Release of credit institutions' compulsory redeposits in foreign currency with the Bank of Greece
05/12/2000 - Press Releases
Further to Monetary Policy Council Act 37/30 June 2000, which adjusted
the framework governing credit institutions’ minimum reserves in drachmas and in foreign
currency held with the Bank of Greece to the respective framework applied by the European
Central Bank (ECB), Monetary Policy Council Act 43/5 December 2000 lays down transitional
provisions on the release of banks’ compulsory redeposits with the Bank of Greece, under
Bank of Greece Governor’s Act 2358/28 April 1995, in respect of their foreign currency
deposits held by special categories of depositors (Greek seamen, workers abroad etc.). It
should be noted that these deposits, as of 10 July 2000, are included in the reserve base
adopted by the ECB and are subject to a uniform reserve ratio of 2%.
Specifically, under Monetary Policy Council Act 43/5 December 2000, the
amounts of the above redeposits outstanding on 11 December 2000 shall be released as
- Deposits in euro or in national denominations of the euro:
50% of the relevant amounts shall be released on 3 January 2001; the
remainder shall be released on 28 March 2001.
As of 3 January 2001, such deposits shall be remunerated at the rate
applied by the ECB to its main refinancing operations.
- Deposits in other currencies
The amounts to be released shall be kept as time deposits maturing in
three, nine and fifteen months, except for a part amounting to 10% which will be repaid to
banks on 3 January 2001.
As of 3 January 2001, these time deposits shall be remunerated at the
respective Libor rate plus 1/4% and interest shall be reckoned on a quarterly basis.
- As of 12 December 2000, Bank of Greece Governor’s Act 2358/28 April 1995, as amended,
shall be repealed.