Brussels, 21/03/2006 (Agence Europe) - After a net loss of €1,636 million in 2004, the 2005 tax year ended back in balance for the European Central Bank (ECB). The ECB earned a surplus of €992 million in 2005. An equivalent amount was set aside in a provision against foreign exchange rate, interest rate and gold price risks, leaving a declared net profit of exactly nil. With many assets in dollar bills, the ECB benefited from the appreciation of the US currency in comparison to the Euro to improve its results, explained a press release. In 2005 the dollar appreciated by 13% against the Euro whereas in 2004 it depreciated by 16%. The total net interest income rose to EUR 1,270 million compared to EUR 690 million in 2004. The press statement also explained that the ECB had paid remuneration of EUR 710 million to the national central banks on their claims in respect of the foreign reserve assets transferred by them to the ECB.
Despite a slight increase in staffing levels (1352 were working for the ECB at the end of 2005 as opposed to 1309 the previous year), charges for spending on personnel, rent, fees, purchases of goods and services fell, due to changes in the accounting treatment applied to the recognition of net actuarial gains and losses in respect of the ECB's retirement plan. Spending in this area reached EUR 316 million in 2005, as opposed to 340 million in 2004.