Banks, EU – Baltic States, Financial Services, Latvia, Legislation

Amendments have been made in accordance with Guidelines ECB/2014/60 and ECB/2015/20 of the European Central Bank (ECB) and the ECB Governing Council decisions relating to Eurosystem monetary policy operations.

The amendments:

- specify the eligibility criteria for securities issued by international organisations and multilateral development banks, covered bonds, asset-backed securities (ABS) and other marketable assets, credit claims and guarantees as collateral for Eurosystem monetary policy operations;

- specify the eligibility of marketable assets with floating coupons with potentially negative cash flow as collateral for Eurosystem monetary policy operations;

- stipulate that the Eurosystem will no longer use government-guaranteed unsecured debt instruments issued by a counterparty of Eurosystem monetary policy operations or an entity having close links with the counterparty;

- stipulate that the Eurosystem will no longer apply derogation with respect to the use of securities issued and/or guaranteed by the Greek government as collateral for Eurosystem monetary policy operations;

- revise the definitions and update references to the legislative acts of the European Union;

- introduce changes in the structure of the regulation and revise wording where necessary.