2008/89/EC: Decision of the European Central Bank of 31 December 2007 on the paying-up of capital, transfer of foreign reserve assets and contributions by the Central Bank of Cyprus and the Central Bank of Malta to the European Central Bank's reserves and provisions (ECB/2007/22)
Date: 2007-12-31
Institutions: European Central Bank
Subjects: Cyprus, European Central Bank, European System of Central Banks, Malta, Member States' contribution, banking, central bank, foreign-exchange reserves

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Official Journal of the European Union

1.2.2008

EUROPEAN CENTRAL BANK

DECISION OF THE EUROPEAN CENTRAL BANK

of 31 December 2007

on the paying-up of capital, transfer of foreign reserve assets and contributions by the Central Bank
of Cyprus and the Central Bank of Malta to the European Central Bank's reserves and provisions

(ECB/2007/22)

(2008/89/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 (hereinafter the ESCB
Statute), and in particular Articles 30.1, 30.3, 49.1 and 49.2
thereof,

Whereas:

(1)

(2)

Pursuant to Article 1 of Council Decision 2007/503/EC
of 10 July 2007 in accordance with Article 122(2) of the
Treaty on the adoption by Cyprus of the single currency
on 1 January 2008 (1) and Article 1 of Council Decision
2007/504/EC of 10 July 2007 in accordance with Article
122(2) of the Treaty on the adoption by Malta of the
single currency on 1 January 2008 (2), Cyprus and Malta
fulfil the necessary conditions for adoption of the euro
and the derogations granted to these Member States
the Act of Accession (3) will be
under Article 4 of
abrogated with effect from 1 January 2008.

(3)

the ESCB Statute provides that

the
Article 49.1 of
national central bank (NCB) of a Member State whose
derogation has been abrogated must pay up its
subscribed share of the capital of the European Central
Bank (ECB) to the same extent as the NCBs of the other
participating Member States. The NCBs of the existing

(1) OJ L 186, 18.7.2007, p. 29.
(2) OJ L 186, 18.7.2007, p. 32.
(3) Act concerning the conditions of accession of the Czech Republic,
the Republic of Estonia, the Republic of Cyprus, the Republic of
Latvia,
the
Republic of Malta,
the Republic of
Slovenia and the Slovak Republic and the adjustments to the
Treaties on which the European Union is founded (OJ L 236,
23.9.2003, p. 33).

the Republic of Lithuania,

the Republic of Hungary,

the Republic of Poland,

respectively, pursuant

subscribed capital, pursuant

participating Member States have paid up their shares in
the ECB's subscribed capital in full (4). The weightings of
the Central Bank of Cyprus and the Central Bank of
Malta in the ECB's capital key are 0,1249 % and
0,0622 %,
to Article 2 of
Decision ECB/2006/21 of 15 December 2006 on the
national central banks’ percentage shares in the key for
subscription to the European Central Bank's capital (5).
The Central Bank of Cyprus and the Central Bank of
Malta have already paid up part of their shares in the
ECB's
to Article 1 of
Decision ECB/2006/26 of 18 December 2006 laying
down the measures necessary for the paying-up of the
European Central Bank's capital by the non-participating
national central banks (6). The outstanding amount
is
therefore EUR 6 691 401,01 for the Central Bank of
Cyprus and EUR 3 332 306,98 for the Central Bank of
Malta, which results
ECB's
subscribed capital
(EUR 5 760 652 402,58) by the
capital key weightings of the Central Bank of Cyprus
and
(0,1249 % and
0,0622 % respectively), minus in each case the part of
their shares in the ECB's subscribed capital
that has
already been paid up.

the Central Bank of Malta

from multiplying

the

Article 49.1,
in conjunction with Article 30.1, of the
ESCB Statute provides that the NCB of a Member State
whose derogation has been abrogated must also transfer
foreign reserve assets to the ECB. Pursuant to Article
49.1 of the ESCB Statute, the sum to be transferred is
determined by multiplying the euro value at current
exchange rates of the foreign reserve assets which have
already been transferred to the ECB in accordance with
Article 30.1 of the ESCB Statute, by the ratio between
the number of shares subscribed by the NCB concerned
and the number of shares already paid up by the NCBs of
the other participating Member States. When determining
the ‘foreign reserve assets which have already been trans-
ferred to the ECB in accordance with Article 30.1’, due
account should be taken of the ECB preceding capital

(4) Decision ECB/2006/22 of 15 December 2006 laying down the
measures necessary for the paying-up of
the European Central
Bank’s capital by the participating national central banks (OJ L 24,
31.1.2007, p. 3).

(5) OJ L 24, 31.1.2007, p. 1.
(6) OJ L 24, 31.1.2007, p. 15.

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key adjustment (1) pursuant to Article 29.3 of the ESCB
Statute and the ECB capital key expansions pursuant to
Article 49.3 of the ESCB Statute (2). As a result, pursuant
to Decision ECB/2006/24 of 15 December 2006 laying
down the measures necessary for the contribution to the
European Central Bank's accumulated equity value and
for adjusting the national central banks’ claims equivalent
to the transferred foreign reserve assets (3),
the euro
equivalent of
the foreign reserve assets which have
already been transferred to the ECB under Article 30.1
of the ESCB Statute is EUR 40 848 729 895,96.

