Brussels, 16/12/2010 (Agence Europe) - While the heads of state and government were gathering in Brussels, the European Central Bank announced its decision to substantially increase its subscribed capital in order to “promote financial stability” in the face of the surge in market volatility. The capital of the ECB will thus rise from €5.76 to €10.76 billion in three equal instalments, to be raised from national central banks in the eurozone. The increase - the first in 12 years - represents the maximum amount authorised by EU and ECB rules.
The institution has, moreover, underlined that the minimum percentage of subscribed capital that national central banks not belonging to the eurozone are compelled to release as participation in the ECB's operating costs will be brought down from 7% to 3.75%. Thus, the ECB press release states: “the non-euro area national central banks (NCBs) consequently will make only minor adjustments to their capital shares, which will result in payments totalling €84,220 on 29 December”.
According to an International Monetary Fund spokesman, this capital increase decided by the ECB is a step towards a sounder European plan for facing up to economic pressure. The decision, backed by Germany, was well received by the markets which, however, remain cautious pending the decisions of the heads of state and government in support of single currency. (F.G./transl.jl)