Agreement of 31 December 2007 between the European Central Bank and the Central Bank 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
Date: 2007-12-31
Institutions: European Central Bank
Subjects: Cyprus, European Central Bank, European Monetary System, central bank, claim

C 29/4

EN

Official Journal of the European Union

1.2.2008

EUROPEAN CENTRAL BANK

AGREEMENT

of 31 December 2007

between the European Central Bank and the Central Bank 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

(2008/C 29/04)

THE EUROPEAN CENTRAL BANK AND THE CENTRAL BANK OF
CYPRUS,

Whereas:

(1)

(2)

Pursuant to Article 3(1) of Decision ECB/2007/22 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 (1), the
aggregate euro-equivalent amount of
foreign reserve
assets that the Central Bank of Cyprus is required to
transfer to the European Central Bank (ECB) with effect
from 1 January 2008 in accordance with Article 49.1 of
the Statute of the European System of Central Banks and
of
the European Central Bank (hereinafter the ‘ESCB
Statute’) is EUR 73 400 447,19.

set

in Article 3 of

to Article 30.3 of

Pursuant
the ESCB Statute and
Article 4(1) of Decision ECB/2007/22, with effect from
1 January 2008 the ECB is required to credit the Central
Bank of Cyprus with a euro-denominated claim equiva-
lent to the aggregate euro amount of the Central Bank of
Cyprus' contribution of foreign reserve assets, subject to
that
the specifications provided for
Decision. The ECB and the Central Bank of Cyprus agree
to
claim at
EUR 71 950 548,51 in order to ensure that the ratio
between the amount in euro of
the Central Bank of
Cyprus' claim and the aggregate amount in euro of the
claims credited to the other national central banks of
Member States that have already adopted the euro (here-
inafter the ‘participating NCBs’) will be equal to the ratio
between the Central Bank of Cyprus' weighting in the
ECB's capital key and the other participating NCBs' aggre-
gate weighting in this key.

the Central Bank

of Cyprus'

the claims pursuant to Article 30.3 of the ESCB Statute
held by the other participating NCBs of the ECB's capital
key adjustment on 1 January 2004 pursuant
to
Article 29.3 of the ESCB Statute and the ECB's capital
key expansions on 1 May 2004 and on 1 January 2007
pursuant to Article 49.3 of the ESCB Statute.

In view of the abovementioned difference, the ECB and
the Central Bank of Cyprus agree that the Central Bank
of Cyprus' claim may be reduced by offsetting against it
the amount that the Central Bank of Cyprus is required
reserves and provisions
to contribute to the ECB's
pursuant
the ESCB Statute and
to Article 49.2 of
Article 5(1) of Decision ECB/2007/22, in the event that
the Central Bank of Cyprus' claim is larger than the
amount of EUR 71 950 548,51.

The ECB and the Central Bank of Cyprus should agree on
other modalities for crediting the Central Bank of Cyprus'
claim, taking into account that, depending on exchange
rate movements, it may be necessary to increase rather
than to reduce the claim to the amount referred to in
recital 2.

The Governing Council has approved the ECB's entry
into this Agreement, which concerns a decision to be
taken under Article 30 of the ESCB Statute, in accordance
with Article 10.3 of the ESCB Statute and the procedure
specified therein,

(4)

(5)

(6)

HAVE AGREED AS FOLLOWS:

Article 1

(3)

The difference between the amounts mentioned in reci-
tals 1 and 2 results from the application to the value of
foreign reserve assets already transferred by the Central
Bank of Cyprus pursuant to Article 30.1 of the ESCB
the ‘current exchange rates’ referred to in
Statute of
Article 49.1 of the ESCB Statute and from the effect on

(1) OJ L 27, 1.2.2008.

Modalities for crediting the Central Bank of Cyprus' claim

1.
If the amount of the claim that the ECB is required to
credit to the Central Bank of Cyprus pursuant to Article 30.3 of
the ESCB Statute and Article 4(1) of Decision ECB/2007/22
(hereinafter the ‘Central Bank of Cyprus's claim’ or the ‘claim’) is
greater than EUR 71 950 548,51 on the final date on which
from the Central
foreign reserve assets
the ECB receives

1.2.2008

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Official Journal of the European Union

C 29/5

the claim the amount

Bank of Cyprus pursuant to Article 3 of Decision ECB/2007/22,
then the amount of the claim shall be reduced with effect from
that date to EUR 71 950 548,51. Such a reduction shall be
the
made by offsetting against
Central Bank of Cyprus is required to contribute to the ECB's
reserves and provisions with effect
from 1 January 2008
pursuant to Article 49.2 of the ESCB Statute and Article 5(1) of
Decision ECB/2007/22. The offset amount shall be treated as an
advance contribution to the ECB's reserves and provisions
pursuant to Article 49.2 of the ESCB Statute and Article 5(1) of
Decision ECB/2007/22, which shall be deemed to have been
made on the date on which the offset occurs.

that

(a)

less

claim;

than the difference between:

If the amount required to be contributed by the Central
2.
Bank of Cyprus to the ECB's reserves and provisions pursuant to
Article 49.2 of the ESCB Statute and Article 5(1) of Decision
ECB/2007/22 is
the
and
the Central Bank of Cyprus'
amount of
(b) EUR 71 950 548,51, then the amount of the claim shall be
reduced to EUR 71 950 548,51: (i) by offsetting in accordance
with paragraph 1 above; and (ii) by the ECB paying the Central
Bank of Cyprus an amount in euro equal to the amount of the
shortfall remaining after such offset. Any amount required to be
paid by the ECB in accordance with this paragraph shall be due
with effect from 1 January 2008. The ECB shall, in due course,
give instructions for the transfer of such an amount, and of net
through the Trans-European Auto-
accrued interest
thereon,
system
settlement Express Transfer
mated Real-time Gross
(TARGET/TARGET2). Accrued interest shall be calculated on a
daily basis, using the actual over-360-day method of calculation
at a rate equal
interest rate used by the
Eurosystem in its most recent main refinancing operation.

to the marginal

3.
If the amount of the Central Bank of Cyprus' claim is less
than EUR 71 950 548,51 on the final date on which the ECB
receives foreign reserve assets from the Central Bank of Cyprus
then the
to Article 3 of Decision ECB/2007/22,
pursuant
amount of
the claim shall be increased on that date to
EUR 71 950 548,51. The increase shall be effected by the
Central Bank of Cyprus paying the ECB an amount in euro
equal to the difference. Any amount required to be paid by the
Central Bank of Cyprus in accordance with this paragraph shall
be due from 1 January 2008, and shall be paid in accordance
with the procedures specified in Article 5(4) and (5) of Decision
ECB/2007/22.

Article 2

Final provisions

1.

This Agreement shall enter into force on 1 January 2008.

2.
This Agreement shall be drawn up in two duly signed
originals in the English language. The ECB and the Central Bank
of Cyprus shall each retain one original hereof.

Done at Frankfurt am Main, 31 December 2007.

For the European Central Bank

For the Central Bank of Cyprus

Jean-Claude TRICHET

Athanasios ORPHANIDES

President

Governor