Opinion of the European Central Bank of 29 April 2009 on the payment by the Banco de Portugal of the increase in Portugal’s quota in the International Monetary Fund (CON/2009/41)
Date: 2009-04-29
Institutions: European Central Bank
Subjects: International Monetary Fund, Portugal, central bank, national law, payment

EN 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 29 April 2009 

on the payment by the Banco de Portugal of the increase in Portugal’s quota 

in the International Monetary Fund 

(CON/2009/41) 

Introduction and legal basis 

On  17  April  2009  the  European  Central  Bank  (ECB)  received  an  urgent  request  from  the  Portuguese 

Ministry of Finance and Public Administration for an opinion on a decision by the Minister of State and 

for  Finance  authorising  the  increase  of  Portugal’s  quota  in  the  International  Monetary  Fund  (IMF) 

(hereinafter the ‘proposed decision’). 

The  ECB’s  competence  to  deliver  an  opinion  is  based  on  Article  105(4)  of  the  Treaty  establishing  the 

European Community and the third indent of Article 2(1) of Council Decision 98/415/EC of 29 June 1998 

on  the  consultation  of  the  European  Central  Bank  by  national  authorities  regarding  draft  legislative 
provisions1, as the proposed decision has implications for the Banco de Portugal. In accordance with the 

first  sentence  of  Article 17.5  of  the  Rules  of  Procedure  of  the  European  Central  Bank,  the  Governing 

Council has adopted this opinion. 

1. 

Purpose of the proposed decision 

On 28 April 2008 the Board of Governors of the IMF adopted Resolution No 63-2 on a Quota and Voice 

Reform  proposing  an  amendment  to  the  IMF’s  Articles  of  Agreement  (hereinafter  the  ‘proposed 

amendment’). The Portuguese Parliament adopted this amendment on 5 February 2009 and the President 

of the Republic ratified it on 23 March 2009. When the proposed amendment becomes effective (i.e. after 

it has been accepted by three fifths of the IMF membership having 85 % of the total voting power), there 

will  be  an  increase  in  the  IMF  quota  for  up  to  54  countries,  including  Portugal,  provided  that  each  of 

those  countries,  within  30 days  of  the  entry  into  effect  of  the  amendment,  consents  to  the  increase  and 

pays the amount of the increased quota to the IMF. Pursuant to Article 2(3) of Decree-law No 245/89 of 

25 August 1989 defining the intervention of the Banco de Portugal in the relationship with the IMF, the 

Minister for Finance, on behalf of the Portuguese Government, authorises any change to the amount of 

the national quota upon consultation of the Banco de Portugal.  

The  objective  of  the  proposed  decision  is  to  authorise  the  Banco  de  Portugal  to  pay  the  increase 

Portugal’s quota from special drawing rights (SDR) 867.4 million to SDR 1 029.7 million. As stated in 

1  

OJ L 189, 3.7.1998, p. 42.  

 
 
 
 
                                                 
Annex I to the consultation letter, 25% of the proposed quota increase must be paid in reserve assets and 

the remainder is payable in euro. 

The ECB notes that, in accordance with Article 2(1) of Decree-law No 245/89, the Banco de Portugal is 

responsible  for  paying  any  increases  in  the  Portugal’s  IMF  quota.  Thus,  it  is  the  Banco  de  Portugal’s 

responsibility, after approval by the Minister of Finance, to make the ‘necessary deliveries in SDR, other 

members’ currency and euro’ on its own account. Furthermore, Portugal’s contribution to the IMF and the 

Banco de Portugal liabilities to the Fund are included in the Banco de Portugal’s balance sheet. 

2. 

General observations  

In  line  with  recent  opinions  on  this  matter2,  the  ECB  reminds  the  Portuguese  Ministry  of  Finance  and 

Public Administration that the tasks performed by the Banco de Portugal must comply with the monetary 

financing  prohibition  under  Article  101  of  the  Treaty  and  Council  Regulation  (EC)  No  3603/93  of 

13 December 1993 specifying definitions for the application of the prohibitions referred to in Articles 104 
[now 101] and 104b(1) [now 103(1)] of the Treaty3. Pursuant to Article 7 of Regulation (EC) No 3603/93, 

the financing by national central banks of obligations falling on the public sector vis-à-vis the IMF is not 

regarded  as  a  credit  facility  within  the  meaning  of  Article 101  of  the  Treaty.  The  ECB  notes  that  the 

foreseen  payment  by  the  Banco  de  Portugal  of  the  increase  in  Portugal’s  IMF  quota  complies  with 

Article 7 of Regulation (EC) No 3603/93.  

This opinion will be published on the ECB’s website.  

Done at Frankfurt am Main, 29 April 2009. 

[signed] 

The Vice-President of the ECB 

Lucas D. PAPDEMOS 

2  
3  

See CON/2009/5, CON/2009/33 and CON/2009/35. 
OJ L 332, 31.12.1993, p. 1. 

2