HAS DECIDED AS FOLLOWS:

Article 1

Definitions

For the purposes of this Decision:

— ‘participating Member State’ means a Member State that has

adopted the euro,

The foreign reserve assets to be transferred by both the
Central Bank of Cyprus and the Central Bank of Malta
should be denominated in US dollars and gold.

— ‘cash’ means the lawful currency of the United States (US

dollar),

(4)

(5)

(6)

(7)

Article 30,3 of the ESCB Statute provides that the ECB
must credit each NCB of a participating Member State
with a claim equivalent to the foreign reserve assets that
it has transferred to the ECB. The provisions regarding
the denomination and remuneration of the claims that
have already been credited to the NCBs of the existing
participating Member States (4) should also apply to the
denomination and remuneration of the claims of the
Central Bank of Cyprus and the Central Bank of Malta.

Article 49.2 of the ESCB Statute provides that the NCB
of a Member State whose derogation has been abrogated
must contribute to the ECB's reserves, to those provisions
equivalent to reserves, and to the amount still to be
appropriated to the
corre-
sponding to the balance of the profit and loss account
as at 31 December of the year prior to abrogation of the
contribution is
derogation. The
determined in accordance with Article 49.2 of
the
ESCB Statute.

reserves and provisions

amount

this

of

the European Central Bank,

In accordance with Article 3.5 of the Rules of Procedure
of
the
Central Bank of Cyprus and the Central Bank of Malta
have been invited to attend the meeting of the Governing
Council adopting this Decision,

the Governors of

(1) Decision ECB/2003/17 of 18 December 2003 on the national
central banks’ percentage shares in the key for subscription to the
European Central Bank’s capital (OJ L 9, 15.1.2004, p. 27).

(2) Decision ECB/2004/5 of 22 April 2004 on the national central
subscription to the
(OJ L 205, 9.6.2004, p. 5) and

in the key for

banks’ percentage shares
European Central Bank’s capital
Decision ECB/2006/21.
(3) OJ L 24, 31.1.2007, p. 9.
(4) Pursuant

to Guideline ECB/2000/15 of 3 November 1998 as
amended by the Guideline of 16 November 2000 on the compo-
sition, valuation and modalities for the initial transfer of foreign
reserve assets, and the denomination and remuneration of equivalent
claims (OJ L 336, 30.12.2000, p. 114).

— ‘gold’ means fine troy ounces of gold in the form of London
Good Delivery bars, as specified by the London Bullion
Market Association,

— ‘foreign reserve assets’ means gold or cash,

— ‘Eurosystem’ means the ECB and NCBs of participating

Member States.

Article 2

Payment of capital

1. With effect from 1 January 2008, the Central Bank of
Cyprus and the Central Bank of Malta shall pay up the
remaining parts of their shares in the ECB's subscribed capital,
which correspond to EUR 6 691 401,01 for the Central Bank of
Cyprus and EUR 3 332 306,98 for the Central Bank of Malta.

2.
Each of the above mentioned NCBs shall pay the amount
specified for it in paragraph 1 to the ECB on 2 January 2008,
by means of a separate transfer through the Trans-European
Automated Real-time Gross
Express Transfer
system (TARGET/TARGET2).

settlement

3.
Each of the above mentioned NCBs shall, by means of a
separate TARGET/TARGET2 transfer, pay to the ECB on 2
January 2008 the interest accruing during the period from 1
January 2008 until 2 January 2008 on the amount due to the
ECB under paragraph 2.

Any interest

4.
accruing under paragraph 3 shall be
calculated on a daily basis, using the actual over-360-day
method of calculation, at a rate equal to the marginal interest
rate used by the Eurosystem in its most recent main refinancing
operation.

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31 070 309,39

5 482 995,78

36 553 305,17

Denomination, remuneration and maturity of the claims
equivalent to the contributions

Article 3

Transfer of foreign reserve assets

1.
The Central Bank of Cyprus and the Central Bank of Malta
shall each transfer to the ECB, with effect from 1 January 2008
and in accordance with this Article and the arrangements taken
pursuant to it, an amount of foreign reserve assets denominated
in US dollars and gold that is equivalent to EUR 73 400 447,19
for the Central Bank of Cyprus and EUR 36 553 305,17 for the
Central Bank of Malta, as follows:

Euro-equivalent
amount of
US dollars

Euro-equivalent
amount of gold

Aggregate
euro-equivalent
amount

62 390 380,11

11 010 067,08

73 400 447,19

Central Bank
of Cyprus

Central Bank
of Malta

2.
The euro-equivalent amounts of foreign reserve assets to
be transferred by the Central Bank of Cyprus and the Central
Bank of Malta under paragraph 1 shall be calculated on the
basis of
the exchange rates between the euro and the US
dollar established as a result of the 24-hour written consultation
procedure on 31 December 2007 between those central banks
that participate in that procedure and, in the case of gold, on
the basis of the US dollar price of gold per fine troy ounce
established in the London gold fixing at 10.30 a.m., London
time, on 31 December 2007.

