structure of international securities custody. By way of derogation, this criterion does not apply to international securities issued in the form of global registered notes before 1 October 2010. (2) International securities issued in the form of an individual note and represented by individual physical (printed) certificates are not acceptable, unless they were issued before 1 October 2010. (3) The Eurosystem reserves the right to verify that international securities issued through a CSD in fully dematerialized form do not"

pose material risks that could affect the rights of the holder as holder of collateral and that they have been validly constituted under the relevant legislation governing them, regardless of the technology supporting their issuance."

Amendment of paragraph 70 of the Basic Directives.

Paragraph 70 of the Basic Directives is amended by replacing sub-paragraph (1) thereof with the following new sub-paragraph (1):
"(1) To be acceptable, securities must be issued by an issuer established in the EEA or in a G10 country outside the EEA, subject to the exceptions of paragraphs 3a to 7 of Article 70 of Guideline EBC and sub-paragraph (4) of paragraph 8a of Guideline EBC. As regards marketable assets of more than one issuer, this requirement applies to each issuer."

Amendment of paragraph 73 of the Basic Directives.

Paragraph 73 of the Basic Directives is amended by adding the following new sub-paragraph (3) immediately after sub-paragraph (3):
"(4) The issuer of a securitized exposure must not be subject to residual value risk."

Addition of new paragraph 79b to the Basic Directives.

The Basic Directives are amended by adding, immediately after paragraph 79a thereof, the following new paragraph 79b:
"79b
Additional eligibility criteria for securitized exposures with credit rating corresponding to grade 3.
(1). To be acceptable, securitized exposures with a credit rating corresponding to grade 3 of the harmonized scale of Eurosystem credit ratings must meet the following additional specific eligibility criteria:
(a) the underlying portfolio of assets securing them and generating income flow, at the time of issuance of the securitized exposures or at a later addition to the portfolio, for example through exchange or replacement of the income-generating assets, does not include loans for which the payment of interest or principal is delayed by more than 90 days and a default event occurs on the debtor as defined in Article 178 of Regulation (EU) No 575/2013 or when there are reasonable grounds for doubt as to whether the payment of interest or principal will be made in full; (b) the portfolio of income-generating assets does not include loans that are or have ever been structured, syndicated or leveraged; (c) the transaction documents concerning such securitized exposures contain provisions for uninterrupted servicing. (2). A counterparty may not provide as collateral a securitized exposure that meets the additional specific eligibility criteria of sub-paragraph (1) if it or a third party with whom it has close ties acts as a counterparty providing interest rate risk hedging in relation to the securitized exposure. (3). For the purposes of this paragraph, the following definitions apply:
(a) "structured loan": means a loan whose structure includes subordinated loan receivables; (b) "syndicated loan": means a loan granted by a group of lenders of a lending syndicate; (c) "leveraged loan": means a loan granted to a company that already shows significant levels of debt, e.g. financing for the purpose of acquisition or obtaining control, with the aim of acquiring the share capital of the company for which and the debtor of the loan; (d) "uninterrupted servicing provisions": means provisions of the legal documentation of a securitized exposure that include provisions for a backup administrator or, if no such administrator exists, provisions for a backup administrator service intermediary; (e) "backup administrator service intermediary provisions": means provisions that: i) require the appointment of a backup administrator service intermediary with the mandate to identify a suitable backup administrator within 60 days from the occurrence of an event that"

implies the replacement of the administrator in order to ensure timely servicing and the securitized exposure; and ii) provide that there should not be simultaneous close ties between the administrator, the backup administrator service intermediary and the bank in which the issuer's account is held; (f) "backup administrator provisions": means provisions that: i) contain references to events that imply the replacement of the administrator and are linked to changes in the credit rating, non-compliance with obligations and/or other standardized events that imply the replacement of the administrator and ii) provide that there should be no close ties between the backup administrator and the administrator."

Amendment of paragraph 87 of the Basic Directives.

