Non-settlement Days on 31 December 1999 and 3 January 2000

The CNB is announcing non-settlement days for 31 December 1999 and 3 January 2000. In practice, this means that the payment system data presented by banks to CNB Clearing following its daily closing of books on 30 and 31 December 1999 and 3 January 2000 will be settled on 4 January 2000. A CNB decree to this effect was signed today by Governor Josef Tošovský. This decree shall enter into force on the day of its promulgation, i.e. when it is published in the Collection of Laws.

The introduction of non-settlement days will create sufficient time space for the settlement of transactions at banks prior to the year change and for data backup prior to midnight on 31 December 1999. Before the moment that might be considered as risky, e.g. with regard to possible technological failures in information systems, telecommunications systems and power supply systems, banks should have sufficient time to complete their transactions.

Although according to the information that the CNB has at its disposal the information and other systems of domestic banks are prepared for the change in year, the proposed decree should contribute towards a problem-free and smooth transition of Czech interbank payment systems into the year 2000.

The CNB has based its decision also on the attitude of international authorities in the area of payments and banking transactions. For example, on 31 December 1999 the European Central Bank will not be operating TARGET, the inter-state payment system of EMU countries.

CNB - Public Relations DivisionM