Circular Letter ST.12-0653 — European Stability Mechanism (ESM): consequences on statistical reporting

2, boulevard Royal L-2983 Luxembourg Fax (+352) 4774-4920 E-mail: reporting.banques@bcl.lu Ref.: ST-12-0653 Luxembourg, October 2, 2012 Circular Letter To all credit institutions Subject: Circular Letter concerning the European Stability Mechanism (ESM):
consequences on statistical reporting

Madam, Sir,

On February 2, 2012, the representatives of the Member States of the euro area signed the Treaty establishing the European Stability Mechanism (ESM) T/ESM 2012. This treaty entered into force on September 27, 2012. The ESM is an international financial institution headquartered in Luxembourg.

The objective of this circular letter is to describe the impact of this decision on the preparation of monthly and quarterly statistical reports.

1. Monthly Statistical Report S 1.1

Following a decision by the European Commission (DG Eurostat), the ESM must be considered as an international organization for statistical reporting purposes. Therefore, the ESM should not be classified among the residents of Luxembourg, even though the headquarters of this organization is based in Luxembourg. Thus, within the framework of the monthly statistical report S 1.1, any operations on the asset or liability side of your credit institution's balance sheet with the ESM must be reported in the appropriate sections within the country "Other Member States of the Monetary Union" (BCL code X3).

2, boulevard Royal L-2983 Luxembourg Fax (+352) 4774-4920 E-mail: reporting.banques@bcl.lu

Regarding the institutional sector, the European Commission has decided to classify this organization in the sector of "Other Financial Intermediaries" (BCL code 41100). Thus, as an example, an euro-denominated demand deposit of the ESM within your credit institution would be reported in the S 1.1 report on the liability side under item 2-021-X3-EUR-41100 (maturity BRX).

2. Quarterly Statistical Report S 2.5

Country code XI, specifically created to identify operations with the ESM, should be used. Indeed, code X3 is not accepted when a breakdown by ISO country code is required within the S 2.5 report. The document "Definitions and concepts for statistical reporting by credit institutions" will be adapted accordingly.

Regarding the institutional sector within the S 2.5 report, the ESM will be classified among "Other Financial Intermediaries" (BCL code 41119).

Thus, as an example, an euro-denominated demand deposit of the ESM within your credit institution would be reported in the S 2.5 report on the liability side under item 2-021-XI-EUR-41119 (maturity BRX).

These changes will enter into force with immediate effect and are to be applied as soon as your institution conducts operations with the ESM. In case of questions, we remain at your disposal at the following address: reporting.banques@bcl.lu

Please accept, Madam, Sir, the assurance of our highest consideration.

CENTRAL BANK OF LUXEMBOURG
Romain Weber Roland Nockels
Head of Section Banking and Monetary Statistics Head of Department Statistics