Paragraph 87 of the Basic Directives is amended by adding the following new Table 9:
Table 9
Indirect credit rating of issuers or guarantors in the absence of credit rating by ECAI

	Classification of issuers or guarantors under Regulation (EU) No 575/2013	Assigned indirect credit rating per category of issuers or guarantors under ECAF
Category 1	Regional governments, local authorities and public sector entities under the CRR treated by competent authorities as central government for the purposes of capital requirements of Article 115(2) and Article 116(2) of the CRR	Same ECAI credit rating as that of the central government of the territory of establishment of the entity
Category 2	Other regional governments, local authorities and public sector entities under the CRR	Credit rating lower by one grade(1) than the ECAI credit rating of the central government of the territory of establishment of the entity
Category 3	Public sector entities within the meaning of Article 2 point 75), which are not public sector entities under the CRR	Treatment same as that of issuers or debtors of the private sector, i.e. non-acceptance of their marketable assets

(1) Information on credit ratings is published on the ECB website.

Amendment of paragraph 89 of the Basic Directives.

Paragraph 89 of the Basic Directives is amended as follows:
(a) by replacing sub-paragraph (6) thereof with the following new sub-paragraph (6):
"(6) The CBC may apply the supplementary temporary measures of the Eurosystem that the Additional Loan Receivables (ALR) may accept in accordance with the provisions of the Guideline of the European Central Bank of 9 July 2014 on supplementary temporary measures regarding Eurosystem refinancing operations and the eligibility of collateral and amending Guideline EBC/2007/9, (EBC/2014/31), as amended or replaced from time to time (the "ALR Guideline")." (b) by adding the following new sub-paragraph (7) after sub-paragraph (6):
"(7) Loan receivables characterized as non-performing exposures under Article 47a(3) of Regulation (EU) No 575/2013 are not acceptable categories of loan receivables even if covered by a guarantee accepted under Title IV."

Deletion of Section 3 and paragraph 107 of Chapter 1 in Part IV, Title III Chapter 2 of the Basic Directives.

The Basic Directives are amended by deleting Section 3 "Eligibility criteria for RMBD" of Chapter 1 in Part IV, Title III and paragraph 107 thereof.

Deletion of Section 4 and paragraph 107a of Chapter 1 in Part IV, Title III Chapter 2 of the Basic Directives.

The Basic Directives are amended by deleting Section 4 "Eligibility criteria for DECC" of Chapter 1 in Part IV, Title III and paragraph 107a thereof.

Amendment of paragraph 109 of the Basic Directives.

Paragraph 109 of the Basic Directives is amended by replacing sub-paragraph (2) thereof with the following sub-paragraph (2):
"(2) Subject to paragraph 89 sub-paragraph (7) and paragraph 92, within the next working day the counterparty informs the CBC of any credit event that comes to their knowledge, including any delay in payment by debtors of loan receivables provided as collateral, and, if requested by the National Central Bank, withdraw or replace the assets."

Amendment of paragraph 110 of the Basic Directives.

Paragraph 110 of the Basic Guidelines is amended as follows:
(a) by replacing sub-paragraphs (1a) and (1b) thereof with the following new sub-paragraphs (1a) and (1b) respectively:
“(1a). Full Internal Credit Assessment Systems (F-ICAS) accepted by the Eurosystem in accordance with the general acceptance criteria of Title V of Part Four are used as the primary source of credit assessment for assessing the credit rating of debtors and guarantors of loan claims provided as collateral in cases where the NCB has an accepted F-ICAS credit rating.” “(1b). Counterparties providing loan claims as collateral may choose an additional system or additional source from other types of credit assessment systems accepted by the Eurosystem based on the general acceptance criteria of Title V of Part Four. The credit assessment source chosen under this paragraph is referred to as a secondary system or secondary source of counterparty credit assessment. The secondary system or secondary source of credit assessment may be used only if there is no accepted F-ICAS credit rating for the relevant debtor or guarantor, respectively.” (b) by replacing sub-paragraph (2) thereof with the following new sub-paragraph (2):
“(2) The NCB may permit counterparties to use more than two systems or sources of credit assessment, upon submission of a reasoned request duly substantiated by an operational analysis starting from the insufficient coverage of the primary source or primary system of credit assessment and the secondary source or secondary system of credit assessment. The NCB may permit the use of Statistical Internal Credit Assessment Systems (S-ICAS) as a third system or third source of credit assessment upon request by a counterparty without requiring the submission of a reasoned statement duly substantiated by an operational analysis.”

