2000D0024 — EN — 09.11.2001 — 003.001 — 1
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►B COUNCIL DECISION
of 22 December 1999
granting a Community guarantee to the European Investment Bank against losses under loans for
projects outside the Community (Central and Eastern Europe, Mediterranean countries, Latin
America and Asia and the Republic of South Africa)
(2000/24/EC)
(OJ L 9, 13.1.2000, p. 24)
Amended by:
Official Journal
No page date
►M1Council Decision 2000/688/EC of 7 November 2000 L 285 20 10.11.2000
►M2Council Decision 2000/788/EC of 4 December 2000 L 314 27 14.12.2000
►M3Council Decision 2001/778/EC of 6 November 2001 L 292 43 9.11.2001
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COUNCIL DECISION
of 22 December 1999
granting a Community guarantee to the European Investment Bank
against losses under loans for projects outside the Community(Central and Eastern Europe, Mediterranean countries, Latin
America and Asia and the Republic of South Africa)
(2000/24/EC)
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and
in particular Article 308 thereof,
Having regard to the proposal from the Commission(1),
Having regard to the opinion of the European Parliament(2),
Whereas:
(1)The European Council meeting in Madrid on 15 and 16 December
1995 confirmed the importance of the European Investment Bank,hereinafter referred to as ‘the EIB’, as an instrument of
cooperation between the Community and Latin America and
called on the EIB to intensify its activities in the region; whereasthese projects should be of interest to both the Community and thecountries concerned;
(2)The European Council meeting in Florence on 21 and 22 June
1996 welcomed the results of the Asia-Europe summit, which
marked a turning-point in relations between the two continents;
(3)The European Council meeting in Amsterdam on 16 and 17 June1997 welcomed the conclusions adopted at the Second Euro-Mediterranean Conference, which was held at Valletta, Malta, on
15 and 16 April 1997 and reaffirmed the principles and objectives
agreed at Barcelona in 1995;
(4)The European Council meeting in Luxembourg on 12 and 13December 1997 launched the enlargement process with theCentral and Eastern European countries and Cyprus;
(5)The European Council meeting in Cardiff on 15 and 16 June 1998welcomed the efforts which the Republic of South Africawa smaking to modernise its economy and integrate it into the worldtrading system;
(6)The EIB is completing the current loan programmes for Centraland Eastern Europe, the Mediterranean region, Asia and LatinAmercia and the Republic of South Africa pursuant to Decision97/256/EC(
3), as well as the lending that is governed by the
Protocol on Financial Cooperation with the Former YugoslavRepublic of Macedonia, according to Council Decision 98/348/
EC(
4);
(7)The Council has invited the EIB to start operations in Bosnia and
Herzegovina; these operations may be continued, subject to apositive report being drawn up as stipulated in Decision 98/729/EC(
5);
(8)Although Bosnia-Herzegovina and FYROM have been includedin the Central and Eastern Europe region since the adoption ofDecision 97/256/EC, the EIB's total lending effort to applicantcountries within this region should increase given the importanceof the pre-accession facility the EIB plans to create for EIB2000D0024 — EN — 09.11.2001 — 003.001 — 2
(1) OJ C 145, 26.5.1999, p. 10.
(2) Opinion delivered on 19 November 1999 (not yet published in the Official
Journal).
(3) OJ L 102, 19.4.1997, p. 33. Decision as last amended by Decision 98/729/EC
(OJ L 346, 22.12.1998, p. 54).
(4) OJ L 155, 29.5.1998, p. 53.
(5) OJ L 346, 22.12.1998, p. 54.
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lending for projects in these countries without a guarantee from
the Community budget or Member States;
(9)In these circumstances, the EIB should ensure that its guaranteedlending within the Central and Eastern Europe mandate willfinance particularly projects in those countries which have fewer
projects suitable for financing from the pre-accession facility or
projects in non-applicant countries;
(10)The Cooperation Agreements between the European Community
and Nepal, between the European Community and Lao PDR and
between the European Community and Yemen entered into forceon 1 June 1996, 1 December 1997 and on 1 July 1998respectively; the Cooperation Agreement between the EuropeanCommunity and South Korea was signed on 28 October 1996;whereas Nepal, Yemen, Lao PDR and South Korea should
become beneficiaries of EIB funding under the EIB's mandate for
Asia and Latin America;
(11)It is appropriate to make certain improvements in the programmes
of operations in respect of duration and country coverage; it is
appropriate to adjust the blanket guarantee rate and the portion oflending for which the EIB is invited to cover the commercial riskfrom non-sovereign guarantees;
(12)The Council is calling on the EIB to continue its operations insupport of investment projects carried out in those countries byoffering it the guarantee provided for in this Decision;
(13)In June 1996, the Commission, in agreement with the EIB,presented to the Council a proposal for a new guarantee systemfor EIB lending to third countries;
(14)On 2 December 1996 the Council approved conclusions on newguarantee arrangements for EIB lending to third countries,according to which the approach of a global guarantee, withoutdistinguishing between the regions and projects, is approved and a
risk-sharing scheme accepted; under the risk-sharing scheme the
EIB should secure adequate non-sovereign third-party guaranteesfor commercial risks, with the budgetary guarantee in that casecovering only political risks arising from currency non transfer,expropriation, war or civil disturbance;
(15)The guarantee arrangements should not affect the excellent creditstanding of the EIB;
(16)Regulation (EC, Euratom) No 1149/99(1), revised the target
amount and the provisioning rate for the Loan Guarantee Fundestablished by Regulation (EC, Euratom) No 2728/94(
2);
(17)The financial perspective for the period 2000 to 2006 according tothe Interinstitutional Agreement of 6 May 1999 between theEuropean Parliament, the Council and the Commission onbudgetary discipline and improvement of the budgetary proce-
dure(
3) envisages a ceiling for the loan guarantee reserve in the
Community budget of EUR 200 million per annum;
(18)EIB financing in eligible third countries should be managed, in
accordance with the EIB's usual criteria and procedures, including
appropriate control measures, as well as with the relevant rulesand procedures concerning the Court of Auditors and OLAF, insuch a way as to support Community policies and to enhancecoordination with the Community's other financial instruments;
there is regular consultation between the EIB and the Commission
to ensure coordination of priorities and activities in thesecountries and to measure progress towards the fulfilment of theCommunity's relevant policy objectives; the setting and periodicreview of the operation objectives and the measurement of theirfulfilment are the responsibility of the EIB's Board of Directors;2000D0024 — EN — 09.11.2001 — 003.001 — 3
(1) OJ L 139, 2.6.1999, p. 1.
