(1)

In accordance with Article 18.1 of the Statute 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 the ‘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 lending being based on adequate collateral. The general conditions under which the ECB and the NCBs stand ready to enter into credit operations, including the criteria determining the eligibility of collateral for the purposes of Eurosystem credit operations, are laid down in Guideline (EU) 2015/510 of the European Central Bank (ECB/2014/60) (1). Additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral are laid down in Guideline ECB/2014/31 of the European Central Bank (2).

(2)

Guideline ECB/2014/31 provides that NCBs may accept as collateral for Eurosystem monetary policy operations certain short-term debt instruments issued by non-financial corporations that do not satisfy the Eurosystem eligibility criteria for marketable assets, provided they comply with eligibility criteria and risk control measures that meet the minimum standards specified by the Governing Council. The Governing Council decided on 30 November 2023 to discontinue the acceptance of such short-term debt instruments as collateral for Eurosystem monetary policy operations. In making its decision, the Governing Council took into account the following in relation to these instruments: their negligible contribution over time to the total amount of collateral mobilised by Eurosystem counterparties; and their idiosyncratic nature, which was not considered to be in line with the principles of consistency and simplicity underpinning the design of the Eurosystem’s collateral framework.

(3)

Some further clarification on the treatment of interest rate benchmarks in the context of collateral eligibility for the purposes of Eurosystem monetary policy operations is required.

(4)

On 8 September 2023 the issuer rating of the Hellenic Republic was upgraded to credit quality step 3 in the Eurosystem’s harmonised rating scale. As a result of that upgrade, marketable debt instruments issued by the central government of the Hellenic Republic became compliant with the Eurosystem’s credit quality requirements and should be subject to the valuation haircuts laid down in Guideline (EU) 2016/65 of the European Central Bank (ECB/2015/35) (3). Therefore the provisions in Guideline ECB/2014/31 allowing NCBs to accept as eligible collateral for the purposes of Eurosystem credit operations marketable debt instruments issued by the central government of the Hellenic Republic that do not satisfy the Eurosystem’s credit quality requirements for marketable assets but fulfil all other eligibility criteria applicable to marketable assets, subject to a specific haircut schedule, have become obsolete and should be removed from that Guideline.

(5)

Therefore, Guideline ECB/2014/31 should be amended accordingly,

(1)

Article 5 is deleted;

(2)

In Article 7, paragraph 3 is replaced by the following:

(*1)  Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1).’;"

(3)

Article 8a is deleted;

(4)

Annex IIb is deleted.