The South African Reserve Bank (SARB) will broaden the list of securities which qualify as eligible collateral in its refinancing operations, with effect from 23 May 2007. The following assets will be accepted as eligible collateral:Category 1 (existing):Government bonds (rand denominated)Land Bank billsSeparate Trading of Registered Interest and Principal of Securities (STRIPS)South African Reserve Bank debenturesTreasury billsThe securities listed above also qualify as statutory liquid assets in terms of the Banks’ Act (Act No. 94 of 1990). The decision to broaden the list of eligible collateral does not impact on the existing list of securities which qualify as statutory liquid assets.Category 2 (New category):Bond Code Issuer MaturityDV07 Development Bank of Southern Africa 2010-09-30ES09 Eskom Holdings Limited 2009-06-01E170 Eskom Holdings Limited 2020-08-01ES33 Eskom Holdings Limited 2033-09-15SZ25 SA National Roads Agency 2025-09-30T011 Transnet Limited 2010-04-01WS03 Trans-Caledon Tunnel Authority 2010-09-15WS04 Trans-Caledon Tunnel Authority 2016-05-30The valuation rates for the assets accepted as eligible collateral will be released on the SARB wire services: Bloomberg; Reuters <SARB20>; and the Internet. The SARB will apply the following haircut ratios when the eligible assets are valued:Categories Maturities (years)  0-11-10More than 10Category 11.0101.0251.035Category 21.0151.0301.040The broadening of the list of eligible collateral is the result of a consultation process that commenced in 2004 when the SARB embarked on a series of discussions with its major counterparties in its refinancing operations. The objective was to obtain the views of all interested parties on how the refinancing procedures and related issues could be improved. A consultation paper was circulated and later shaped into an implementation paper by taking into account the comments and inputs of the Money Market Liaison Group. A number of changes to the refinancing system were subsequently implemented on 25 May 2005.The SARB’s planned broadening of the list of eligible collateral, however, was not part of the changes announced on 25 May 2005, as more consultation was needed to deal with the various administrative, statutory and systems issues.The calculation of the haircut ratios on Category 2 assets will initially be conducted on a manual basis until the Money Market Internet System and other relevant internal electronic systems are updated to cater for the changes.For more details on the past and current changes to the SARB’ refinancing system, please refer to the Operational Notice available on the SARB website under Financial Markets/Market Operations.Contact personsMr Tom KhosaTel +27 12 313 4950Fax +27 12 313 4278Mr Jackie BrevisTel +27 12 313 4952Fax +27 12 313 4278​