PRESS RELEASE

ECB Guideline adopting certain provisions on frontloading outside the euro area

13 September 2001

Frankfurt am Main, 13 September 2001

The Governing Council of the European Central Bank (ECB) has today decided that, as from 1 December 2001, national central banks (NCBs) of the euro area may frontload non-euro area credit institutions specialising in the wholesale distribution of banknotes, upon request and subject to certain terms and conditions. All operational and practical arrangements for such frontloading shall be taken care of bilaterally by the approached euro area NCB and its respective counterparty.

Further to the press release issued by the ECB on 5 July 2001 when the Governing Council of the ECB took the decision to frontload euro banknotes to central banks outside the euro area, the Governing Council agreed on a Guideline adopting certain provisions on frontloading outside the euro area. This Guideline and the Guideline of the ECB of 10 January 2001 on certain provisions of the 2002 cash changeover constitute a comprehensive legal framework for a smooth cash changeover both inside and outside the euro area.

Also, as from 1 December 2001 central banks outside the euro area may sub-frontload credit institutions having their head or registered office in their jurisdiction. Non-euro area credit institutions specialising in the wholesale distribution of banknotes may, from the same date, sub-frontload euro banknotes to other credit institutions outside the euro area. This sub-frontloading shall take place under certain conditions. Irrespective of which institution (a central bank outside the euro area or a non-euro area credit institution specialising in wholesale distribution of banknotes) sub-frontloads them, the recipient sub-frontloaded credit institutions shall not be allowed to further sub-frontload any third party whatsoever in 2001. In any event, the frontloaded/sub-frontloaded banknotes are not allowed to be put into circulation before 00.00 local time on 1 January 2002.

The new Guideline will shortly be published in all 11 official languages of the European Community and can be obtained via the ECB's website [section: Legal documents].

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