Opinion of the European Central Bank of 9 November 2011 on the payment by the Banco de Portugal of an increase in Portugal’s quota with the International Monetary Fund (CON/2011/89)
Date: 2011-11-09
Institutions: European Central Bank
Subjects: International Monetary Fund, Portugal, central bank, international monetary system, national law

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 9 November 2011 

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

with the International Monetary Fund 

(CON/2011/89) 

Introduction and legal basis 

On 11 October 2011, the European Central Bank (ECB) received a request from the Portuguese Ministry 

of Finance for an opinion on a decision by the Minister for State and for Finance authorising the increase 

of Portugal’s quota with the International Monetary Fund (IMF) (hereinafter the ‘draft decision’). 

The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 

Functioning of the European Union and on 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 draft decision relates to 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 draft decision 

On 15 December 2010, the Board of Governors of the IMF adopted Resolution No 66-2 proposing, inter 
alia, increases in the quotas of all Fund members under the 14th General Review of Quotas. The required 

notices of consent to such increases must be received by the Fund by 31 December 2011. 

Pursuant to Decree-law No 245/89 of 25 August 1989 defining the intervention of the Banco de Portugal 

in  the  relationship  with  the  International  Monetary  Fund,  the  Minister  for  Finance,  on  behalf  of  the 

Portuguese Government, has to authorise any change in the national quota after consulting the Banco de 
Portugal2.  

The aim of the draft decision is to authorise the Banco de Portugal to pay the increase of Portugal’s quota 

from special drawing rights (SDR) 1 029,7 million to SDR 2 060,1 million. As stated in the Explanatory 

Memorandum  attached  to  the  consultation  letter,  25%  of  the  proposed  quota  increase  must  be  paid  in 

reserve assets and the remainder is payable in euro.  

Article  19(b)  of  the  Organic  Law  on  the  Banco  de  Portugal3  expressly  states  that  the  prohibition  of 

monetary financing enshrined in Article 18 thereof does not apply to the financing of obligations of the 

1  
2  
3  

OJ L 189, 3.7.1998, p. 42.  
Article 2(3). 
Approved by Law 5/98, of 31 January, as last amended. 

 
 
 
 
                                                 
ECB-PUBLIC 

State towards the IMF. Thus, it is incumbent on the Banco de Portugal to make the ‘necessary deliveries 
in SDR, other members’ currency and euro’ on its own account4. Furthermore, Portugal’s contribution to 

the IMF and the Banco de Portugal liabilities to the IMF are included in the Banco de Portugal’s balance 

sheet. 

2. 

General observations  

The  ECB  notes  that  the  Banco  de  Portugal  is  responsible  for  paying  any  increases  in  Portugal’s  IMF 

quota upon the authorisation of the Minister for Finance.  

Several  ECB  opinions5  have  noted  that  the  tasks  performed  by  a  national  central  bank  (NCB)  must 

comply with the monetary financing prohibition under Article 123 of the Treaty and Council Regulation 

(EC)  No 3603/93  of  13  December  1993  specifying  definitions  for  the  application  of  the  prohibitions 

referred  to  referred  to  in  Article  104  and  Article  104(b)(1)  [now  Article  123  and  Article  125(1)  of  the 
Treaty on the Functioning of the European Union]6. Pursuant to Article 7 of Regulation (EC) No 3603/93, 

the financing by NCBs of obligations falling upon the public sector vis-à-vis the IMF is not regarded as a 

credit facility within the meaning of Article 123 of the Treaty. Therefore, the ECB notes that the payment 

by  the  Banco  de  Portugal  of  the  proposed  increase  in  Portugal’s  quota  does  not  infringe  the  monetary 

financing prohibition.  

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

Done at Frankfurt am Main, 9 November 2011. 

[signed] 

The President of the ECB 

Mario DRAGHI 

4  
5  

6  

Article 2(1) of Decree-law No 245/89.  
See Opinions CON/1997/16, CON/2005/29, CON/2009/5, CON/2009/33, CON/2009/35, CON/2009/41, CON/2009/100, 
CON/2010/13,  CON/2010/15,  CON/2010/22,  CON/2010/40,  CON/2010/74,  CON/2011/10  and  CON/2011/68.  All 
Opinions are available on the ECB’s website at www.ecb.europa.eu 
OJ L 332, 31.12.1993, p. 1. 

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