April 30, 2020 |
The Federal Reserve on Thursday expanded access to its Paycheck Protection Program Liquidity Facility (PPPLF) to additional lenders, and expanded the collateral that can be pledged. The changes will facilitate lending to small businesses via the Small Business Administration’s (SBA) Paycheck Protection Program (PPP).
As a result of the changes, all PPP lenders approved by the SBA, including non-depository institution lenders, are now eligible to participate in the PPPLF. SBA-qualified PPP lenders include banks, credit unions, Community Development Financial Institutions, members of the Farm Credit System, small business lending companies licensed by the SBA, and some financial technology firms. When the PPPLF was announced, the Federal Reserve said the facility would immediately lend to depository institutions and that non-depository institutions would be added as soon as possible.
Additionally, eligible borrowers will be able to pledge whole PPP loans that they have purchased as collateral to the PPPLF. An institution that pledges a purchased PPP loan will need to provide the Reserve Bank with documentation from the SBA demonstrating that the pledging institution is the beneficiary of the SBA guarantee for the loan.
The SBA’s PPP guarantees loans from qualified lenders to small businesses so that those businesses can keep workers employed. The PPPLF supports the PPP by extending credit to financial institutions that make or purchase PPP loans, using the loans as collateral. The additional liquidity from the PPPLF increases the capacity of financial institutions to make additional PPP loans.
Further details on the PPPLF are available HERE
For frequently asked questions, please visit: PPPLF Frequently Asked Questions
Compliments of The Federal Reserve Board.

April 30, 2020 |
The European Securities and Markets Authority, the EU’s securities markets regulator, has today made available, under the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR):
• The annual transparency calculations of the large in scale (LIS) and size specific to the instruments (SSTI) thresholds for bonds;
• systematic internaliser calculations for equity, equity-like instruments and bonds; and
• new data for bonds subject to the pre- and post-trade requirements of MiFID II and MiFIR.

Annual transparency calculations of the large in scale (LIS) and size specific to the instruments (SSTI) thresholds for bonds
ESMA has published the results of the annual transparency calculations of the large in scale (LIS) and size specific to the instruments (SSTI) thresholds for bonds.
The results are published on a per bond-type basis in excel format in the Annual transparency calculations for non-equity instruments register. The results on a per ISIN basis will be published through the Financial Instruments Transparency System (FITRS) in the XML files (link available here) and through the Register web interface (link available here) starting on 30 April 2020.
ESMA will publish until 31 May 2020 two records with this type of calculation for each ISIN (the one applicable until that date, and the one applicable starting on 1 June). To avoid any misinterpretation of the results, users of the calculations are kindly invited to review the FIRDS Transparency System downloading instructions document in particular paragraph 28.
As communicated on 9 April 2020, the annual transparency calculations for the other non-equity instruments have been postponed.
Next steps
The transparency requirements based on the results of the annual calculations of the large in scale (LIS) and size specific to the instruments (SSTI) thresholds for bonds shall apply from 1 June 2020 until 31 May 2021. From 1 June 2021, the results of the next annual calculations of the LIS and SSTI thresholds for bonds, to be published by 30 April 2021, will become applicable.
Systematic internaliser calculations for equity, equity-like instruments and bonds
ESMA has published data for the systematic internaliser calculations for equity, equity-like instruments and bonds under the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).
ESMA has published the total number of trades and total volume over the period October 2019-March 2020 for the purpose of the systematic internaliser (SI) calculations for 24,940 equity and equity-like instruments and for 316,894 bonds.
The results are published only for instruments for which trading venues submitted data for at least 95% of all trading days over the 6-month observation period. The data publications also incorporate OTC trading to the extent it has been reported to ESMA. The publication includes data also for instruments which are no longer available for trading on EU trading venues at the end of December.
The publication of the data for the SI calculations for derivatives and other instruments has been delayed until August 2020, as announced on 9 April. The SI-assessment for those asset classes does not need to be performed until September 2020.
New bond liquidity data available
ESMA has started today to make available the latest quarterly liquidity assessment for bonds available for trading on EU trading venues. For this period, there are currently 745 liquid bonds subject to MiFID II transparency requirements.
ESMA’s liquidity assessment for bonds is based on a quarterly assessment of quantitative liquidity criteria, which include the daily average trading activity (trades and notional amount) and percentage of days traded per quarter. ESMA updates the bond market liquidity assessments quarterly. However, additional data and corrections submitted to ESMA may result in further updates within each quarter, published in ESMA’s Financial Instruments Transparency System (FITRS), which shall be applicable the day following publication. 
The scope of assessed bonds decreased for this publication as a result of a change in reporting practice from a trading venue in the United Kingdom. This change does not affect the quality of the calculations on the bonds that are published
The full list of assessed bonds will be available through FITRS in the XML files with publication date from 30 April 2020 (link available here) and through the Register web interface (link available here).
As communicated on 27 September 2018, ESMA is also publishing two completeness indicators related to bond liquidity data.
Next steps
The transparency requirements for bonds deemed liquid today will apply from 16 May 2020 to 15 August 2020
Compliments of European Securities and Markets Authority. 

