2007-10-18
1. Approval of the Regulations on the Operation of the Payment System TARGET2-LIETUVOS BANKAS
The Board of the Bank of Lithuania approved the Regulations on the Operation of the Payment System TARGET2-LIETUVOS BANKAS (hereinafter referred to as Regulations). These Regulations define the manner the Bank of Lithuania, national credit and other financial institutions will participate in the new payment system TARGET2 of the Eurosystem, which will provide real time gross payment service in euros.
TARGET2 will start operating on 19 November 2007, and on 18 May 2008 will fully substitute the TARGET system currently used by the Eurosystem. The Bank of Lithuania together with the central banks of Austria, Germany, Luxemburg, Slovenia, Latvia, Malta and Cyprus will be the first to perform TARGET2 operations via national components of TARGET2. In 2008 central banks of other countries will join this system.
AB SEB Vilniaus bankas, AB bankas Hansabankas, Nordea Bank Finland Plc the Lithuania Branch, and AB Central Securities Depository of Lithuania may be the first participants of TARGET2-LIETUVOS BANKAS because they carried out required testing procedures.
A characteristic feature of TARGET2 is its single shared platform but legally it will be a composition of many payment systems. TARGET2-LIETUVOS BANKAS will be one of its components.
The Regulations define conditions for the participation in a new system, duties of parties, services provided by the Bank of Lithuania, security requirements, responsibility level, etc. Annexes to the Regulations establish the procedure of the calculation of a compensation to a system participant in case of a default of payment orders, list of prices, accounts presentation procedure, etc.
Some provisions of the Regulations will come into effect only after the euro introduction day in the Republic of Lithuania.
2. Approval of the Regulations on the Operation of the System LITAS-PHA
The Board of the Bank of Lithuania approved the Regulations on the Operation of the System LITAS-PHA. This payment system has been designed for euro settlements of institutions not directly participating in the system TARGET2-LIETUVOS BANKAS.
The owner and operator of the system LITAS-PHA will be the Bank of Lithuania. The new system will have an interface with TARGET2 and will allow the LITAS-PHA participants to settle between each other and with the participants of the TARGET2 component systems via the Bank of Lithuania. Also, this system will provide intraday loans ensuring credit institutions liquidity needed for making of settlements.
Participants of the LITAS - PHA system will be national credit institutions and financial brokerage companies envisaging to perform domestic and international settlements in euros via the Bank of Lithuania.
The system LITAS-PHA will start its operation on 19 November 2007? the same day as the system TARGET2-LIETUVOS BANKAS.
New payment systems will enhance the quality of settlement services, will ensure a quick and reliable execution of international and domestic payment orders in euros, will be an alternative for payments via correspondent banks.
3. Lithuania’s Economic Review (October 2007) and Medium Term Macroeconomic Projections
The Board of the Bank of Lithuania was presented a new national Economic Review. It was also presented Medium Term Macroeconomic Projections of Lithuania.
The economic review and projections were elaborated by the Economics Department of the Bank of Lithuania.
Projections will be posted on the website of the Bank of Lithuania.
4. Implementation of the General Regulations for the Calculation of Capital Adequacy
Decision regarding this issue has not been made.