Opinion of the European Central Bank of 14 January 2002 at the request of the Governor of the Nationale Bank van België/Banque Nationale de Belgique on a draft royal decree and draft accompanying regulations on the compilation of the balance of payments and the international investment position of Belgium (CON/2002/3)
Date: 2002-01-14
Institutions: European Central Bank
Subjects: Belgium, balance of payments, international investment, national law, statistics

EN

OPINION OF THE EUROPEAN CENTRAL BANK

of 14 January 2002

at the request of the Governor of the Nationale Bank van België/Banque Nationale de Belgique

on a draft royal decree and draft accompanying regulations on the compilation of the balance of

payments and the international investment position of Belgium

(CON/2002/3)

1.

On 13 December 2001, the European Central Bank (ECB) received a request from the Governor

of the Nationale Bank van België/Banque Nationale de Belgique (NBB/BNB) for an opinion on

a draft royal decree as well as accompanying regulations on the compilation of the balance of

payments and the international investment position of Belgium.

2. 

The ECB’s competence to deliver an opinion is based on the second indent of Article 105(4) of

the Treaty establishing the European Community (hereinafter referred  to as the “Treaty”), the

second indent of Article 4(a) of the Statute of the European System of Central Banks and of the

European  Central  Bank  (hereinafter  referred  to  as  the  “Statute”),  and  on  the  third  and  fourth

indents of Article 2(1) of Council Decision 98/415/EC of 29 June 1998 on the consultation of
the European Central Bank by national authorities regarding draft legislative provisions1, as the

draft  texts  contain  provisions  concerning  the  collection,  compilation  and  distribution  of

monetary,  financial,  banking,  payment  systems  and  balance  of  payments  statistics  by  the

NBB/BNB. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of

the  European  Central  Bank,  this  opinion  has  been  adopted  by  the  Governing  Council  of  the

ECB.

3. 

The  present  proposals  contain  provisions  implementing  the  proposed  Law  "organising  the

compilation  of  the  balance  of  payments  and  the  international  investment  position  of  Belgium

and  amending  the  Decree  Law  of  6  October  1944  on  exchange  control  and  various  legal

provisions"  on  which  the  ECB  has  already  issued  an  opinion  (CON/2001/23)  dated

30 August 2001.

4. 

The present draft royal decree and draft regulations as well as the future law all aim at adapting

the  1998  regulations  which  entrust  the  Belgisch-Luxemburgs  Wisselinstituut/Institut  belgo-

luxembourgeois du change with the task of compiling the balance of payments and international

1

OJ L 189, 3.7.1998, p. 42.

                                                     
investment  position  statistics  of  the  former  Belgium-Luxembourg  Economic  Union.  Whereas

the  Belgisch-Luxemburgs  Wisselinstituut/Institut  belgo-luxembourgeois  du  change  used  to

collect basic information in both Belgium and the Grand Duchy of Luxembourg, these countries

have been developing a new separate legal framework for this compilation in the context of the

euro  area.  In  the  case  of  Belgium,  the  former  Belgisch-Luxemburgs  Wisselinstituut/Institut

belgo-luxembourgeois  du  change  tasks  will  be  taken  over  by  the  NBB/BNB.  The  original

regulation  containing  the  provisions  regarding  the  mandate  of  the  Belgisch-Luxemburgs

Wisselinstituut/Institut  belgo-luxembourgeois  du  change  was  commented  on  in  1998  by  the

ECB  (CON/98/28).  The  present  draft  royal  decree  and  draft  regulations  simply  adapt  the

provisions  of  the  original  regulation  and  transfer  all  balance  of  payments  and  international

investment position compiling activities to the NBB/BNB.

5. 

In  addition,  the  draft  texts  submitted  to  the  ECB  contain  new  provisions  regarding  the  future

compilation  of  balance  of  payments  and  international  investment  position  statistics.  In

particular, Article 2(3) of the draft royal decree is derived from Regulation (EC) No 2560/2001
of  19  December  2001  on  cross-border  payments  in  euro2.  Recent  developments  in  portfolio

investment collection systems are reflected in Articles 11 and 12 of the draft royal decree. These

additional elements, which update the original regulation, are very much welcomed by the ECB.

6. 

The draft royal decree is divided into eight chapters which are explained in the accompanying

explanatory memorandum. The first chapter provides definitions which are in line with those of

Guideline ECB/2000/4 of 11 May 2000.

7. 

