Consolidated financial statement of the Eurosystem as at 29 June 2007

Items not related to monetary policy operations

In the week ending 29 June 2007, the decrease of EUR 7.1 billion in gold and gold receivables (asset item 1) mainly reflected quarterly revaluation adjustments, as well as sales of gold by three Eurosystem central banks (consistent with the Central Bank Gold Agreement of 27 September 2004).

The net position of the Eurosystem in foreign currency (asset items 2 and 3 minus liability items 7, 8 and 9) fell by EUR 1.6 billion to EUR 144.3 billion. The change was due mainly to the effects of the quarterly revaluation of assets and liabilities, while customer and portfolio transactions carried out by Eurosystem central banks in the period under review resulted in an increase of EUR 0.6 billion.

The holdings by the Eurosystem of marketable securities of euro area residents denominated in euro (asset item 7) decreased by EUR 0.2 billion to EUR 93.7 billion, in large part due to quarterly revaluation adjustments. Banknotes in circulation (liability item 1) rose by EUR 5.2 billion to EUR 633.1 billion. Liabilities to general government (liability item 5.1) increased by EUR 19.8 billion to EUR 69.7 billion.

Items related to monetary policy operations

The Eurosystem’s net lending to credit institutions (asset item 5 minus liability items 2.2, 2.3, 2.4, 2.5 and 4) increased by EUR 25.5 billion to EUR 463.5 billion. On Wednesday, 27 June 2007, a main refinancing operation of EUR 288 billion matured and a new one of EUR 313.5 billion was settled. On Thursday, 28 June 2007, a longer-term refinancing operation of EUR 50 billion matured and a new one of EUR 50 billion was settled.

Recourse to both the marginal lending facility (asset item 5.5) and the deposit facility (liability item 2.2) was EUR 1.1 billion (compared with EUR 0.1 billion in the previous week).

Current accounts of euro area credit institutions

As a result of all transactions, the current account position of credit institutions with the Eurosystem (liability item 2.1) decreased by EUR 7.4 billion to EUR 182.1 billion.

Quarter-end revaluation of the Eurosystem’s assets and liabilities

In line with the Eurosystem’s harmonised accounting rules, gold, foreign exchange, securities holdings and financial instruments of the Eurosystem are revalued at market rates and prices as at the end of each quarter. The net impact of the revaluation on each balance sheet item as at 29 June 2007 is shown in the additional column “ Difference compared with last week due to quarter-end adjustments”. The gold price and the principal exchange rates used for the revaluation of balances were as follows:

Gold: EUR 480.193 per fine oz.

USD: 1.3505 per EUR

JPY: 166.63 per EUR

Special drawing rights: EUR 1.1224 per SDR