FRANKFURT: The European Central Bank has set minimum reserves for banks in Lithuania, the ECB said on Friday.
Following is its statement: On 21 October 2014 the Executive Board of the European Central Bank (ECB) adopted a Decision on the application of minimum reserves by the ECB following the introduction of the euro in Lithuania on 1 January 2015 (ECB/2014/42).
As of that date, credit institutions and branches of credit institutions (hereafter referred to as "institutions") located in Lithuania will be subject to the Eurosystem's minimum reserve requirements.
Given that the regular reserve maintenance period runs from 10 December 2014 to 27 January 2015, transitional provisions will be necessary to ensure that the relevant institutions are integrated smoothly into the Eurosystem's minimum reserve system, without placing a disproportionate burden on them.
The Decision, in line with decisions taken when other countries joined the euro area, provides for a transitional maintenance period from 1 to 27 January 2015 for the imposition of minimum reserve requirements on institutions located in Lithuania.
Furthermore, the Decision sets out specific rules governing the application of minimum reserve requirements during the transitional period and, in particular, describes the method for calculating the reserve base in relation to the transitional period for liabilities owed to institutions located in Lithuania.
In this respect, institutions located in other Member States whose currency is the euro may decide to deduct any liabilities owed to institutions located in Lithuania from their reserve base for the maintenance periods from 10 December 2014 to 27 January 2015 and from 28 January to 10 March 2015.
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