Gradual phasing-out of pandemic collateral easing measures

Charlotte Bakker, Luca Bortolussi, Mark Büssing-Lörcks, Adina Fudulache, Diana Gomes, Iskra Pavlova and Stephan Sauer

Economic Bulletin Boxes, 2022, vol. 3

Abstract: The gradual phasing-out of the pandemic collateral easing measures in three steps between July 2022 and March 2024 will restore the Eurosystem’s pre-pandemic risk tolerance in its collateral framework, while avoiding cliff effects in collateral availability. The collateral easing measures introduced in April 2020 facilitated banks’ access to Eurosystem credit operations by adding around €285 billion of collateral, playing an important role in supporting the provision of credit to the economy during the coronavirus (COVID-19) pandemic. The ECB will continue to waive the minimum credit quality requirement for Greek government bonds (GGBs), allowing national central banks (NCBs) to accept them as collateral at least as long as reinvestments in such bonds under the pandemic emergency purchase programme (PEPP) continue. JEL Classification: E58, E65, G01

Keywords: collateral; coronavirus (COVID-19) pandemic; credit operations; Monetary policy implementation; TLTRO (search for similar items in EconPapers)
Date: 2022-04
Note: 362683
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