Preliminary agreement on the regulation on credit rating agencies by the European institutions

Prague, April 17th, 2009

Significant progress has been made in preparation of the Regulation on credit rating agencies when the Council of the EU and the European Parliament achieved preliminary agreement on the compromise text of the Regulation. This had been preceded by intensive negotiation led by the Czech presidency team.

The regulation on credit rating agencies is one of top priorities on the Czech presidency agenda. The proposed Regulation provides for registration of the credit rating agencies in the European Union and their supervision by the colleges of competent authorities. Also, it lays out rules on issuance of the credit ratings, conflict of interests and transparency of the credit rating agencies. Specific regime for credit rating agencies registered in third countries outside the EU which issue credit ratings used by the financial institutions in the Community is also introduced.

This compromise position of the European institutions on this regulation represents major step towards increasing transparency of financial markets. Preliminary agreed compromise text of the Regulation is subject to final formal approval by the European parliament and the Council of EU which is expected in coming days.

Radka Kohutová,
Spokeswoman of the Ministry of Finance