Fifteen European central banks said Monday they would sell an annual maximum of 500 tons of gold from their reserves over the next five years, an increase of 25 percent

"Gold will remain an important element of global monetary reserves," the banks said after they reached agreement at the Bank for International Settlements in Basel to continue their common approach. Gold prices were little changed following the announcement. Gold dealers in London fixed a recommended price of $399.40 bid per troy ounce, up from $399.10 on Friday. The first five-year accord, reached in September of 1999 to sell up to 400 tons a year, is credited with calming fears that had depressed prices on the gold market after banks announced plans to sell off part of their reserves. The European Central Bank and the central banks of 14 countries, including Germany, France and Switzerland, said the new agreement would take effect Sept. 27 after the current accord expires. Switzerland, which has been selling off surplus gold, said its current plans call for the sale of 130 tons during the first year of the new accord, Swiss National Bank spokesman Werner Abegg told The Associated Press. The sale will be the final installment of the sale of 1,300 tons of gold that began in May 2000, Abegg said. Switzerland has yet to decide how to spend the 21 billion Swiss francs ($16.5 billion) in proceeds of its gold sales. One plan is to use it to back the social security system. The German Bundesbank has announced it has an option for the sale of about 600 tons over the span of the new agreement. The Bank of England, which was part of the original agreement, isn't taking part in the renewal but doesn't have any sales planned, banking officials said.Other central banks signing the agreement were from Italy, Spain, Portugal, Greece, Luxembourg, Belgium, Ireland, the Netherlands, Austria, Finland and Sweden.