Opinion of the European Central Bank at the request of the Banco de España under Articles 109l (2) and 109f (6) of the Treaty establishing the European Community (hereinafter referred to as the "Treaty") and Article 5.3 of the Statute of the European Monetary Institute (hereinafter referred to as the "EMI") on a draft Monetary Circular Letter amending the Spanish regime of minimum reserves for the two last months of 1998 (hereinafter referred to as the "Circular") (CON/98/41)
Date: 1998-09-08
Institutions: European Central Bank
Subjects: Spain, foreign-exchange reserves, monetary policy, national law

OPINION OF THE EUROPEAN CENTRAL BANK

at the request of the Banco de España under Articles 109l (2) and 109f (6) of the Treaty

establishing the European Community (hereinafter referred to as the “Treaty”) and Article 5.3

of the Statute of the European Monetary Institute (hereinafter referred to as the “EMI”) on a

draft Monetary Circular Letter amending the Spanish regime of minimum reserves for the two

last months of 1998 (hereinafter referred to as the “Circular”)

CON/98/41

1. 

On 13 August 1998 the European Central Bank (hereinafter referred to as the “ECB”) received

a  request  from  the  Banco  de  España  for  an  opinion  on  a  draft  Monetary  Circular  Letter

amending the Spanish regime of minimum reserves for the two last months of 1998.

2.

In  accordance  with  Article  109l  (2)  of  the  Treaty,  the  ECB  has  taken  over  the  advisory

functions of the EMI, which went into liquidation upon the establishment of the ECB on 1 June

1998.  The  ECB’s  competence  to  deliver  an  opinion  is  based  on  Article  1.1  of  the  Council

Decision (93/717/EC) of 22 November 1993 on the consultation of the EMI by the authorities

of the Member States on draft legislative provisions, as the Circular contains rules on monetary

policy instruments. In accordance with Articles 12.4 and 47.1, second indent, of the Statute of

the European System of Central Banks and of the European Central Bank (hereinafter referred

to as the “Statute”), this Opinion has been adopted by the Governing Council of the ECB with

the contribution of the General Council of the ECB.

3. 

The aim of the Circular is to prepare the system of minimum reserves (“coeficiente de caja”)

for the situation in 1999, when minimum reserves will be imposed by the ECB. To that end, the

Circular introduces two basic amendments:

- 

the period for computing the amount of the minimum reserves is set at  one  month,

instead of the current period of ten days;

- 

the amount of the liability base is to be frozen at the amount existing in October 1998

and the corresponding data reporting is to be suspended for the last two  months  of

the year.

- 2 -

4. 

The  ECB  welcomes  the  proposal,  which  is  aimed  at  facilitating  the  changeover  to  the  new

regime for minimum reserves that will apply as from 1 January 1999.

5. 

The ECB confirms that it has no objection to this Opinion being made public by the competent

Spanish authorities at their discretion.

Done at Frankfurt am Main on 8 September 1998

The President of the ECB

[signed]

________________________

Willem F. Duisenberg