Based on the latest annual review of recognised agencies in the Eurosystem collateral framework, MuniFin complies with the quantitative criteria of the European Central Bank as of 10 December 2021. In practice, this has decreased the haircuts applicable to bonds issued by MuniFin when they are used as collateral for Eurosystem credit operations. The decrease in haircuts amounts to approximately 5-12 percentage points, depending on the remaining maturity and the coupon structure (fixed, floating, zero coupon) of the bond. The change in haircuts became effective on Monday 13 December 2021.
For further information on the current valuation haircut levels applied to eligible marketable assets, please refer to the ECB Guideline ECB/2015/35 (as amended). MuniFin’s Eurosystem eligible bonds are allocated in Haircut Category II. Previously MuniFin’s bonds were allocated in Category IV.
Decisions taken by the Governing Council of the ECB (link)
Senior Legal Councel, MuniFin
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