Reconversion loans granted at reduced interest rates, under Article 56 of the ECSC Treaty, for investments which create alternative employment opportunities in areas affected by a decline in the activities of the coal or steel industries

The detailed rules for granting reconversion loans as follows supplement or amend those published in Official Journal of the European Communities No C 178 of 27 July 1977, page 2.

A. Types of loan

Reconversion loans pursuant to Article 56 of the ECSC Treaty may be granted to concerns and to public bodies directly, in the form of individual loans, or indirectly, in the form of subsidiary loans, through the intermediary of financial institutions to whom the ECSC has granted a global loan.

B. Condition governing the loan

The maximal amount of the loan shall be 50 % of agreed project cost.

C. Direct loan

The application for a loan shall be sent to the Commission of the European Communities through the intermediary and with the agreement of the responsible department of the national government concerned.

The grant of the loan shall be decided by the Commission, subject to agreement of the Council in cases where the activity involved is not covered by the ECSC.

D. Global loan

Global loans may be granted to any financial institution capable of financing, under sound economic conditions, investments which are eligible according to Article 56 (1) (b) and 2 (a) of the ECSC Treaty. The financial institution shall take up all customary banker's guarantees for subsidiary loans and, where necessary, shall make a charge not exceeding its own costs.

The application for a global loan shall follow the same procedure as that required for a direct loan.

E. Subsidiary loan

Small and medium sized firms and craft industries as defined and published in Official Journal No C 178 of 27 July 1977 may apply for a reconversion loan up to a ceiling of 2 million European units of account (EUA) with intermediary financial institutions to which a global loan has been granted. The cost of the investment project, which is the subject of an application for a subsidiary loan may not exceed 10 million EUA. The subsidiary loan may not exceed 50 % of investment.

The maximal subsidiary loan eligible for rebate shall be 20 000 EUA per job created.

At the present time, global loans have been granted to the following financial institutions:

FRANCE

SOFIREM 31-33 Rue de la Baume Paris 8º. Tel. 225.95.00 LORDEX 109 Bd. d'Haussonville F-54041 Nancy cédex. Tel. (28) 27 05 22

Banque Populaire de Lorraine 3, rue François de Curel Boîte postale 124 57021 Metz. Tel. (87) 69 24 12

UNITED KINGDOM

Finance for Industry 91, Waterloo Road, London SE1 8XP. Tel. (01) 928 7822

FEDERAL REPUBLIC OF GERMANY

Saarländische Investitionskreditbank Johannesstraße 2 Postfach 883 6600 Saarbrücken. Tel. (06 81) 3 60 61

IRELAND

Investment Credit Company 32-34 Harcourt Street, Dublin 2. Tel. (01) 720055

The grant of further global loans to other financial institutions will be published at a later date in the Official Journal.

Information

More detailed information on reconversion loans may be obtained from the responsible national departments, from the intermediaries abovementioned and from the following departments of the Commission of the European Communities:

D.J. DEKKER

DG XVI, Division B3, Rue de la Loi 200, B-1049 Brussels. Tel. 735.80.40, ext. 3420

O. HAHN

DG XVIII, Division B2, Bâtiment Jean Monnet Luxembourg, G.D. Tel. 340 11