2002/930/EC: Decision of the European Central Bank of 21 November 2002 on the distribution of the income of the European Central Bank on euro banknotes in circulation to the national central banks of the participating Member States (ECB/2002/9)
Date: 2002-11-21
Institutions: European Central Bank
Subjects: European Central Bank, central bank, euro, issue of securities, paper money

28.11.2002

EN

Official Journal of the European Communities

L 323/49

EUROPEAN CENTRAL BANK

DECISION OF THE EUROPEAN CENTRAL BANK

of 21 November 2002

on the distribution of the income of the European Central Bank on euro banknotes in circulation
to the national central banks of the participating Member States

(ECB/2002/9)

(2002/930/EC)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

(4)

Having regard to the Statute of the European System of Central
Banks and of the European Central Bank, and in particular to
Article 33 thereof,

In distributing the income accruing to the ECB on the
remuneration of its intra-Eurosystem claims on NCBs
related to its share of euro banknotes in circulation, the
ECB should take into account an estimate of its financial
result for the year that makes due allowance for the
availability of provisions that may be released to offset
anticipated expenses.

Whereas:

(1)

(2)

(3)

Decision ECB/2001/15 of 6 December 2001 on the
issue of euro banknotes (1) establishes the allocation of
euro banknotes in circulation to the NCBs in proportion
to their paid-up shares in the capital of the ECB. Article
4 and the Annex of that Decision allocates to the ECB
8 % of the total value of euro banknotes in circulation.
The ECB holds intra-Eurosystem claims on NCBs in
proportion to their shares in the subscribed capital key,
for a value equivalent to the value of euro banknotes
that it issues.

Under Article 2(2) of Decision ECB/2001/16 of 6
December 2001 on the allocation of monetary income
of the national central banks of participating Member
States from the financial year 2002 (2), the intra-Euro-
system balances on euro banknotes in circulation are
remunerated at the reference rate. Under Article 2(3) of
the same Decision,
settled by
TARGET payments on a quarterly basis. In derogation
from this provision, Article 2(4) establishes that for the
financial year 2002, the remuneration is settled at the
end of the year.

this remuneration is

the
Recital 6 of Decision ECB/2001/16 states that
income accruing to the ECB on the remuneration of its
intra-Eurosystem claims on NCBs related to its share of
euro banknotes in circulation should in principle be
distributed to the NCBs in accordance with the decisions
of the Governing Council, in proportion to their shares
in the subscribed capital key in the same financial year it
accrues.

(1) OJ L 337, 20.12.2001, p. 52.
(2) OJ L 337, 20.12.2001, p. 55.

(5)

In determining the amount of the net profit of the ECB
to be transferred to the general reserve fund pursuant to
Article 33.1 of
the Governing Council
should consider that any part of that profit which corre-
sponds to income on euro banknotes in circulation
should be distributed to the NCBs in full,

the Statute,

HAS DECIDED AS FOLLOWS:

Article 1

Definitions

For the purposes of this Decision:

(a) ‘participating Member States’ shall mean the Member States
which have adopted the single currency in accordance with
the Treaty establishing the European Community;

(b) ‘NCBs’ shall mean the national central banks of the partici-

pating Member States;

(c) ‘intra-Eurosystem balances on euro banknotes in circula-
tion’ shall mean the claims and liabilities arising between a
NCB and the ECB and between a NCB and the other NCBs
as a result of the application of Article 4 of Decision ECB/
2001/15;

(d) ‘ECB's income on euro banknotes’ in circulation shall mean
the income accruing to the ECB on the remuneration of its
intra-Eurosystem claims on NCBs related to its share of
euro banknotes in circulation as a result of the application
of Article 2 of Decision ECB/2001/16.

L 323/50

EN

Official Journal of the European Communities

28.11.2002

Article 2

Interim distribution of the ECB's income on euro bank-
notes in circulation

1.
The ECB's income on euro banknotes in circulation shall
be due in full to the NCBs in the same financial year it accrues
and shall be distributed to the NCBs in proportion to their
paid-up shares in the subscribed capital of the ECB.

2.
From the financial year 2003, the ECB shall distribute its
income on euro banknotes in circulation earned in each
preceding quarter to the NCBs on the second working day of
April, July, October and January.

3.
The ECB shall distribute its income on euro banknotes in
circulation earned in 2002 to the NCBs on the second working
day of 2003.

4.
The amount of the ECB's income on euro banknotes in
circulation may be reduced in accordance with any decision of
the Governing Council of the ECB on the basis of the Statute in
respect of expenses incurred by the ECB in connection with the
issue and handling of euro banknotes.

Article 3

Derogation from Article 2

1.
If, on the basis of a reasoned estimate prepared by the
Executive Board, and in respect of the amount due for the
fourth quarter, the Governing Council expects that the ECB will
have an overall annual loss or will make an annual net profit
that is less than the estimated amount of its income on euro
banknotes in circulation, the Governing Council shall decide
before the end of the financial year not to distribute part or all
of the ECB's income on euro banknotes in circulation in accor-
dance with Article 2 to the extent necessary to ensure that the
amount of the distributed income does not exceed the ECB's
net profit for that year.

The Governing Council shall instruct the NCBs to repay
2.
to the ECB part or all of the income already distributed during
the year to the extent necessary to ensure that the total distri-
bution for the year does not exceed the ECB's net profit for that
year.

3.
In the financial year 2002, the decision not to distribute
part or all of the ECB's income on euro banknotes in circula-
tion shall apply to the total amount due for the year.

The preceding paragraphs shall apply where a potential
4.
overall annual loss cannot be covered by provisions made in
past years. These provisions shall be released to the profit and
loss account in the following order:

(a) provisions made against known liabilities;

(b) provisions equivalent to reserves arising from the applica-
tion of Article 49 of the Statute and held as special revalua-
tion accounts;

(c) provisions against risks of a general nature,

including
without exception provisions against unspecified exchange
rate and market price risk.

Article 4

Final provisions

This Decision shall enter into force two days following its

1.
adoption.

This Decision shall be published in the Official Journal of

2.
the European Communities.

Done at Frankfurt am Main, 21 November 2002.

On behalf of the Governing Council of the ECB

Willem F. DUISENBERG