Guideline (EU) 2024/1163 of the European Central Bank of 8 February 2024 amending Guideline (EU) 2015/510 on the implementation of the Eurosystem monetary policy framework (ECB/2014/60) (ECB/2024/4)

‘6 LTROs are executed by means of variable rate tender procedures, unless it is decided by the Eurosystem to execute them by means of a fixed-rate tender procedure. In such a case, the rate applicable to fixed-rate tender procedures may be indexed to an underlying reference rate (e.g. average MRO rate) over the life of the operation, with or without a spread. When the applicable interest rate is calculated as an average of an underlying reference rate over the life of the operation, it shall be calculated by rounding the average to at least the eighth decimal position.’

‘5 Fixed-term deposits shall be held in accounts with the home NCB.’

‘2 ECB debt certificates shall be issued in book-entry form in a securities depository in a Member State whose currency is the euro. They shall be held in book-entry form.’

‘5 Counterparties may access the marginal lending facility after making a request to their home NCB at the latest by 18:15 Central European Time (CET), the cut-off time for the use of standing facilities, pursuant to Appendix V to Annex I to Guideline (EU) 2022/912 (ECB/2022/8). On the last Eurosystem business day of a minimum reserve maintenance period, the deadline for requesting access to the marginal lending facility shall occur 15 minutes later. Under exceptional circumstances, the Eurosystem may decide to apply later deadlines. The request for access to the marginal lending facility shall specify the amount of credit required. The counterparty shall deliver sufficient eligible assets as collateral for the transaction, unless such assets have already been pre-deposited by the counterparty with the home NCB pursuant to Article 18(4).

‘1 The maturity of credit extended under the marginal lending facility shall be overnight. The credit shall be repaid on the next day on which: (a) TARGET; and (b) the relevant SSSs are operational, at the time at which those systems open.’

‘2 Counterparties may access the deposit facility after making a request to their home NCB at the latest by 18:15 Central European Time (CET), the cut-off time for the use of standing facilities, pursuant to Appendix V to Annex I to Guideline (EU) 2022/912 (ECB/2022/8). On the last Eurosystem business day of a minimum reserve maintenance period, the deadline for requesting access to the deposit facility shall occur 15 minutes later. Under exceptional circumstances, the Eurosystem may decide to apply later deadlines. The request for access to the deposit facility shall specify the amount to be deposited.

‘1 The maturity of deposits under the deposit facility shall be overnight. Deposits held under the deposit facility shall mature on the next day on which TARGET is operational, at the time at which this system opens.’

‘1 Payment orders relating to the participation in open market operations or use of the standing facilities shall be settled on the counterparties’ accounts with an NCB or on the accounts of another credit institution participating in TARGET.’

‘2 In order to participate in Eurosystem credit operations, counterparties shall provide the Eurosystem with assets that are eligible as collateral for such operations. Given that Eurosystem credit operations include intraday credit, collateral provided by counterparties in respect of intraday credit shall also comply with the eligibility criteria laid down in this Guideline, as outlined in Guideline (EU) 2022/912 (ECB/2022/8).’

‘5 By way of derogation from paragraph 4, the coupon structure shall not be rendered ineligible in the case of multi-step or floating coupons with steps linked to SPTs by the mere existence of the issuer’s right to cancel or disapply the step-up event and/or the associated step-up payment.’

‘1a The requirement set out in the first sentence of paragraph 1 shall not apply to the guarantor of a debt instrument where the guarantee is not used to establish the compliance of that debt instrument with the credit quality requirements for marketable assets.’

‘2 In order to be eligible, guarantors of debt instruments shall be established in the EEA, unless a guarantee is not used to establish the compliance of that debt instrument with the credit quality requirements for specific debt instruments, subject to the exceptions laid down in paragraphs 3 and 4. The possibility to use an ECAI guarantor rating to establish compliance with the relevant credit quality requirements for specific debt instruments is laid down in Article 84.’

