Decision of the European Central Bank of 22 April 2004 laying down the measures necessary for the contribution to the European Central Bank’s accumulated equity value, for adjusting the national central banks claims equivalent to the transferred foreign reserve assets, and for related financial issues (ECB/2004/8)
Date: 2004-04-22
Institutions: European Central Bank
Subjects: European Central Bank, European System of Central Banks, banking, banking policy, central bank, foreign-exchange reserves

9.6.2004

EN

Official Journal of the European Union

L 205/13

DECISION OF THE EUROPEAN CENTRAL BANK

of 22 April 2004
laying down the measures necessary for the contribution to the European Central Bank’s accumulated
equity value, for adjusting the national central banks claims equivalent to the transferred foreign
reserve assets, and for related financial issues

(ECB/2004/8)

(2004/505/EC)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

Having regard to the Statute of the European System of Central
Banks and of the European Central Bank and in particular
Article 30 thereof,

(6)

Whereas:

(1)

(2)

(3)

(4)

(5)

In view of the accession of the Czech Republic, the Repub‐
lic of Estonia, the Republic of Cyprus, the Republic of
Latvia, the Republic of Lithuania, the Republic of Hungary,
the Republic of Malta, the Republic of Poland, the Repub‐
lic of Slovenia and the Slovak Republic to the European
Union and their respective national central banks (NCBs)
becoming part of the European System of Central Banks
(ESCB) on 1 May 2004, the weightings assigned to the
NCBs of the Member States that have adopted the euro
(hereinafter the participating NCBs) in the ECB’s capital key
(hereinafter the capital key weightings and the capital key
respectively) shall be adjusted, as provided for in Decision
ECB/2004/5 of 22 April 2004 on the national central
banks’ percentage shares in the key for subscription to the
European Central Bank’s capital (1).

This adjustment also results in the need to adjust the claims
which the ECB has credited under Article 30.3 of the Stat‐
ute to the participating NCBs and which are equivalent to
the participating NCBs’ contributions of foreign reserve
assets to the ECB (hereinafter the claims).

Those participating NCBs whose claims increase due to the
expansion of the capital key on 1 May 2004 should there‐
fore effect a compensatory transfer to the ECB, while the
ECB should effect a compensatory transfer to those partici‐
pating NCBs whose claims decrease due to this expansion.

The limit on the amount of
that may
EUR 55 646 692 471,89 from 1 May 2004.

transferred

to the

foreign reserve assets
be

ECB will

be

In accordance with the general principles of fairness, equal
treatment and the protection of legitimate expectations
underlying the Statute, those participating NCBs whose
relative share in the ECB’s accumulated equity value

increases due to the abovementioned adjustments should
also effect a compensatory transfer to those participating
NCBs whose relative share decreases.

The respective capital key weightings of each participating
NCB until 30 April 2004 and from 1 May 2004 should be
expressed as a percentage of the ECB’s total capital as sub‐
scribed to by all participating NCBs for the purpose of cal‐
culating the adjustment of the value of each participating
NCB’s share in the ECB’s accumulated equity value,

HAS DECIDED AS FOLLOWS:

Article 1

Definitions

For the purposes of this Decision:

(a)

the ‘accumulated equity value’ shall mean the total of the
ECB’s reserves, revaluation accounts and provisions equiva‐
lent to reserves as calculated by the ECB on 30 April 2004,
plus or minus the ECB’s calculated accumulated net profit or
loss, as the case may be, from 1 January 2004 until 30 April
2004 after including the undistributed ECB’s income on euro
banknotes accrued for the month of April 2004, but exclud‐
ing the ECB’s income on euro banknotes in the first quarter
of 2004 that has already been distributed to the NCBs. The
ECB’s reserves and those provisions equivalent to reserves
shall include, without limitation to the generality of the ‘accu‐
mulated equity value’, the general reserve fund and the pro‐
visions equivalent to reserves for valuation losses with respect
to foreign exchange rates and market prices;

(b)

the ‘transfer date’ shall mean 19 May 2004;

(c)

the ‘ECB’s income on euro banknotes’ shall have the same
meaning as the term ‘ECB’s income on euro banknotes in cir‐
culation’ as defined in Article 1(d) of Decision ECB/2002/9 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 (2).

(1) See page 5 of this Official Journal.

(2) OJ L 323, 28.11.2002, p. 49.

L 205/14

EN

Official Journal of the European Union

9.6.2004

Article 2

Contribution to the ECB’s reserves and provisions

1.
If a participating NCB’s share in the accumulated equity
value increases due to the increase in its capital key weighting on
1 May 2004, such an NCB shall transfer the amount determined
pursuant to paragraph 3 to the ECB on the transfer date.

2.
If a participating NCB’s share in the accumulated equity
value decreases due to the decrease in its capital key weighting on
1 May 2004, such an NCB shall receive the amount determined
pursuant to paragraph 3 from the ECB on the transfer date.

