ECB measures to expand collateral framework and enhance liquidity

15 October 2008

The ECB decided to temporarily expand the list of assets eligible as collateral. The provision of longer-term refinancing will also be enhanced, and US dollar liquidity will also be offered through foreign exchange swaps.

The ECB decided to expand the list of assets eligible as collateral in Eurosystem credit operations until the end of 2009. The provision of longer-term refinancing by the Eurosystem will also be enhanced and US dollar liquidity will also be offered through foreign exchange swaps.

 

The Eurosystem will add the following instruments to the list of assets eligible as collateral in its credit operations:

 

Furthermore, the Eurosystem will lower the credit threshold for marketable and non-marketable assets from A- to BBB-, with the exception of asset-backed securities (ABS), and impose a haircut add-on of 5% on all assets rated BBB-.

 

The date of entry into effect as well as further technical details on these measures will be communicated as soon as possible. The measures will remain in force until the end of 2009.

 

Moreover, as of 20 October 2008 and at least until the end of the first maintenance period in 2009 on 20 January, fixed term deposits held with the Eurosystem will be eligible collateral for Eurosystem credit operations.

 

Consistently with the temporary expansion of the collateral pool, the Eurosystem will also enhance its provision of longer-term refinancing.

 

Press release

Technical specifications (as of 17 Oct)

 


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