Article 4 Reserve ratios 1 .

Reserve base and reserve ratios

The largest absolute reductions in debt ratios were observed in Ireland and Belgium . Fiscal positions largely driven by strong economic activity and declining interest rates To a large extent budgetary developments in 1998 were driven by factors beyond the direct control of the fiscal authorities , while policy makers did not appear to have taken an active role in improving the underlying financial positions of general governments .

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Article 4 Reserve ratios 1 .

( a ) R e s e r v e b a s e a n d r e s e r v e r a t i o s

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Greece Potential future debt ratios under alternative assumptions for fiscal balance ratios ( as a percentage of GDP )

Sweden Potential future debt ratios under alternative assumptions for fiscal balance ratios ( as a percentage of GDP )

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Determination of minimum reserves Reserve base and reserve ratios

Under special circumstances , the published calendar may be amended , depending , among other things , on changes in the schedule of Governing Council meetings .

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Simple average of the published range of values

This compares with significant overall deficits in 1997 and the years before .

The ECB may at any time change the reserve ratios .

The ECB may change the reserve ratios at any time .

The ECB may change the reserve ratios at any time .

For these reasons , the reference to liquidity ratios now appears outdated .

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The repurchase price equals the sum of the purchase price and the price differential corresponding to the interest on the extended liquidity over the maturity of the operation .

The counterparties settlement accounts with the national central banks may be used as reserve accounts .

The ratios are used to calculate reserve requirements . Reserve requirement the requirement for institutions to hold minimum reserves with the central bank .

The ratios are used to calculate reserve requirements .

However , repos are not included in M2 because they have a higher degree of substitutability with short term securities than with deposits with an agreed maturity or deposits redeemable at notice .

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