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 second subparagraph of Article 12.1 in conjunction with the first indent of Article 3.1, and Article 18.1 thereof,Whereas:
(1)Taking into account the exceptional economic and financial circumstances associated with the spread of coronavirus disease 2019 (COVID-19), on 18 March 2020, the Governing Council decided to launch a temporary pandemic emergency purchase programme (PEPP) including all the asset categories eligible under the ECB’s asset purchase programme, consisting of the secondary markets public sector asset purchase programme, the third covered bond purchase programme, the asset-backed securities purchase programme, and the corporate sector purchase programme (CSPP).
(2)The CSPP was established by Decision (EU) 2016/948 of the European Central Bank (ECB/2016/16)note. It contains a number of safeguards to ensure that the purchases and holding of corporate bonds will be proportionate to its aims. These safeguards should also ensure that related financial risks are taken into account in the CSPP’s, and therefore also the PEPP’s, design and should reflect risk management perspectives.
(3)Accordingly, the Governing Council decided on 6 August 2024 to amend the rule applicable to securities lending transactions of corporate bonds held by the Eurosystem under the CSPP and the PEPP to reflect risk management considerations.
(4)Therefore, Decision (EU) 2020/440 of the European Central Bank (ECB/2020/17)note should be amended accordingly,
HAS ADOPTED THIS DECISION:
Article 1Amendment#
Article 7 of Decision (EU) 2020/440 (ECB/2020/17) is replaced by the following:‘Article 7Securities lendingExcept for securities that no longer meet the credit quality requirements for securities purchased under the corporate sector purchase programme, the Eurosystem shall make securities purchased under the PEPP available for lending, including repos, with a view to ensuring the effectiveness of the PEPP.’.
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