# EUR-Lex - 52012DC0066 - EN

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# 52012DC0066

**REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on guarantees covered by the general budgetSituation at 30 June 2011 /* COM/2012/066 final */**

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TABLE OF CONTENTS

1........... Introduction.................................................................................................................... 3

2........... Types of operations covered by
the Budget..................................................................... 3

3........... Events since the last report at
31 December 2010........................................................... 4

3.1........ Balance of payments support to
non-euro Member States............................................... 4

3.2........ Macro-financial assistance.............................................................................................. 4

3.3........ Euratom......................................................................................................................... 4

3.4........ European Financial Stabilisation
Mechanism.................................................................... 4

3.5........ Budget guarantee for EIB external
financing..................................................................... 5

4........... Data on risks covered by the
Budget............................................................................... 5

4.1........ Definition of risk............................................................................................................. 5

4.2........ Risk composition............................................................................................................ 6

4.3........ Annual risk covered by the Budget.................................................................................. 8

4.3.1..... Risk linked to Member States......................................................................................... 9

4.3.2..... Risk linked to third countries......................................................................................... 10

4.4........ Evolution of risk............................................................................................................ 11

5........... Defaults, activation of Budget
guarantees and arrears..................................................... 13

5.1........ Payments from cash resources...................................................................................... 13

5.2........ Payments from the Budget............................................................................................ 13

5.3........ Activation of the Guarantee Fund
for external actions..................................................... 13

6........... Guarantee Fund for external
actions.............................................................................. 14

6.1........ Recoveries................................................................................................................... 14

6.2........ Assets.......................................................................................................................... 14

6.3........ Target amount.............................................................................................................. 14

7........... Evaluation of risks: Economic
and financial situation of third countries with the largest exposure            14

7.1........ Objectives.................................................................................................................... 14

7.2........ Risk assessment methods.............................................................................................. 14

1.
Introduction

The objective of this report is to monitor
the credit risks borne by the budget of the European Union resulting from the
guarantees given and the lending operations implemented directly by the
European Union or indirectly through the EIB external mandates.

This report is submitted pursuant to
Article 130 of the Financial Regulation which requires the Commission to
report to the European Parliament and to the Council twice a year on budgetary
guarantees and the corresponding risks[1]. It is
completed by a Commission Staff Working Document with a set of detailed tables
and explanatory notes (the "SWD").

2.
Types of operations covered by the Budget

The risks covered by the budget of the European Union Budget (the
"Budget") derive from a variety of lending and guarantee operations
which can be divided into two categories:

–
loans granted by the European Union with
macroeconomic objectives, i.e. macro-financial assistance[2]
("MFA") loans to third countries in conjunction with the Bretton
Woods institutions, balance-of-payments[3]
("BoP") loans granting support to non-euro Member States experiencing
balance-of-payments difficulties, loans under the European financial
stabilisation mechanism (EFSM)[4] granting support to
Member States experiencing difficulties beyond their control; and

–
loans with microeconomic objectives, i.e.
Euratom loans and most importantly European Investment Bank ("EIB")
financing of operations in non-Member States ("EIB external
financing")[5] that are covered by EU
guarantees[6].

The guaranteed EIB external financing, the
Euratom loans and the MFA loans have since 1994 been covered by the Guarantee
Fund for external actions ("the Fund"),[7] while BoP and
EFSM loans are directly covered by the Budget.

The Fund covers defaults on loans and loan
guarantees granted to non-Member States or for projects in non-Member States.
It was established:

–
to provide a 'liquidity cushion' in order to
avoid calling on the Budget every time a default or late payment on a
guaranteed loan arises; and

–
to create an instrument of budgetary discipline
by laying down a financial framework for the development of the EU policy on
guarantees for Commission and EIB loans to non-member countries[8].

If third countries become Member States
loans relating to such countries are no longer covered by the Fund and the risk
has to be directly borne by the Budget. The Fund is provisioned from the Budget
and has to be maintained at a certain percentage of the outstanding amount of
the loans and loan guarantees covered by the Fund. This percentage, known as
the target rate, is currently 9%. If there are insufficient resources in the
Fund, the Budget will have to provide the necessary funds.

3.
Events since the last report at 31 December 2010
3.1.
Balance of payments support to non-euro Member
States

During the first
semester 2011, two operations took place for a total amount of
EUR 1.35 billion. The fourth instalment of EUR 1.2 billion
of the loan granted to Romania was disbursed on 24 March 2011. On 22 June 2011
the fifth instalment of EUR 0.15 billion of the loan granted to Romania
was disbursed.

