EN ECB -PUBLIC  
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 25 June 2021  
on Austria’s participation in certain initiatives of the  International Monetary Fund  
(CON/ 2021/ 23) 
 
Introduction and legal basis  
On 20 May 2021  the European Central Bank (ECB) received a request from the Austrian Federal Ministry 
of Finance for an opinion on a draft law amending the Federal Law of 23 June 1971 on the increase of 
Austria’s quota in the International Monetary Fund (IMF) and the tran sfer of the entire quota by the 
Oesterreichische Nationalbank  (hereinafter the ‘draft law’)1. 
The ECB’s competence to deliver an opinion is based on Articles  127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the third indent of Article 2(1) of Council Decision 98/415/EC2, as 
the draft law relates to the Oesterreichische Nationalbank (OeNB). In accordance with the first sentence of 
Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council  has adopted 
this opinion.  
 
1. Purpose of the draft law  
1.1 The draft law authorises the OeNB to make funds available to the IMF from the share of net profit 
available to the Austrian Federation  under Section 69(3) of the Law on the Oesterreichische 
Nationalbank3 (hereinafter the ‘Law on the OeNB ’) if the measures financed in this way  correspond 
to the objectives of Austrian or international development cooperation or serve  the associated risk 
provisioning by the IMF.  The OeNB may onl y make such funds available to the IMF with the consent 
of the Austrian Minister for Finance . 
1.2 The explanatory memorandum accompanying the draft law  states that the need for ultimate funding 
from federal resources  arises from the fact that the ECB considers the financing of IMF measures 
by the OeNB that does not result in claims having the characteristics of reserve assets within the 
meaning of r ecital 14 of  Council  Regulation (EU) No 3603/934 to be an infringement  of the 
prohibition on monetary financing pursuant to Article 123 of the Treaty . Reference is made in this 
 
1 Bundesgesetz, mit dem das Bundesgesetz vom 23. Juni 1971 über die Erhöhung der Quote Österreichs beim Inter-
nationalen Währungsfonds und die Übernahme der gesamten Quote durch die Oesterreichische Nationalbank ge-
ändert wird . 
2 Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national authori-
ties regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42).  
3 Bundesgesetz über die Oesterreichische Nationalbank , BGBl. Nr. 50/1984 as amended by BG Bl. I Nr. 61/2018.  
4 Council Regulation (EC) No 3603/93 of 13 December 1993 specifying definitions for the application of the prohibi-
tions referred to in Articles 104 and 104b(1) of the Treaty (OJ L 332, 31.12.1993, p. 1) . 
 
ECB -PUBLIC  
2 respect to Opinion  CON/2016/21 on Austria’s contribution to the Catastrophe Containment and 
Relief Trust of the IMF5. 
1.3 According to the explanatory memorandum accompanying the draft law, a nother reason for the 
introduction of the draft law arises from the fact that the OeN B cannot particip ate in the IMF’s 
voluntary initiatives without authorisation under federal law.  Pursuant to Section 2(1) of the Law of 
23 June 1971 on the increase of Austria’s quota in the International Monetary Fund and the transfer 
of the entire quota by the OeNB6, only the OeNB is authorised to meet all financial obligations from 
Austria’s membership. Since the IMF’s voluntary initiatives do not qualify as obligations arising from 
membership in the IMF, the draft law aims to create the legal basis for contributions from funds 
which are available to the Austrian Federation and are only processed via the Oe NB. The 
explanatory memorandum states that this complies with Union law and refers  in this respect  to the 
Law on the National Foundation for Research, Technology and Development, to which the ECB 
did not object in Opinion CON/2017/26.   
1.4 The explanatory memorandum notes that in the future, based on the amendments introduced by 
the draft law, contributions could be made by the OeNB , with the consent of the Austrian Minister 
of Finance, for example to IMF disaster relief, such as the IMF Catastrophe Containment and Relief 
Trust (CCRT) and the IMF Poverty Reduction and Growth Trust (PRGT). Furthermore, the draft 
law simplifies contribut ing to ongoing debt  relief initiatives, such as the soon to be concluded 
initiative to provide debt relief to heavily indebted poor countries (HIPC initiative) and similar future 
international initiatives.  
1.5 Finally , the draft law stipulates that the funds made available to the IMF shall reduce, for the 
respective assessment period,  the corporate tax base of the OeNB  calculated in accordance with 
Section 72(1) of the Law on the OeNB  by the same amount by which the funds are transferred to 
the IMF . 
 
2. Observations  
2.1 The ECB understands that the draft law creates a legal basis for Austria  to participate in the 
financing of what the draft law identifies as voluntary IMF initiatives , including those related to 
disaster relief under the CCRT and the PRGT, as well as the ongoing debt  relief HIPC initiative .  
2.2 As noted above, the explanatory memorandum accompanying the draft law refers to Opinion 
CON/2016/21 as regards the compliance of  tasks performed by a national central bank  (NCB) with 
the monetary financing prohibition laid down in Article 123 (1) of the Treaty . As specified in that 
opinion, the monetary financing prohibition  is subject to certain exemptions laid down in Council 
Regulation (EC) No 3603/93. In particular, Article 7 of Regulation (EC) No 3603/93 provides that 
the financing by NCB s of obligations falling upon the public sector in relation to the IMF are not 
regarded as a credit facility within the meaning of Article 123 of the Treaty. Recital 14 of Regulation 
(EC) No 3603/93 clarifies the rationale behind this exemption, stating that it is appropriate to 
 
