No C 173/2 Official Journal of the European Communities 1.7.87 
Procedures and conditions for the granting of conversion loans under Article 56 of the ECSC 
Treaty for investments which create alternative employment opportunities for redundant 
workers in the coal or steel industries 
(87/C 173/02) 
I. INTRODUCTION 
Under Article 56 of the ECSC Treaty, the Commission 
of the European Communities is pursuing a policy of 
employment creation and economic revitalization in 
areas affected by the contraction in activity and 
employment in ECSC industries. 
This policy takes the form of action to stimulate 
investment which creates alternative employment oppor­
tunities capable of re-absorbing the redundant workers 
into productive employment. For this purpose the 
Commission is able to make loans, subject to the avail­
ability of borrowed resources. In order to improve the 
efficiency of this financial instrument the Commission, 
subject to availability of budgetary resources, may reduce 
the interest cost of these loans by using funds set aside 
for this purpose each year in the ECSC budget. 
On 27 July 1977, in Official Journal of the European 
Communities No C 178, the Commission published for 
the first time the operating principles for ECSC 
conversion loans. Amendments and information were 
subsequently published on 29 March 1979 (OJ No C 
82), 22 January 1980 (OJ No C 16), 24 October 1980 
(OJ No C 276), 13 March 1981 (OJ No C 54), 16 April 
1982 (OJ No C 95) and 16 July 1983 (OJ No C 191). 
In view of the subsequent change in the situation, and 
faced with the continuing crisis experienced by the 
ECSC industries, in 1984 the Commission decided on an 
improvement in its conversion policy to make more 
effective use of this instrument. In particular it drew up a 
list of ECSC employment areas for which simplified 
procedures may be applied. Furthermore it has taken 
account both of the ECSC budgetary situation, which 
continues to present difficulties, and of the lower interest 
rates now prevailing on most national capital markets. 
These amendments have made it necessary to adjust the 
operating principles hitherto in use. The conditions 
governing the granting of conversion loans published in 
this Official Journal are immediately applicable. 
II. OPERATING PRINCIPLES 
1. Types of loan 
Conversion loans under Article 56 of the ECSC 
Treaty may be granted to undertakings and to public 
bodies either in the form of direct loans, or in the 
form of sub-loans through the intermediary of 
financial institutions to which the ECSC has granted 
a global loan. 2. Direct loans 
(a) The application for a loan should be made to the 
Commission of the European Communities 
through the responsible department of the 
national government concerned. When the 
application is despatched to the latter, a copy 
may be sent directly to the Commission. 
(b) The decision to grant a loan is taken by the 
Commission. When the investment project 
concerns an activity outside the iron or steel 
industries, the Commission must obtain the 
assent of the Council. 
3. Global loans 
(a) Global loans may be granted to any institution 
which the Commission considers capable of 
financing economically sound investments which 
are eligible under the terms of this notice. The 
sub-loans to beneficiaries shall be at the financial 
risk of the intermediaries. 
(b) The application for a global loan follows the 
same procedure as that for a direct loan. The 
Commission's decision to grant a global loan will 
entail conclusion of a framework contract. The 
funds will be made available in one or more 
tranches for which separate loan contracts will 
be concluded subject to the availability of 
budgetary resources and of loan capital, and on 
the basis of the rate of utilization of the funds. 
4. Sub-loans 
(a) Undertakings whose net fixed assets do not 
exceed 75 million ECU may apply for a loan 
from an intermediary financial institution to 
which a global loan has been granted. The 
request for a subsidiary loan may not exceed 7,5 
million ECU. 
(i) In the case of undertakings employing less 
than 500 persons or in whose capital 
structure large enterprises hold no more 
than a one-third participation, the loan 
application should be made in general 
through a financial intermediary; 
(ii) In the case of undertakings employing more 
than 500 persons or in whose capital 
structure large enterprises hold more than a 
one-third participation, application may be 
made for a sub-loan through a financial 
intermediary or for a direct loan as 
described under point 2 (a). 
nB.^ COfficial]ournal of the European communities l^o^t^B^ 
^iii^ Eor the purpose of the present operating 
principlesalargeenterpriseisone^vithnet 
fixed assets exceeding ^ million ECAU or 
employing more than ^00 persons^ on a 
consolidated hasis. 