Furthermore, the Council decided on 12 May 2011 to provide
precautionary EU medium-term financial assistance for Romania amounting to a
maximum of EUR 1.4 billion[9].

3.2.
Macro-financial assistance

During the first semester 2011, no loan disbursement took place.

3.3.
Euratom

No loan disbursements took place during the reported period.

3.4.
European Financial Stabilisation Mechanism

·
Background

Council Regulation (EU) No 407/2010 of 11
May 2010 set up the European Financial Stabilisation Mechanism (hereafter
referred to as the EFSM) based on Art.122(2)[10]
of the Treaty on the Functioning of the European Union (TFEU). The maximum available amount under the mechanism is
EUR 60 billion with the full backing of the Budget
which guarantees the repayment of the borrowings in case of default of the
Member State concerned.

Union financial assistance under EFSM takes
the form of a loan, or of a credit line, granted to the Member State concerned.
To this end, the Commission is empowered, on behalf of the European Union, to
contract borrowings on the capital markets.

·
New operation since 31.12.2010

On 30 May 2011, the Council decided to
grant Union financial assistance to Portugal for a maximum amount of EUR 26 billion
under EFSM in the context of a three-year joint EU/IMF programme amounting to
EUR 78 billion. This decision comes in addition to the Decision taken
by the Council in December 2010 to grant Union financial assistance to Ireland
for a maximum amount of EUR 22.5 billion under the EFSM.

In total EUR 48.5 billion were granted
under the EFSM programme (for addititional details on these operations see
paragraph 4.4 Evolution of risk).

As part of the response to the crisis, two
other mechanisms have been established which, however, do not imply any risk to
the Budget:

–
European Financial Stability Facility (EFSF[11]) which is guaranted by participating Member States, on a pro-rata basis, and

–
the Greek Loan Facility[12] which is financed via bilateral loans from the other euro area
Member States, centrally pooled by the Commission.

3.5.
Budget guarantee for EIB external financing

Under the 2007-2013 external mandate, the
loan signature increased by 7% during the first semester of 2011 and amounted
to EUR 1,090 million. The amount of loans disbursed was EUR 1,050 million for
the reported period. Thus, the cumulative amount of loans disbursed
under the mandate reached the amount of EUR 7,028 million at 30 June 2011, up
by 17% compared to 31 December 2010.

4.
Data on risks covered by the Budget
4.1.
Definition of risk

The risk borne by the Budget derives from
the outstanding amount of capital and interest in respect of guaranteed
operations.

For the purpose of this report, two methods
are used for evaluating the risks borne by the Budget (either directly or
indirectly via the Fund):

–
"The total risk covered" is based on the
sum of the total amount of capital outstanding for the operations concerned on
a given date including accrued interest[13].

–
The budgetary approach defined as "the
annual risk borne by the Budget" is based on the calculation of the
maximum amount of annual payments due which the EU would have to pay out in a
financial year assuming that all payments of the guaranteed loans are in
default[14].

4.2.
Risk composition

Until 2010 the maximum risk in terms of
total outstanding amounts covered was mainly linked to the operations granted
to third countries. In 2011 the financial crisis has impacted heavily on the
public finances of Member States leading to an increase in the lending activity
of the EU to support higher government financing needs.

As a consequence the composition of risk
has changed as of 30 June 2011:

·
64% of the total outstanding amount guaranteed
concerned borrowing operations linked to loans to Member States which are
directly covered by the Budget.

·
36% of the total outstanding amount guaranteed
relates to borrowings and loans in third countries which are covered by the
Guarantee Fund for external actions ("the Fund").

The total risk covered by the Budget at 30
June 2011 is presented in the following table 1.

Table 1: Total outstanding amounts covered by the Budget at 30 June 2011 in EUR million

|| Outstanding Capital || Accrued Interest || Total || %

Member States* || || || ||

MFA || 38 || 0 || 38 || <1%

Euratom || 410 || 2 || 412 || 1%

BoP || 13,400 || 177 || 13,577 || 25%

EIB*** || 3,061 || 28 || 3,088 || 6%

EFSM || 17,900 || 113 || 18,013 || 33%

Sub-total Member States || 34,808 || 320 || 35,129 || 64%

Third Countries** || || || ||

MFA || 460 || 3 || 462 || 1%

Euratom || 45 || 0 || 45 || <1%

EIB*** || 19,191 || 151 || 19,342 || 35%

Sub-total third countries || 19,695 || 154 || 19,849 || 36%

Total || 54,503 || 474 || 54,978 || 100%

*   This risk is directly covered by the Budget. This also includes MFA, Euratom and EIB loans granted prior to EU accession. ** This risk is covered by the Fund. ***About 83% of EIB lending operations (sovereign and sub-sovereign lending operations) are covered by a comprehensive guarantee while on the remaining operations the EIB benefits from a political risk coverage only (as of 31 December 2010).

