Circular BCL 2007/204 of 20 August 2007 — Adoption of the euro by Cyprus and Malta

1 / 5
Luxembourg, 20 August 2007
To all Monetary OPCs

CIRCULAR BCL 2007/204
Adoption of the euro by Cyprus and Malta

Ladies and Gentlemen,

On the occasion of the European Council meeting in Brussels on 10 July 2007, the Heads of State and Government of the European Union decided that, effective 1 January 2008, Cyprus and Malta would adopt the single currency, the euro.

The objective of this circular is to describe the impact of the adoption of the euro by Cyprus and Malta on the preparation of monthly statistical reports as well as quarterly statistical reports.

1. Impact on statistical data collection by the BCL

1.1 Impact on monthly statistical data collection

The monthly statistical report S 1.3 "Monthly Statistical Balance Sheet of OPCs" requires an allocation of amounts according to the country of residence or registered office of the counterparty, that is to say the country in which the centre of economic interests of the counterparty in question is located, distinguishing the following four allocations:

• All countries: this class groups all operations regardless of the country of residence or registered office of the counterparty
• Luxembourg (LU)
• Other EMU Member States: that is to say the Other Member States of the Monetary Union

2 / 5

• Rest of the world: that is to say the countries that do not fall into the "Luxembourg" and "Other EMU Member States" categories

From 1 January 2008, the category "Other EMU Member States" (Other EMUM) will also include Cyprus and Malta, which currently, and until 31 December 2007 inclusive, appear under the category "Rest of the world".

Furthermore, it is reminded to Monetary OPCs that the inclusion of Cyprus and Malta under the category "Other EMU Member States" implies a more detailed sectoral breakdown of assets and liabilities towards counterparties residing in Cyprus and/or Malta. The details of this sectoral breakdown can be consulted in Annex 1 - S 1.3 "Monthly Statistical Balance Sheet" (pp. 6 to 15) of Circular BCL 2002/171.

Monetary OPCs are therefore invited to modify their reporting systems so as to include assets and liabilities towards a counterparty residing in Cyprus and/or Malta under the category "Other EMU Member States" while ensuring that the appropriate sectoral breakdown is carried out.

1.2 Impact on quarterly statistical data collection

1.2.1. Report S 2.10 "Country Breakdown"

The quarterly statistical report S 2.10 "Country Breakdown" also requires an allocation of amounts according to the country of residence or registered office of the counterparty, distinguishing the following allocations:

• Luxembourg (LU)
• Belgium (BE)
• Germany (DE)
  including Helgoland
• Greece (GR)
• France (FR)
  including the Overseas Departments (French Guiana, Guadeloupe, Martinique and Réunion), Saint Pierre and Miquelon, Mayotte and Monaco
• Spain (ES)
  including the Canary Islands and Ceuta and Melilla
• Ireland (IE)

3 / 5

• Italy (IT)
  including San Marino and the Vatican
• Netherlands (NL)
• Austria (AT)
• Portugal (PT)
  including the Azores and Madeira
• Finland (FI)
  including Åland
• Denmark (DK)
• Sweden (SE)
• Great Britain
  including Guernsey, Jersey, Isle of Man, Anguilla, Montserrat, the British Virgin Islands, the Turks and Caicos Islands
• Rest of the world: that is to say the countries that do not fall into the categories mentioned above.

Since the ECB is currently reviewing Regulation ECB/2001/13 on the consolidated balance sheet of monetary financial institutions, the modified version of which should enter into force on 1 January 2009, the BCL has decided not to modify, at present, report S 2.10 "Country Breakdown". Thus, Slovenia, Cyprus and Malta will continue to be reported in the "Rest of the world" line.

1.2.2. Reports S 2.11 "Currency Breakdown" and S 2.12 "Sector Breakdown"

The quarterly statistical reports S 2.11 "Currency Breakdown" and S 2.12 "Sector Breakdown" also require an allocation of amounts according to the country of residence or registered office of the counterparty, distinguishing the following three allocations:

• Luxembourg (LU)
• Other EMU Member States: that is to say the Other Member States of the Monetary Union
• Rest of the world: that is to say the countries that do not fall into the two categories mentioned above.

4 / 5

From 1 January 2008, the category "Other EMU Member States" (Other EMUM) will also include Cyprus and Malta, which currently, and until 31 December 2007 inclusive, appear under the category "Rest of the world".

Furthermore, it is reminded to Monetary OPCs that the inclusion of Cyprus and Malta under the category "Other EMU Member States" implies a more detailed sectoral breakdown of assets and liabilities towards counterparties residing in Cyprus and/or Malta. The details of this sectoral breakdown can be consulted in Annex 3 - S 2.11 "Currency Breakdown" (pp. 6 to 15) and Annex 4 - S 2.12 "Sector Breakdown" (pp. 5 to 14) of Circular BCL 2002/171.

Monetary OPCs are therefore invited to modify their reporting systems so as to include assets and liabilities towards a counterparty residing in Cyprus and/or Malta under the category "Other EMU Member States" while ensuring that the appropriate sectoral breakdown is carried out.

2. Quality of transmitted data

It is once again reminded to the concerned Monetary OPCs to ensure scrupulous identification of their counterparties and to use for this purpose, in particular, the official list of credit institutions published by the Commission de Surveillance du Secteur Financier as well as the official list of monetary financial institutions made available to reporting institutions on the website of the European Central Bank.

We therefore consider it necessary to once again emphasize the importance of the quality of data transmitted to the BCL and the need to submit data to detailed verification rules contained in the technical documentation before transmission. Only rigorous control carried out at the time of data production will allow meeting both quality requirements and imposed deadlines. This point is all the more important as the data thus collected will be controlled by the ECB services before being aggregated with data from other Member States. Any significant error or negligence will have damaging repercussions on the reputation of the entire national banking community.

5 / 5

3. Entry into force of the new provisions

The new classification of assets and liabilities towards residents of Cyprus and/or Malta is to be carried out for the first time when preparing the monthly statistical reports relating to the January 2008 period as well as when preparing the quarterly statistical reports relating to the March 2008 period.

Please accept, Ladies and Gentlemen, the assurance of our most distinguished sentiments.

CENTRAL BANK OF LUXEMBOURG
The Management

Serge KOLB Andrée BILLON Yves MERSCH