2006/385/EC: Decision of the European Central Bank of  19 May 2006  amending Decision ECB/2001/16 on the allocation of monetary income of the national central banks of participating Member States from the financial year 2002  (ECB/2006/7)
Date: 2006-05-19
Institutions: European Central Bank
Subjects: European Central Bank, European System of Central Banks, Member States' contribution, central bank, euro area, monetary policy

L 148/56

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Official Journal of the European Union

2.6.2006

EUROPEAN CENTRAL BANK

DECISION OF THE EUROPEAN CENTRAL BANK

of 19 May 2006

amending Decision ECB/2001/16 on the allocation of monetary income of the national central
banks of participating Member States from the financial year 2002

(ECB/2006/7)

(2006/385/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 32 thereof,

Whereas:

(1)

the Statute,

the sum of

Decision ECB/2001/16 of 6 December 2001 on the allo-
cation of monetary income of the national central banks
of participating Member States from the financial year
2002 (1) establishes a regime for
the allocation of
monetary income of
the national central banks of
Member States that have adopted the euro. Pursuant to
the NCBs’
Article 32.5 of
monetary income is allocated to the NCBs in proportion
to their paid-up shares in the capital of the ECB. In order
to allow for a gradual adaptation of the NCBs’ balance
sheets and profit and loss accounts, the monetary income
allocation for the financial years 2002 to 2007 has been
adjusted to take into account the differences between the
average value of banknotes in circulation of each NCB
during the period from 1 July 1999 to 30 June 2001 and
the average value of banknotes that would have been
allocated to them during that period in accordance
with the ECB’s capital key. These adjustments include
intra-Eurosystem liabilities on euro banknotes in
net
circulation which are in the liability base for
the
purposes of calculating the NCBs’ monetary income
under Article 32.2 of the Statute, as they are equivalent
to banknotes in circulation.

euro and should follow the same principles as the
adjustment procedure for the financial years 2002 to
2007. As a consequence, overlapping of adjustment
periods may occur.

(3)

Council Regulation (EC) No 974/98 of 3 May 1998 on
the introduction of the euro (2) allows new participating
Member States some flexibility as regards the substitution
of the euro for their currencies and the introduction of
euro banknotes and coins. In order for the adjustment
procedure to achieve financially appropriate solutions,
the individual changeover scenarios have to be taken
into account,

HAS DECIDED AS FOLLOWS:

Article 1

Decision ECB/2001/16 is amended as follows:

1. Article 1 is amended as follows:

The following definitions are inserted after the definition of
‘reference rate’:

‘(j)

“cash change-over date” means the date on which euro
banknotes and coins acquire the status of legal tender in
a Member State which has adopted the euro;

(2)

the Eurosystem makes it
The future enlargement of
necessary to adapt the existing regime for the allocation
of monetary income. For reasons of fairness, consistency
and equal treatment, new Eurosystem NCBs should be
treated in the same way financially as existing Euro-
system NCBs. This means that an adjustment procedure
should be applied each time a Member State adopts the

(k)

“reference period” means a period of 24 months starting
30 months before the cash changeover date;

(l)

“cash change-over year” means a period of 12 months
starting on the cash change-over date;

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

(2) OJ L 139, 11.5.1998, p. 1. Regulation as last amended by Regu-

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

lation (EC) No 2169/2005 (OJ L 346, 29.12.2005, p. 1).

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(m) “daily foreign exchange reference rate” means the daily
foreign exchange reference rate that is based on the
regular daily concertation procedure between central
banks within and outside the ESCB, which normally
takes place at 14.15 Central European Time.’

2. Article 2 is amended as follows:

Paragraph 1 is replaced by the following:

‘The intra-Eurosystem balances on euro banknotes in circu-
lation shall be calculated on a monthly basis and shall be
recorded in the books of the ECB and the NCBs on the first
business day of the month with a value date of the last
business day of the preceding month.

Where a Member State adopts the euro, the calculation of
the intra-Eurosystem balances on euro banknotes in circu-
lation under the first sub-paragraph shall be recorded in the
books of the ECB and the NCBs with a value date of the cash
change-over date.’

3. Article 4 is replaced by the following:

‘Article 4

Adjustments to intra-Eurosystem balances

1.
For the purposes of monetary income calculation, each
NCB’s intra-Eurosystem balances on euro banknotes in circu-
lation shall be
compensatory amount
adjusted by a
determined in accordance with the following formula:

C = (K – A) × S

where:

C is the compensatory amount,

K is the euro amount for each NCB that results from the
application of the subscribed capital key to the average
value of banknotes in circulation during the reference
period, whereby the amount of banknotes in circulation
denominated in the national currency of a Member State
that adopts the euro shall be translated into euro at the
daily foreign exchange reference rate during the reference
period,

A is the average euro value for each NCB of banknotes in
circulation during the reference period, translated into
euro at the daily foreign exchange reference rate during
the reference period,

S

the following coefficient

is
starting with the cash change-over date:

for each financial year,

Financial year

Cash change-over year

Cash change-over year plus one year

Cash change-over year plus two years

Cash change-over year plus three years

Cash change-over year plus four years

Cash change-over year plus five years

Coefficient

1

0,8606735

0,7013472

0,5334835

0,3598237

0,1817225

The sum of the compensatory amounts of the NCBs

2.
shall be zero.

