On 20 October 2022 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 Croatia on 1 January 2023 (ECB/2022/36).
As of 1 January 2023, credit institutions and branches of credit institutions (hereafter referred to as “institutions”) located in Croatia will be subject to the Eurosystem’s minimum reserve requirements. Given that the regular reserve maintenance period runs from 21 December 2022 to 7 February 2023, transitional provisions are necessary to ensure that the relevant institutions are integrated smoothly into the Eurosystem’s minimum reserve system, without placing a disproportionate burden on institutions located in Croatia.
The Decision, in line with decisions taken when other countries joined the euro area, provides for a transitional maintenance period from 1 January to 7 February 2023 for the imposition of minimum reserve requirements on institutions located in Croatia. Furthermore, the Decision sets out specific rules governing the application of minimum reserve requirements during the transitional period and describes the method for calculating the reserve base in relation to the transitional period for liabilities owed to institutions located in Croatia. In this respect, institutions located in other euro area countries may decide to deduct any liabilities owed to institutions located in Croatia from their reserve base for the maintenance periods from 21 December 2022 to 7 February 2023 and from 8 February to 21 March 2023.
The Decision will be published in the Official Journal of the European Union.