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Created on 27.03.2014

On 27 March the Council of Latvijas Banka approved amendments to the "Procedure for Participation in the Eurosystem Monetary Policy Operations Organised by Latvijas Banka" (to take effect on 1 April 2014).

The decision was taken following the amendments made to the European Central Bank legal acts.

The procedure updates the credit rating requirements with respect to the asset-backed securities (hereinafter, the ABSs) accepted by Latvijas Banka as collateral in the Eurosystem monetary policy operations. Collateral accepted by Latvijas Banka will also include such ABSs where the underlying cash-flow generating assets are credit card receivables.

To mobilise collateral on a cross-border basis, it will also be possible to use the correspondent central banking model (hereinafter, the CCBM) in combination with eligible links between securities settlement systems, as well as the CCBM in combination with the cross-border triparty collateral management services.

Amendments to the "Procedure for Participation in the Eurosystem Monetary Policy Operations Organised by Latvijas Banka" will take effect on 1 April 2014 while changes related to the use of the CCBM will take effect on 26 May and 29 September 2014.