3.
Compensatory amounts shall be calculated each time a
Member State adopts the euro or when the ECB’s subscribed
capital key changes.

4.
The compensatory amount of a new Eurosystem NCB
shall be allocated to the existing Eurosystem NCBs when that
Member State joins, in proportion to the respective shares of
existing Eurosystem NCBs in the subscribed capital key, with
the sign (+/–) reversed, and shall be additional
to any
compensatory amounts already in force for existing Euro-
system NCBs.

5.
The compensatory amounts and the accounting entries
to balance those compensatory amounts shall be recorded
on separate intra-Eurosystem accounts in the books of each
NCB with a value date of the cash change-over date and the
same value date of each following year of the adjustment
period. The accounting entries to balance the compensatory
amounts shall not be remunerated.

in the formula set out

6.
If the value of euro banknotes that the Banque centrale
du Luxembourg puts into circulation in 2002 exceeds the
its banknotes in circulation during the
average value of
period from 1 July 1999 to 30 June 2001 by 25 % or
more, then for the Banque centrale du Luxembourg letter
‘A’
in paragraph 1 shall be the
value of banknotes put
into circulation by the Banque
centrale du Luxembourg in 2002 up to a maximum limit
of EUR 2,2 billion. Upon application of this derogation, all
compensatory amounts calculated on the basis of Article
4(1) shall be subject to retroactive adjustments at the end
of 2002, in order to ensure compliance with paragraph 2.
Such retroactive adjustments shall be in proportion to the
subscribed capital key.

By derogation from paragraph 1, on the occurrence of
7.
specific contingencies relative to changes in patterns of
banknote circulation, as
to this
set out
Decision, each NCB’s intra-Eurosystem balances on euro
banknotes in circulation shall be adjusted in accordance
with the provisions set out in that Annex.

in Annex III

8.
The adjustments to intra-Eurosystem balances provided
for in this Article shall cease to apply from the first day of
the sixth year following the relevant cash change-over year.’

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4. Annex I is amended in accordance with Annex I to this Decision.

5. Annex III is replaced by Annex II to this Decision.

Article 2

Final provision

This Decision shall enter into force one day following its adoption.

Done at Frankfurt am Main, 19 May 2006.

The President of the ECB

Jean-Claude TRICHET

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ANNEX I

Paragraph 1 of Part A of Annex I is replaced by the following:

‘1. banknotes in circulation

For the purposes of this Annex, in the cash change-over year 2002 for each existing Eurosystem NCB, or in the
cash change-over year for each new Eurosystem NCB, “banknotes in circulation”:

(i) also includes banknotes issued by the NCB and denominated in its national currency unit; and

(ii) must be reduced by the value of the non-remunerated loans related to frontloaded euro banknotes that have

not been yet debited (part of asset item 6 of the HBS).

After the cash change-over year, for the purposes of this Annex and for each NCB, “banknotes in circulation”
means banknotes denominated in euro, to the exclusion of any other banknotes;’

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Annex III is replaced by the following:

A. First contingent adjustment

ANNEX II

‘ANNEX III

If the average total value of banknotes in circulation in the cash change-over year is lower than the average total
euro value of banknotes in circulation during the reference period (including those denominated in the national
currency of the Member State that has adopted the euro and translated into euro at the daily foreign exchange
reference rate during the reference period), then the coefficient “S” applying to the cash change-over year in
accordance with Article 4(1) must be reduced with retroactive effect in the same proportion as the decrease in
the total average of banknotes in circulation.

The reduction must not result in a coefficient lower than 0,8606735. If this derogation is applied, one quarter of
the resulting reduction in the NCBs’ compensatory amounts (“C”) applicable in the cash change-over year must be
added to each of the NCBs’ compensatory amounts applicable in the second to fifth year following the cash
change-over year under Article 4(1).

B. Second contingent adjustment

If those NCBs for which the compensatory amount referred to in Article 4(1) is a positive figure pay net
remuneration on intra-Eurosystem balances on banknotes in circulation that results in a net expense when
added to the item “net result of pooling of monetary income” in their profit and loss account at the end of
the year, then the coefficient “S” applying to the cash change-over year in accordance with Article 4(1) must be
reduced to the extent necessary to eliminate this condition.

The reduction must not result in a coefficient lower than 0,8606735. If this derogation is applied, one quarter of
the resulting reduction in the NCBs’ compensatory amounts (“C”) applicable in the cash change-over year must be
added to each of the NCBs’ compensatory amounts applicable in the second to fifth year following the cash
change-over year under Article 4(1).’