Deletion of Section 2 and paragraph 112 of Chapter 2 in Part Four, Title III Chapter 2 of the Basic Guidelines.

The Basic Guidelines are amended by deleting Section 2 “Eurosystem credit rating requirements for RMBD” of Chapter 2 in Part Four, Title III and paragraph 112 thereof.

Deletion of Section 3 and paragraph 112a of Chapter 2 in Part Four, Title III Chapter 2 of the Basic Guidelines.

The Basic Guidelines are amended by deleting Section 3 “Eurosystem credit rating requirements for DECC” of Chapter 2 in Part Four, Title III and paragraph 112a thereof.

Amendment of paragraph 119 of the Basic Guidelines.

Paragraph 119 of the Basic Guidelines is amended by replacing sub-paragraphs (1) and (2) thereof with the following new sub-paragraphs (1) and (2) respectively:
“(1) Credit assessment information on which the Eurosystem assesses the eligibility of assets accepted as collateral for its credit operations must come from credit assessment systems falling under one of the following four sources:
ECAI;
F-ICAS of NCBs;
S-ICAS of NCBs;
IRB systems of counterparties.”
“(2) Each source of assessment of sub-paragraph (1) may include a set of credit assessment systems. Credit assessment systems must meet the acceptance criteria defined in this title. A list of accepted credit assessment systems, i.e., accepted ECAI, F-ICAS and S-ICAS, is published on the ECB website. may assess the credit quality”

Amendment of paragraph 121 of the Basic Guidelines.

Paragraph 121 of the Basic Guidelines is amended as follows:
(a) by replacing its title with the following new title:
“General acceptance criteria and operational procedures for Full Internal Credit Assessment Systems and Statistical Internal Credit Assessment Systems of NCBs” (b) by replacing sub-paragraphs (1) to (3) thereof with the following sub-paragraphs (1) to (3) respectively:
“(1) By decision, NCBs may use their own F-ICAS or S-ICAS for the purposes of credit assessment. The relevant decisions are subject to an approval procedure by the Eurosystem.”
“(2) Credit assessment via F-ICAS or S-ICAS may be carried out in advance or upon request by a counterparty submitting the relevant asset to the NCB using F-ICAS or S-ICAS (the ‘NCB using F-ICAS or S-ICAS’).”
“(3) When the counterparty under paragraph 2 submits to the NCB using F-ICAS or S-ICAS the asset for which the eligibility of the debtor or guarantor is assessed, the NCB informs it of the eligibility of the debtor or guarantor or of the time required to carry out the credit assessment. If the F-ICAS or S-ICAS has a limited scope of operations and assesses only specific categories of debtors or guarantors or if the NCB using F-ICAS or S-ICAS fails to obtain the necessary information to carry out a credit assessment, it informs the counterparty without delay. In both cases, the debtor or guarantor is considered ineligible, unless the assets meet the credit rating requirements based on an alternative source or a system that the counterparty may use under paragraph 110. The assets provided are withdrawn as soon as possible in the event that they become eligible due to the downgrade of the creditworthiness of the debtor or guarantor. If there is no contractual relationship between non-financial companies and the NCB using F-ICAS or S-ICAS nor any legal obligation of such companies to provide it with unpublished information, the information is provided voluntarily.” (c) by deleting sub-paragraph (4) thereof.

Amendment of paragraph 128 of the Basic Guidelines.

