Collateral obligations of counterparties in the Eurosystem's main refinancing operations

The differences in behaviour which emerged between the various national banking systems in their participation in the Eurosystem's Main Refinancing Operations have raised the question of the interpretation of the General Documentation regarding the collateral obligations of counterparties in the context of bidding in tender operations. Therefore the Eurosystem has clarified to its counterparties that the valid interpretation of the General Documentation allows tender bids not actually covered by collateral at the time of the submission of bids, and just requires the financial capacity to have the collateral on the date of settlement of the tender. The final settlement of the tender operation is subject to the availability of collateral sufficient to cover the allotted amount.