A health crisis at the outset, the coronavirus pandemic soon turned into an unprecedented economic and social crisis. In an article published with several European think tanks, I sketch how COVID-19 could magnify three global developments.
“The COVID-19 Crises challenges the current form of globalisation and is a political test for the EU and Europe’s democratic systems,” – Josep Borrell
The main takeaways of the article are:
• The pandemic will likely magnify existing geopolitical dynamics and test the strength of Europe’s democratic systems.
• Europe needs a new kind of globalisation capable of striking a balance between the advantages of open markets and interdependence, and between the sovereignty and security of countries.
• Europe should work to prevent the US-China rivalry from having negative repercussions in certain regions of the world – particularly Africa.
• European leaders need to focus on meeting the immediate needs of healthcare systems, providing an income for people who cannot work, and giving businesses guarantees.
The article was published first on the Ifri website and will be published in Politique Etrangère, Vol. 85, No 2, Summer 2020. Please find below an overview with links to the various publications in other outlets and in different languages
IFRI.org – COVID-19 : le monde d’après est déjà là… Josep Borrell dans “Politique étrangère”(link is external)
 
EFCR.eu – The post-coronavirus world is already here(link is external)
 
International Politik – Die Post-Corona-Welt ist schon da
 
Blog Post by EU High Representative Josep Borrell
 
Compliments of the European Union External Service Action.

April 30, 2020 |
• Series of additional longer-term refinancing operations to ensure sufficient liquidity and smooth money market conditions during the pandemic period
• Operations allotted on a near monthly basis maturing in the third quarter of 2021
The Governing Council of the European Central Bank (ECB) today decided to conduct a new series of seven additional longer-term refinancing operations, called pandemic emergency longer-term refinancing operations (PELTROs). These operations will provide liquidity support to the euro area financial system and contribute to preserving the smooth functioning of money markets by providing an effective backstop after the expiry of the bridge longer-term refinancing operations (LTROs) that have been conducted since March 2020. Counterparties participating in PELTROs will be able to benefit from the collateral easing measures in place until the end of September 2021 that were announced by the Governing Council on 7 and 23 April 2020.
The PELTROs will be conducted as fixed rate tender procedures with full allotment. The operations will be offered at highly accommodative terms. The interest rate will be 25 basis points below the average rate applied in the Eurosystem’s main refinancing operations (currently 0%) over the life of the respective PELTRO.
The PELTROs will be conducted according to the indicative calendar below. The first operation will be announced on 19 May, allotted on 20 May and settled on 21 May 2020.
The operations provide longer-term funding to counterparties with decreasing tenors, starting with a tenor of 16 months in the first operation and ending with a tenor of 8 months in the last operation.
The ECB stands ready to provide additional liquidity, if needed.
Announcement
Allotment
Settlement
Maturity date
Tuesday, 19 May 2020
Wednesday, 20 May 2020
Thursday, 21 May 2020
Thursday, 30 September 2021
Friday, 19 June 2020
Monday, 22 June 2020
Wednesday, 24 June 2020
Thursday, 30 September 2021
Tuesday, 4 August 2020
Wednesday, 5 August 2020
Thursday, 6 August 2020
Thursday, 30 September 2021
Tuesday, 1 September 2020
Wednesday, 2 September 2020
Thursday, 3 September 2020
Thursday, 26 August 2021
Tuesday, 6 October 2020
Wednesday, 7 October 2020
Thursday, 8 October 2020
Thursday, 26 August 2021
Tuesday, 3 November 2020
Wednesday, 4 November 2020
Thursday, 5 November 2020
Thursday, 29 July 2021
Tuesday, 1 December 2020
Wednesday, 2 December 2020
Thursday 3, December 2020
Thursday, 29 July 2021
Compliments of the European Central Bank.