5  All ECB opinions are published on EUR -Lex. 
6 Bundesgesetz vom 23. Juni 1971 über die Erhöhung der Quote Österreichs beim Internationalen Währungsfonds 
und die Übernahme der gesamten Quote durch die Oesterreichische Nationalbank, BGBl . Nr. 309/1971 as amended 
by BGBl . Nr. 190/1978.  
ECB -PUBLIC  
3 authorise the financing by the central banks of obligations falling upon the public sector in relation 
to the IMF because such financing ‘results in foreign claims which have all the characteristics of 
reserve assets’. Therefore, the exemption in Article 7 of Regulation (EC) No 3603/93 must be 
interpreted in line with this rationale7. The ECB further  notes  that, in respect of  Opinion 
CON/2016/21,  the explanatory memorandum accompanying the draft legislative provisions  on 
which the ECB was consulted indicated that the OeNB’s contribution to the CCRT at the time  was 
to be considered a donation. This led to the view being taken in that o pinion that the OeNB ’s 
contribution to the CCRT , as set out in draft legislative provisions  in question , did not result in 
foreign claims that  have all the characteristics of reserve asset s8.  
2.3 By contrast to the draft legislative provisions in respect of which the ECB issued Opinion 
CON/2016/21, the ECB understands that  the purpose of the draft law is that  the funds to be 
provided by the OeNB to the IMF for such voluntary initiatives  are taken from the funds of the 
Austrian Federation. In a s imilar way to the approach taken to contributions that  may be transferred 
by the OeNB in its own name but on behalf of the Austrian Federation in other contexts9, the draft 
law authorises the OeNB to make funds available to the IMF from the share of the net profit to 
which the Austrian Federation is entitled pursuant to Section 69(3) of the Law on the OeNB.  
2.4 Against this background, the ECB would like to clarify the following aspects . First, to the exte nt that 
the contribution of a  Member State to IMF initiatives is transferred by the NCB  from funds held by 
that Member State with the NCB , the conditions specified in paragraph 2. 2, and in Opinion 
CON/2016/21,  for the application of the exemption laid down in Article 7 of Regulation (EC) No 
3603/93 need not be fulfilled. In such case s, there is no need to rely on this exemption because 
the financing of the contribution to IMF initiatives is essentially provided by the Member State itself 
and not by the NCB , which is only executing the transfer of funds  on the Member State’s behalf . 
Consequently, the transfer of funds to the IMF by the NCB  would, in such cases, not give rise to a 
credit facility in favour of the Member State with the NCB  within the meaning of Article 123(1) of 
the Treaty  and Article 1(1)(b)(ii) of  Regulation (EC) No 3603/93 . 
2.5 Second, in a case such as that envisaged under the draft law  in which the provision of funds to the 
IMF  takes place in the context of the distribution of the OeNB’s profits , for the contribution of the 
Austrian Federation to IMF initiatives to be regarded as being financed by the Federation itself, and 
not by the OeNB, the transfer of funds to the IMF by the OeNB must be distinct from and 
subsequent to the OeNB’s profit disbursement. Otherwise, the financing of the contribution to IMF 
initiatives could not be construed as provided by the Federation instead of the OeNB. In this 
respect, it is noted that Section 69(3) of the Law on the OeNB explicitly refers to the distribution of 
the OeNB’s net profits and the right of the Federation to receive a share of 90% of the OeNB’s net 
profits, while Section 69(1) of the L aw on the OeNB governs the total annual income o f the OeNB10 
 
7 See paragraph 2.1 of Opinion CON/2016/21.  
8 See paragraph 2.2 of Opinion CON/2016/21.  
9 See paragraph 2.1 of Opinion CON/2017/26.  
10 Under Section 69(1) of the Law on the OeNB, this income is derived pursuant to Articles 32, 33 and 51 of the Statute 
of the European System of Central Banks and of the European Central Bank.  
 
ECB -PUBLIC  
4 and lists specific amounts that must be deducted from its income11. The ECB understands that, in 
contrast to the amounts listed in Section 69(1) of the Law on the OeNB that reduce the annual 
income of the OeNB, the funds made available to the IMF under the draft law are to be made solely 
from profits which have been fully realised, accounted for and audited, and only insofar as there is 
in fact a distributable profit of the OeNB within the meaning of Section 69(3) of the Law on the 
OeNB. Furthermore, the profits distributed to the Federation will thus be reduced only if the OeNB 
decides to make use of its authorisation to provide funds to the IMF, and the Minister of Finance 
consents, as stated in the draft law.  
 
This opinion will be published on EUR -Lex. 
 
 
Done at Frankfurt am Main, 25 June 2021. 
 
[signed]  
 
The President of the ECB  
Christine LAGARDE  
 
11 Pursuant to Section 69(1) of the L aw on the OeNB, the following sums shall, irrespective of the operating profit, be 
deducted and not recognised as profit: (1) earnings fro m the assets in which the pension reserve, i.e. the reserve 
fund serving to meet the pension claims of the OeNB’s employees, has been invested, and which shall be paid into 
that reserve fund; (2) amounts of interest which, pursuant to the agreement between  the OeNB and the European 
Recovery Program Fund concluded in accordance with Section 3(4) of the European Recovery Program Fund Act, 
were credited during the year to the temporary reserve account for European Recovery Program loans extended by 
the OeNB; a nd (3) earnings from the assets in which the fund for the promotion of scientific research and teaching 
set up by the OeNB is invested, which shall be endowed to this fund.