Home Europe European Central Bank Decision (EU) 2025/1512 of the European Central Bank of 16 J...
Date: 2025-07-24 Category: Not Applicable State: Union Government Country: Europe

Decision (EU) 2025/1512 of the European Central Bank of 16 July 2025 amending Decision (EU) 2019/1743 on the remuneration of holdings of excess reserves and of certain deposits (ECB/2019/31) and Decision (EU) 2024/1209 on the remuneration of non-monetary policy deposits held with national central banks and the European Central Bank (ECB/2024/11) (ECB/2025/23)

Issued by European Central Bank · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: This decision, ECB/2025/23, amends Decisions ECB/2019/31 and ECB/2024/11 to establish remuneration rules for an account maintained with the ECB related to the Ukraine Loan Cooperation Mechanism (established by Regulation EU 2024/2773). The ECB will act as fiscal agent for this mechanism. This decision enters into force the day after its publication and applies from 1 August 2025. Key Points / Main Content: * **Amendment to Decision ECB/2019/31:** * A paragraph 3 is added to Article 2, stipulating that the ECB shall apply the remuneration rate as set out in Article 2(4)(d) of Decision EU 2024/1209 to the dedicated account for the Ukraine Loan Cooperation Mechanism. * **Amendment to Decision ECB/2024/11:** * A point (d) is added to Article 2(4), specifying the remuneration rate for the dedicated account maintained with the ECB for the Ukraine Loan Cooperation Mechanism: STR minus 20 basis points. * **Entry into Force:** * The decision enters into force the day following its publication in the Official Journal of the European Union. * It applies from 1 August 2025. Impact Analysis: * **European Central Bank (ECB):** * *Impact:* The ECB is designated as the fiscal agent and is responsible for opening and maintaining an account to receive, hold, and transfer funds allocated to the Ukraine Loan Cooperation Mechanism. The ECB is also responsible for applying the new remuneration rules to this account. * *Action Required:* The ECB needs to implement the specified remuneration rate (STR minus 20 basis points) for the dedicated account and ensure the account is operational by 1 August 2025. * **European Commission:** * *Impact:* The European Commission requested the establishment of the account with the ECB in the context of its functions under Regulation EU 2024/2773. * *Action Required:* The European Commission should note that the account will be operational from 1 August 2025, as requested. * **Ukraine:** * *Impact:* Ukraine is the recipient of the macro-financial assistance facilitated by the Ukraine Loan Cooperation Mechanism. * *Action Required:* No direct action required, but Ukraine benefits from the operationalization of the mechanism.

