Consolidated financial statement of the Eurosystem as at 31 December 2010

5 January 2011

Items not related to monetary policy operations

In the week ending 31 December 2010 the increase of EUR 33 billion in gold and gold receivables (asset item 1) reflected quarterly revaluation adjustments.

The net position of the Eurosystem in foreign currency (asset items 2 and 3 minus liability items 7, 8 and 9) increased by EUR 3.7 billion to EUR 180.1 billion. The change was due mainly to the effects of the quarterly revaluation of assets and liabilities, as well as to customer and portfolio transactions carried out by Eurosystem central banks.

On 31 December 2010 a liquidity-providing repurchase transaction of EUR 1.8 billion, with a maturity of three days, was settled, affecting claims on non-euro area residents denominated in euro (asset item 4). This transaction was conducted by the ECB in connection with liquidity arrangements in place with central banks outside the euro area.

The holdings by the Eurosystem of marketable securities other than those held for monetary policy purposes (asset item 7.2) decreased by EUR 2.5 billion to EUR 322.6 billion, owing mainly to revaluations. Banknotes in circulation (liability item 1) decreased by EUR 2.6 billion to EUR 839.7 billion. Liabilities to general government (liability item 5.1) decreased by EUR 8.1 billion to EUR 71.7 billion.

On 16 December 2010 the ECB announced that its subscribed capital would be increased by EUR 5 billion with effect from 29 December 2010. To smooth the transfer of the capital payments to the ECB, the euro area national central banks would pay their additional capital contribution of EUR 3.5 billion in three equal annual instalments. The first instalment of EUR 1.2 billion was paid on 29 December 2010. This payment gave rise to intra-Eurosystem balances, but since such balances are always eliminated through the consolidation process no change owing to this capital increase is shown under capital and reserves (liability item 12) in the Eurosystem consolidated financial statement. However, the capital increase will be reflected in the ECB’s annual accounts, which will be published in March 2011.

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) decreased by EUR 3.1 billion to EUR 381.5 billion. On Wednesday, 29 December 2010, a main refinancing operation of EUR 193.5 billion matured and a new one of EUR 227.9 billion was settled. On the same day, fixed-term deposits in an amount of EUR 72.5 billion matured and new deposits were collected in an amount of EUR 60.8 billion, with a maturity of one week.

Recourse to the marginal lending facility (asset item 5.5) was virtually nil (compared with EUR 0.8 billion in the previous week), while recourse to the deposit facility (liability item 2.2) was EUR 104.5 billion (compared with EUR 55.4 billion in the preceding week).

The holdings by the Eurosystem of securities held for monetary policy purposes (asset item 7.1) increased by EUR 0.34 billion to EUR 134.8 billion. This was due to settled purchases of EUR 0.16 billion under the Securities Markets Programme and to quarter-end adjustments of EUR 0.18 billion. Therefore, in the week ending 31 December 2010 the value of the accumulated purchases under the Securities Markets Programme and that of the portfolio held under the covered bond purchase programme totalled EUR 74 billion and EUR 60.9 billion respectively. Both portfolios are accounted for on a held-to-maturity basis.

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) increased by EUR 6.6 billion to EUR 212.7 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 31 December 2010 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 1055.418 per fine oz.

USD: 1.3362 per EUR

JPY: 108.65 per EUR

Special drawing rights: EUR 1.1572 per SDR

Assets (EUR millions) Balance Difference compared with last week due to
i)transactions
ii)quarter-end adjustments
Totals/sub-totals may not add up, due to rounding
i) ii)
1 Gold and gold receivables 367,402 0 33,018
2 Claims on non-euro area residents denominated in foreign currency 223,995 −316 4,135
2.1 Receivables from the IMF 71,319 33 1,050
2.2 Balances with banks and security investments, external loans and other external assets 152,675 −349 3,085
3 Claims on euro area residents denominated in foreign currency 26,941 76 911
4 Claims on non-euro area residents denominated in euro 22,592 3,577 −69
4.1 Balances with banks, security investments and loans 22,592 3,577 −69
4.2 Claims arising from the credit facility under ERM II 0 0 0
5 Lending to euro area credit institutions related to monetary policy operations denominated in euro 546,747 33,620 0
5.1 Main refinancing operations 227,865 34,395 0
5.2 Longer-term refinancing operations 298,217 0 0
5.3 Fine-tuning reverse operations 20,623 0 0
5.4 Structural reverse operations 0 0 0
5.5 Marginal lending facility 25 −779 0
5.6 Credits related to margin calls 17 4 0
6 Other claims on euro area credit institutions denominated in euro 45,654 3,605 0
7 Securities of euro area residents denominated in euro 457,427 −10 −2,113
7.1 Securities held for monetary policy purposes 134,829 163 181
7.2 Other securities 322,598 −173 −2,294
8 General government debt denominated in euro 34,954 −2 −13
9 Other assets 278,719 2,548 −689
Total assets 2,004,432 43,098 35,179
Liabilities (EUR millions) Balance Difference compared with last week due to
i)transactions
ii)quarter-end adjustments
Totals/sub-totals may not add up, due to rounding
i) ii)
1 Banknotes in circulation 839,702 −2,593 0
2 Liabilities to euro area credit institutions related to monetary policy operations denominated in euro 378,008 43,308 0
2.1 Current accounts (covering the minimum reserve system) 212,739 6,616 0
2.2 Deposit facility 104,458 49,087 0
2.3 Fixed-term deposits 60,784 −11,716 0
2.4 Fine-tuning reverse operations 0 0 0
2.5 Deposits related to margin calls 27 −679 0
3 Other liabilities to euro area credit institutions denominated in euro 2,808 280 0
4 Debt certificates issued 0 0 0
5 Liabilities to other euro area residents denominated in euro 79,791 −7,865 0
5.1 General government 71,684 −8,063 0
5.2 Other liabilities 8,107 198 0
6 Liabilities to non-euro area residents denominated in euro 47,703 2,998 13
7 Liabilities to euro area residents denominated in foreign currency 1,995 324 21
8 Liabilities to non-euro area residents denominated in foreign currency 14,346 −370 335
8.1 Deposits, balances and other liabilities 14,346 −370 335
8.2 Liabilities arising from the credit facility under ERM II 0 0 0
9 Counterpart of special drawing rights allocated by the IMF 54,480 0 815
10 Other liabilities 175,932 7,067 −792
11 Revaluation accounts 331,524 0 34,784
12 Capital and reserves 78,143 −50 5
Total liabilities 2,004,432 43,098 35,179

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