^ workers in the coal and steel industries ^vho 
have heen^ or are to he^ made redundant and 
^vho^vish to setup on their o^vn account may 
apply for a conversion loan from the financial 
intermediaries referred to ahove^ the limits heing 
the same as for existing undertakings. 
^. sectors 
^ conversion loans are granted for economically 
sound investment projects^ in any industrial or 
service sector. 
^ ^oloancan be granted for projects concerning 
products for ^vhich the commissions on the basis 
of Article^of the EEC^Treaty^ has prohibited 
^tate aids for sectoral reasons. 
^ In industries ^vhose activities relate to the coal 
and steel industries^ investment projects are 
eligible for conversion loans only if they subD 
stantially modify theactivityoftheundertaking 
concerned by providing an entirely ne^v 
employmentcreating activity. 
^The establishment of industrial estates ^vith 
advance factories and the redevelopment of 
industrial sites^ particularly those formerly 
occupied by EC^ industries^ may also be 
eligible foraconversionloan^ provided that such 
investments can be sho^vn to be closely related to 
the creation of ne^ activities and employment 
opportunities. 
D. The borrower 
The undertaking or public agency borrowing from 
the EC^^C^ must be properly constituted^ its relations 
^vithparentorsubsidiarycompaniesand^vithother 
shareholders or other public agencies must be kno^vn 
to the Commission. 
B^. The project 
rhe proposed investment for ^vhichaloan is sought 
must permit the expansion of existing or the creation 
of ne^v economic activities leading to the creation of 
additional jobs. The application must relate to an 
investment ^vhich has not yet been started or is 
underlay and^vhich canbe completed^vithin not 
more than three years from the start of the project. ^. Eco^or^ic aspects 
Appraisal of the economic aspects of the projects ^ill 
take account of the contribution of the investment to 
the development of the regions its financial viability^ 
its level of technology^ market prospects and the 
situation in the sector concerned. 
^. ^a^a^ aspects 
In addition to the financial and economic analysis 
referred to above^ an assessment is made of the 
financial situation of the borrower and that of its 
parent companies^ and of the value of guarantees. 
tO. social aspects 
^ The social objective of the loans is to facilitate 
the reDemploymentof workers made redundant 
by the E^C^ industries. 
d^ An assessment is made of the employment 
situation in the area in ^hich the investment 
projects are located^ and in particular the Eoe^ 
jobs ^hich have been lost or are likely to be lost^ 
the vocational training opportunities available in 
that area and the projects^ potential for the 
creationofne^v jobs suitablefor the productive 
reemployment of former EC^CP^vorkers. 
^ As the projects progress^ the undertakings in 
receipt of aloanmust^inordertofacilitate the 
re^employment of available EC^C^ ^vorkers^ 
notify the ne^ jobs resulting from the project 
being financed to the relevant employment 
offices and to Eoe^ undertakings ^vhich are 
liable to shed workers t^via recognised trade 
associations ^vhere appropriated 
tl. E^vi^o^r^e^t 
An environmental impact assessment of the 
investment is made on the basis of national and 
community legislation in force. 
t^The^i 
The amount of the loan may not exceed ^O^oof the 
fixed investment ^excluding forking capital^needed 
to implement the project. The eligible investment 
cost may include intangible assets such as patents^ 
licences^ kno^vdio^v and research and development 
expenditure directly linked to the investment 
concerned. 
t^. hite^estTate 
^ Theinterestrateis fixed by the C^ommissionon 
the basis of the cost of the resources borrowed. 
No C 173/4 Official Journal of the European Communities 1.7.87 
(b) The Commission may grant an interest rebate on 
the loan subject to the availability of budgetary 
resources. This rebate is calculated in ECU. 
(c) The interest rebate is two percentage points for 
five years. In the case of sub-loans 
corresponding to the conditions set out under 
points 4 (a) (i) and 4 (b) the interest rebate is at 
present three percentage points for five years. 
