(Finance) – With a decision of the Board of Directors there European Central Bank has slightly changed the procedures for the evaluation of the collateral securities which he accepts as guarantees for the provision of refinancing to banks. The reference used to evaluate the collaterals will no longer be the rating Better, as currently happens, but the highest second. In the event that the title used as a collateral does not have at least two rating, the only rating available will be lowered by a level when the cut on the nominal value regarding the amount of refinancing paid will be decided.
The new rules – established with a decision approved by the Council on February 19 – they will enter into force in a deferred way not before 18 months to allow an implementation in the IT infrastructure of the Eurosystem. The ECB added that the date will be announced well in advance, together with the technical details, on the ECB website.
In the note the ECB stressed that this decision also applies to sector public Which is not part of the euro area and follows an in -depth revision of the rating regulations of rating aimed at making a better use of all the rating information available in the evaluation framework of the credit of the Eurosystem (ECAF). “The revision took into account the increase in the number of ECAI accepted in ECAF and the fact that the Eurosystem is open to accept additional rating agencies once they meet the ACAF acceptance criteria”.
The Board of Directors also decided that the rules will remain unchanged for the activities issued or guaranteed by public sector of the euro area (for example, the central, regional and local governments of the euro area; international and supranational broadcasters located in the euro area whose shareholders are located in the EU; and agencies recognized by the ECB). “These activities, for which the Eurosystem makes regular use of all the information available on the quality of the credit and applies strengthened two diligence procedures, will therefore continue to be evaluated on the basis of their first best rating,” said the ECB.