The Government today signed new agreements with Bank of China Macao Branch (BOC) and Banco Nacional Ultramarino (BNU) to extend their notes-issuing status for another 10 years, effective when the existing agreements expire on 15 October 2010. The signing ceremony were witnessed by the Chief Executive, Mr Chui Sai On, the Deputy Director of the Liaison Office of the Central People’s Government in the MSAR, Mr Xu Ze, the Commissioner of the Ministry of Foreign Affairs of the People’s Republic of China in the MSAR, Mr Lu Shumin, and the Prosecutor General of the Public Prosecutions Office of Macao, Mr Ho Chio Meng. Secretary for Economy and Finance Mr Tam Pak Yuen signed on behalf of Macao while BOC and BNU were represented by Mr Ye Yixin, General Manager of BOC and Mr. Artur Santos, President of the Executive Committee of BNU, respectively. Other dignitaries present at the ceremony included Consul General of Portugal in Macao and Hong Kong, Mr Manuel Carvalho, Chairman of the Monetary Authority of Macao, Mr Teng Lin Seng, Executive Vice-President of the Bank of China Headquarters, Mr Yue Yi, and Member of the Board of Directors of Caixa Geral de Depósitos of Portugal, Mr. Rodolfo Lavrador. BNU founded its Macao branch in 1902 and was given the right to issue banknotes three years later. In 1980, the Portuguese Macao Government established the Issuing Institute of Macao (IEM) which was a public enterprise in nature. It was also the predecessor of the Monetary Authority of Macao (AMCM). By virtue of the original agency agreement, BNU became the notes issuing agent bank for IEM. In 1989, the Monetary and Foreign Exchange Authority of Macao (AMCM) was established to take over the related functions of IEM. According to its original statute, AMCM was not vested with the authority to issue notes for the territory. As a result, the authority to issue local legal tender reverted to the Macao Government in July 1989 while BNU retained its role as agent bank for the Government. In 1995, the Portuguese Macao Government and BNU renewed the notes-issuing agency agreement. Simultaneously, the first agency agreement of such nature was concluded with BOC. Since then, the two banks have been sharing on equal footing such notes issuing right. After the execution of the relevant agreements, the two notes-issuing banks have been sharing the right to issue equal amount of notes in accordance with Decree-Law No. 7/95/M which requires them to provide the necessary legal reserves for notes they have issued.
