This document is an excerpt from the EUR-Lex website
Document 31993R3603
Prohibition on the central banks granting credit facilities to public authorities and undertakings
Deze samenvatting is gearchiveerd en wordt niet meer bijgewerkt omdat het betrokken document achterhaald of niet meer van kracht is.
Prohibition on the central banks granting credit facilities to public authorities and undertakings
This regulation clarifies the Treaty provisions prohibiting central banks giving credit facilities to public authorities and undertakings.
ACT
Council Regulation (EC) No 3603/93 of 13 December 1993 specifying definitions for the application of the prohibitions referred to in Articles 104 and 104b(1) of the Treaty.
SUMMARY
The following definitions are given:
- any claim against the public sector existing at 1 January 1994, except for fixed-maturity claims acquired before that date;
- any financing of the public sector´s obligations vis-à-vis third parties;
- any transaction with the public sector resulting or likely to result in a claim against that sector.
During stage two of EMU, purchases by the national central bank of one Member State, conducted for the purpose of managing foreign exchange reserves, of marketable debt instruments issued by the public sector of another Member State are not considered direct purchases.
During stage three of EMU, the following purchases conducted for the purpose of managing foreign exchange reserves are not considered direct purchases:
Intra-day credits by the European Central Bank or the national central banks to the public sector are not considered as a credit facility, provided that they remain limited to the day and that no extension is possible.
5.The holding by the European Central Bank or by a national central bank of coins issued by the public sector and credited to the public sector is not regarded as a credit facility where the amount of these assets remains at less than 10% of the coins in circulation.
The financing by the ECB or the national central banks of obligations falling upon the public sector vis-à-vis the IMF or resulting from the implementation of the financial assistance facility is not regarded as a credit facility.
"Public undertaking" is defined as any undertaking over which the State or other regional or local authorities may directly or indirectly exercise a dominant influence by virtue of their ownership of it, their financial participation therein or the rules which govern it.
The European Central Bank and the national central banks do not form part of the public sector.
References
Act |
Entry into force |
Deadline for transposition in the Member States |
Official Journal |
Regulation (EC) No 3603/93 |
01.01.1994 |
- |
Official Journal L 332 of 31.12.19 |
Last updated: 20.06.2006