AGREEMENT

of 30 December 2022

between Hrvatska narodna banka and the European Central Bank regarding the claim credited to Hrvatska narodna banka by the European Central Bank under Article 30.3 of the Statute of the European System of Central Banks and of the European Central Bank

(2023/C 18/01)

THIS AGREEMENT IS MADE ON 30 DECEMBER 2022 BETWEEN:

1. Hrvatska narodna banka, and

2. the European Central Bank (ECB) (hereinafter the ‘Parties’)

Whereas:

(1) Pursuant to Article 3(1) of Decision (EU) 2023/135 of the European Central Bank (ECB/2022/51) (1), the aggregate euro-equivalent amount of foreign reserve assets that Hrvatska narodna banka is required to transfer to the ECB with effect from 1 January 2023 in accordance with Article 48.1 of the Statute of the European System of Central Banks and of the European Central Bank (hereinafter the ‘Statute of the ESCB’) is EUR 639 849 638,12.

(2) Pursuant to Article 30.3 of the Statute of the ESCB and Article 4(1) of Decision (EU) 2023/135 (ECB/2022/51), with effect from 1 January 2023 the ECB is required to credit Hrvatska narodna banka with a euro-denominated claim equivalent to the aggregate euro amount of Hrvatska narodna banka’s contribution of foreign reserve assets, subject to the specifications provided for in Article 3 of that Decision. The ECB and Hrvatska narodna banka agree to set Hrvatska narodna banka’s claim at EUR 327 152 181,93 in order to ensure that the ratio between the amount in euro of Hrvatska narodna banka’s claim and the aggregate amount in euro of the claims credited to the other national central banks of Member States whose currency is the euro (hereinafter the ‘other NCBs’) will be equal to the ratio between Hrvatska narodna banka’s weighting in the ECB’s capital key and the other NCBs’ aggregate weighting in this key.

(3) The difference between the amounts mentioned in recitals 1 and 2 results from: (a) the application to the value of foreign reserve assets already transferred by Hrvatska narodna banka pursuant to Article 30.1 of the Statute of the ESCB of the ‘current exchange rates’ referred to in Article 48.1 of the Statute of the ESCB; and (b) the effect on the claims held by the other NCBs, pursuant to Article 30.3 of the Statute of the ESCB, of the ECB’s capital key adjustments on 1 January 2004 (2), 1 January 2009 (3), 1 January 2014 (4), 1 January 2019 (5) and 1 February 2020 (6) pursuant to Article 29.3 of the Statute of the ESCB and the ECB’s capital key expansions on 1 May 2004 (7), 1 January 2007 (8) and 1 July 2013 (9) pursuant to Article 48.3 of the Statute of the ESCB.

(4) In view of the abovementioned difference, the ECB and Hrvatska narodna banka agree that Hrvatska narodna banka’s claim may be reduced by offsetting against it the amount that Hrvatska narodna banka is required to contribute to the ECB’s reserves and provisions pursuant to Article 48.2 of the Statute of the ESCB and Article 5(1) of Decision (EU) 2023/135 (ECB/2022/51), in the event that Hrvatska narodna banka’s claim is larger than the amount of EUR 327 152 181,93.

(5) The ECB and Hrvatska narodna banka should agree on other aspects of the procedure for crediting Hrvatska narodna banka’s claim, taking into account that, depending on exchange rate movements, it may be necessary to increase rather than reduce the claim to the amount referred to in recital 2.

(6) The Governing Council has approved the ECB’s entry into this Agreement, which concerns a decision to be taken under Article 30 of the Statute of the ESCB, in accordance with Article 10.3 of the Statute of the ESCB and the procedure specified therein,

HAVE AGREED AS FOLLOWS:

Article 1 Procedure for crediting Hrvatska narodna banka’s claim 1. If the amount of the claim that the ECB is required to credit to Hrvatska narodna banka pursuant to Article 30.3 of the Statute of the ESCB and Article 4(1) of Decision (EU) 2023/135 (ECB/2022/51) (hereinafter the ‘claim’) is greater than EUR 327 152 181,93 on any of the settlement dates on which the ECB receives foreign reserve assets from Hrvatska narodna banka pursuant to Article 3 of Decision (EU) 2023/135 (ECB/2022/51), then the amount of the claim shall be reduced with effect from that date to EUR 327 152 181,93. Such reduction shall be made by offsetting against the claim the amount that Hrvatska narodna banka is required to contribute to the ECB’s reserves and provisions with effect from 1 January 2023 pursuant to Article 48.2 of the Statute of the ESCB and Article 5(1) of Decision (EU) 2023/135 (ECB/2022/51). The offset amount shall be treated as an advance contribution to the ECB’s reserves and provisions pursuant to Article 48.2 of the Statute of the ESCB and Article 5(1) of Decision (EU) 2023/135 (ECB/2022/51), which contribution shall be deemed to have been made on the date on which the offset occurs. 2. If the amount required to be contributed by Hrvatska narodna banka to the ECB’s reserves and provisions pursuant to Article 48.2 of the Statute of the ESCB and Article 5(1) of Decision (EU) 2023/135 (ECB/2022/51) is less than the difference between the amount of Hrvatska narodna banka’s claim and EUR 327 152 181,93 then the amount of the claim shall be reduced to EUR 327 152 181,93: (a) by offsetting in accordance with paragraph 1; and (b) by the ECB paying Hrvatska narodna banka an amount in euro equal to the amount of the shortfall remaining after such offset. Any amount required to be paid by the ECB in accordance with this paragraph shall be due on 1 January 2023. The ECB shall, in due course, give instructions for the transfer of such an amount, and of net accrued interest thereon, through the Trans-European Automated Real-time Gross settlement Express Transfer system (TARGET2) settling in euro in central bank money. Accrued interest shall be calculated on a daily basis, using the actual-over-360 day-count method of calculation at a rate equal to the marginal interest rate used by the Eurosystem in its most recent main refinancing operation. 3. If the amount of Hrvatska narodna banka’s claim is less than EUR 327 152 181,93 on the final date on which the ECB receives foreign reserve assets from Hrvatska narodna banka pursuant to Article 3 of Decision (EU) 2023/135 (ECB/2022/51), then the amount of the claim shall be increased on that date to EUR 327 152 181,93 and Hrvatska narodna banka shall pay the ECB an amount in euro equal to the difference. Any amount required to be paid by Hrvatska narodna banka in accordance with this paragraph shall be due from 1 January 2023, and shall be paid on the final date on which the ECB receives foreign reserve assets from Hrvatska narodna banka pursuant to Article 3 of Decision (EU) 2023/135 (ECB/2022/51).

Article 2 Final provisions 1. This Agreement shall enter into force on 1 January 2023. 2. Done on 30 December 2022 in two original copies each in the English language and signed by the Parties’ duly authorised representatives. Each party to this Agreement shall receive a copy thereof.

For Hrvatska narodna banka Boris VUJČIĆ Governor For the European Central Bank Christine LAGARDE President

(1) Decision (EU) 2023/135 of the European Central Bank of 30 December 2022 on the paying-up of capital, transfer of foreign reserve assets and contributions by Hrvatska narodna banka to the European Central Bank’s reserves and provisions (ECB/2022/51) (OJ L 17, 19.1.2023, p. 94).

(2) Decision ECB/2003/17 of the European Central Bank of 18 December 2003 on the national central banks’ percentage shares in the key for subscription to the European Central Bank’s capital (OJ L 9, 15.1.2004, p. 27).

(3) Decision ECB/2008/23 of the European Central Bank of 12 December 2008 on the national central banks’ percentage shares in the key for subscription to the European Central Bank’s capital (OJ L 21, 24.1.2009, p. 66).

(4) Decision ECB/2013/28 of the European Central Bank of 29 August 2013 on the national central banks’ percentage shares in the key for subscription to the European Central Bank’s capital (OJ L 16, 21.1.2014, p. 53).

(5) Decision (EU) 2019/43 of the European Central Bank of 29 November 2018 on the national central banks' percentage shares in the key for subscription to the European Central Bank's capital and repealing Decision ECB/2013/28 (ECB/2018/27) (OJ L 9, 11.1.2019, p. 178).

(6) Decision (EU) 2020/137 of the European Central Bank of 22 January 2020 on the national central banks’ percentage shares in the key for subscription to the European Central Bank’s capital and repealing Decision (EU) 2019/43 (ECB/2020/3) (OJ L 27 I, 1.2.2020, p. 4).

(7) Decision ECB/2004/5 of the European Central Bank of 22 April 2004 on the national central banks’ percentage shares in the key for subscription to the European Central Bank’s capital (OJ L 205, 9.6.2004, p. 5).

(8) Decision ECB/2006/21 of the European Central Bank of 15 December 2006 on the national central banks' percentage shares in the key for subscription to the European Central Bank's capital (OJ L 24, 31.1.2007, p. 1).

(9) Decision ECB/2013/17 of the European Central Bank of 21 June 2013 on the national central banks’ percentage shares in the key for subscription to the European Central Bank’s capital (OJ L 187, 6.7.2013, p. 15).