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Today the Council of Latvijas Banka approved an amendment to the "Procedure for Participation in the Eurosystem Monetary Policy Operations Organised by Latvijas Banka" (to take effect on 2 November 2015).

The Governing Council of the European Central Bank approved amendments to the Guideline of the European Central Bank on the implementation of the Eurosystem monetary policy framework (ECB/2014/60) on 27 August 2015 which have to be implemented by all Eurosystem national central banks by 2 November 2015. In order to implement the above amendments, the wording of Appendix 1 "Rules for Implementing the Eurosystem Monetary Policy Operations Organised by Latvijas Banka" of the Procedure was revised.

Several changes to the rules have been introduced. When assessing the eligibility of a counterparty to access the Eurosystem monetary policy operations based on the financial soundness criterion, Latvijas Banka will consider its capital adequacy, leverage and liquidity ratios.

The rules concerning Latvijas Banka's rights to be exercised out of prudential considerations when the financial soundness of the counterparty is challenged have been further elaborated. A new eligible type of assets to be used as collateral in the Eurosystem credit operations is also introduced, i.e. non-marketable debt instruments backed by eligible credit claims (DECCs). Finally, rules for in-kind recapitalisation of credit institutions with public debt instruments have been introduced, e.g. rules concerning the eligibility of such instruments as collateral and the assessment of the financial soundness of such credit institutions.