April 30, 2020 |
• Interest rate on all targeted longer-term refinancing operations (TLTRO III) reduced by 25 basis points to -0.5% from June 2020 to June 2021
• For banks meeting the lending threshold of 0% introduced on 12 March 2020, the interest rate can be as low as -1%
• Start of the lending assessment period brought forward to 1 March 2020
The Governing Council of the European Central Bank (ECB) today decided on a number of modifications to the terms and conditions of its targeted longer-term refinancing operations (TLTRO III) in order to support further the provision of credit to households and firms in the face of the current economic disruption and heightened uncertainty.
For the period from 24 June 2020 to 23 June 2021 the interest rate on all TLTRO III operations will now be 50 basis points below the average rate applied in the Eurosystem’s main refinancing operations over the same period. The interest rate on the main refinancing operations is currently 0%. For counterparties whose eligible net lending reaches the lending performance threshold, the interest rate applied from 24 June 2020 to 23 June 2021 on all TLTRO III operations will be 50 basis points below the average interest rate on the deposit facility prevailing over the same period, and in any case not higher than -1%. The deposit facility rate is currently -0.5%.
The start of the period over which banks’ lending performance will be assessed in order to ascertain whether they qualify for this lower rate will be brought forward to 1 March 2020, from 1 April 2020, while the end of the assessment period will remain unchanged at 31 March 2021. This adjustment recognises the funding support that banks have already provided to firms in March at the start of the crisis related to the coronavirus (COVID-19) pandemic, in line with the aims of TLTRO III.
For banks that reach the lending threshold of 0% between 1 March 2020 and 31 March 2021, the most favourable conditions will be applied throughout the entire life of the operations. The interest rate applied before 24 June 2020 and after 23 June 2021 for these counterparties will be the average interest rate on the deposit facility over the life of the respective operation. For banks that do not reach the lending threshold of 0% between 1 March 2020 and 31 March 2021, the original TLTRO III interest rates and lending threshold, evaluated over the longer period of between 1 April 2019 and 31 March 2021, will apply. For these counterparties, in recognition of the challenging credit environment during the pandemic period, the lending threshold that they need to meet over this longer assessment period will be lowered to 1.15%, from 2.5%. In any case, during the period from 24 June 2020 to 23 June 2021 the rate for these banks will not be higher than 50 basis points below the average rate applied in the Eurosystem’s main refinancing operations over the same period.
The changes to TLTRO III will apply to all TLTRO III operations and will be implemented via amendments to the Decision of the ECB of 22 July 2019 on a third series of targeted longer-term refinancing operations (ECB/2019/21), as amended by the Decisions of the ECB of 12 September 2019 (ECB/2019/28) and 16 March 2020 (ECB/2020/13). The changes to the lending threshold, the reduction in the rates during the period from 24 June 2020 to 23 June 2021 and the bringing forward of the start date of the lending performance assessment period to 1 March 2020 will be set forth in a third amendment that will be published shortly on the ECB’s website and subsequently in the Official Journal of the European Union.
Compliments of the European Central Bank.