Tables A1, A2, A3 and A4 of the SWD provide
more detailed information on these outstanding amounts, in particular in terms
of ceiling, disbursed amounts or guarantee rates.

The total outstanding amount of capital and
interest covered by the budget significantly increased to EUR 54.98
billion up by 55% compared to 31.12.2010. This increase is explained by the disbursements
of EUR 17.9 billion under the EFSM (EUR 11.4 billion to Ireland and EUR 6.5
billion to Portugal). Furthermore, EUR 1.35 billion was disbursed
under the BoP facility to Romania as final instalments of Council Decision
2009/459/EC of 6 May 2009. EIB net disbursements to third countries increased
by EUR 486 million during the first semester 2011.

4.3.
Annual risk covered by the Budget

For the second semester 2011, the Budget
will cover (directly and via the Fund) EUR 3.6 billion[15] representing the amounts which
fall due during this period out of the total amount outstanding at 30 June
2011.

Of this, EUR 2.6 billion - approximately 73%
- is due from Member States while the remaining balance is due from third
countries.

4.3.1.
Risk linked to Member States

The risk
linked to Member States concerns (a) EIB lending as well as MFA and Euratom
loans granted before the accession to the EU (b) the loans granted under the
BoP facility and (c) the loans granted under the EFSM scheme.

Table 2: Ranking of the Member States according to the maximum risk borne by the Budget during the second semester 2011 (EUR million)

Ranking || Country || Maximum risk || % of the total maximum risk

1 || Hungary || 2,145.6 || 81.9%

2 || Romania || 197.0 || 7.5%

3 || Ireland || 111.7 || 4.3%

4 || Poland || 40.1 || 1.5%

5 || Bulgaria || 37.5 || 1.4%

6 || Czech Republic || 36.7 || 1.4%

7 || Slovak Republic || 26.7 || 1.0%

8 || Latvia || 9.1 || 0.3%

9 || Slovenia || 5.9 || 0.2%

10 || Cyprus || 4.6 || 0.2%

11 || Lithuania || 2.7 || 0.1%

12 || Estonia || 0.5 || 0.0%

13 || Malta || 0.3 || 0.0%

|| Total || 2,618.4 || 100.0%

Table 2
shows that Hungary and Romania are ranked first and second among Member States
in terms of repayments falling due in the second semester 2011.

4.3.2.
Risk linked to third countries

The Fund covers guaranteed loans concerning
third countries with maturities extending up to 2040. In the second semester 2011,
in particular, the Fund will bear a maximum annual risk related to third
countries of EUR 961 million[16]
(27% of the total annual risk).

The top ten (out of fourty-four) countries
are ranked below according to their total outstanding. They account for EUR 754.2
million or 78% of the annual risk borne by the Fund related to third countries.
The economic situation of these countries is analysed and commented in the SWD.

Table 3: Ranking of the 10 most important third countries according to the maximum risk borne by the Fund during the second semester 2011 (EUR million).

Ranking || Country || Maximum risk || % of the total maximum risk || Euromoney credit risk ranking[17]

09/2010 || 03/2011

1 || Turkey ||  220.7 || 29.3% || 50/185 || 54/100

2 || Egypt ||  91.7 || 12.2% || 64/185 || 88/100

3 || Morocco ||  87.8 || 11.6% || 62/185 || 67/100

4 || Tunisia ||  86.6 || 11.5% || 69/185 || 81/100

5 || Serbia ||  75.8 || 10.1% || 70/185 || 86/100

6 || Lebanon ||  54.0 || 7.2% || 76/185 || 91/100

7 || South Africa ||  47.9 || 6.4% || 44/185 || 48/100

8 || Syria ||  39.3 || 5.2% || 128/185 || NA

9 || Bosnia and Herzegovina ||  27.0 || 3.6% || 113/185 || NA

10 || Brazil ||  23.2 || 3.1% || 41/185 || 42/100

Total of the 10 || || 754.2 || 100.0% || ||

4.4.
Evolution of risk

The level of uncertainty remains high as the
global economic and financial crisis continues to affect the economic recovery
in the EU and the global growth. Geopolitical tensions affecting some Southern
Mediterranean countries added also uncertainty on the economic recovery in some
third countries.

