ECB Update on Asset backed Securities

gold bars

Update on ECB Discussion of Asset backed securities and Lithuania joining the Euro

February 14, 2015
By: Dominick Giammarino

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Hi everyone, so if you are thinking about getting into assets, read this article on what the ECB (European Central Bank) is discussing.  As you all know, since about January of 2014, I write about the global currency reset in detail, and one of the things I mention is asset backed currencies.  The Vietnamese Dong was expected to revalue at a higher rate, however, I’m not seeing a huge return, which is primilariy why I diversity and own multiple currencies including the Iraqi Dinar which just had new three zero dinar notes introduced.  If you didn’t follow what happened to the GCR site in January, it’s worth reading.  Someone obviously doesn’t like what I’m doing.

When you are considering asset backed currencies, doesn’t silver and gold come to mind?  Why is China buying up so much Gold?  Whether or not you believe in a reset, that’s not my concern, my concern is educating you on the loss of the purchasing power of the U.S. Dollar.  See the below image.

currency devaluation

The ECB homepage has a multitude of great information for you to look at.


Read what is currently happening overseas.

Don’t expect to get updates like this from TNT Tony, he has more lies to make up along with DC Guy (Winston Pfiester)

October 2014 – ECB announces operational details of asset-backed securities and covered bond purchase programmes

Programs will last at least two years

Will enhance transmission of monetary policy, support provision of credit to the euro area economy and, as a result, provide further monetary policy accommodation

Eurosystem collateral framework is guiding principle for eligibility of assets for purchase

Asset purchases to start in fourth quarter 2014, starting with covered bonds in second-half of October

The Governing Council of the European Central Bank (ECB) today agreed key details regarding the operation of its new programmes to buy simple and transparent asset-backed securities (ABSs) and a broad portfolio of euro-denominated covered bonds. Together with the targeted longer-term refinancing operations, the purchase programmes will further enhance the transmission of monetary policy. They will 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. These measures will have a sizeable impact on the Eurosystem’s balance sheet and will contribute to a return of inflation rates to levels closer to 2%.

The Eurosystem’s collateral framework – the rules that lay out which assets are acceptable as collateral for monetary policy credit operations – will be the guiding principle for deciding the eligibility of assets to be bought under the ABS purchase programme (ABSPP) and covered bond purchase programme (CBPP3). There will be some adjustments to take into account the difference between accepting assets as collateral and buying assets outright. To ensure that the programmes can include the whole euro area, ABSs and covered bonds from Greece and Cyprus that are currently not eligible as collateral for monetary policy operations will be subject to specific rules with risk-mitigating measures.

The two programmes will last for at least two years and are likely to have a stimulating effect on issuance. Asset purchases will commence in the fourth quarter of 2014, starting with covered bonds in the second half of October. The ABSPP will start after external service providers have been selected, following an ongoing procurement process.

4 September 2014 – ECB modifies loan-level reporting requirements for some asset-backed securities
The Governing Council of the European Central Bank (ECB) has decided to modify the loan-level reporting requirements for asset-backed securities (ABSs) backed by auto loans, leasing receivables, consumer finance loans and credit card receivables that are used as collateral in Eurosystem monetary policy operations and are unable to satisfy the timeline announced on 27 November 2012.As of 1 October 2014, auto loan, leasing, consumer finance and credit card ABSs for which the mandatory level of compliance with reporting requirements has not been attained and for which the data provider has neither given an explanation for that non-compliance nor provided an action plan for achieving full compliance, will become ineligible for use as Eurosystem collateral.Additionally, the Governing Council has decided that, as of 1 October 2014, the Eurosystem may temporarily accept non-compliant auto loan, leasing, consumer finance and credit card ABSs as eligible collateral, on a case-by-case basis and subject to the provision of adequate explanations for the failure to achieve the mandatory score required. For each adequate explanation, the Eurosystem will specify its tolerance stance.These decisions will help secure a smooth transition to full compliance while ensuring a level playing field between different classes of ABSs at different stages of the compliance process.Further details of the ABS loan-level initiative, including the above-mentioned modifications, are available via the ECB’s dedicated web pages.

Lithuania (as of 1 January 2015)

On 23 July 2014 the Council of the European Union approved Lithuania’s request to join the euro area on 1 January 2015. The irrevocably fixed exchange rate is €1= LTL 3.45280.

There will be a two-week period when both currencies are in circulation, with change normally provided in euro. The litas will cease to be legal tender on 16 January 2015.

Lietuvos bankas

Exchanging Lithuanian litas

At post offices, credit unions and banks

Litas banknotes and coins can be exchanged at 330 post offices and some credit unions in Lithuania at the fixed exchange rate, free of charge, until 1 March 2015. They can be exchanged at all banks until 30 June 2015. Certain banks will continue to exchange litas banknotes until 31 December 2015.

At Lietuvos bankas

The central bank will exchange litas banknotes and coins at the fixed exchange rate in unlimited amounts for an indefinite period. This service is also free of charge.