April 30, 2020 |
At today’s meeting the Governing Council of the ECB took the following monetary policy decisions:
(1) The conditions on the targeted longer-term refinancing operations (TLTRO III) have been further eased. Specifically, the Governing Council decided to reduce the interest rate on TLTRO III operations during the period from June 2020 to June 2021 to 50 basis points below the average interest rate on the Eurosystem’s main refinancing operations prevailing over the same period. Moreover, for counterparties whose eligible net lending reaches the lending performance threshold, the interest rate over the period from June 2020 to June 2021 will now be 50 basis points below the average deposit facility rate prevailing over the same period.
(2) A new series of non-targeted pandemic emergency longer-term refinancing operations (PELTROs) will be conducted to support liquidity conditions in the euro area financial system and contribute to preserving the smooth functioning of money markets by providing an effective liquidity backstop. The PELTROs consist of seven additional refinancing operations commencing in May 2020 and maturing in a staggered sequence between July and September 2021 in line with the duration of the collateral easing measures. They will be carried out as fixed rate tender procedures with full allotment, with an interest rate that is 25 basis points below the average rate on the main refinancing operations prevailing over the life of each PELTRO.
(3) Since the end of March, purchases have been conducted under the Governing Council’s new pandemic emergency purchase programme (PEPP), which has an overall envelope of €750 billion, to ease the overall monetary policy stance and to counter the severe risks to the monetary policy transmission mechanism and the outlook for the euro area posed by the coronavirus pandemic. These purchases will continue to be conducted in a flexible manner over time, across asset classes and among jurisdictions. The Governing Council will conduct net asset purchases under the PEPP until it judges that the coronavirus crisis phase is over, but in any case until the end of this year.
(4) Moreover, net purchases under the asset purchase programme (APP) will continue at a monthly pace of €20 billion, together with the purchases under the additional €120 billion temporary envelope until the end of the year. The Governing Council continues to expect monthly net asset purchases under the APP to run for as long as necessary to reinforce the accommodative impact of its policy rates, and to end shortly before it starts raising the key ECB interest rates.
(5) Reinvestments of the principal payments from maturing securities purchased under the APP will continue, in full, for an extended period of time past the date when the Governing Council starts raising the key ECB interest rates, and in any case for as long as necessary to maintain favourable liquidity conditions and an ample degree of monetary accommodation.
(6) The interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.50% respectively. The Governing Council expects the key ECB interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics.
The Governing Council is fully prepared to increase the size of the PEPP and adjust its composition, by as much as necessary and for as long as needed. In any case, it stands ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner, in line with its commitment to symmetry.
Compliments of the European Central Bank.

April 14, 2020
Introduction and key messages
The increasing spread of the coronavirus across countries has prompted many governments to introduce unprecedented measures to contain the epidemic. These are priority measures that are imposed by a sanitary situation, which leave little room for other options as health should remain the primary concern. These measures have led to many businesses being shut down temporarily, widespread restrictions on travel and mobility, financial market turmoil, an erosion of confidence and heighted uncertainty.
In a rapidly changing environment, it is extremely difficult to quantify the exact magnitude of the impact of these measures on GDP growth, but is clear that they imply sharp contractions in the level of output, household spending, corporate investment and international trade. This note provides illustrative estimates of the initial direct impact of shutdowns, based on an analysis of sectoral output and consumption patterns across countries and an assumption of common effects within each sector and spending category in all countries.
• This approach suggests that the initial direct impact of the shutdowns could be a decline in the level of output of between one-fifth to one-quarter in many economies, with consumers’ expenditure potentially dropping by around one-third.Changes of this magnitude would far outweigh anything experienced during the global financial crisis in 2008-09. This broad estimate only covers the initial direct impact in the sectors involved and does not take into account any additional indirect impacts that may arise.
These are only the initial impacts on the level of output. The implications for annual GDP growth will depend on many factors, including the magnitude and duration of national shutdowns, the extent of reduced demand for goods and services in other parts of the economy, and the speed at which significant fiscal and monetary policy support takes effect. Nonetheless, it is clear that the impact of the shutdowns will weaken short-term growth prospects substantially.
• The scale of the estimated decline in the level of output is such that it is equivalent to a decline in annual GDP growth of up to 2 percentage points for each month that strict containment measures continue. If the shutdown continued for three months, with no offsetting factors, annual GDP growth could be between 4-6 percentage points lower than it otherwise might have been.
These estimates are one approach to quantifying the initial impact of containment measures on activity, and do not utilise the full range of data that inform the projections of economic growth in the OECD Economic Outlook. However, their message of sharp initial declines in activity across countries following shutdowns and restrictions on mobility is very similar to that emerging from business surveys, high-frequency daily indicators, and the sharp output contraction observed already in China this year.
Considerable uncertainty remains about the duration and magnitude of confinement measures and the extent to which they may be implemented in a similar manner across countries. Even once they begin to be eased, the extent of any subsequent recovery in output will depend on the effectiveness of the policy actions taken to support workers and companies through the downturn and the extent to which confidence returns.
READ THE FULL REPORT HERE
Compliments of the OECD.

