Annual compensatory payment to the State for the conversion of a consolidated debt
Question discussed at the 2010 general meeting
Following the financial reorganisation in 1948, the Bank recorded on its balance sheet a consolidated claim on the State to the tune of 35 billion francs. This consolidated Treasury debt has been reduced slightly over the years, to 34 billion francs. The Bank used to receive a flat-rate allocation of 0.1 p.c. on this non-interest-bearing consolidated debt.
Pursuant to the Law of 2 January 1991 on the national debt securities market and monetary policy instruments, the Bank's consolidated debt has been converted into freely negotiable public debt securities, bearing interest at market conditions.
In accordance with the so-called 3 p.c. rule, the additional expenses for the State resulting from this conversion corresponded to the difference between the 3 p.c. that was left to the Bank and the lump-sum allocation of 0.1 p.c. that the State owed up until then, that is, 2.9 p.c. of the sum of 34 billion francs, working out at 986 million francs or 24.4 million euro. That is why the Law of 2 January 1991 stipulates that the Bank has since been liable to pay this amount to the State on an annual basis.
In the context of the abolition of the 3 p.c. rule, it would appear quite logical for a legal provision to put an end to this annual compensatory payment.