‘2 Debt certificates issued by the ECB and debt certificates issued by the NCBs prior to the date of adoption of the euro in their respective Member State whose currency is the euro shall not be subject to the criteria laid down in Title II of this Part Four.’

For domestic use, credit claims shall, at the time of their submission as collateral by the counterparty, meet a minimum size threshold of EUR 25000, or any higher amount that may be laid down by the home NCB. For cross-border use, a minimum size threshold of EUR 500000 shall apply.’

1 NCBs, or supervisors or external auditors, shall conduct a verification of the appropriateness of the procedures and systems used by the counterparty to submit the information on credit claims to the Eurosystem prior to the first mobilisation of credit claims by the counterparty. The verification of the procedures and systems shall subsequently be conducted at least once every five years. In the event of significant changes to such procedures or systems, a new verification may be conducted.

2 If NCBs, or supervisors or external auditors ascertain that the procedures and systems used by the counterparty are no longer adequate for the submission of the information on credit claims to the Eurosystem, the NCB involved in the verification shall take the measures it deems necessary, which may include the partial or full suspension of the mobilisation of credit claims by the counterparty until a new verification of the appropriateness of the procedures and systems used by the counterparty to submit the information on credit claims to the Eurosystem has been conducted.’

1 Each NCB shall apply contractual or regulatory arrangements that provide for events of default that are considered either automatic (“automatic events of default”) or discretionary (“discretionary events of default”), as set out in this Article.

2 The following shall be considered automatic events of default, as referred to in paragraph 1: (a) a decision is made by a competent judicial or other authority to implement, in relation to the counterparty, a procedure for the winding-up of the counterparty or the appointment of a liquidator or analogous officer over the counterparty, or any other analogous procedure. For the purposes of this point (a), the taking of crisis prevention measures or crisis management measures within the meaning of Directive 2014/59/EU against a counterparty shall not qualify as an automatic event of default; (b) the counterparty becomes subject to freezing of funds and/or other measures, including restrictive measures, imposed by the Union under Article 75 or Article 215 or similar relevant provisions of the Treaty restricting the counterparty’s ability to use its funds; (c) the counterparty is no longer subject to the Eurosystem’s minimum reserve system as required by Article 55, point (a); (d) the counterparty is no longer subject to harmonised Union/EEA supervision or comparable supervision under Article 55, point (b); (e) the counterparty becomes a wind-down entity as defined in Article 2, point (99a).

