Circular BCL 2008/220 of 5 September 2008 - Adoption of the euro by Slovakia - Implications for statistical declarations concerning the balance of payments

Luxembourg, 5 September 2008
To all credit institutions and to the financial services of the Post and Telecommunications Company (postal checking account service)

CIRCULAR BCL 2008/220
Adoption of the euro by Slovakia
Implications for statistical declarations concerning the balance of payments

Ladies and Gentlemen,

At the European Council meeting held in Brussels on 19 and 20 June 2008, the Heads of State and Government of the European Union decided that, effective 1 January 2009, Slovakia will adopt the single currency, the euro.

The objective of this circular is to describe the impact of this accession on the establishment of balance of payments directories. Indeed, declarants must ensure that Slovakia is integrated into the territorial concept constituted by the European Economic and Monetary Union (EMU) and consequently, use the operation codes appropriately for which there is a geographical distinction between EMU and non-EMU.

1 Securities
Financial transactions carried out by Luxembourg residents on securities issued by residents of Slovakia must be reported via the category of EMU security operation codes, namely codes 421, 422, 424, 428, 429, 473 and 478, to be chosen according to the nature of the security, its maturity and the event considered (purchase/sale or repayment).

In particular, operation codes 441, 442, 444, 448, 449, 474 and 479 must no longer be used for the coding of financial transactions on securities issued by residents of Slovakia.

2 Direct investments
Direct investment operations carried out by residents of the private sector towards Slovakia will also be affected by this change. Where appropriate, operation codes 430 (establishment and increase of capital) and 431 (purchase of participation) must be used, and no longer codes 434 and 435 reserved for direct investments carried out outside the EMU.

Regarding operations towards Luxembourg by investors established in Slovakia, there will be no change since there is no geographical zone distinction for investments made in this direction.

3 Entry into force
The modifications described above will take effect on 1 January 2009. Transactions included in the directories transmitted in 2009 but relating to transactions with foreign countries carried out in 2008 must be recorded by applying the geographical definition of the EMU in force until 31 December 2008.

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

CENTRAL BANK OF LUXEMBOURG
The Directorate

Serge KOLB Andrée BILLON Yves MERSCH