The ECB shall confirm to the Central Bank of Cyprus and
3.
the Central Bank of Malta as soon as possible the respective
amounts calculated in accordance with paragraph 2.

4.
The Central Bank of Cyprus and the Central Bank of Malta
shall transfer cash to the ECB to such accounts as are specified
by the ECB. The settlement date for the cash to be transferred to
the ECB shall be 2 January 2008. The Central Bank of Cyprus
and the Central Bank of Malta shall give instructions for the
transfer of cash to the ECB on the settlement date.

The Central Bank of Cyprus and the Central Bank of Malta
5.
shall transfer gold on such dates, to such accounts and at such
locations as are specified by the ECB.

The difference,

6.
equivalent
amounts mentioned in Article 4(1) shall:

if any, between the aggregate euro-
amounts mentioned in paragraph 1 and the

of Cyprus regarding the claim credited to the Central Bank
of Cyprus by the European Central Bank under Article 30.3
of the Statute of the European System of Central Banks and
of the European Central Bank (1); and

(b) in respect of

the Central Bank of Malta be settled in
accordance with the Agreement of 31 December 2007
between the European Central Bank and the Central Bank
of Malta regarding the claim credited to the Central Bank of
Malta by the European Central Bank under Article 30.3 of
the Statute of the European System of Central Banks and of
the European Central Bank (2).

Article 4

foreign reserve assets,

from 1 January 2008, and subject

1. With effect
to the
specifications in Article 3 regarding the settlement dates of
the ECB shall credit
the transfers of
each of the Central Bank of Cyprus and the Central Bank of
to the
Malta with a claim denominated in euro, equivalent
contributions
aggregate
of
to
the Central Bank of Cyprus and
EUR 71 950 548,51 for
EUR 35 831 257,94 for the Central Bank of Malta.

respective
claim corresponds

euro amount of
assets.

their
This

foreign

reserve

The claims credited by the ECB to the Central Bank of
2.
Cyprus and the Central Bank of Malta shall be remunerated
from the settlement date. The interest accruing shall be
calculated on a daily basis, using the actual over-360-day
method of calculation, at a rate equivalent
the
interest rate used by the Eurosystem in its most
marginal
recent main refinancing operation.

to 85 % of

The claims shall be remunerated at

the end of each
3.
financial year. The ECB shall
inform the Central Bank of
Cyprus and the Central Bank of Malta on a quarterly basis of
their respective cumulative amounts.

4.

The claims shall not be redeemable.

Article 5

Contributions to the ECB's reserves and provisions

1. With effect from 1 January 2008 and in accordance with
paragraphs 5 and 6 and Article 3, the Central Bank of Cyprus
and the Central Bank of Malta shall contribute to the ECB's
reserves, to those provisions equivalent to reserves, and to the
amount still to be appropriated to the reserves and provisions
corresponding to the balance of the profit and loss account at
31 December 2007.

(a)

in respect of
the Central Bank of Cyprus be settled in
accordance with the Agreement of 31 December 2007
between the European Central Bank and the Central Bank

(1) Not yet published in the Official Journal.
(2) Not yet published in the Official Journal.

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The amounts to be contributed by the Central Bank of
2.
Cyprus and the Central Bank of Malta shall be determined in
accordance with Article 49.2 of
the ESCB Statute. The
references in Article 49.2 to the ‘number of shares subscribed
by the central bank concerned’ and the ‘number of shares
already paid up by the other central banks’ shall refer to the
weightings of each of the Central Bank of Cyprus and the
Central Bank of Malta, and the NCBs of the existing partici-
pating Member States, respectively,
in the ECB's capital key,
pursuant to Decision ECB/2006/21.

For the purposes of paragraph 1, ‘the ECB's reserves’ and
3.
‘provisions equivalent to reserves’ shall
inter alia, the
ECB's general reserve fund, balances on revaluation accounts
and provisions for foreign exchange rate,
interest rate and
gold price risks.

include,

At

the latest on the first working day following the
4.
Governing Council's approval of
the ECB's annual accounts
for the year 2007, the ECB shall calculate and confirm to the
Central Bank of Cyprus and the Central Bank of Malta the
amount to be contributed by each of them under paragraph 1.

5.
On the second working day following the Governing
Council's approval of the ECB's annual accounts for the year
2007, the Central Bank of Cyprus and the Central Bank of
Malta shall, by means of
two separate TARGET/TARGET2
transfers each, pay to the ECB:

(a)

the respective amounts due to the ECB under paragraph 4;
and

(b) the interest accruing during the period from 1 January 2008
until that date, on the respective amounts due to the ECB
under paragraph 4.

6.
Any interest accruing under paragraph 5(b) shall be
calculated on a daily basis, using the actual over-360-day
method of calculation, at a rate equal to the marginal interest
rate used by the Eurosystem in its most recent main refinancing
operation.

Article 6

Final provision

This Decision shall enter into force on 1 January 2008.

Done at Frankfurt am Main, 31 December 2007.

The President of the ECB

Jean-Claude TRICHET