(1)

In accordance with Article 18.1 of the Statute of the European System of Central Banks and of the European Central Bank, the European Central Bank (ECB), together with national central banks of Member States whose currency is the euro, may operate in the financial markets by, among other things, buying and selling marketable instruments outright.

(2)

On 4 September 2014 the Governing Council decided that a new asset-backed securities purchase programme (ABSPP) should be initiated. Alongside the third covered bond purchase programme (1) and the targeted longer-term refinancing operations (2) the ABSPP will further enhance the transmission of monetary policy, facilitate credit provision to the euro area economy, generate positive spill-overs to other markets and, as a result, ease the ECB's monetary policy stance, and contribute to a return of inflation rates to levels closer to 2 %.

(3)

As part of the single monetary policy, the outright purchase of eligible asset-backed securities (ABS) by the ECB under the ABSPP should be implemented in a uniform and, exceptionally during the initial phase, centralised manner, in accordance with this Decision.

(4)

After the initial phase of the ABSPP, it is intended that the ABSPP should be implemented in a uniform and decentralised manner by the Eurosystem central banks in accordance with a subsequent decision to that effect by the Governing Council,

(1)

The ABS have a credit quality assessment in compliance with, at a minimum, credit quality step 3 in the Eurosystem's harmonised rating scale (3), expressed in the form of at least two public credit ratings provided by any two External Credit Assessment Institutions (ECAIs) accepted within the Eurosystem Credit Assessment Framework (ECAF).

(2)

Other than as provided in point 1 above, the ABS fulfil the eligibility criteria applicable to ABS submitted as collateral for Eurosystem monetary policy operations as laid down in Annex I to Guideline ECB/2011/14 (4) (as amended by Guideline ECB/2012/25 (5) and Guideline ECB/2014/10 (6)) and in Decision ECB/2013/35 (7).

(3)

Where the ABS do not have a credit quality assessment in compliance with at least credit quality step 2 in the Eurosystem's harmonised rating scale, expressed in the form of at least two public credit ratings provided by any two ECAIs accepted within the ECAF, the ABS must, in addition to fulfilling the requirements of point 2, fulfil the eligibility criteria applicable to ABS submitted as collateral for Eurosystem monetary policy operations pursuant to Article 3 of Guideline ECB/2014/31 (8).

(4)

No less than 90 % of the obligors of the cash-flow generating assets backing the ABS are classified as private sector non-financial corporations (9) or natural persons, measured by reference to the outstanding principal amount of the cash-flow generating assets attributable to such obligors.

(5)

No less than 95 % of:

(6)

The issuer of the ABS is established in the euro area.

(7)

A tranche of ABS (with the same or fungible International Securities Identification Number (ISIN)) which, at the time assessed by the ECB for potential purchase in accordance with Article 3, was retained in full by the originator or entities with which it has close links (10) will be eligible for purchase under the ABSPP if an external investor without a close link to the originator (with the exception of a Eurosystem central bank acting outside the framework of the ABSPP) also purchases part of that tranche of ABS (with the same or fungible ISIN).

(8)

Where the obligors of the cash-flow generating assets backing an ABS issue are incorporated or resident in Greece or Cyprus, the minimum rating level set out in point 1 shall not apply to those ABS provided that they are subject to the purchase limit specified in Article 5(2) and satisfy all other applicable eligibility criteria for purchase under the ABSPP and all of the following additional requirements: