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PRESS RELEASE

Distribution of frontloaded euro banknotes outside the euro area

14 December 2000

Further to the ECB's press release of 3 August 2000 when the decisions of the Governing Council of the ECB regarding the euro area financial modalities for the 2002 cash changeover were announced, the Governing Council agreed on the general principles of the distribution of frontloaded euro banknotes outside the euro area as from 1 December 2001. The decisions take into account that providing the banking sector outside the euro area with euro banknotes will contribute to a smoother cash changeover in 2002.

  • Credit institutions which are counterparties for monetary policy operations within the Eurosystem will be allowed to distribute frontloaded euro banknotes to their branches, or headquarters, as appropriate, located outside the euro area. The general conditions of frontloading, as outlined in the press release of 3 August 2000, apply accordingly.

  • Credit institutions with their main place of business inside the euro area will be allowed to sub-frontload euro banknotes to their subsidiaries that are also credit institutions and are located outside the euro area or to other credit institutions which have neither their registered nor their head office inside the euro area. The financial modalities, as outlined in the press release of 3 August 2000, are to be applied equally for such sub-frontloading outside the euro area.

  • Branches, headquarters and subsidiaries of euro area-based credit institutions, as well as other credit institutions, located outside the euro area, to which euro banknotes would be distributed or sub-frontloaded, as appropriate, are not allowed to further sub-frontload euro banknotes to any third parties whatsoever.

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