The Euro T2 transaction system is facing a problem with the settlement of transactions, according to a statement from the European Central Bank, with the result that it is not possible to transfer funds from one bank to another both within each country and abroad.

As a result, the T2S administrator has moved to close communication channels with Network Service Providers (NSPs) as of this morning.

See here for an update on the operation of the system.

It is therefore possible that interbank transactions as it is impossible to clear are rejected and several transactions may have been rejected before the communication channels were closed. All new messages sent after the communication channels are closed remain pending at the Network Service Provider level. Once the issue is resolved, participants will be notified to resend any messages that were rejected.

In addition, the deadline for clearing transactions with the Delivery-versus-Payment (DVP) mechanism for transactions in Euro (EUR) will be delayed by 3 hours, while subsequent deadlines will be postponed accordingly.

It should be noted that the problem that has arisen is not universal, and a large number of transactions have been implemented and cleared normally.

The Euro system is taking all necessary measures to resolve the problem as soon as possible, the statement concludes.