Decisions taken by the Governing Council of the ECB (in addition to decisions setting interest rates)

May 2010

Economic, monetary and financial situation

Assessment of the Greek economic and financial adjustment programme

On 2 May 2010 the Governing Council positively assessed the Greek economic and financial adjustment programme adopted that day by the Greek government. A related press release was published on the same day.

Operational issues

Change in eligibility of debt instruments issued or guaranteed by the Greek government

On 2 May 2010 the Governing Council decided to suspend, until further notice, the application of the minimum credit rating threshold in the collateral eligibility requirements for the purposes of the Eurosystem’s credit operations for all outstanding and new marketable debt instruments issued or guaranteed by the Greek government. A related press release was published the next day. On 6 May 2010 the Governing Council adopted the related ECB Decision on temporary measures relating to the eligibility of marketable debt instruments issued or guaranteed by the Greek government (ECB/2010/3).

Securities markets programme

On 9 May 2010 the Governing Council decided to start conducting interventions in the euro area public and private debt securities markets (securities markets programme) to ensure depth and liquidity in those market segments displaying dysfunctional behaviour and affecting the monetary policy transmission mechanism. The Governing Council also decided that specific operations to re-absorb the liquidity injected through this programme will be conducted to sterilise the impact of these interventions. A related press release was published the next day. The above decisions were formalised in the ECB Decision establishing a securities markets programme (ECB/2010/5) adopted by the Governing Council on 14 May 2010.

Changes to the monetary policy operational framework

On 9 May 2010 the Governing Council decided to adopt a fixed rate tender procedure with full allotment in the regular three-month longer-term refinancing operations to be allotted on 26 May and 30 June 2010. A related press release was published the next day.

Supplementary longer-term refinancing operation

On 9 May 2010 the Governing Council decided to conduct a supplementary six-month longer-term refinancing operation with full allotment on 12 May 2010, at a rate which will be fixed at the average minimum bid rate of the main refinancing operations over the life of this operation. A related press release was published the next day.

Reactivation of US dollar liquidity-providing operations

On 9 May 2010 the Governing Council decided to re-establish temporary US dollar liquidity swap facilities with the Federal Reserve System, in coordination with the Bank of Canada, the Bank of England, the Swiss National Bank and, as from 10 May, the Bank of Japan. The Governing Council also decided to resume US dollar liquidity-providing operations at terms of seven and 84 days which take the form of repurchase operations against collateral eligible for use in ECB operations and will be carried out as fixed rate tenders with full allotment. Two related press releases were published the next day.

ECB Decision on the management of pooled bilateral loans for the benefit of Greece

On 10 May 2010 the Governing Council adopted the ECB Decision concerning the management of pooled bilateral loans for the benefit of the Hellenic Republic and amending Decision ECB/2007/7 concerning the terms and conditions of TARGET2-ECB (ECB/2010/4) whereby the ECB extends its list of customers to include central governments of the European Union Member States and public entities designated by such central governments to act on their behalf.

Payment systems and market infrastructure

TARGET Annual Report 2009

On 14 May 2010 the Governing Council took note of the TARGET Annual Report 2009. The report provides background information on TARGET and describes its performance and the main developments that took place in 2009. It was published on 18 May 2010 on the ECB’s website.

Financial stability and supervision

Financial Stability Review - June 2010

On 20 May 2010 the Governing Council authorised the publication of the “Financial Stability Review – June 2010”. The review provides a comprehensive assessment of the capacity of the euro area financial system to absorb adverse disturbances and examines the main sources of risks to and vulnerability of financial system stability. The review will be published on the ECB’s website on 31 May 2010.

Advice on legislation

ECB Opinion on an amendment to the rules governing Narodowy Bank Polski’s provision against foreign exchange rate risk 

On 21 April 2010 the Governing Council adopted this opinion at the request of the President of Narodowy Bank Polski (CON/2010/32).

ECB Opinion on private insurance supervision, the establishment of a private life insurance guarantee fund and other provisions for Greece

On 23 April 2010 the Governing Council adopted this opinion at the request of the Greek Ministry of Finance (CON/2010/33).

ECB Opinion on debt arrangements for over-indebted individuals in Greece

On 23 April 2010 the Governing Council adopted this opinion at the request of the Greek Ministry of Economy, Competitiveness and Shipping (CON/2010/34).

ECB Opinion on additional financial stability measures in Estonia 

On 26 April 2010 the Governing Council adopted this opinion at the request of the Estonian Ministry of Finance (CON/2010/35).

ECB Opinion on a Greek draft law on restoring fairness in taxation and addressing tax evasion 

On 30 April 2010 the Governing Council adopted this opinion at the request of the Greek Ministry of Finance (CON/2010/36).

ECB Opinion on an amendment to the rules securing the continuation of office of the President of Narodowy Bank Polski

On 7 May 2010 the Governing Council adopted this opinion at the request of the Marshal of the Polish Parliament (CON/2010/37).

ECB Opinion on new coin and banknote denominations in Sweden

On 7 May 2010 the Governing Council adopted this opinion at the request of Sveriges Riksbank (CON/2010/38).

ECB Opinion on the transfer of rights and obligations in relation to the issuance, distribution and redemption of public debt in Cyprus

On 14 May 2010 the Governing Council adopted this opinion at the request of the Cypriot Minister for Finance (CON/2010/39).

ECB Opinion on a bilateral loan between the International Monetary Fund and the Oesterreichische Nationalbank

On 14 May 2010 the Governing Council adopted this opinion at the request of the Austrian Ministry of Finance (CON/2010/40).

ECB Opinion on a German draft law on compensation systems at institutions and insurance companies

On 14 May 2010 the Governing Council adopted this opinion at the request of the German Federal Ministry of Finance (CON/2010/41).

ECB Opinion on the legal status of Lietuvos bankas’s assets, terms of office and remuneration of Board members, immunity of foreign reserves of foreign central banks and annual financial statements of Lietuvos bankas

On 18 May 2010 the Governing Council adopted this opinion at the request of the Lithuanian Ministry of Finance (CON/2010/42).

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