Opinion of the European Central Bank of 29 December 2014 on Romania’s contribution to the International Monetary Fund’s Poverty Reduction and Growth Trust (CON/2014/92)
Date: 2014-12-29
Institutions: European Central Bank
Subjects: International Monetary Fund, Romania, central bank, national law, payment

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 29 December 2014 

on Romania’s contribution to the International Monetary Fund’s Poverty Reduction and Growth 

Trust  

(CON/2014/92) 

Introduction and legal basis 

On  27  November  2014,  the  European  Central  Bank  (ECB)  received  a  request  from  Banca  Naţională  a 

României (BNR) for an opinion on a draft law concerning Romania’s contribution to the General Subsidy 

Account  of  the  International  Monetary Fund’s  Poverty  Reduction and  Growth Trust  (PRGT)  (hereinafter 

the ‘draft law’). 

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 the third indent of Article 2(1) of Council Decision 98/415/EC1, as 

the  draft  law  relates  to  BNR.  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 law  

In  February  and  September  2012,  the  Executive  Board  of  the  International  Monetary  Fund  (IMF) 

approved the distribution of 700 million special drawing rights (SDRs) and 1.75 billion SDRs, respectively. 

This  approval  was  the  result  of  windfall  profits  from  IMF  gold  sales  and  profits  were  distributed  to  IMF 
member  countries  in  proportion  to  their  quota  shares2.  Distributions  were  subject  to  satisfactory 

assurances  by  IMF  members  that  an  amount  equivalent  to  at  least  90%  of  the  distributions  would  be 

made available to the PRGT. The IMF thereby envisaged that further subsidy resources would be raised 
for the PRGT3. 

Accordingly,  the  Romanian  authorities  decided  to  contribute  Romania’s  share  of  the  September  2012 
distribution  to  support  the PRGT.  Pursuant  to  the  Statute  of  BNR4,  BNR  has  the  power  to  exercise  the 

rights  and  fulfil  the  obligations  of  Romania  as  a  member  of  the  IMF.  Consequently,  the  draft  law 

authorises  BNR  to  transfer  7,571,246 SDRs  from  the  IMF  Interim  Administered  Account  to  the  General 

Subsidy Account of the PRGT on behalf of Romania. 

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Council  Decision  98/415/EC  of  29 June  1998  on  the  consultation  of  the  European  Central  Bank  by  national  authorities 
regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 

See IMF Press Release No 12/368, 28 September 2012. 

See Opinion CON/2010/22 for more information regarding the establishment and funding of the PRGT; all ECB opinions are 
published on the ECB’s website at www.ecb.europa.eu. 

Law 312/2004 on the Statute of Banca Naţională a României, Monitorul Oficial al României, Part I No 582, 30 June 2004. 

 
 
 
                                                 
ECB-PUBLIC 

2. 

Monetary financing prohibition  

2.1   The  tasks  performed  by  a  national  central  bank  must  comply  with  the  monetary  financing 
prohibition  under  Article  123  of  the  Treaty  and  Council  Regulation  (EC)  No  3603/935,  which 

provisions are subject to certain exemptions detailed therein. In particular, Article 7 of Regulation 

(EC)  No 3603/93  provides  that  the  financing  by  national  central  banks  of  obligations  falling  upon 

the public sector vis-à-vis the IMF shall not be regarded as a credit facility within the meaning of 
Article 123 of the Treaty6.  

2.2  The transfer by BNR of Romania’s contribution to the PRGT, as set out in the draft law, falls under 

the Article 7 exemption in Regulation (EC) No 3603/93 and therefore should not be regarded as a 

form of monetary financing prohibited by Article 123(1) of the Treaty. In this regard, the draft law is 

similar  to  the  Austrian  legislation  on  the  Oesterreichische  Nationalbank’s  contribution  of  windfall 
profits from IMF gold sales to the PRGT7. 

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

Done at Frankfurt am Main, 29 December 2014. 

[signed] 

The President of the ECB 

Mario DRAGHI 

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Council  Regulation  (EC)  No  3603/93  of  13  December  1993  specifying  definitions  for  the  application  of  the  prohibitions 
referred to in Articles 104 and 104b(1) of the Treaty (OJ L 332, 31.12.1993, p. 1). 

For examples, see Opinions CON/2010/22, CON/2011/102, and CON/2013/16. 

In particular, see paragraph 2.2 of Opinion CON/2013/16. See also paragraph 2.2 of Opinion CON/2010/22. 

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