News

News - News Releases 2020

20/04/2020

The Central Bank of Malta amends Directive No. 8

On 7 April 2020, the Governing Council of the European Central Bank ('ECB'), which is the main decision-making body of the ECB, adopted a set of collateral measures to mitigate the tightening of financial conditions across the euro area.

Such measures included Guideline ECB/2020/21 ('the Guideline') which amended Guideline ECB/2014/31 on additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral.

The Central Bank of Malta implemented the Guideline in full through amendments effected to its Directive Number 8 ('the Directive') which relates to monetary policy instruments and procedures. Such amendments are applicable as from 20th April 2020.

The amendments to the Directive are summarised hereunder:

  • The acceptance of marketable debt securities issued by the central government of the Hellenic Republic, in that the Central Bank of Malta may now accept as collateral for Eurosystem credit operations, marketable debt instruments issued by such Member State subject to certain terms and conditions.
  • The introduction of valuation haircut levels applied to the above-mentioned securities issued by the central government of the Hellenic Republic.
  • The introduction of valuation haircuts levels applied to asset-backed securities applied under Annex 14 of the Directive which relates to additional temporary measures pertaining to Eurosystem refinancing operations and eligibility of collateral.

The Central Bank of Malta, through its Directives issued in terms of the Central Bank of Malta Act, Chapter 204 of the Laws of Malta, always ensures the efficient and smooth implementation of ECB Guidelines that are aimed at safeguarding financial stability and monetary policy operations of Member States, including Malta.

Back to Archive