Instruction No. 8/2022

Instruction No. 8/2022 BO No. 4/2022 Supplement • 2022/04/20 .................................................................................................................................................................................................. Topics Payment Systems :: Large-Value Payment System Mod. 99999940/T – 01/14 Index Text of the Instruction Text of the Instruction Subject: Amendment to Instruction No. 54/2012 - TARGET2-PT Regulation The regulatory framework for TARGET2-PT – the Portuguese component of the Eurosystem’s Real-Time Gross Settlement (RTGS) system – is set out in Instruction No. 54/2012 of 15 January 2013 – TARGET2-PT Regulation, published in compliance with European Central Bank Guideline ECB/2012/27, which reformulated Guideline ECB/2007/2, which established TARGET2. Following the publication of European Central Bank Guideline ECB/2022/4 of 17 February 2022, it is necessary to amend Instruction No. 54/2012 of 15 January 2013. This amendment aims primarily to specify limitations on the remuneration of deposits of public administrations held by national central banks, in their capacity as fiscal agents under Article 21-2 of the Statutes of the European System of Central Banks and of the European Central Bank, with a view to pursuing the single monetary policy and encouraging public administration deposits in the market, ensuring the coherent and effective application of the general principles on the remuneration of these deposits. Thus, in the exercise of the competence attributed to it by Article 14 of its Organic Law, which confers powers to regulate, supervise and promote the proper functioning of payment systems, notably within the scope of its participation in the European System of Central Banks (ESCB), and with a view to regulating the functioning of the national component of the TARGET2 system – TARGET2-PT –, the Bank of Portugal determines the following:

1. In Annex II, Article 12(5) shall be replaced by the following text: “5. MP accounts and their sub-accounts shall be remunerated at a rate of zero percent or at the deposit facility interest rate, whichever is lower, unless they are used to hold any of the following: a) minimum reserves; b) excess reserves;

c) deposits of public administrations, as defined in Article 2(5) of Guideline (EU) 2019/671 (ECB/2019/7). In the case of minimum reserves, the calculation and payment of remuneration for held minimum reserves shall be governed by the provisions of Council Regulation (EC) No 2531/98 () and European Central Bank Regulation (EU) 2021/378 (ECB/2021/1) (). In the case of excess reserves, the calculation and payment of remuneration for held reserves shall be governed by the provisions of Decision (EU) 2019/1743 (ECB/2019/31) (). In the case of deposits of public administrations, the remuneration of held deposits shall be governed by the provisions relating to deposits of public administrations established in Article 4 of Guideline (EU) 2019/671 (ECB/2019/7) (). () Council Regulation (EC) No 2531/98 of 23 November 1998 concerning the application of minimum reserves by the European Central Bank (OJ L 318 of 27.11.1998, p. 1). () European Central Bank Regulation (EU) 2021/378 of 22 January 2021 on the application of minimum reserve requirements (ECB/2021/1) (OJ L 73 of 3.3.2021, p. 1). (**) European Central Bank Decision (EU) 2019/1743 of 15 October 2019 on the remuneration of excess reserves and certain deposits (ECB/2019/31) (OJ L 267 of 21.10.2019, p. 12.). (****) European Central Bank Guideline (EU) 2019/671 of 9 April 2019 on domestic asset and liability management operations by national central banks (ECB/2019/7) (OJ L 113 of 29.4.2019, p. 11).”

2. In Annex II-B, Article 15(5) shall be replaced by the following text: “5. CND TIPS shall be remunerated at a rate of zero percent or at the deposit facility interest rate, whichever is lower, unless they are used to hold any of the following: a) minimum reserves; b) excess reserves; c) deposits of public administrations, as defined in Article 2(5) of Guideline (EU) 2019/671 (ECB/2019/7). In the case of minimum reserves, the calculation and payment of remuneration for held minimum reserves shall be governed by the provisions of Council Regulation (EC) No 2531/98 () and European Central Bank Regulation (EU) 2021/378 (ECB/2021/1) (). In the case of excess reserves, the calculation and payment of remuneration for held reserves shall be governed by the provisions of Decision (EU) 2019/1743 (ECB/2019/31) ().

c) deposits of public administrations, as defined in Article 2(5) of Guideline (EU) 2019/671 (ECB/2019/7). In the case of deposits of public administrations, the remuneration of held deposits shall be governed by the provisions relating to deposits of public administrations established in Article 4 of Guideline (EU) 2019/671 (ECB/2019/7) (). () Council Regulation (EC) No 2531/98 of 23 November 1998 concerning the application of minimum reserves by the European Central Bank (OJ L 318 of 27.11.1998, p. 1). () European Central Bank Regulation (EU) 2021/378 of 22 January 2021 on the application of minimum reserve requirements (ECB/2021/1) (OJ L 73 of 3.3.2021, p. 1). (**) European Central Bank Decision (EU) 2019/1743 of 15 October 2019 on the remuneration of excess reserves and certain deposits (ECB/2019/31) (OJ L 267 of 21.10.2019, p. 12.). (****) European Central Bank Guideline (EU) 2019/671 of 9 April 2019 on domestic asset and liability management operations by national central banks (ECB/2019/7) (OJ L 113 of 29.4.2019, p. 11).”

3. The provisions contained in this Instruction shall apply from 2 May 2022.