(2) OJ L 293, 12.11.1994, p. 1.
(3) OJ C 172, 18.6.1999, p. 1.
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in particular, EIB financing in the candidate countries should
reflect the priorities established in the accession partnershipsbetween the Community and those countries; thus the transpar-
ency of the EIB lending under this Decision should be
substantially enhanced;
(19)As from the date on which this Decision takes effect, theCommunity guarantee covering the special earthquake facility forTurkey under Decision 1999/786/EC(
1) shall take the form of an
extension of the global guarantee under this Decision;
(20)The EIB and the Commission will adopt the procedures forgranting the said guarantee;
(21)For the purpose of adopting this Decision, the only powersprovided for by the Treaty are those set out in Article 308 thereof,
HAS DECIDED AS FOLLOWS:
Article 1
1. The Community shall grant the EIB a global guarantee in respect
of all payments not received by it but due in respect of credits opened, inaccordance with its usual criteria, and in support of the Community'srelevant external policy objectives, for investment projects carried out inCentral and Eastern Europe, the Mediterranean countries, Latin America
and Asia and the Republic of South Africa.
This guarantee shall be restricted to 65 % of the aggregate amount of the
credits opened, plus all related sums. The overall ceiling of the creditsopened shall be equivalent to ►
M3EUR 19 460 million ◄, broken
down as follows:
— Central and Eastern Europe:
►M3EUR 9 280 million ◄,
— Mediterranean countries:
EUR 6 425 million,
— Latin America and Asia:
EUR 2 480 million,
— Republic of South Africa:
EUR 825 million,
— Special action supporting the consolidation and intensification of the
EC-Turkey Customs Union:
EUR 450 million;
and shall cover a period of seven years beginning on 1 February 2000
for Central and Eastern Europe, the Mediterranean countries, LatinAmerica and Asia and beginning on 1 July 2000 for the Republic ofSouth Africa and ending for all regions on 31 January 2007.
The Commission shall report on the application of this Decision at the
latest on 31 January 2004, or six months before any new accessiontreaties enter into force, and make proposals for amendments of thisDecision if appropriate. The Council will discuss and act on anyproposal with effect from 1 August 2004, or the date of entry into force
of any new accession treaty.
If, on expire of the guaranteed lending period on 31 January 2007, the
loans granted by the EIB have not attained the overall amounts referredto in the second paragrapha, this period shall be automatically extendedby six months.2000D0024 — EN — 09.11.2001 — 003.001 — 4
(1) OJ L 308, 3.12.1999, p. 35.▼M2
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2. The countries covered by paragraph 1 are:
—Central and Eastern Europe : Albania, Bosnia and Herzegovina,
Bulgaria, ►M1Croatia,◄Czech Republic, Estonia,
►M3Federal Republic of Yugoslavia, ◄Former Yugoslav
Republic of Macedonia, Hungary, Latvia, Lithuania, Poland,Romania, Slovak Republic and Slovenia;
—Mediterranean countries : Algeria, Cyprus, Egypt, Israel, Jordan,
Lebanon, Malta, Morocco, Syria, Tunisia, Turkey, and Gaza-WestBank;
—Latin America : Argentina, Bolivia, Brazil, Chile, Colombia, Costa
Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico,
Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela;
—Asia: Bangladesh, Brunei, China, India, Indonesia, Laos, Macao,
Malaysia, Mongolia, Nepal, Pakistan, Philippines, Singapore, South
Korea, Sri Lanka, Thailand, Vietnam and Yemen;
— Republic of South Africa.
3. The EIB is hereby invited to aim to cover the commercial risk on
30 % of its lending under this Decision from non-sovereign guaranteesas far as possible on an individual regional mandate basis. Thispercentage shall be expanded upon whenever possible insofar as themarket permits.
Article 2
The Commission shall inform the European Parliament and the Council
each year of the loan operations and progress made on risk-sharingunder Article 1(3) and shall, at the same time, submit an assessment of
the operation of the scheme and of coordination between the financial
institutions operating in that area. The Commission informationsubmitted to the European Parliament and the Council shall include anassessment of the contribution of the lending under this Decision to thefulfilment of the Community's relevant external policy objectives, taking
into account the operational objectives and appropriate measurements of
their fulfilment to be established by the EIB for lending under thisDecision.
For the purposes referred to in the first subparagraph, the EIB shall
transmit to the Commission the appropriate information.
Article 3
The EIB and the Commission shall fix the terms on which the guarantee
is to be given.
Article 4
This Decision shall taken effect on the day of its publication in the
Official Journal of the European Communities .2000D0024 — EN — 09.11.2001 — 003.001 — 5