· Balance of payments facility

The EU medium-term financial assistance under
the balance of payments facility was re-activated in November 2008 to help
Hungary and subsequently in January and May 2009 to help Latvia and Romania to
restore market confidence. The first loan repayment of EUR 2 billion from
Hungary will take place in December 2011.

The BoP facility with its overall ceiling
of EUR 50 billion has a remaining capacity of EUR 35 billion EUR to
provide further BoP assistance if required.

· European Financial Stabilisation Mechanism (EFSM)

Tensions in the sovereign-bond markets
remained high during the first semester 2011. Issuing conditions for peripheral
euro-area sovereigns remain stressed despite the activation of the EFSM and the
EFSF supplemented by bilateral loans. The increased refinancing needs of Member
States governments in the coming months and years will remain challenging.

The Ecofin Council conclusions set the maximum
volume of the mechanism to EUR 60 billion[18],
but the legal limit is provided in Article 2.2 of the Council Regulation, which
limits the outstanding amount to the margin available under the own resources
ceiling[19].

In early 2011 Portugal came under pressure
on the financial markets increasing pressure on the government debt and its
servicing costs. On 7 April 2011 Portugal officially requested financial
assistance from the European Union and the International Monetary Fund ('IMF')[20].

Following this request the terms and
conditions of a three-year financial assistance package were agreed by the
Eurogroup and the Council on 17 May 2011. The financial package will cover
Portugal’s financing needs for up to EUR 78 billion and will be shared equally
amongst:

–
The EFSM for an amount up to EUR 26 billion[21] (which is directly covered by
the Budget);

–
The EFSF for an amount up to
EUR 26 billion;

–
The IMF for an amount up to EUR 26 billion.

The Decision to support Portugal under the
EFSM came in addition to the Decision taken in December 2010 for Ireland[22] for up to EUR 22.5 billion.

Out of its maximum volume of
EUR 60 billion, the EFSM has a remaining capacity of
EUR 11.5 billion to provide further assistance if required[23] .

On 21 July 2011 the Euro area summit
decided several measures including the extension of maturities and the lowering
of lending rates of future EFSF loans to Greece to alleviate the Greek debt
crisis and ensure the financial stability of the euro area as a whole. In line
with the summit conclusions, the impact on the EFSM is twofold:

a) the EFSM margin will be reduced
retroactively for lending operations for Portugal and Ireland and

b) the maturities of future disbursements
will be extended.

· Macro-financial assistance loans

MFA loans to third
countries have been subject to individual decisions by the Council and since
the entry into force of the Lisbon Treaty by the European Parliament and the
Council. A new legislative proposal for a MFA Framework Regulation has been
prepared to improve the decision–making process under the Lisbon Treaty[24].

Under the proposed Framework Regulation, the procedure for MFA would
become similar to that of other external financing instruments, whereby the Commission would have competence for adopting decisions granting
MFA under the supervision of a committee of Member States representatives in
accordance with the examination procedure introduced by the new comitology
rules, which entered into force on 1 March 2011[25].

No MFA loans operations were implemented
during the first semester 2011. Two MFA loans operations for a total amount of
EUR 126 million[26]
were disbursed in July 2011.

· Euratom loans

The Euratom lending to Member States or in
certain eligible non-member countries (Russian Federation, Armenia, Ukraine)
has a ceiling of EUR 4 billion of which around 85% has already been
used. The remaining amount is about EUR 600 million and could be used
for financing new projects.

· EIB loans

Under the EIB general mandate covering the
period 2007-2013 a total amount of EUR 17,691 million had been signed at 30
June 2011, of which EUR 7,180 million had been disbursed at that date (see
Table A6 of the SWD).

Following the
mid-term review of the EIB external mandate, the European Parliament and the
Council adopted on 13 October 2011 a new Decision (n° 1080/2011/EU of 25
October 2011) granting an EU guarantee to the EIB
against losses under loans and loan guarantees for projects outside the Union
and repealing Decision No 633/2009/EC. The new Decision entered into force on 30
October 2011. As a consequence the aggregate amount of credits disbursed and
guarantees provided under EIB Financing Operations, less amounts reimbursed
plus all related sums, would be increased from EUR 25,800 million to
a maximum ceiling of EUR 29,484 million[27]. The EU guarantee is
restricted to 65% of the aggregate amount of credits disbursed and guarantees
provided under EIB Financing Operations.