Key Entities Referenced

European Central Bank: The central bank of the European Union countries that have adopted the euro. Treaty on the Functioning of the European Union: One of the primary treaties of the European Union, defining the scope of EU law. Statute of the European System of Central Banks and of the European Central Bank: The legal framework governing the European System of Central Banks and the European Central Bank. Regulation EU 2024/2773: Regulation of the European Parliament and of the Council establishing the Ukraine Loan Cooperation Mechanism and providing exceptional macrofinancial assistance to Ukraine. Ukraine: A country in Eastern Europe receiving macrofinancial assistance. Ukraine Loan Cooperation Mechanism: A mechanism established by the European Union to provide financial support to Ukraine. Decision EU 2019/1743: Decision of the European Central Bank on the remuneration of holdings of excess reserves and of certain deposits. Decision EU 2024/1209: Decision of the European Central Bank on the remuneration of nonmonetary policy deposits held with national central banks and the European Central Bank.
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Official Journal EN of the European Union L series 2025/1512 24.7.2025 DECISION(EU) 2025/1512 OF THE EUROPEAN CENTRAL BANK of 16 July 2025 amending Decision (EU) 2019/1743 on the remuneration of holdings of excess reserves and of certain deposits (ECB/2019/31) and Decision (EU) 2024/1209 on the remuneration of non-monetary policy deposits held with national central banks and the European Central Bank (ECB/2024/11) (ECB/2025/23) 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 the first indent of Article 3.1 and Articles 17 and 18 thereof, Whereas: (1) Regulation (EU) 2024/2773 of the European Parliament and of the Council(1) established the Ukraine Loan Cooperation Mechanism (the ‘Mechanism’) and made available to Ukraine exceptional macro-financial assistance in the form of a loan (the ‘MFA Loan’) with a view to supporting Ukraine in covering its financing needs. The purpose of the Mechanism is to provide Ukraine with non-repayable financial support to assist Ukraine to repay the MFA Loan, as well as eligible bilateral loans provided by bilateral lenders acting under the auspices of the G7 ‘Extraordinary Revenue Acceleration Loans for Ukraine’ initiative, as referred to in recital 15 of Regulation (EU) 2024/2773. To achieve that purpose, the Mechanism shall receive resources made available as specified in Article 4(1) of Regulation (EU) 2024/2773, including flows of the extraordinary profits which stem from Russia’s immobilised assets, and disburse them on a regular basis to Ukraine to cover the principal, interest and any other related costs of the MFA Loan and eligible bilateral loans. (2) The European Central Bank (ECB) has agreed to act as fiscal agent to provide cash account services by opening an account maintained with the ECB for the purposes of receiving, holding and making transfers of amounts allocated to the Mechanism pursuant to Article 4(1) of Regulation (EU) 2024/2773, for the purpose of Article 5(1), point (a), of that Regulation, and subject to the provisions of Article 8(4) thereof. (3) It is appropriate that the relevant account maintained with the ECB be remunerated on the basis of the rules and provisions laid down in Decision (EU) 2019/1743 of the European Central Bank (ECB/2019/31)(2) and Decision (EU) 2024/1209 of the European Central Bank (ECB/2024/11)(3). (4) The European Commission, in the context of its functions under Regulation (EU) 2024/2773, has requested that the account maintained with the ECB should be operational on 1 August 2025. Therefore, this Decision should enter into force as a matter of urgency and apply from that date. (5) Therefore, Decision (EU) 2019/1743 (ECB/2019/31) and Decision (EU) 2024/1209 (ECB/2024/11) should be amended accordingly, (1) Regulation (EU) 2024/2773 of the European Parliament and of the Council of 24 October 2024 establishing the Ukraine Loan Cooperation Mechanism and providing exceptional macro-financial assistance to Ukraine (OJ L, 2024/2773, 28.10.2024, ELI: http://data.europa.eu/eli/ reg/2024/2773/oj). (2) 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, ELI: http://data.europa.eu/eli/dec/2019/1743/oj). (3) Decision (EU) 2024/1209 of the European Central Bank of 16 April 2024 on the remuneration of non-monetary policy deposits held with national central banks and the European Central Bank (ECB/2024/11) (OJ L, 2024/1209, 3.5.2024, ELI: http://data.europa.eu/eli/ dec/2024/1209/oj). ELI: http://data.europa.eu/eli/dec/2025/1512/oj 1/2EN OJ L, 24.7.2025 HAS ADOPTED THIS DECISION: Article 1 Amendment to Decision (EU) 2019/1743 (ECB/2019/31) In Article 2 of Decision (EU) 2019/1743 (ECB/2019/31), the following paragraph 3 is added: ‘3. The ECB shall apply the remuneration rate as set out in Article 2(4), point (d), of Decision (EU) 2024/1209 (ECB/2024/11) to the dedicated account maintained with the ECB for the purposes of receiving, holding and making transfers of amounts that are allocated to the Ukraine Loan Cooperation Mechanism – established by Regulation (EU) 2024/2773 of the European Parliament and of the Council(*) – pursuant to Article 4(1) of that Regulation, for the purpose of Article 5(1), point (a) thereof, and subject to the provisions of Article 8(4) thereof. _____________ (*) Regulation (EU) 2024/2773 of the European Parliament and of the Council of 24 October 2024 establishing the Ukraine Loan Cooperation Mechanism and providing exceptional macro-financial assistance to Ukraine (OJ L, 2024/2773, 28.10.2024, ELI: http://data.europa.eu/eli/reg/2024/2773/oj).’. Article 2 Amendment to Decision (EU) 2024/1209 (ECB/2024/11) In Article 2, paragraph 4, of Decision (EU) 2024/1209 (ECB/2024/11), the following point (d) is added: ‘(d) for the dedicated account maintained with the ECB for the purposes of receiving, holding and making transfers of amounts that are allocated to the Ukraine Loan Cooperation Mechanism – established by Regulation (EU) 2024/2773 of the European Parliament and of the Council(*)– pursuant to Article 4(1) of that Regulation, for the purpose of Article 5(1), point (a), thereof, and subject to the provisions of Article 8(4) thereof: €STR minus 20 basis points. _____________ (*) Regulation (EU) 2024/2773 of the European Parliament and of the Council of 24 October 2024 establishing the Ukraine Loan Cooperation Mechanism and providing exceptional macro-financial assistance to Ukraine (OJ L, 2024/2773, 28.10.2024, ELI: http://data.europa.eu/eli/reg/2024/2773/oj).’. Article 3 Entry into force 1. This Decision shall enter into force on the day following that of its publication in the Official Journal of the European Union. 2. It shall apply from 1 August 2025. Done at Frankfurt am Main, 16 July 2025. For the Governing Council of the ECB The President of the ECB Christine LAGARDE 2/2 ELI: http://data.europa.eu/eli/dec/2025/1512/oj

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