Addresses for Lietuvos bankas

At other euro area national central banks

Other euro area national central banks will exchange litas banknotes, free of charge, at the fixed exchange rate from 1 January to 28 February 2015. The amount that can be exchanged is limited to €1,000 for any given party/transaction on any one day.

Key changeover dates at a glance


EU Council approves Lithuania’s admission to euro area.
Minting of Lithuanian euro coins starts.
Prices in Lithuania are shown in both litas and euro until 30 June 2015. “Fair euro introducer” campaign.
Transfer of euro coins from Lietuvos bankas to commercial banks starts.
Transfer of euro banknotes from Lietuvos bankas to commercial banks starts.
Transfer of euro banknotes and coins from commercial banks to businesses, retailers and cash machine operators starts.
Coin starter kits, each containing the eight denominations, go on sale at Lietuvos bankas and commercial banks. They will also be available at post offices as of 4 December 2014.
Euro introductionEuro banknotes and coins start circulating and bank accounts are converted into euro.
For two weeks, to smooth the transition, both currencies – litas and euro – are in circulation and can be used for payments.
Euro banknotes and coins become sole legal tender.
Exchanging litas for euro free of charge
Deadline for exchanging litas banknotes and coins at post offices and some credit unions.
Deadline for exchanging litas coins at commercial banks and litas banknotes at most commercial banks.
Deadline for exchanging litas banknotes at the remaining commercial banks.
No deadline
Litas banknotes and coins can be exchanged at Lietuvos bankas indefinitely.

Euro information campaign

The European Central Bank (ECB) and Lietuvos bankas have prepared a joint Euro information campaign. It included:

  • the production and distribution of publications on euro banknotes and coins and the cash changeover;
  • two short videos in English and Lithuanian on the cash changeover and how to check euro banknotes and coins;
  • a high-level Euro Conference on 25 September 2014 that was streamed live;
  • the Euro Exhibition at the Palace of the Grand Dukes of Lithuania in Vilnius (Katedros a.4) from 23 October 2014 until 5 January 2015.

Let’s join forces: the Partnership Programme

The Partnership Programme provided communication materials to businesses and organisations liked to pass on information about the euro cash changeover.

Lietuvos bankas and the European Central Bank invited these businesses and organisations to join forces with them to spread information about the euro in Lithuania. As a “partner”, they had access to information on the euro that they could pass on to their customers, clients, members and employees. This was a good way to ensure that all the stakeholders had accurate and timely information from reliable sources.

Details on the conditions of participation could be requested at

Press releases and publications

Video: Euro Conference – Highlights video
Speech: Keynote speech by Mario Draghi, President of the ECB, at the Euro Conference Lithuania en · lt
Press release: Press releases from Lietuvos bankas on the Euro Conference Lithuania en · lt
Images: Euro star handover – Lithuania: browse images
Images: Press conference: browse images
Images: Opening address and keynote speeches: browse images
Images: Panel discussion “Single market, single currency, common future”: browse images
Video: Euro star handover – Highlights video
Publication: “€ OUR money” leaflet LT PL RU [5.15 MB]
Publication: Easy to check Lithuania 2015 en . lt . pl . ru
Publication: Are you ready? € day Lithuania = 1 January 2015. Discover the euro banknotes and coins en [3.1 MB] . lt [3.12 MB] . pl [3.12 MB] . ru
Audio File: €-day = 1 January 2015. Are you ready? Talking card lt . LIETUVIŲ
Publication: Quick guide to the security features of euro banknotes en . lt . pl . ru
Publication: Real or Fake? en [5.01 MB] . lt [4.87 MB] . pl [4.85 MB] . ru [5.05 MB]
Press release: Communiqué of the European Central Bank and Lietuvos bankas en . lt
Press release: Press release from the Council of the European Union en . fr
Publication: Timeline “The euro comes to Lithuania” en . lt . pl . ru
Publication: Poster showing euro banknotes and coins Multilingual [7.18 MB]
Video: Lithuanian euro coins (3D video) © Lietuvos bankas video
Video: Minting of Lithuanian coins © Lietuvos bankas video

2 thoughts on “ECB Update on Asset backed Securities”

  1. Nick,
    It is 06/11/2016. Do you still say Gold and Silver even though it seems we will move into digital currency?
    Do you prefer Bitcoin over Onecoin and why?
    The article on food stamp cards going down as a practice run was interesting, I myself am not on it but I do get Social Security and I saw you put that in as well as a it will probably end senerio.
    I would not be opposed to you calling me or e-mailing me.
    I have been getting your newsletters so long I don’t remember my log in to add a comment.
    I hope this one gets though. I also downloaded the book about the collapse and what we can do to prepare the best we can.
    Thanks, Sam

    • I don’t like digital currency. It’s like having a bank account, your money is “out there”. What would happen if an EMP hit and you had no access to your money? What if someone decided to hack the Bitcoin system and steal everyone’s money? You are safer keeping the money in a physical location close to you. I know it’s the “cool thing” when people show off that they have Bitcoin, but I don’t trust it, I trust what I can hold.


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