April 26, 2020 |
• Plan Will Be Implemented in Phases and Based on Regional Analysis and Determinations
• State Will Closely Monitor Hospitalization Rate and Public Health Impact During Each Phase of Re-Opening and Will Adjust Plan and Make Other Decisions Based on Those Indicators
• Confirms 5,902 Additional Coronavirus Cases in New York State – Bringing Statewide Total to 288,045; New Cases in 48 Counties
Amid the ongoing COVID-19 pandemic, Governor Andrew M. Cuomo today outlined a phased plan to re-open New York and re-imagine a new normal for the state starting with construction and manufacturing. The plan will be implemented in phases and will be based on regional analysis and determinations. Based on CDC recommendations, once a region experiences a 14-day decline in the hospitalization rate they may begin a phased re-opening. The State is closely monitoring the hospitalization rate, the infection rate and the number of positive antibody tests, as well as the overall public health impact, and will make adjustments to the plan and other decisions based on these indicators.
CONTINUE READING…
Compliments of the Office of the Governor of New York.

April 28, 2020 |
The Commission has today adopted a banking package to help facilitate bank lending to households and businesses throughout the European Union. The aim of this package is to ensure that banks can continue to lend money to support the economy and help mitigate the significant economic impact of the Coronavirus. It includes an Interpretative Communication on the EU’s accounting and prudential frameworks, as well as targeted “quick fix” amendments to EU banking rules.
The rules put in place following the financial crisis have ensured that banks in the EU are now more resilient and better prepared to deal with shocks to the economy. Today’s Communication recalls that EU rules allow banks and their supervisors to act in a flexible, but responsible, manner during economic crises to support citizens and firms, particularly small and medium-sized companies. Today’s Regulation also implements some targeted changes to maximise the capacity of credit institutions to lend and to absorb losses related to the Coronavirus pandemic, while still ensuring their continued resilience.
Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People said: “We are supporting households and businesses as much as we can to deal with the economic fallout of the Coronavirus. The banking sector can do a lot to help here. We are using the full flexibility of the EU’s banking rules and proposing targeted legislative changes to enable banks to keep the liquidity taps turned on, so that households and companies can get the financing they need. I will soon also be launching roundtable discussions bringing together consumer and business groups with the financial sector so that we can address the most urgent needs of our citizens and companies.”
The Commission will engage with the European financial sector to explore how it can develop best practices that could further support citizens and businesses. The EU’s response to this crisis must be coordinated in order to avoid national fragmentation and to ensure a level playing field.
Targeted amendments to banking rules
The Commission proposed today a few targeted “quick fix” amendments to the EU’s banking prudential rules (the Capital Requirements Regulation) in order to maximise the ability of banks to lend and absorb losses related to Coronavirus. The Commission proposes exceptional temporary measures to alleviate the immediate impact of Coronavirus-related developments, by adapting the timeline of the application of international accounting standards on banks’ capital, by treating more favourably public guarantees granted during this crisis, by postponing the date of application of the leverage ratio buffer and by modifying the way of excluding certain exposures from the calculation of the leverage ratio. The Commission also proposes to advance the date of application of several agreed measures that incentivise banks to finance employees, SMEs and infrastructure projects.
Interpretative Communication
Today’s Communication confirms the recent statements on using flexibility within accounting and prudential rules, such as those made by the Basel Committee of Banking Supervision, the European Banking Authority (EBA) and the European Central Bank, amongst others. The Commission encourages banks and supervisory authorities to make use of the flexibility in the EU’s accounting and prudential frameworks. For example, the Communication confirms – and welcomes – the flexibility available in EU rules when it comes to public and private moratoria on loan repayments (EBA guidelines of 2 April). The Communication also highlights areas where banks are invited to act responsibly, for example by refraining from making dividend distributions to shareholders or adopting a conservative approach to the payment of variable remuneration. Today’s Communication also recalls how banks can help businesses and citizens through digital services, including contactless and digital payments.
Compliments of the European Commission.

