Collateral for monetary operations and risk management

Type of securities

The NBS performs monetary operations against the collateral of dinar securities (not indexed to a foreign currency) issued by:

• the National Bank of Serbia;
• the Republic of Serbia;
• an international financial organisation and development bank or a financial institution founded by a foreign government, with the credit rating of “AAA” by Standard & Poor’s or Fitch-IBCA , or “Aaa” by Moody’s;
• company with a solvency rating of minimum “(D) Eligible solvency” as assigned by the Serbian Registers Agency or with other solvency/creditworthiness rating equivalent to “(D) Eligible solvency”.
• Survey of issued NBS bills
• Overview of the issued treasury bills of the National Bank of Serbia

Risk management

To ensure the collection of its receivables, the NBS may apply in its monetary operations an upward/downward haircut to the nominal value of securities subject to a repo transaction, and/or a downward haircut to the nominal value of securities against which banks are approved daily liquidity loans and/or short-term dinar loans.

The upward/downward haircut is determined according to the type of securities and their residual maturity taking into account the market price of securities, i.e. current market and monetary developments.

The downward/upward haircuts are set by the Decision on Determining Upward/Downward Haircut to the Nominal Value of Securities, and equal:

REPO SALE OF SECURITIES

REPO PURCHASE OF SECURITIES
DAILY LIQUIDITY LOAN
SHORT-TERM DINAR LOAN