Law on the remuneration of the deposit guarantee reserves and other operational obligations which have to be maintained and deposited entities operating in the financial system since the General Council in its session of July 4, 2001 has approved the following: law on the remuneration of the deposit guarantee reserves and other operational obligations which have to be maintained and deposited entities operating in the financial system preamble The Law of regulation of the financial system, of 27 November 1993, recognizes the regime of compulsory reserves that the banking system has to meet as a regulatory instrument in the financial system, along with the obligatory investment ratios.

The use of these mechanisms the based the same law for their positive influence on the solvency and liquidity of the Andorran financial institutions; aspects which must ensure that the State, in compliance with the constitutional mandate collected in the article 32 of the Constitution of the Principality, which determines the possibility of intervention in the planning of the economic and financial system on the part of the State, in order to make it possible for the balanced development of society and the general well-being.

The development of the system of compulsory reserves has been carried out by the General Council, specifically, as it dictates the law of regulation of the financial system, through the law regulating deposit guarantee reserves and other operational obligations to maintain and deposited by entities operating in the financial system, of 11 May 1995, in which determines the limit and scope of such reservations. Likewise, with regard to the remuneration of these deposits guarantee reserves, it is considered appropriate to maintain the authority of the Government of its determination, since it is applied without tax measures within the framework of nature, the financial policy of the State.

The income that may arise in favour of the public Treasury by the fact of giving back the deposits to guarantee lower rates in the market or not to reward them, do not have tax nature due to its purpose and its origin, as has pronounced the Hall-administrative of the High Court of justice by stating that this kind of income have an origin that has nothing to do with the facts of the tax generators referred the law on the bases of tax law.

The current situation with the financial markets and the economic needs of the Principality makes it advisable to continue with the use of this instrument of financial policy for the purpose of preserving, as much as possible the evolution of the Andorran economy and encourage its growth, in compliance with the constitutional precept before reviewing. The pursued must be understood in their broader terms, that is to say, in terms of both the amount that affects the Maxima and minima of the guarantee reserves, such as in relation to the conditions and requirements for your application. All this, without prejudice to the Government to develop the conditions applicable to deposits, in accordance with the provisions of article 17 of the law of regulation of the financial system.

Finally, this set of circumstances determine the appropriateness to adapt urgently the system of deposit guarantee reservations to the provisions of article 60 of the Constitution, in relation to the remuneration of the deposit guarantee reserves and other operational obligations which have to be maintained and deposited the entities operating in the financial system.

Article only the Government, in compliance with the provisions of the law regulating deposit guarantee reserves and other operational obligations to maintain and deposited by entities operating in the financial system, of 11 May 1995, determines the form of remuneration and other terms and conditions applicable to the deposit guarantee reserves constituted by the banks.

First additional provision for reservations deposits in guarantee made by the banks, according to the established by this law and by the law of regulation of the financial system, of 27 November 1993, and the law on the deposit guarantee reserves and other operational obligations to maintain and deposited by entities operating in the financial system, of 11 May 1995 Since the entry into force of this law until March 31, 2005, are not remunerated.

Second additional provision this law is applicable to reservations made on the date of entry into force of this law and those others that the Government set up under the provisions of article 17 of the law of regulation of the financial system and the law on the deposit guarantee reserves and other operational obligations to maintain and deposited by entities operating in the financial system.

Final provision this law shall enter into force the day after its publication in the official bulletin of the Principality of Andorra.

Casa de la Vall, 4 July 2001 Francesc Areny Casal Syndic General Us the co-princes the sancionem and promulguem and let's get the publication in the official bulletin of the Principality of Andorra.

Jacques Chirac Joan Marti Alanis, President of the French Republic the Bishop of Urgell Co-prince of Andorra Co-prince of Andorra