News

News - News Releases 2020

18/05/2020

Amendments to Directive No. 8

On 22 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 decisions in response to the COVID-19 pandemic. 

Such measures are aimed at mitigating the adverse impact on the Eurosystem collateral availability of potential rating downgrades resulting from the economic fallout of the COVID-19 outbreak. 

To this effect, on 7 May 2020, the Governing Council adopted Guideline ECB/2020/29 amending 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 18 May 2020. 

The amendments to the Directive are summarised hereunder: 

a) The admission of certain marketable assets and issuers eligible on 7 April 2020.

b) New valuation haircut levels applied to asset-backed securities (ABS).

c) New valuation haircut levels applied to marketable assets, other than ABS. 

In view of the current COVID-19 pandemic scenario, 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, is constantly implementing the necessary measures to comply with ECB Guidelines in order to safeguard financial stability and monetary policy operations in Malta during such challenging and unprecedented times.

Back to Archive