As I mentioned, the Federal Reserve and the Treasury undertook this kind of coordinated response a year ago, as uncertainty about the economic effect of the virus caused markets to begin seizing up. Many section 13(3) facilities were established to support the flow of credit to households, businesses, and state and local governments.
For the future, the availability of collateral must be ensured by extending the range of eligible credits, including to new categories; special care must be taken to ensure that the methods of granting the loans comply with the requirements for Eurosystem refinancing. The amount of collateral must also be sufficient to withstand a possible depreciation of the eligible assets caused by a sovereign downgrade.