(d) The maximum amount of loan eligible for an 
interest rebate is 20 000 ECU per job to be 
created resulting from the project being financed 
and meeting the criteria for rebates set out below 
under points 14 and 15. 
14. Localization of beneficiaries 
The conditions governing the granting of conversion 
loans will be determined by the area where the 
geographical siting of the investment is made and in 
particular by the following criteria: 
ECSC employment areas (priority and non-priority) 
Those areas particularly affected by the restructuring 
of the ECSC industries are defined by the 
Commission as ECSC employment areas on the basis 
of job losses in the ECSC industries or dependence 
on ECSC industries. The list of ECSC employment 
areas at present in force is available from the sources 
given under point V. The list is subject to regular 
review. 
Priority areas are those ECSC employment areas 
where ECSC conversion operations have not yet 
created a number of new jobs equal to 50 % of the 
ECSC jobs lost between 1 January 1978 and the end 
of the restructuring process. Non-priority areas are 
those where the 50 % threshold has been reached. 
15. Calculation of the interest rebate 
General provisions (c) For loans granted outside ECSC employment 
areas, the interest rebate is calculated on the 
basis of the number of former ECSC workers 
effectively re-employed. 
(d) For direct loans in ECSC employment areas the 
interest rebate is calculated on the basis of jobs 
suitable for ex-ECSC workers where this results 
in a lower figure than that reached by applying 
the flat-rate calculations set out under points (a) 
and (b) above and (e) below. 
Special provisions 
(e) The Commission may respond to variations in 
demand by limiting temporarily the number of 
jobs eligible for interest rebate according to the 
size of the loan. 
(aa) Loans up to 1 million ECU continue to be 
subject to the conditions set out in (8a) and 
(b) above; 
(bb) The following provisions apply at present to 
loans exceeding 1 million ECU: 
(i) In priority ECSC employment areas 
the number of jobs eligible for interest 
rebate will be limited to two-thirds of 
the first 75 jobs to be created and one-
half of the additional number of jobs 
to be created exceeding 75. 
(ii) In non-priority ECSC employment 
areas, the interest rebate will be limited 
to one-half of the first 100 jobs to be 
created and one-third of the jobs to be 
created exceeding 100. 
(cc) For sub-loans in ECSC employment areas 
the Commission may suspend application of 
the flat-rate calculation as set out under 
points (a), (b) and (e) above where the 
project concerned or the jobs to be created 
are clearly not of a nature suitable for ex-
ECSC workers or in the case of projects 
described under point 5 (d). 
(a) For loans granted in priority ECSC employment 
areas, the interest rebate is calculated, other than 
as set out under points (d) and (e) below, on a 
flat-rate basis of two-thirds of the new jobs to be 
created. 
(b) For loans granted in non-priority ECSC 
employment areas, the interest rebate is 
calculated, other than as set out under points (d) 
and (e) below, on a flat-rate basis of one-half of 
the new jobs to be created. III. REPORTS AND CONTROLS 
The Commission receives annual reports from borrowers 
on the implementation of investments, jobs created, jobs 
filled and the number of former ECSC workers re­
employed. 
Investment projects for which loans have been granted 
may be inspected by the Commission to check that they 
are being implemented in accordance with the contract. 
1.7.87 Official Journal of the European Communities No C 173/5 
IV. CONTRACTS 
The obligations on the borrower resulting from the 
foregoing are set out in the loan contracts. Failure to 
comply with these obligations may lead to the total or 
partial cancellation of either the loan or the interest 
rebate. 
V. INFORMATION 
Applications for conversion loans and allocations under 
global loans are covered by banking discretion. More detailed information on conversion loans may be 
obtained from the national departments responsible, 
from the financial intermediaries, and from the 
departments of the Commission of the European 
Communities listed hereunder. 
Directorate-General XVI 
Regional Policy 
Rue de la Loi 200 
B-1049 Brussels 
Tel.: 235 11 11. Directorate General XVIII 
Credit and Investments 
Batiment Jean Monnet 
Rue Alcide de Gasperi 
L-2920 Luxembourg 
Tel.: 430 11. 