Paragraph 128 of the Basic Guidelines is amended as follows:
a) by replacing points (a) and (b) of sub-paragraph (1) thereof with the following new points (a) and (b) respectively:
“(a) valuation haircuts as defined in Guideline (EU) 2016/65 (ECB/2015/35)” “(b) valuation margin buffers (valuation at current market prices) in the following sense:
The Eurosystem requires that the adjusted market value of eligible assets used as collateral in reverse transactions for the provision of liquidity be maintained over time after the application of valuation haircuts and any application of climate factors. If the value of the assets, which”

are valued on a daily basis, falls below a certain level (insufficient collateral), the NCB requires the counterparty to provide additional assets or cash by activating the valuation margin buffer mechanism in accordance with Article 136 of the Guideline EUNP. Similarly, if the value of eligible assets exceeds a certain level, after their revaluation, the NCB returns the excess cash.” b) by adding the following new point (e) after point (d) in sub-paragraph (1) thereof:
“(e) from 15 June 2026, a climate factor as defined in Annex XII of Guideline EUNP.”

c) by replacing sub-paragraph (3) thereof with the following new sub-paragraph (3):
“(3) Without prejudice to sub-paragraphs (1) and (2), for Additional Loan Claims (ALC) the NCB applies risk control measures as defined in the applicable framework and in accordance with the Guideline ALC.”

Amendment of paragraph 136 of the Basic Guidelines.

Paragraph 136 of the Basic Guidelines is amended by replacing sub-paragraph (2) thereof with the following new sub-paragraph (2):
“(2) If, after valuation, haircuts and any application of climate factors and taking into account the counterparty’s obligations to provide collateral as specified in paragraph 15 or otherwise, the value of the assets provided as collateral by the counterparty falls below the required amount based on the calculation for that day, the valuation margin buffer mechanism is activated in accordance with paragraph 11 of Guideline SDA. If the value of the aforementioned assets, after their revaluation, exceeds the amount owed by the counterparty, including the valuation margin buffer, the NCB may return to it the excess assets or any cash paid by the counterparty under the valuation margin buffer mechanism.”

Amendment of paragraph 141 of the Basic Guidelines.

Paragraph 141 of the Basic Guidelines is amended by replacing sub-paragraph (1) thereof with the following new sub-paragraph (1):
“(1) A counterparty is not permitted to deposit or use as collateral for collateralized securities issued by a credit institution or another entity with which it maintains close links, to the extent that the value thereof exceeds cumulatively 2.5% of the total value of the assets used as collateral by that specific counterparty after the relevant valuation haircut and any application of a climate factor. The 2.5% limit does not apply in the cases specified in paragraph 1 of Article 141 of Guideline EUNP.”

Replacement of paragraph 155 of the Basic Guidelines.

Paragraph 155 of the Basic Guidelines is replaced by the following new paragraph 155:
“155.
Monetary penalties in case of non-compliance with certain operational rules (1). To a counterparty who does not comply with the obligation of paragraph 154 sub-paragraph 1, the Eurosystem imposes a monetary penalty for each instance of non-compliance. For the purposes of Part Five of Guideline EUNP, a situation of non-compliance subject to a penalty is one in which a specific asset provided as collateral is affected by the non-compliance. The applicable monetary penalty includes the following:
(a) a fixed amount of 500 euros for each instance of non-compliance communicated by the NCB to the counterparty, regardless of the number of assets provided as collateral affected by the non-compliance; (b) a variable amount for each asset provided as collateral and affected by the non-compliance, calculated in accordance with Annex VII Part I of Guideline EUNP.” (2) The total amount of the imposed monetary penalty calculated in accordance with sub-paragraph (1) and Annex VII of Guideline EUNP is reduced by 50% in any of the following cases of voluntary disclosure of non-compliance:
(a) the counterparty rectifies non-compliance with the obligation of sub-paragraph (1) point c) of paragraph 154 and informs”

the relevant NCB before the non-compliance is communicated to it by the NCB, the ECB or an external auditor; (b) the counterparty notifies the NCB of a situation of non-compliance which: i) was not identified by the NCB or the ECB and ii) concerns assets that had been provided as collateral and have been withdrawn. The monetary penalty reduction does not apply to assets for which a verification procedure pending has been communicated to the counterparty by the NCB, the ECB or an external auditor.”

Replacement of paragraph 156 of the Basic Guidelines.

