ANNUAL REPORT 2008 - Polymer Bank Notes of the World

(see “Banknotes in circulation” in the notes onaccounting policies).8 LIABILITIES TO OTHER EURO AREARESIDENTS DENOMINATED IN EUROThis item comprises deposits by members ofthe Euro Banking Association (EBA) which areused in order to provide the ECB with collateralin respect of the EBA’s payments settled throughthe TARGET2 system.9 LIABILITIES TO NON-EURO AREA RESIDENTSDENOMINATED IN EUROThis item consists mainly of a liability to theFederal Reserve amounting to €219.7 billionin connection with the US dollar Term AuctionFacility. Under this programme, US dollarswere provided by the Federal Reserve tothe ECB by means of a temporary reciprocalcurrency arrangement (swap line), with theaim of offering short-term US dollar fundingto Eurosystem counterparties. The ECBsimultaneously entered into back-to-backswap transactions with euro area NCBs, whichused the resulting funds to conduct US dollarliquidity-providing operations with Eurosystemcounterparties in the form of reverse andswap transactions. The back-to-back swaptransactions between the ECB and the NCBsresulted in intra-Eurosystem balances betweenthe ECB and the NCBs reported under “Otherclaims within the Eurosystem (net)”.A liability to the Swiss National Bankamounting to €18.4 billion is also includedunder this heading. Swiss francs were providedby the Swiss National Bank by means of aswap arrangement with the aim of offeringshort-term Swiss franc funding to Eurosystemcounterparties. The ECB simultaneouslyentered into swap transactions with euro areaNCBs, which used the resulting funds to conductSwiss franc liquidity-providing operations withEurosystem counterparties against euro cashin the form of swap transactions. The swaptransactions between the ECB and the NCBsresulted in intra-Eurosystem balances reportedunder “Other claims within the Eurosystem(net)”. In addition, this item includes a liabilityto the Swiss National Bank amounting to€15.4 billion. This liability arose from theplacement with the ECB of euro funds receivedby the Swiss National Bank from operationswith other counterparties.The remainder of this item reflects balancesheld with the ECB by non-euro area NCBsarising from transactions processed via theTARGET2 system (see “Intra-ESCB balances/intra-Eurosystem balances” in the notes onaccounting policies).10 LIABILITIES TO EURO AREA AND NON-EUROAREA RESIDENTS DENOMINATED IN FOREIGNCURRENCYThis position consists mainly of repurchaseagreements conducted with euro area andnon-euro area residents in connection with themanagement of the foreign currency reserves ofthe ECB.11 INTRA-EUROSYSTEM LIABILITIESThese represent the liabilities to the euro areaNCBs that arose from the transfer of foreignreserve assets to the ECB when they joined theEurosystem. They are remunerated at the latestavailable marginal rate for the Eurosystem’smain refinancing operations, adjusted to reflect azero return on the gold component (see note 23,“Net interest income”).The transfer of foreign reserve assets by theCentral Bank of Cyprus and the Central Bank ofMalta upon the adoption of the single currencyby Cyprus and Malta led to an increase in theseliabilities of €107,781,807.228 ECBAnnual Report2008