VI. FINANCIAL INTERMEDIARIES 
BELGIUM 
Banque Bruxelles-Lambert 
Avenue Marnix 24 
B-1050 Bruxelles 
Telephone: (02) 517 35 13 
Telex: 21 255 BBFEX 
Generate de Banque 
Rue Montagne du Pare 3 
B-1000 Bruxelles 
Telephone: (02) 516 38 18 
Telex: 21 283 GEBA 
Kredietbank 
Rue d'Arenberg 7 
B-1000 Bruxelles 
Telephone: (02) 517 46 97 
Telex: 24078 KBADMI B Caisse nationale de credit professionnel 
Boulevard de Waterloo 16 
B-1000 Bruxelles 
Telephone: (02) 513 64 80 
T6lex: 22 026 CNKBRU 
Societe nationale de credit a I'industrie 
Avenue de l'Astronomie 14 
B-1030 Bruxelles 
Telephone: (02) 214 12 11 
Telex: 25 996 
DENMARK 
Finansieringsinstituttet for Industri & Hdndvark AIS 
Nyropsgade 17-19 
DK-16O2K0benhavnV 
Tel: (01) 13 13 21 
Telex: 15070 FIH DK 
FEDERAL REPUBLIC OF GERMANY 
Bankjur Gemeinwirtschaft 
Theaterplatz 2 
Postfach 11 02 22 
D-6000 Frankfurt/Main 11 
Tel.: (0 69) 25 80 
Telex: 412210 BFGD Bayerische Landesbank — Girozentrale 
Briennerstrafie 20 
Postfach 20 05 25 
D-8000 Munchen 2 
Tel.: (0 89) 2 17 11 
Telex: 528620 
No C 173/6 Official Journal of the European Communities 1.7.87 
Bayerische Vereinsbank AG 
Kardinal-Faulhaber-Strafie 14 
Postfach 1 
D-8000 Munchen 
Tel.: (0 89) 2 13 21 
Telex: 529543 BVMD Bayerische Hypotheken- und Wechselbank AG 
Theatinerstrafie 11 
Postfach 20 05 27 
D-8000 Munchen 
Tel.: (0 89)2 36 61 
Telex: 523031 
Commerzbank AG 
Breite Strafie 25 
Postfach 11 37 
D-4000 Dusseldorf 
Tel.: (02 11) 82 71 
Telex: 8581381 Deutsche Bank AG 
Konigsallee 45/47 
Postfach 11 17 
D-4000 Dusseldorf 1 
Tel.: (02 11) 88 30 
Telex: 85832-0 
Dresdner Bank AG 
Jurgen-Ponto-Platz 1 
Postfach 110661 
D-6000 Frankfurt/Main 1 
Tel.: (0 69)26 31 
Telex: 515240 Industriekreditbank AG — Deutsche Industriebank 
(1KB) 
Karl-Theodor-Strafie 6/Ecke Breite Strafie 
Postfach 11 18 
D-4000 Dusseldorf 1 
Tel.: (02 11) 8 22 11 
Telex: 8582791 
Saarldndische Investitionskreditbank AG 
Johannisstrafie 2 
Postfach 833 
D-6600 Saarbriicken 
Tel.: (06 81) 3 03 30 
Telex: 4428850 Westdeutsche Genossenschafts-Zentralbank AG 
Sentmaringer Weg 1 
Postfach 61 67 
D-4400 Munster 
Tel.: (02 51) 70 60 
Telex: 0892824 
Westdeutsche Landesbank — Girozentrale 
Friedrichstrafie 56 
Postfach 1128 
D-4000 Dusseldorf 
Tel.: (02 11) 8 26 01 
Telex: 8581852 Westfalenbank 
Huestrafie 21-25 
Postfach 10 27 10 
D-4630 Bochum 1 
Tel.: (02 34)6160 
Telex: 825825 
Norddeutsche Landesbank — Girozentrale 
Georgsplatz 1 
D-3000 Hannover 
Tel.: (05 11) 103-22 19 
Telex: 92160 G2HD Norddeutsche Genossenschaftsbank AG 
Rathenaustrafie 5-6 
Postfach 249 
D-3000 Hannover 1 
Tel.: (05 11) 12 27-0 
Telex: 922751 
Trinkaus & Burckhardt KGaA 
KOnigsallee 21/23 
Postfach 1108 
D-4000 Dusseldorf 1 
Tel.: (02 11) 8 31-26 74 
Telex: 8581490 
GREECE 
Hellenic Industrial Development Bank 
El. Venizelou St. 18 
TT. 135/Athens 
Telephone: 3 237981 
Telex: 215203 ETVA GR 
1.7.87 Official Journal of the European Communities No C 173/7 
SPAIN 
Banco de Credito Industrial 