New features of the first chapter of the draft royal decree are (i) the more detailed geographical

breakdown  as  regards  the  (non-euro  area  resident)  issuer  of  securities  (previously  only  the

intra/extra  euro  area  split  was  required)  and  (ii)  the  extension  of  the  reporting  population  to

resident  (financial)  intermediaries  other  than  Monetary  Financial  Institutions  and  the

clarification  of  their  reporting  obligations.  Both  features  are  welcomed  by  the  ECB  as  it

considers that they improve the quality and coverage of statistical information.

8. 

Chapters  2  to  5  of  the  draft  royal  decree  specify  the  statistical  obligations  of  the  reporting

agents. These provisions call for the following observations:

(i)

The  threshold  of  EUR  12,500  for  the  reporting  of  cross-border  transactions,  which  is

introduced  in  Article  2(3),  may  be  read  as  a  “simplification”  threshold.  Indeed,  the

provision  as it  is  formulated  now  can  be  interpreted  as  meaning  that  transactions  up  to

EUR 12,500 still have to be reported, although they need not be classified in detail nor

need the identity of the resident be given. It has  to  be  observed  that  Article 6(1)  of  the

abovementioned  Regulation  on  cross-border  payments  makes  it  mandatory,  from

July 2002,  to  exempt  cross-border  payments  up  to  EUR  12,500  from  any  reporting

obligations for balance of payments statistics. While the accompanying NBB/BNB draft

2

OJ L 344, 28.12.2001, p. 13.

2

                                                     
“règlement B1” and “règlement B2” clarify that small amounts would no longer have to

be reported, the ECB takes the view that it should also be made clear in the draft royal

decree  that  the  provision  concerned  is  an  exemption  threshold,  and  not  a  mere

simplification threshold.

(ii)

There are several provisions of the draft royal decree (e.g. Articles 4, 19 and 22) which

enable the NBB/BNB to exclude reporting agents, in part or in full, from their reporting

obligations  under  certain  conditions  which  would  be  determined  by  it.  While  the  ECB

supports attempts to reduce the reporting burden in the area of statistics, it recommends

that such exclusion from reporting obligations should be examined by the NBB/BNB (or

–  in  the  event  of  a  future  legislative  change  –  the  competent  compiler  of  balance  of

payments and international investment position statistics) in due time in a qualitative or,

where relevant, quantitative way in order to determine the impact of such derogations on

coverage and other quality aspects of the data. 

(iii) Regarding  the  frequency  of  data  transmission  by  the  reporting  agents,  Article  6  of  the

draft  royal  decree  provides  that  the  NBB/BNB  will  determine  the  details  and  that  the

frequency of data transmission should not be lower than 10 years. It has to be observed

that balance of payments and international investment position statistics  are  only  useful

when and if they contain data that are collected at rather high frequencies; in the case of

surveys, the accuracy of e.g. any sampling and grossing-up procedures should be assessed

against  a  benchmark  at  least  once  every  five  years.  The  ECB  therefore  strongly

recommends  that  Article  6  be  modified  to  provide  for  a  higher  frequency  of  data

transmission.

(iv) The new provisions in the draft royal decree on the transmission of stock data to compile

external positions are welcomed as they clearly relate to direct and portfolio investment

(Articles 9 and 11). In the view of the ECB it would, however, be useful to clarify, in line

with  what  is  set  out  in  the  explanatory  memorandum,  that  the  data  coverage  relates  to

transactions and positions which should both be reported. 

9. 

Chapter 6 of the draft royal decree provides for the request of supplementary information by the

NBB/BNB to the reporting agents. Chapter 7, in particular Article 24(5), lays down a procedure

which the NBB/BNB may follow in order to oblige reporting agents which have not complied

with the reporting requirements to deliver the information. Both chapters are acknowledged by

the ECB.

10.  Chapter 8 of the draft royal decree deals with the  entering  into  force  of the decree.  The  ECB

underlines the need for its retroactive entry into force with effect from 1 January 2002.

11.  The  six  NBB/BNB  draft  regulations,  which  all  implement  specific  measures  in  the  field  of

balance  of  payments  and  international  investment  position  statistics,  do  not  call  for  any

additional specific observations.

3

12.  The  ECB  confirms  that  it  has  no  objection  to  the  competent  national  authorities  making  this

opinion publicly available at their discretion.

Done at Frankfurt am Main on 14 January 2002.

The President of the ECB

[signed]

Willem F. DUISENBERG

4