Decision (EU) 2023/817 of the European Central Bank of 5 April 2023 amending Decision (EU) 2019/1743 on the remuneration of holdings of excess reserves and of certain deposits (ECB/2019/31) (ECB/2023/9)
Date: 2023-04-05
Institutions: European Central Bank
Subjects: bank deposit, financial legislation, interest, reserves




L_2023102EN.01005601.xml










17.4.2023   


EN


Official Journal of the European Union


L 102/56








            DECISION (EU) 2023/817 OF THE EUROPEAN CENTRAL BANK
         
of 5 April 2023
         
amending Decision (EU) 2019/1743 on the remuneration of holdings of excess reserves and of certain deposits (ECB/2019/31) (ECB/2023/9)



THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

Having regard to the Treaty on the Functioning of the European Union, and in particular the first indent of Article 127(2) thereof,


Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Articles 17 and 19 thereof,

Whereas:







(1)


On 8 September 2022, the Governing Council decided to adjust temporarily the remuneration of deposits held with the European Central Bank (ECB) applied in accordance with Article 2 of Decision (EU) 2019/1743 of the European Central Bank (ECB/2019/31) (1) and Article 5 of Decision ECB/2010/4 of the European Central Bank (2). Decision (EU) 2022/1521 of the European Central Bank (ECB/2022/30) (3) implemented this temporary framework by setting the remuneration of such deposits at the deposit facility rate or the euro short-term rate (€STR), whichever is lower. Decision (EU) 2022/1521 (ECB/2022/30) will not be in force after 30 April 2023.












(2)


On 6 February 2023, the Governing Council decided that from 1 May 2023 the remuneration of such deposits will be set at the euro short-term rate (€STR) minus 20 basis points. This remuneration rate is aligned with the remuneration ceiling applicable to government deposits held with national central banks of Member States whose currency is the euro, as specified in Guideline (EU) 2019/671 of the European Central Bank (ECB/2019/7) (4), which will also be set at the euro short-term rate (€STR) minus 20 basis points from 1 May 2023.












(3)


Therefore, Decision (EU) 2019/1743 (ECB/2019/31) should be amended accordingly,





HAS ADOPTED THIS DECISION:



Article 1

Amendments

Article 2 of Decision (EU) 2019/1743 (ECB/2019/31) is amended as follows:






(1)


paragraph 1 is replaced by the following:

‘1.   The holdings in the following accounts maintained with the ECB shall be remunerated at the euro short-term rate (€STR) minus 20 basis points:






(a)


accounts maintained in accordance with Decision ECB/2003/14 of the European Central Bank (*1), Decision ECB/2010/4 of the European Central Bank (*2), Decision ECB/2010/17 of the European Central Bank (*3), Decision ECB/2010/31 of the European Central Bank (*4), and Council Regulation (EU) 2020/672 (*5);










(b)


other deposit accounts for the European Stability Mechanism and for the European Financial Stability Facility not covered under point (a).




However, when deposits need to be held in the relevant accounts in advance of the date on which a payment must be made in accordance with the legal or contractual rules applicable to the relevant facility, such deposits shall be remunerated during this advance period at zero per cent or the euro short-term rate (€STR), whichever is higher.


(*1)  Decision ECB/2003/14 of the European Central Bank of 7 November 2003 concerning the administration of the borrowing-and-lending operations concluded by the European Community under the medium-term financial assistance facility (OJ L 297, 15.11.2003, p. 35)."
                        

(*2)  Decision ECB/2010/4 of the European Central Bank of 10 May 2010 concerning the management of pooled bilateral loans for the benefit of the Hellenic Republic and amending Decision ECB/2007/7 (OJ L 119, 13.5.2010, p. 24)."
                        

(*3)  Decision ECB/2010/17 of the European Central Bank of 14 October 2010 concerning the administration of the borrowing and lending operations concluded by the Union under the European financial stabilisation mechanism (OJ L 275, 20.10.2010, p. 10)."
                        

(*4)  Decision ECB/2010/31 of the European Central Bank of 20 December 2010 concerning the opening of accounts for the processing of payments in connection with EFSF loans to Member States whose currency is the euro (OJ L 10, 14.1.2011, p. 7)."
                        

(*5)  Council Regulation (EU) 2020/672 of 19 May 2020 on the establishment of a European instrument for temporary support to mitigate unemployment risks in an emergency (SURE) following the COVID-19 outbreak (OJ L 159, 20.5.2020, p. 1).’;"
                        










(2)


paragraph 2 is replaced by the following:

‘2.   The rate specified in paragraph 1 shall also apply to the dedicated account maintained with the ECB in accordance with Article 13(2) of Commission Implementing Decision of 14 April 2021 establishing the necessary arrangements for the administration of the borrowing operations under Council Decision (EU, Euratom) 2020/2053 and for the lending operations related to loans granted in accordance with Article 15 of Regulation (EU) 2021/241 of the European Parliament and of the Council (*) and used for the purposes of prudential cash holdings in relation to:






(a)


NextGenerationEU (“NGEU”);










(b)


the Instrument for providing support to Ukraine for 2023 (macro-financial assistance+) (**);










(c)


any other European Union financing programme which the ECB and the Commission may agree to include.




However, an aggregate amount of deposits held in that dedicated account not exceeding EUR 20 billion shall be remunerated at zero per cent or the euro short-term rate (€STR) minus 20 basis points, whichever is higher.


(*)  C(2021)2502 final."
                        

(**)  Regulation (EU) 2022/2463 of the European Parliament and of the Council of 14 December 2022 establishing an Instrument for providing support to Ukraine for 2023 (macro-financial assistance+) (OJ L 322, 16.12.2022, p. 1).’."
                        






Article 2

Entry into force


1.   This Decision shall enter into force on the fifth day following that of its publication in the Official Journal of the European Union.


2.   It shall apply from 1 May 2023.





Done at Frankfurt am Main, 5 April 2023.


The President of the ECB

Christine LAGARDE
            





(1)  Decision (EU) 2019/1743 of the European Central Bank of 15 October 2019 on the remuneration of holdings of excess reserves and of certain deposits (ECB/2019/31) (OJ L 267, 21.10.2019, p. 12).

(2)  Decision ECB/2010/4 of the European Bank of 10 May 2010 concerning the management of pooled bilateral loans for the benefit of the Hellenic Republic and amending Decision ECB/2007/7 (OJ L 119, 13.5.2010, p. 24).

(3)  Decision (EU) 2022/1521 of the European Central Bank of 12 September 2022 on temporary adjustments to the remuneration of certain non-monetary policy deposits held with national central banks and the European Central Bank (ECB/2022/30) (OJ L 236 I, 13.9.2022, p. 1).

(4)  Guideline (EU) 2019/671 of the European Central Bank of 9 April 2019 on domestic asset and liability management operations by the national central banks (ECB/2019/7) (OJ L 113, 29.4.2019, p. 11).