The Central Bank has transferred €39.9 million to the European Central Bank in the form of subscription to the ECB's capital and as a contribution to its foreign reserve assets.

The transactions took place on January 2 and 3 after Malta joined the eurozone on January 1, the Central Bank said.

The completion of the capital subscription payment took place in accordance with article 49 of the statute of the European System of Central Banks and of the ECB, which requires euro area central banks to pay their full share in the ECB's subscribed capital of €5,760,652,402.58.

The share of the Central Bank of Malta in the ECB's subscribed capital was determined at 0.0622 per cent in line with a decision made by the ECB on December 15, 2006 laying down the measures necessary for the paying up of the participating national central banks' respective capital shares. The subscription of the Central Bank of Malta to the capital of the ECB amounts to €3,583,125.79. The Central Bank of Malta had already paid seven per cent of the total capital subscription when Malta joined the European Union in May 2004. Consequently, on January 2, the Central Bank of Malta paid the remaining 93 per cent of its capital subscription, that is €3,332,306.98.

Articles 30 and 49 of the statute also require euro area national central banks to transfer to the ECB an amount of foreign reserve assets determined on the basis of the respective national central bank's share in the subscribed capital of the ECB. Accordingly, on January 3, the Central Bank of Malta transferred to the ECB an amount equivalent to €36,553,305.17, composed of €31,070,309.39 in dollars (85 per cent) and €5,482,995.78 in gold (15 per cent).

These reserve assets will be managed by the Central Bank of Malta on behalf of the ECB in conformity with the investment parameters set by the ECB.