April 24, 2020 |
The European Union is joining forces with global partners to kick-start a pledging effort – the Coronavirus Global Response – starting on 4 May 2020. The World Health Organization (WHO) and global health organisations have launched a joint call for action to develop fast and equitable access to safe, quality, effective and affordable diagnostics, therapeutics and vaccines against coronavirus.
To raise funds in support of this endeavour, the European Union and its partners will organise a worldwide pledging marathon. Countries and organisations around the world are invited to pledge to help reach the target of €7.5 billion in initial funding.
European Commission President von der Leyen said: “We need to bring the world, its leaders and people together against coronavirus. In just 10 days, we will launch a global pledging effort. A real marathon. Because beating coronavirus requires a global response and sustained actions on many fronts. We need to develop a vaccine, to produce it and deploy it to every corner of the world. And we need to make it available at affordable prices.”
Researchers and innovators around the world are working very hard to find solutions to save lives and protect our health. Starting on the 4th of May, the Commission will register pledges from countries and business foundations. On that day, the Commission will also announce the next milestones of a global campaign, which is to kick off an ongoing rolling replenishment.
The Commission is also inviting governments, business leaders, public figures philanthropists, artists and citizens to raise awareness about this global pledging effort. The funds collected will be channelled into three strands: diagnostics, treatments and vaccines.
The countdown to the start of marathon begins today, the first day of the 2020 World Immunisation Week organised by the United Nations. The theme this year is #VaccinesWork for All and the campaign will focus on how vaccines, as well as the people who develop, deliver and receive them, work to protect the health of everyone, everywhere.
Find out more about the effort and how to get involved on the Coronavirus Global Response website: europa.eu/global-response
Background
On 26 March, in an extraordinary meeting on the coronavirus outbreak, the G20 agreed to establish a global initiative on pandemic preparedness and response to “act as a universal, efficient, sustained funding and coordination platform to accelerate the development and delivery of vaccines, diagnostics and treatments.”
On 24 April, the WHO and an initial group of global health actors launched a landmark, global collaboration for the accelerated development, production and equitable global access to new COVID-19 essential health technologies. The group includes the Bill and Melinda Gates Foundation (BMGF), the Coalition for Epidemic Preparedness Innovations (CEPI), GAVI – the Vaccine Alliance – , the Global Fund, UNITAID, the Wellcome Trust and the World Bank. Together, they committed to the shared aim of equitable global access to innovative tools to fight the COVID-19 virus for all. Read the joint call to action here.
To respond to the joint call for action from health actors, the EU is joining forces with France, Germany, the United Kingdom, Norway and Saudi Arabia to host a pledging conference. This follows the announcement by President von der Leyen on 15 April that the Commission would organise an online pledging event to fund the development of a vaccine against COVID-19.
In parallel, the Commission is committing hundreds of millions of euros in research and innovation measures to develop vaccines, new treatments, diagnostic tests and medical systems to prevent the spread of the coronavirus.
Compliments of the European Commission.