DECISION OF THE EUROPEAN CENTRAL BANK of 5 March 2012 on the eligibility of marketable debt instruments issued or fully guaranteed by the Hellenic Republic in the context of the Hellenic Republic’s debt exchange offer

DECISION OF THE EUROPEAN CENTRAL BANK
of 5 March 2012
on the eligibility of marketable debt instruments issued or fully guaranteed by the Hellenic Republic
in the context of the Hellenic Republic’s debt exchange offer
(ECB/2012/3)
(2012/153/EU)
THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,
Having regard to the Treaty on the Functioning of the European
Union, and in particular the first indent of Article 127(2)
thereof,
Having regard to the Statute of the European System of Central
Banks and of the European Central Bank, and in particular the
first indent of Article 3.1, Article 12.1, Article 18 and the
second indent of Article 34.1,
Having regard to Guideline ECB/2011/14 of 20 September
2011 on monetary policy instruments and procedures of the
Eurosystem (
1
), and in particular Sections 1.6, 6.3.1 and 6.3.2 of
Annex I thereof,
Whereas:
(1) Given the exceptional circumstances prevailing in
financial markets and the disruption in the normal
assessment by the market of securities issued or guar­
anteed by the Hellenic Republic, the Governing Council
adopted Decision ECB/2010/3 of 6 May 2010 on
temporary measures relating to the eligibility of
marketable debt instruments issued or guaranteed by
the Greek Government (
2
). This Decision temporarily
suspended the Eurosystem’s minimum requirements for
credit quality thresholds, as specified in the Eurosystem
credit assessment framework rules for certain marketable
assets in Section 6.3.2 of Annex I to Guideline
ECB/2011/14. Decision ECB/2012/2 (
3
) repealed
Decision ECB/2010/3 because of the negative impact
on the credit ratings assigned to such debt instruments
of the launch of the debt exchange offer in the context of
private sector involvement to holders of marketable debt
instruments issued or guaranteed by the Greek
Government.
(2) On 21 July 2011, the Heads of State or Government of
the euro area and Union institutions announced
measures to stabilise Greek public finances, which
included their commitment to provide collateral
enhancement to underpin the quality of marketable
debt instruments issued or guaranteed by the Hellenic
Republic. The Governing Council has decided that such
collateral enhancement is to be provided by the Hellenic
Republic for the benefit of the national central banks
(NCBs).
(3) The Governing Council has decided that the Eurosystem’s
credit quality threshold should be suspended in respect of
marketable debt instruments issued or fully guaranteed
by the Hellenic Republic that are covered by the
collateral enhancement,
HAS ADOPTED THIS DECISION:
Article 1
Eligibility of marketable debt instruments issued or fully
guaranteed by the Hellenic Republic in the context of the
Hellenic Republic’s debt exchange offer
1. The use, as collateral for Eurosystem credit operations, of
marketable debt instruments issued or fully guaranteed by the
Hellenic Republic that do not fulfil the Eurosystem’s minimum
requirements for credit quality thresholds, as specified in the
Eurosystem credit assessment framework rules for certain
marketable assets in Section 6.3.2 of Annex I to Guideline
ECB/2011/14 while fulfilling the other eligibility requirements
specified in Annex I to Guideline ECB/2011/14, shall be
conditional on the provision by the Hellenic Republic to
NCBs of a collateral enhancement in form of a buy-back
scheme.
2. The marketable debt instruments referred to in paragraph
1 shall remain eligible for the duration of the collateral
enhancement.
Article 2
Entry into force
This Decision shall enter into force on 8 March 2012.
Done at Frankfurt am Main, 5 March 2012.
The President of the ECB
Mario DRAGHI

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