Date: 2023-04-17Category: Not ApplicableState: Union GovernmentCountry: Europe
Decision (EU) 2023/815 of the European Central Bank of 28 March 2023 amending Decision ECB/2010/4 concerning the management of pooled bilateral loans for the benefit of the Hellenic Republic (ECB/2023/7)
Executive Summary:
This decision amends Decision ECB/2010/4 regarding the management of pooled bilateral loans for the Hellenic Republic. It aligns the remuneration of deposits with the Eurosystem, setting it at the euro short-term rate (STR) minus 20 basis points from May 1, 2023. The decision aims for consistency and transparency in the remuneration of comparable deposits.
Key Points / Main Content:
* **Remuneration of Deposits:**
* Article 5 of Decision ECB/2010/4 is replaced.
* The account maintained with the ECB in the name of the Lenders shall be remunerated in accordance with the provisions of Article 21 of Decision EU/2019/1743 (ECB/2019/31).
* **Entry into Force and Application:**
* The decision came into force five days after its publication in the Official Journal of the European Union.
* It applies from May 1, 2023.
Impact Analysis:
* **European Central Bank (ECB):**
* Impact: The ECB is responsible for implementing the amended decision and ensuring consistency in the remuneration of deposits across the Eurosystem.
* Action Required: The ECB must apply the new remuneration rate (STR minus 20 basis points) to the specified accounts from May 1, 2023, and ensure compliance with Decision EU/2019/1743.
* **National Central Banks of Member States (whose currency is the euro):**
* Impact: The remuneration ceiling applicable to government deposits held with national central banks of Member States whose currency is the euro will also be set at the euro short-term rate (STR) minus 20 basis points from 1 May 2023.
* Action Required: Apply the new remuneration rate (STR minus 20 basis points) to the specified accounts from May 1, 2023, and ensure compliance with Guideline (EU) 2019/671.
* **Lenders (to the Hellenic Republic):**
* Impact: The remuneration received on the account maintained with the ECB will be determined in accordance with Article 21 of Decision EU/2019/1743 (ECB/2019/31).
* Action Required: Monitor the remuneration rate applied to their account from May 1, 2023.
Key Entities Referenced
European Central Bank: The central bank of the Eurozone, responsible for monetary policy.
Treaty on the Functioning of the European Union: A key treaty of the European Union, outlining its objectives, institutions, and decision-making processes.
Statute of the European System of Central Banks and of the European Central Bank: The legal framework governing the ESCB and the ECB.
Governing Council: The main decision-making body of the European Central Bank.
Executive Board: One of the decision-making bodies of the European Central Bank, responsible for the day-to-day management of the ECB.
Decision ECB/2010/4: Decision of the European Central Bank concerning the management of pooled bilateral loans for the benefit of the Hellenic Republic.
Decision EU 2019/1743: Decision of the European Central Bank on the remuneration of holdings of excess reserves and of certain deposits.
Frankfurt am Main: The city in Germany where the European Central Bank is located.
L 102/20 EN Official Journal of the European Union 17.4.2023
DECISIONS
DECISION (EU) 2023/815 OF THE EUROPEAN CENTRAL BANK
of 28 March 2023
amending Decision ECB/2010/4 concerning the management of pooled bilateral loans for the benefit
of the Hellenic Republic (ECB/2023/7)
THE EXECUTIVE BOARD OF THE EUROPEAN CENTRAL BANK,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 132 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 21 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 2023the 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) Decision ECB/2010/4 includes a provision on remuneration, which should be aligned with the remuneration set out
in Article 2(1) of Decision (EU) 2019/1743 (ECB/2019/31) to ensure consistency in the remuneration of comparable
deposits across the Eurosystem. For transparency and consistency, an explicit reference to that provision should be
included in Decision ECB/2010/4.
(4) Therefore, Decision ECB/2010/4 should be amended accordingly,
HAS ADOPTED THIS DECISION:
Article 1
Amendment
Article 5 of Decision ECB/2010/4 is replaced by the following:
(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 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 (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).17.4.2023 EN Official Journal of the European Union L 102/21
‘Article 5
Remuneration
The account maintained with the ECB in the name of the Lenders shall be remunerated in accordance with the
provisions of Article 2(1) of Decision (EU) 2019/1743 of the European Central Bank (ECB/2019/31) (*).
_____________
(*) 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).’.
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, 28 March 2023.
The President of the ECB
Christine LAGARDE