Carrera de San Jer6nimo 40 
E-28014 Madrid 
Telephone: 4 296068 
T6lex: 27586 BCIMA E 
FRANCE 
LORDEX 
(Societe de developpement regional de 
Lorraine SA) 
109, boulevard de Haussonville 
F-54041 Nancy-Cedex 
Telephone: (8) 327 05 22 
Telex: 850085 CENDAF Caisse centrale des banques populaires 
115, rue Montmartre 
F-75002 Paris 
Tel6phone: (1) 42 96 15 15 
Chambre syndicate des banques populaires 
131, avenue de Wagram 
F-75017 Paris 
Telephone: (1) 47 54 54 00 Banque populaire du nord 
847, avenue de la Republique 
F-59700 Marcq-en-Baroeul 
Telephone: 20 45 61 10 
Telex: 160818 
Banque populaire de Saone-et-Loire et de I'Ain 
106, rue du Km 400 
F-71009 Macon Cedex 
Telephone: (16) 85 39 22 88 Banque populaire de Lorraine 
Rue Francois-de-Curel 
F-57021 Metz Cedex 
Telephone: (16) 87 37 71 22 
Telex: 860377 
Banque populaire savoisienne de credit 
30, avenue des Afforets 
F-74800 La Roche-sur-Foron 
Telephone: (16) 25 31 31 
Telex: 385610 Banque populaire de la Loire 
1, place de l'H6tel-de-Ville 
F-42007 Saint-Etienne Cedex 
Telephone: (16) 77 33 39 61 
Telex: 300871 
Banque regionale d'escompte et de depots, BRED 
Siege social: 5, avenue du Chateau 
F-94300 Vincennes 
Siege central: 18, quai de la Rapee 
F-75012 Paris 
Zone d'activites de Creteil-l'Echat: 
93-95, avenue du General-de-Gaulle 
Telephone: (1) 43 65 33 44 
ITALY 
Istituto mobiliare italiano (IMI) 
Viale dell'Arte, 25 
1-00144 Roma 
Tel.: (6) 5 4501 
Telex: 610256 IMIROM Mediocredito Friuli Venezia-Giulia 
Via Aquileia 1 
1-33100 Udine 
Tel.: (432) 29 56 51 
Mediocredito ligure 
Via G. D'Annunzio, 23 
CAP. 1362 
1-16121 Genova 
Tel.: (10) 59 15 41 
Telex: 213887 MEDLIG I Mediocredito lombardo 
Via Broletto, 20 
1-20121 Milano 
Tel.: (2) 8 8701 
Telex: 335335 MELOMB 
No C 173/8 Official Journal of the European Communities 1.7.87 
Mediocredito piemontese 
Piazza Solferino, 22 
1-10121 Torino 
Tel.: (11) 53 47 42 
Telex: 220402 M CPIEM 
Interbanca 
Corso Venezia, 56 
1-20121 Milano 
Tel: (02) 7 7311 
Telex: 312649 INTBAN I 
Istituto bancario San Paolo di Torino 
Via Monte di Pieta, 32 
1-10121 Torino 
Tel.: 5 77 01 
Telex: 213578 Mediocredito dell'Umbria 
Corso Vanucci, 66 
CAP 357 
1-06100 Perugia 
Tel.: (75)2 36 43 
Telex: 662023 
Banca nazionale del lavoro 
Sezione speciale per il credito industriale 
Via Campania 45 
1-00100 Roma 
Tel.: 49 95 
Telex: 610116 
LUXEMBOURG 
Societe nationale de credit et d'investissement 
3, rue de la Congregation 
L-Luxembourg 
Telephone: 47 83 15 
Telex: 2790 ETAFIN LU 
Nationale Investeringsbank 
Carnegieplein, 4 
Postbus 380 
NL-2501 BH Den Haag 
Tel.: (70) 46 94 64 
Telex: 31368 INVES NL 
Algemene Bank Nederland 
Vijzelstraat, 32 
Postbus 669 
NL-1000 EG Amsterdam 
Tel.: (20) 29 91 11 
Telex: 11417 THE NETHERLANDS 
Rabobank Nederland 
Fellenoord, 15 
Postbus 221 
NL-5600 MA Eindhoven 
Tel.: (40) 34 91 11 
Telex: 59575 
Bank of Scotland 
PO Box 12, 
Uberior House, 
61 Grassmarket, 
UK-Edinburgh EHl 2JF. 