Regarding the
ongoing geopolitical tensions affecting some Southern Mediterranean countries
it can not be excluded that the Fund would be called to cover potential
defaults on loans or loan guarantees benefitting from the EU guarantee in this
geographical area (for more information on the countries covered by the EU
guarantee see Tables A1 and A2 of the SWD).

5.
Defaults, activation of Budget guarantees and arrears
5.1.
Payments from cash resources

The Commission draws on its cash resources
in order to avoid delays and resulting costs in servicing its borrowing
operations when a debtor is late in paying the EU[28].

5.2.
Payments from the Budget

As no default was recorded during the first
half of 2011, no appropriation was requested under the p.m. lines of Article
01 04 01 of the Budget "European Union guarantees for Union and
Euratom borrowing operations and for EIB lending operations".

5.3.
Activation of the Guarantee Fund for external
actions[29]

In the event of late payment by the
beneficiary of a loan to third countries granted or guaranteed by the EU, the
Fund is called on to cover the default within three months of the date on which
payment is due[30].

The Fund was not called during the first half
of 2011.

6.
Guarantee Fund for external actions
6.1.
Recoveries[31]

At 30 June 2011, the Fund had no arrears to
recover.

6.2.
Assets

At 30 June 2011, the net assets[32]
of the Fund amounted to EUR 1,487,416,919.

6.3.
Target amount

The Fund has to reach an appropriate level (target amount) set at 9%
of the total outstanding capital liabilities arising from each operation, plus
accrued interest. The ratio between the Fund's resources (EUR 1,487,416,919) and outstanding capital liabilities[33]
(EUR 19,848,481,968) within the meaning
of the Fund Regulation has increased from 7.7% at 31 December 2010
to 8.8% at 30 June 2011.

At year-end 2010, the
Fund resources were lower than the target amount.
According to the provisioning rules of the Fund Regulation, a provisioning of EUR 260,170,000 was inserted in the preliminary
Budget of 2012. This amount will be paid from the Budget to the Fund in February
2012.

7.
Evaluation of risks: Economic and financial situation
of third countries with the largest exposure
7.1.
Objectives

The previous sections of this report
provided information on quantitative aspects of the risk borne by the Budget,
relating to third countries. This section, which is completed by the section 3
of the SWD, provides a macroeconmic analysis of the third countries having the
largest exposure to the Budget or which benefit from the EU lending facilities
(MFA and Euratom loans).

7.2.
Risk assessment methods

The risk assessment presented in the SWD is
based on the information on the economic and financial situation, ratings and
other known facts of the countries having received guaranteed loans. This
assessment does not include estimations of expected losses and recoveries which
are inevitably highly uncertain.

Country risk indicators included in the
tables in the SWD indicate the evolution of risk of defaults. This analysis is
provided in the section 3 of the SWD for the countries having the highest
credit risk and exposure to the Budget (MFA and Euratom loans included) at 30
June 2011.

[1]               COM(2011)528 and SEC(2011)1011 make up the previous
report on the guarantees covered by the Budget at 31 December 2010.

[2]               MFA may also take the form of grants to third
countries. For more information on MFA, see Commission report COM(2011)408 and
SEC(2011)874.

[3]               Council Regulation (EC) N° 332/2002 of 18 February establishing
a facility providing medium-term financial assistance for Member States'
balances of payments (OJ L 53, 23.2.2002, p.1).

[4]               The EFSM was set up on 11 May 2010 on the basis of
Council Regulation (EU) No 407/2010 of 11 May 2010 (OJ L 118, 12.5.2010, p.1).
It functions in a similar way as the Balance of Payments facility but is
available to all Member States, i.e. including Euro area Member States.

[5]               The figures concerning the EIB
mandates are displayed in Table A1 and references to legal bases are listed in
Table A4 of the SWD.

[6]               At 30.6.2011 the guarantee was covering the period 1
February 2007—31 October 2011 in line with Decision No 633/2009/EC of the
European Parliament and of the Council of 13 July 2009 (OJ L 190, 22.7.2009, p. 1) (the "External
Mandate Decision"), replacing Council Decision 2006/1016/EC of
19 December 2006. In the meantime the period has been extended to 31.12.2013 by
Decision 1080/2011/EU of the European Parliament and of the Council of 25
October 2011 (OJ L 280, 27.10.2011, p. 1).