3 The following shall be considered discretionary events of default, as referred to in paragraph 1: (a) a decision is made by a competent judicial or other authority to implement, in relation to the counterparty, an intervention measure, other than under paragraph 2, point (a), restricting its business activities, including a moratorium, or a reorganisation measure or other analogous procedure intended to safeguard or restore the financial situation of the counterparty and to avoid a decision of the type referred to in paragraph 2, point (a), being taken; (b) the counterparty no longer fulfils any of the home NCB’s operational requirements referred to in Article 55, point (d); (c) a declaration is made by the counterparty in writing of its inability to pay all or any part of its debts or to meet its obligations arising in relation to monetary policy transactions or any other transactions with its home NCB or with any other NCB, or the counterparty ceases to pursue its objects under its articles of association or analogous constitutive documents or a declaration is made by the counterparty of its intention to cease to pursue its objects under its articles of association or analogous constitutive documents, or a voluntary general agreement or arrangement is entered into by the counterparty with its creditors, or if the counterparty is, or is deemed to be, insolvent or is deemed to be unable to pay its debts; (d) procedural steps are taken preliminary to a decision being made under paragraph 2, point (a) or points (a) or (f), of this paragraph, including a proposal to withdraw the authorisation to conduct activities under either: (a) Directive 2013/36/EU and Regulation (EU) No 575/2013; or (b) Directive 2014/65/EU, as implemented in the relevant Member State whose currency is the euro; (e) a temporary administrator or other analogous officer with the powers to restrict the ability of the counterparty to meet its obligations towards the Eurosystem is appointed; (f) a receiver, trustee or analogous officer is appointed over all or any material part of the property of the counterparty, to the extent applicable; (g) an incorrect or untrue representation or other pre-contractual statement is made or implied by the counterparty under applicable provisions of law in relation to: (i) monetary policy transactions or any other transactions with its home NCB or with any other NCB, or (ii) compliance with any laws or regulations to which it may be subject, which may threaten the performance by the counterparty of its obligations under the arrangement it entered into for the purpose of effecting Eurosystem monetary policy operations; (h) the counterparty’s authorisation to conduct activities under Directive 2014/65/EU, as implemented in the relevant Member State whose currency is the euro, is suspended or revoked; (i) the counterparty is suspended from or has its participation terminated in any payment system through which payments under monetary policy transactions are made or (except for foreign exchange swap transactions) is suspended from or has its participation terminated in any SSS used for the settlement of Eurosystem monetary policy operations; (j) measures such as those referred to in Articles 41(1) and 43(1) and Article 44 of Directive 2013/36/EU are taken against the counterparty; (k) in relation to reverse transactions, the counterparty fails to comply with provisions concerning risk control measures; (l) in relation to repurchase transactions, the counterparty fails to pay the purchase price or the repurchase price or fails to deliver purchased or repurchased assets; or in relation to collateralised loans, the counterparty fails to deliver assets or reimburse the credit on the applicable dates for such payments and deliveries; (m) In relation to foreign exchange swaps for monetary policy purposes and fixed-term deposits, the counterparty fails to pay the euro amount; or in relation to foreign exchange swaps for monetary policy purposes, the counterparty fails to pay foreign currency amounts on the applicable dates for such payments; (n) an event of default, not materially different from those defined in this Article, occurs in relation to the counterparty under an agreement concluded for the purposes of the management of the foreign reserves or own funds of the ECB or any NCBs; (o) the counterparty fails to provide relevant information, thus causing severe consequences for the home NCB; (p) the counterparty fails to perform any other of its obligations under arrangements for reverse transactions and foreign exchange swap transactions and, if capable of remedy, does not remedy such failure within a maximum of 30 days in the case of collateralised transactions and a maximum of 10 days for foreign exchange swap transactions after notice is given by the NCB requiring it to do so; (q) an event of default occurs in relation to the counterparty, including its branches, under any agreement or transaction with the Eurosystem entered into for the purpose of effecting Eurosystem monetary policy operations; (r) the counterparty becomes subject to the freezing of funds and/or other measures imposed by a Member State whose currency is the euro restricting the counterparty’s ability to use its funds; (s) all or a substantial part of the counterparty’s assets are subjected to a freezing order, attachment, seizure or any other procedure that is intended to protect the public interest or the rights of the counterparty’s creditors; (t) all or a substantial part of the counterparty’s assets are assigned to another entity or all or a substantial part of the operations or business of the counterparty are sold, dissolved, liquidated or discontinued or any decision to this effect is made; and (u) any other impending or existing event which threatens the performance by the counterparty of its obligations under the arrangements it entered into for the purpose of effecting Eurosystem monetary policy operations or under any other contractual and/or statutory rules applying to the relationship between the counterparty and the ECB or any of the NCBs; or the counterparty defaults on, breaches or fails to duly perform any other obligation, agreement or transaction with its home NCB under the arrangements entered into for the purpose of effecting monetary policy operations or under any other contractual and/or statutory rules applying to the relationship between the counterparty and the ECB or any of the NCBs.

4 In the case of the discretionary events of default referred to in paragraph 3, the event of default is to be declared by the relevant NCB in accordance with Eurosystem procedures adopted by the Governing Council and shall be perfected only upon service of a notice of default. Such notice of default may provide a “grace period” of up to three business days to rectify the event in question.’

1 This Guideline shall take effect on the day of its notification to the NCBs.

2 The NCBs shall take the necessary measures to comply with this Guideline and apply them from 6 May 2024. They shall notify the ECB of the texts and means relating to those measures by 22 March 2024 at the latest.

This Guideline is addressed to all Eurosystem central banks.