Tel. (031)442 77 77 
Telex 727583 
Fax (031) 243 57 38 
Clydesdale Bank Ltd 
PO Box 43, 
30 St. Vincent Place, 
UK-Glasgow Gl 2HL. 
Tel. (041)248 70 70 
Telex 77135 
Fax (041) 204 08 28 UNITED KINGDOM 
Barclays Bank pic. 
Marketing Department, 
Juxon House, 
94 St. Paul's Churchyard (6th floor), 
UK-London EC4M 8EH. 
Tel. (01) 248 91 55 
Telex 884970 
3i-Investors in Industry pic. 
91 Waterloo Road, 
UK-London SE1 8XP. 
Tel. (01) 928 78 22 
Telex 917844 
Fax (01) 928 00 58 
or 
31 Homer Road, 
Solihull, 
West Midlands BN1 3QA. 
Tel. (021) 704 51 81 
Telex 337786 
Fax (021) 705 94 88 
1.7.87 Official Journal of the European Communities No C 173/9 
National Westminster Bank pic. 
Small Business Sector, 
Commercial Banking Services (8th Floor), 
Finsbury Court, 
101-117 Finsbury Pavement, 
UK-London EC2A IEH. 
Tel. (01) 726 10 00 
Telex 915052 NWBFSQG 
Scottish Development Agency 
Small Business Division, 
Rosebery House, 
Haymarket Terrace, 
UK-Edinburgh EH12 5EZ. 
Tel. (031) 337 95 95 
Telex 727528 
Fax (031) 337 93 18 Royal Bank of Scotland pic. 
Central Credit Control, 
67 Lombard Street, 
UK-London EC3 3DL. 
Tel. (01) 623 43 56 
Telex 8814259 
Welsh Development Agency 
Glantaf House, 
Treforest Industrial Estate, 
Pontypridd, 
UK-Mid Glamorgan CF37 5UT. 
Tel. (044385) 26 66 
Telex 497516 
or 
Investment Department, 
Pearl House, 
Greyfriars Road, 
UK-Cardiff CFl 3XX. 
Tel. (0222) 3 29 55 
Telex 497513 
Call for a reserve list of tenders for the RACE programme 
(R&D in advanced communications-technologies in Europe) 
(87/C 173/03) 
The Commission of the European Communities proposed on 29 October 1986 the RACE 
programme COM(86) 547 published in the Official Journal of the European Communities No C 
304 of 28 November 1986. 
In preparation for the adoption of the RACE programme by the Council of Ministers, the 
Commission is constituting a reserve list of tenders for projects. 
The proposals have to arrive by / October 1987 at 17.00. 
The full information for the submission can be obtained from: 
COMMISSION OF THE EUROPEAN COMMUNITIES 
Directorate-General XIII 
Telecommunications, Information Industries and Innovation 
RACE J70 4/18 
Telephone: ( + 322)235 98 21/95 56 
Telex: 22045 RACE B 
Telecopier: ( + 322)235 06 54