[7]               Council Regulation (EC, Euratom) No 480/2009 of
25 May 2009 establishing a Guarantee Fund for external actions
(codified version), the "Guarantee Fund Regulation" (OJ L 145,
10.6.2009, p.10).

[8]               Although external risks are covered in fine by
the guarantee of the EU budget, the Guarantee Fund acts
as an instrument to protect the EU budget against the risk of payment defaults.
For a comprehensive report on the functioning of the Fund, see COM(2010)418 and
the accompanying Staff Working Document (SEC(2010)968).

[9]               Council Decision (2011/288/EU) of 12 May 2011 providing precautionary EU medium-term financial assistance
for Romania (OJ L 132 of 19.05.2011, p.15).

[10]             Art. 122.2 of the TFEU foresees financial support for
Member States in difficulties caused by exceptional circumstances beyond Member
States' control.

[11]             About EFSF: http://www.efsf.europa.eu/about/index.htm

[12]             The Greek Loan Facility -
ECFIN - European Commission:
http://ec.europa.eu/economy_finance/eu_borrower/greek_loan_facility/index_en.htm

[13]             See Table 1 of the Report.

[14]             For the purpose of this calculation, it is assumed that
defaulting loans are not accelerated, i.e. only payments due are taken into
account (see also Tables 2 and 3 of the Report and Table A2 of the SWD).

[15]             Representing the amounts due during the second semester
2011 (out of the total outstanings at 30 June 2011) and assuming that
defaulting loans are not accelerated. For details see Table A2 in SWD

[16]             Representing the amounts due during the second semester
2011 (out of the total outstanding at 30 June 2011) and assuming that
defaulting loans are not accelerated. For details see Table A2 in SWD.

[17]             The higher the ranking number, the lower the
creditworthiness of the country. Countries are rated on a scale of zero to 185
or to 100 (the number of countries has been reduced from 185 to 100 from
January 2011). 185, respectively 100, represents the highest risk of default. A
given country may improve its rating and still fall in the ranking if the
average global rating for all rated countries improves.

[18]             Cf.
Press release on extraordinary Ecofin Council meeting 9/10 May 2010 (http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/114324.pdf)

[19]             Council Regulation (EU) No 407/2010 of 11 May 2010
establishing a European financial stabilisation mechanism (OJ L 118, 12.5.2010,
p.1).

[20]             Council Implementing Decision n°344/2011/EU of 30 May
2011 on granting Union financial assistance to Portugal (OJ L 159 of
17.06.2011, p.88).

[21]             On 31 May 2011, the first instalment of EUR 1.75 billion
was disbursed to Portugal. Until June 2011, EUR 6.5 billion was
disbursed.

[22]             http://ec.europa.eu/economy_finance/eu_borrower/ireland/index_en.htm

[23]             For further information on EFSM, see also the report
from the Commission on borrowing and lending activities of the European Union in
2010, COM(2011)485.

[24]             Following the entry into force of the Lisbon Treaty,
MFA decisions are no longer taken by the Council alone, but in accordance with
the ordinary legislative procedure (codecision).

[25]             Regulation (EU) 182/2011 of the European Parliament and
of the Council laying down the rules and general principles concerning
mechanisms for control by Member States of the Commission’s exercise of
implementing powers (OJ L 55, 28.2.2011, p. 13), which replaces Council
Decision 1999/468/EC.

[26]             EUR 26 million to Armenia and EUR 100 million
to Serbia.

[27]             The increase by EUR 3,684 million is to be split
between an additional mandate
of EUR 2,000 million for financing climate change operations and EUR 1,684
million to enhance EIB risk-operations.

[28]             See Article 12 of Council
Regulation (EC, Euratom) No 1150/2000 of 22 May 2000 implementing Decision
2007/436/EC, Euratom, on the system of the European Communities own resources
(OJ L 130, 31.5.2000, 1-12).

[29]             Since its inception in 1994, the Fund has been called
for a cumulative amount of EUR 478 million.

[30]             For more details, see Section 1.4.3 of the SWD.

[31]             Since its inception in 1994, the total recoveries by
the Fund have amounted to EUR 576 million (it includes the amount of capital
and interest repaid, plus penalties interests for late payments, plus exchange
rate gains and losses realized).

[32]             Total assets of the Fund minus accrued payables (EIB
fees and audit fees).

[33]             Including accrued interests.