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)
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Address https://gelex.eu/eli/EU/decision/2023/817@2023-04-05/en
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) and Article 5 of Decision ECB/2010/4 of the European Central Bank. Decision (EU) 2022/1521 of the European Central Bank (ECB/2022/30) 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), 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: (a) accounts maintained in accordance with Decision ECB/2003/14 of the European Central Bank, Decision ECB/2010/4 of the European Central Bank, Decision ECB/2010/17 of the European Central Bank, Decision ECB/2010/31 of the European Central Bank, and Council Regulation (EU) 2020/672; (b) other deposit accounts for the European Stability Mechanism and for the European Financial Stability Facility not covered under point (a). Para. 001. The holdings in the following accounts maintained with the ECB shall be remunerated at the euro short-term rate (€STR) minus 20 basis points: 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) paragraph 1 is replaced by the following: (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. Para. 002. 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: 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. (2) paragraph 2 is replaced by the following:
(1) paragraph 1 is replaced by the following: (a) accounts maintained in accordance with Decision ECB/2003/14 of the European Central Bank, Decision ECB/2010/4 of the European Central Bank, Decision ECB/2010/17 of the European Central Bank, Decision ECB/2010/31 of the European Central Bank, and Council Regulation (EU) 2020/672; (b) other deposit accounts for the European Stability Mechanism and for the European Financial Stability Facility not covered under point (a). Para. 001. The holdings in the following accounts maintained with the ECB shall be remunerated at the euro short-term rate (€STR) minus 20 basis points: 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. The holdings in the following accounts maintained with the ECB shall be remunerated at the euro short-term rate (€STR) minus 20 basis points: 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. (a) accounts maintained in accordance with Decision ECB/2003/14 of the European Central Bank, Decision ECB/2010/4 of the European Central Bank, Decision ECB/2010/17 of the European Central Bank, Decision ECB/2010/31 of the European Central Bank, and Council Regulation (EU) 2020/672; (b) other deposit accounts for the European Stability Mechanism and for the European Financial Stability Facility not covered under point (a).
(a) accounts maintained in accordance with Decision ECB/2003/14 of the European Central Bank, Decision ECB/2010/4 of the European Central Bank, Decision ECB/2010/17 of the European Central Bank, Decision ECB/2010/31 of the European Central Bank, and Council Regulation (EU) 2020/672;
(b) other deposit accounts for the European Stability Mechanism and for the European Financial Stability Facility not covered under point (a).
(2) paragraph 2 is replaced by the following: (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. Para. 002. 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: 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.
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: 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. (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.
(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.
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