The ECB shall, on or before 14 May 2004, calculate and
3.
confirm to each participating NCB either the amount to be trans‐
ferred by that NCB to the ECB where paragraph 1 applies, or the
amount which that NCB shall receive from the ECB where para‐
graph 2 applies. Subject to rounding, each amount to be trans‐
ferred or received shall be calculated by multiplying the accumu‐
lated equity value by the absolute difference between each
participating NCB’s capital key weighting on 30 April 2004 and
its capital key weighting from 1 May 2004 and dividing the result
by 100.

4.
Each amount described in paragraph 3 shall be due in euro
on 1 May 2004 but shall be effectively transferred on the transfer
date.

On the transfer date, a participating NCB or the ECB having
5.
to transfer an amount under paragraph 1 or paragraph 2 shall
also separately transfer any interest accruing over the period from
1 May 2004 until the transfer date on each of the respective
amounts due from such participating NCB and the ECB. The
transferors and recipients of this interest shall be the same as the
transferors and recipients of the amounts on which the interest
accrues.

6.
If the accumulated equity value is less than zero, the
amounts that have to be transferred or received under paragraph
3 and paragraph 5 shall be settled in the opposite directions to
those specified in paragraph 3 and paragraph 5.

Article 3

Adjustment of the claims equivalent to the transferred
foreign reserve assets

The participating NCBs’

1.
adjusted
on 1 May 2004 in accordance with their adjusted capital key
weightings. The value of the participating NCBs’ claims from
1 May 2004 is shown in the third column of the table in the
Annex to this Decision.

shall be

claims

Each participating NCB shall, by virtue of this provision and
2.
without any further formality or act being required, be considered
to have either transferred or received on 1 May 2004 the abso‐
lute value of the claim (in euro) shown next to its name in the
fourth column of the table in the Annex to this Decision, whereby
‘‐’ shall refer to a claim that the NCB shall transfer to the ECB and
‘+’ to a claim that the ECB shall transfer to the NCB.

On 3 May 2004, each participating NCB shall either trans‐
3.
fer or receive the absolute value of the amount (in euro) shown
next to its name in the fourth column of the table in the Annex
to this Decision, whereby ‘+’ shall refer to an amount that the NCB
shall transfer to the ECB and ‘‐’ to an amount that the ECB shall
transfer to the NCB.

4.
On 3 May 2004, the ECB and the participating NCBs that
are under an obligation to transfer amounts under paragraph 3
shall also separately transfer any interest accruing over the period
from 1 May 2004 until 3 May 2004 on the respective amounts
due from the ECB and such NCBs. The transferors and recipients
of this interest shall be the same as the transferors and recipients
of the amounts on which the interest accrues.

Article 4

Related financial issues

1.
In derogation from the third subparagraph of Article 2(1) 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 (1), the intra‐
Eurosystem balances on euro banknotes in circulation shall, for
the period from 1 May 2004 until 31 May 2004, be calculated on
the basis of the expanded capital key applicable from 1 May 2004
applied to balances on the total euro banknotes in circulation
on 30 April 2004. The average rate of return, as described in
Article 3(3) Decision ECB/2001/16, shall be calculated separately
for the period from 1 January 2004 until 30 April 2004 and for
the period from 1 May 2004 until 31 December 2004. For the
period from 1 May 2004 until 31 December 2004, the compen‐
satory amounts and the accounting entries to balance those
amounts, as described in Article 4(3) of Decision ECB/2001/16,
shall be recorded in the books of each NCB with a value date
of 1 May 2004. In derogation from the third sentence of Article
5(1) of Decision ECB/2001/16, the ECB shall inform the NCBs of
the amounts of cumulative monetary income relating to the
period from 1 January 2004 to 30 April 2004 on a four‐monthly
basis and relating to the period from 1 May 2004 to 30 June
2004 on a two‐monthly basis.

In relation to the period from 1 January 2004 until 30 April
2.
2004, the NCBs’ pooled monetary income, the remuneration on
the NCBs’ claims equivalent to the foreign reserve assets trans‐
ferred to the ECB and the remuneration on the intra‐Eurosystem
balances on euro banknotes in circulation shall be allocated and
distributed in accordance with the capital key weightings appli‐
cable on 30 April 2004. The ECB’s income on euro banknotes for
the first quarter of 2004 shall be allocated in accordance with

(1) OJ L 337, 20.12.2001, p. 55. Decision as amended by Decision

ECB/2003/22 (OJ L 9, 15.1.2004, p. 39).

9.6.2004

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Official Journal of the European Union

L 205/15

the capital key weightings applicable on 30 April 2004, and for
the second quarter of 2004 in accordance with the capital key
weightings applicable from 1 May 2004.

3.
The ECB’s net profit or loss, as the case may be, for the
financial year 2004 shall be allocated on the basis of the capital
key weightings applicable from 1 May 2004.

