(1)

Pursuant to Article 18.1 of the Statute of the European System of Central Banks and of the European Central Bank, the European Central Bank (ECB) and the national central banks of Member States whose currency is the euro may conduct credit operations with credit institutions and other market participants, with lending being based on adequate collateral.

(2)

The standard criteria and minimum requirements for credit quality thresholds determining the eligibility of marketable assets as collateral for the purposes of Eurosystem monetary policy operations are laid down in Guideline (EU) 2015/510 (ECB/2014/60) and in particular in Article 59 and in Part Four, Title II thereof.

(3)

Pursuant to Article 1(4) of Guideline (EU) 2015/510 (ECB/2014/60), the Governing Council may, at any time, change the tools, instruments, requirements, criteria and procedures for the implementation of Eurosystem monetary policy operations. Pursuant to Article 59(6) of Guideline (EU) 2015/510 (ECB/2014/60), the Eurosystem reserves the right to determine whether an issue, issuer, debtor or guarantor fulfils the Eurosystem's credit quality requirements on the basis of any information that the Eurosystem may consider relevant for ensuring adequate risk protection of the Eurosystem.

(4)

Article 8(2) of Guideline ECB/2014/31 provides that the Eurosystem's credit quality thresholds do not apply to marketable debt instruments issued or fully guaranteed by the central governments of Member States whose currency is the euro under a European Union/International Monetary Fund programme, unless the Governing Council decides that the respective Member State does not comply with the conditionality of the financial support and/or the macroeconomic programme.

(5)

In February 2015, the Governing Council concluded that it was not possible to assume a successful conclusion of the review of the European Union/International Monetary Fund financial assistance programme for the Hellenic Republic that was ongoing at the time. Consequently, Decision (EU) 2015/300 of the European Central Bank (ECB/2015/6) (4) provided that the Hellenic Republic should no longer be considered to be in compliance with a European Union/International Monetary Fund programme for the purposes of Article 6(1) and Article 8 of Guideline ECB/2014/31 and that the Eurosystem's credit quality thresholds should apply in respect of marketable debt instruments issued or fully guaranteed by the Hellenic Republic. On 19 August 2015, following the expiry of the European Financial Stability Facility (EFSF) programme of financial support for Greece, the Board of Governors of the European Stability Mechanism (ESM) approved a new three-year financial assistance programme for Greece.

(6)

The first tranche under the new ESM programme was disbursed once all required measures were taken and milestones met which supported the gradual stabilisation of the Greek economy and allowed for the recapitalisation of the Greek banking system at the end of 2015. Upon completion of the prior actions agreed under the programme for the first review, the Board of Directors of the ESM approved on 17 June 2016 the disbursement of the first part of the second tranche of the programme. The first review of the ESM programme has thus been successfully concluded.

(7)

The Governing Council has assessed the effects of the new ESM programme for Greece, the continued implementation thereof and the commitment demonstrated by the Greek authorities to fully implement the programme.

(8)

On the basis of the abovementioned assessment, the Governing Council considers the Hellenic Republic to be in compliance with the conditionality of the programme and has decided to restore the eligibility of marketable debt instruments issued or fully guaranteed by the Hellenic Republic for Eurosystem's monetary policy operations. Therefore, Decision (EU) 2015/300 (ECB/2015/6) should be repealed.

(9)

In view of the specific market and credit risk conditions for marketable debt instruments issued or fully guaranteed by the Hellenic Republic, the Governing Council has decided to revise the haircut schedule applicable to those instruments pursuant to Article 8(3) of Guideline ECB/2014/31.

(10)

In line with past Governing Council deliberations, potential purchases of marketable debt instruments issued or guaranteed by the Hellenic Republic in the secondary markets public sector asset purchase programme (PSPP) will be examined at a later stage, taking into account the progress in the analysis and reinforcement of the sustainability of Greece's public debt and other risk management considerations,