Paragraph 156 of the Basic Guidelines is replaced by the following new paragraph 156:
“156.
Non-monetary penalties in case of non-compliance with certain operational rules (1). In the event that a counterparty does not comply with any of the obligations of paragraph 154 (1) or (b) of paragraph 154, the following apply:
(a) the Eurosystem may suspend the counterparty’s participation in the relevant monetary policy operations for the third and each subsequent time a case of non-compliance occurs within the same twelve-month period, provided that for each such case of non-compliance the cumulative conditions i) and ii) are met:
i) a monetary penalty was imposed; ii) every decision imposing a monetary penalty was communicated to the counterparty; (b) the twelve-month period of point (a) is calculated from the date of communication of the first situation of non-compliance with any of the obligations of sub-paragraph (1) (a) or (b) of paragraph 154, as applicable. The first voluntary disclosure of a non-compliance situation occurring under sub-paragraph (2) of paragraph 155 within the twelve-month period is not counted as a non-compliance situation. (2). The suspension of participation imposed by the Eurosystem under sub-paragraph (1) applies to the next open market operation similar to the one that resulted in the imposition of a monetary penalty in the same paragraph. (3). The duration of the suspension under paragraph 1 is determined in accordance with the provisions of Annex VII of Guideline EUNP. (4). In the event of non-compliance by a counterparty with any of the obligations of paragraph 154(1)c, the following apply:
(a) the Eurosystem may suspend the counterparty’s participation in the relevant monetary policy operations for the third and each subsequent time a case of non-compliance occurs, provided that for each such case of non-compliance the cumulative conditions i) and ii) are met:
i) a monetary penalty was imposed; ii) every decision imposing a monetary penalty was communicated to the counterparty; (b) the twelve-month period of point (a) is calculated from the date of communication of the first situation of non-compliance with any of the obligations of paragraph 154. The first voluntary disclosure of a non-compliance situation occurring under sub-paragraph (2) of paragraph 155 within the twelve-month period is not counted as a non-compliance situation. (c) the suspension of participation imposed under point (a) applies to the first liquidity-providing open market operation conducted within the maintenance period following the communication of the suspension.”

(5). In exceptional cases, the Eurosystem may suspend a counterparty’s participation in all its future monetary policy operations for a period of three months and for each of its non-compliances with any of the obligations of paragraph 154 sub-paragraph (1) (1) In this case, the Eurosystem takes into account the seriousness of the case and, in particular, the amounts involved, the frequency and the duration.”

Replacement of paragraph 157 of the Basic Guidelines.

Paragraph 157 of the Basic Guidelines is replaced by the following new paragraph 157:
“Imposition of monetary penalties in case of non-compliance with certain operational rules.
“157. The suspension of participation imposed by the Eurosystem on a counterparty under sub-paragraph (5) of paragraph 156 may also apply to branches established in other Member States with the euro as currency. ”

Amendment of paragraph 158 of the Basic Guidelines.

Paragraph 158 of the Basic Guidelines is amended as follows:
a) by replacing point (a) in the second reservation of sub-paragraph (2) thereof with the following new points (a) and (aa) respectively:
“(a) compliance with the own funds requirements has not been restored through the adoption of appropriate and timely measures no later than 20 weeks from the reference date of the data collection process in which the non-compliance was identified; and (aa) there is no prospect of restoring the counterparty’s compliance with the relevant own funds requirements” b) by adding the following paragraph to sub-paragraph (3):
“In the event of late provision of the relevant information for a specific reporting period due to events beyond the counterparty’s control, the relevant quarter-end deadlines for that specific quarter are extended as follows:
a) by eight weeks for counterparties meeting the eligibility criteria of Article 55 point b) point i) or ii) of Guideline EUNP b) by two weeks for counterparties under Article 55 point b) point iii). of Guideline EUNP.” c) by adding the following new sub-paragraphs (4a) and (4b) after sub-paragraph (4) thereof:
“(4a) The Eurosystem lifts the restriction on the access of counterparties under paragraph 4 to its monetary policy operations with a normal duration of up to one week, even when the indicative daily” ---

The Implementation of Eurosystem Monetary Policy Framework (Amending) Directive of 2026

Lineage: In force