2014/303/EU: Decision of the European Central Bank of 20 February 2014 on the prohibition of monetary financing and the remuneration of government deposits by national central banks (ECB/2014/8)

For the purposes of this Decision: (a) ‘government’ means all public entities mentioned in Article 123 of the Treaty, as interpreted in the light of Regulation (EC) No 3603/93, except for publicly-owned credit institutions which, in the context of the supply of reserves by NCBs, are given the same treatment by NCBs and the ECB as private credit institutions; (b) ‘government deposits’ means overnight and fixed-term deposits accepted by NCBs from any government; (c) ‘unsecured overnight market rate’ means: (i) with regard to overnight deposits in euro, the euro overnight index average rate (EONIA); and (ii) with regard to overnight deposits in a different currency, a comparable rate; (d) ‘secured market rate’ means: (i) with regard to fixed term deposits in euro, the euro repo market offered rate (EUREPO) with comparable maturity if available; and (ii) with regard to fixed term deposits in a different currency, a comparable rate.

1 For the purposes of monitoring compliance with the prohibition on monetary financing, the following ceilings on the remuneration of government deposits with NCBs shall apply: (a) for overnight deposits, the unsecured overnight market rate; (b) for fixed-term deposits, the secured market rate or, if unavailable, the unsecured overnight market rate.

2 Compliance with the ceilings referred to in paragraph 1 shall be assessed in the light of all relevant facts specific to each individual case.

1 The provisions of this Decision shall be applied by the ECB from 1 December 2014.

2 This Decision shall enter into force on 22 February 2014.