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FACTBOX-European cenbanks sell 144 T of gold in 5th year

Published 08/25/2009, 08:52 AM
Updated 08/25/2009, 08:54 AM
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LONDON, Aug 25 (Reuters) - European central banks have sold 144 tonnes of gold in the fifth and final year of the CBGA to date, data compiled by the industry-funded World Gold Council showed.

The fifth year of the pact started on Sept. 27 2008 and runs until Sept. 26 this year. A third pact, to run from Sept. 27 until Sept. 2014, was announced on Aug. 7, and will limit gold sales to 400 tonnes a year.

According to the figures, the 15 signatories to the accord disposed of 497.2 tonnes of the 500-tonnes allowance during the first year, 395.8 tonnes in the second year, 475.8 tonnes in the third year and 358 tonnes in the fourth year.

Following is background to Europe's recent gold sales under the programme:

Central banks and the International Monetary Fund (IMF) collectively hold 29,697.1 tonnes of gold in their reserves, but have been gradually reducing their holdings.

In March 2004, 15 European central banks renewed a 1999 pact to limit their sales over a five-year period to 2,500 tonnes, up from 2,000 tonnes in the first agreement, and with annual sales limited to 500 tonnes.

* The signatories are Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, Switzerland, Greece and the European Central Bank.

* Greece replaced Britain in the second CBGA.

* The world's largest holder of gold as of June 2009 is the United States with 8,133.5 tonnes.

* As of June 2009, other major holders are Germany (3,412.6 tonnes), the International Monetary Fund (3,217.3 tonnes), Italy (2,451.8 tonnes), France (2,450.7 tonnes), China (1,054.0) and Switzerland (1,040.1 tonnes), according to the World Gold Council.

Below are known gold sales and announced sales plans under the CBGA.

Year 1 Year 2 Year 3 Year 4 Year 5

(04/05) (05/06) (06/07) (07-08) (08-09) Eurozone (to Aug 14) 352.2 385.8 352.8 211 131 - ECB (to end Jun) 47.0 57.0 60.0 72.0 35.5 - Austria (to end Jun) 15.0 13.7 8.7 0.0 0.0 - Belgium (to end Jun) 30.0 0.0 0.0 0.0 0.0 - France* (to end Jun) 115.0 134.8 115.1 115 82 - Germany (to end Jun) 5.4 5.3 5.1 4.8 4.3 - Netherlands

(to end Jun) 55.0 67.5 14.0 19.5 9.0 - Portugal (to end Jun) 54.8 44.9 0.0 0.0 0.0 - Spain (to end Jun) 30.0 62.5 149.3 0.0 0.0 - Country not yet known 0.5 0.0 0.5 Sweden (to Aug 15) 15.0 10.0 10.0 10.0 12.7 Switzerland

(to date) 130.0 0.0 113.0 137.0 0.0 TOTAL Reported or estimated so far

497.2 395.8 475.8 358.0 144 * In addition, France transferred approx 17 tonnes in late 2004 to the BIS as part purchase of BIS shares. This transaction is considered to be outside the scope of the CBGA. ** Source: World Gold Council

(Compiled by Jan Harvey)

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