4.
If at the end of 2004 the ECB calculates that it is likely to
make an overall loss for the financial year 2004, or if its likely net
profit is lower than the amount of the ECB’s income on euro ban‐
knotes earned during the year, the ECB shall retain the ECB’s
income on euro banknotes for the fourth quarter of 2004.
Depending on the size of any estimated loss, the ECB shall also
require the reversal of part or all of any interim distributions of
the ECB’s income on euro banknotes earned in the third, second
and first quarters of 2004, in that order, until such loss is cov‐
ered. In the event that the ECB makes a loss in the financial year
2004 and the ECB’s income on euro banknotes earned during the
financial year 2004 is insufficient to cover such loss, the ECB shall
offset the loss against the following:

(a)

funds released from the ECB’s general reserve fund;

(b)

(c)

to a decision of

subject
the Governing Council under
Article 33 of the Statute, the NCBs’ pooled monetary income
from 1 May 2004 until 31 December 2004;

to a decision of

subject
the Governing Council under
Article 33 of the Statute, the NCBs’ pooled monetary income
from 1 January 2004 to 30 April 2004.

If any part of the distributed ECB’s income on euro ban‐
5.
knotes for the first quarter of 2004 needs to be repaid pursuant
to paragraph 4 and if the NCBs’ pooled monetary income
from 1 January 2004 until 30 April 2004 needs to be transferred
back to the ECB, compensatory payments in addition to the pay‐
ments described in Article 2 and Article 3 shall be made. Each
participating NCB whose capital key weighting increases on 1 May
2004 shall make such a payment to the ECB, and the ECB shall
make such a payment to each participating NCB whose capital
key weighting decreases on 1 May 2004. The amount of the com‐
pensatory payments shall be calculated as follows. The total
repayable ECB’s income on euro banknotes for the first quarter of
2004 shall be multiplied by the absolute difference between the
participating NCB’s capital key weighting on 30 April 2004 and
its capital key weighting on 31 December 2004 and the result
shall be divided by 100. The total retransferable monetary income
for the period from 1 January 2004 until 30 April 2004 shall be
multiplied by the absolute difference between the participating

NCB’s capital key weighting on 30 April 2004 and its capital key
weighting on 31 December 2004 and the result shall be divided
by 100. Interest shall accrue on the compensatory payments relat‐
ing to the NCBs’ pooled monetary income from 1 January 2005
until the payment date of these payments.

6.
The additional compensatory payments relating to the ECB’s
income on euro banknotes as described in paragraph 5 shall be
paid on 4 January 2005. The additional compensatory payments
relating to the NCBs’ pooled monetary income as described in
paragraph 5, as well as the interest accrued thereon, shall be paid
on the second working day after the second Governing Council
meeting held in March 2005.

Article 5

General provisions

1.
The interest accruing under paragraph 5 of Article 2, para‐
graph 4 of Article 3 and paragraph 5 of Article 4 shall be calcu‐
lated on a daily basis, using the actual 360‐day method of calcu‐
lation, at a rate equal to the marginal interest rate used by the
ESCB in its most recent main refinancing operation.

2.
Each transfer pursuant to paragraphs 1, 2 and 5 of Article
2, paragraphs 3 and 4 of Article 3 and paragraphs 5 and 6 of
Article 4 shall take place separately through the Trans‐European
Automated Real‐time Gross settlement Express Transfer system
(TARGET).

The ECB and the participating NCBs that are under an obli‐
3.
gation to effect any of the transfers referred to in paragraph 2
shall,
in due course, give the necessary instructions for duly
executing such transfers on time.

Article 6

Final provision

This Decision shall enter into force on 23 April 2004.

Done at Frankfurt am Main, 22 April 2004.

The President of the ECB
Jean‐Claude TRICHET

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Official Journal of the European Union

9.6.2004

Claims equivalent to the foreign reserve assets transferred to the ECB (*)

ANNEX

Claim equivalent to
the foreign reserve assets
transferred to the ECB,
on 30 April 2004

Claim equivalent to
the foreign reserve assets
transferred to the ECB,
from 1 May 2004

(EUR)

Amount of transfer

1 414 850 000

1 419 101 951,42

+4 251 951,42

Participating NCB

Nationale Bank van
België/Banque Nationale
de Belgique

Deutsche Bundesbank

11 702 000 000

11 761 707 507,63

+59 707 507,63

Bank of Greece

Banco de España

Banque de France

Central Bank and Financial
Services Authority of
Ireland

Banca d’Italia

Banque centrale du
Luxembourg

1 080 700 000

4 390 050 000

8 258 750 000

1 055 840 342,96

‐24 859 657,04

4 326 975 513,23

‐63 074 486,77

8 275 330 930,88

+16 580 930,88

512 700 000

513 006 857,90

+306 857,90

7 286 300 000

7 262 783 714,66

‐23 516 285,34

85 400 000

87 254 013,80

+1 854 013,80

De Nederlandsche Bank

2 216 150 000

2 223 363 597,71

+7 213 597,71

Oesterreichische
Nationalbank

Banco de Portugal

Suomen Pankki

1 150 950 000

1 157 451 203,42

+6 501 203,42

1 006 450 000

714 900 000

982 331 062,21

‐24 118 937,79

717 118 925,89

+2 218 925,89

Total:

39 819 200 000

39 782 265 621,70

‐36 934 378,30

(*) Due to rounding, totals may not correspond to the sum of all figures shown.