3.5.97 1EN| OfficialJournaloftheEuropean Communities NoC137/9
II
(Preparatory Acts)
COMMISSION
Amended proposalforaEuropean Parliament andCouncilDirectiveamending Directive
87/102/EEC(asamendedbyDirective90/88/EEC)fortheapproximation oflaws,regulations
andadministrative provisions oftheMemberStatesconcerning consumer credit:single
mathematical formulafortheannualpercentage rateofcharge(APR)(')
(97/C137/07)
(TextwithEEArelevance )
COM(97)127final—96/0055(COD)
(Submitted bytheCommission pursuanttoArticle189a(2)oftheECTreatyon21March1997)
0)OJNoC235,13.8.1996,p.8.
ORIGINAL PROPOSAL OFTHECOMMISSION AMENDED PROPOSAL
THEEUROPEAN PARLIAMENT ANDTHECOUNCIL
OFTHEEUROPEAN UNION ,
UnchangedTHEEUROPEAN PARLIAMENT ANDTHECOUNCIL
OFTHEEUROPEAN UNION ,
HavingregardtotheTreatyestablishing theEuropean
Community ,andinparticularArticle100athereof,
HavingregardtotheproposaloftheCommission ('),
HavingregardtotheopinionoftheEconomic and
SocialCommittee (2),
Actinginaccordance withtheprocedure laiddownin
Article189boftheTreaty,
Whereasitisdesirable,inordertopromotetheestab­
lishmentandfunctioning oftheinternalmarketandto
ensurethatconsumers benefitfromahighlevelof
protection ,thatonemethodofcalculating theannual
percentage rateofchargeshouldbeusedthroughout the
European Community ;
WhereasArticle5ofCouncilDirective 87/102/EEC(3)
providesfortheintroduction ofaCommunity methodor
methodsofcalculating theannualpercentage rateof
chargeforconsumercredit;
OOJNoC235,13.8.1996,p.8.
(2)OJNoC30,30.1.1997,p.94.
OOJNoL42,12.2.1987,p.48.

NoC137/10[EN OfficialJournaloftheEuropean Communities 3.5.97
ORIGINAL PROPOSAL OFTHECOMMISSION AMENDED PROPOSAL
Whereas,inordertointroduce thissinglemethod,itis
desirabletodrawupasinglemathematical formulafor
calculating theannualpercentage rateofchargeandfor
determining thecreditcostitemstobeusedinthecalcu­
lationbyindicating thosecostswhichmustnotbetaken
intoaccount ;
Whereas AnnexIItoDirective 90/88/EEC()
introduced amathematical formulaforthecalculation of
theannualpercentage rateofchargeandArticle 1(2)of
Directive 90/88/EECprovided thechargestobe
excluded fromthecalculation ofthe'totalcostofcredit
totheconsumer':
Whereasduringatransitional periodofthreeyearsfrom
1January1993,MemberStateswhichpriorto1March
1990appliedlawswhichpermitted theuseofanother
mathematical formulaforcalculating theannual
percentage rateofcharge,werepermittedtocontinueto
applysuchlaws;
WhereastheCommission hassubmitted areport(2)to
theCouncilwhichmakesitpossible,inthelightof
experience ,toapplyasingleCommunity mathematical
formulaforcalculating theannualpercentage rateof
charge;
Whereas ,sincenoMemberStatehasmadeuseofArticle
la(3)oftheDirective bywhichcertaincostswere
excludedfromthecalculation oftheannualpercentage
rateofchargeincertainMemberStates,ithasbecome
obsolete ;
WhereasaccuracytotwodecimalplacesandtheuseofaWhereasaccuracytotwodecimalplacesisnecessary ;
365-or366-dayyearisnecessary ;
Whereastheannualpercentage rateofchargeshouldbe
calculated onthebasisofauniformcalculation method
whichassumeseitheracalendar,365-(orforleapyears
366)dayyearorastandard,365-dayyear;
0)OJNoL61,10.3.1990,p.14.
OCOM(96 )79.

3.5.97 |EN| OfficialJournaloftheEuropeanCommunities NoC137/11
ORIGINAL PROPOSAL OFTHECOMMISSION AMENDED PROPOSAL
Whereas itisdesirablethatconsumers shouldbeableto
recognize thetermsusedindifferentMemberStatesto
indicatethe'annualpercentage rateofcharge',Whereas itisdesirablethatconsumers shouldbeableto
recognizethetermsusedindifferentMemberStatesto
indicatethe'annualpercentage rateofcharge',andthat
theuseofacommonsymbol,inadditiontotheexisting
term,shouldbemandatory inallconsumercreditadver­
tisements andwrittenagreements withconsumers
throughout theEuropeanCommunity ,
HAVEADOPTED THISDIRECTIVE : HAVEADOPTED THISDIRECTIVE :
Article1 Deleted
Whenever theterm'annualpercentage rateofcharge',
ortheequivalent terminanotherCommunity language,
isusedasrequiredbyDirective 87/102/EEC,itshallbe
accompanied bythefollowingsymbol :
Article2 Article1
Articlela(1)(a)shallbereplacedbythefollowing :Unchanged
—intheGreeklanguageversionoftheDirective :
'Toσυνολικόετήσιοπραγματικό ποσοστόεπιβάρυνσης
πουεξισώνεισεετήσια6άσητιςπαρούσεςαξίεςτου
συνόλουτωντρεχουσών ήμελλοντικών υποχρεώσεων
(δανείων,εξοφλήσεων καιεπιβαρύνσεων )πουέχουν
αναληφθεί απότοδανειστήκαιτο(δανειζόμενο )
καταναλωτή ,υπολογίζεται σύμφωνα μετομαθηματικό
τύποπουπαρατίθεται στοπαράρτημα II',
—intheEnglishlanguageversionoftheDirective :
'Theannualpercentage rateofchargewhichshallbe
thatrate,onanannualbasiswhichequalizesthe
presentvalueofallcommitments (loans,repayments
andcharges),futureorexisting,agreedbythe
creditorandtheborrower ,shallbecalculated in
accordance withthemathematical formulasetoutin
AnnexII'.
Article2 Article3
Articlela(3)shallbedeleted . Unchanged

NoC137/12EN OfficialJournaloftheEuropean Communities 3.5.97
ORIGINAL PROPOSAL OFTHECOMMISSION AMENDED PROPOSAL
Article3 Article4
Articlela(5)shallbedeleted. Unchanged
Deleted Article5
Article3shallbeamended asfollows :
'Article3
WithoutprejudicetoCouncilDirective 84/450/EEC
of10September 1984relatingtotheapproximation
ofthelaws,regulations andadministrative provisions
oftheMemberStatesconcerning misleading adver­
tising(1),asamendedbyCouncilDirective ...of...
1996concerning comparative advertising ,andtothe
rulesandprinciples applicable tounfairadvertising ,
anyadvertisement ,oranyofferwhichisdisplayedat
businesspremises,inwhichapersonofferscreditor
offerstoarrangeacreditagreement andinwhicha
rateofinterestoranyfiguresrelatingtothecostof
thecreditareindicated,shallalsoincludeastatement
oftheannualpercentage rateofcharge,accompanied
bythesymbolasmentioned inArticle 1ofthis
Directive,bymeansofarepresentative exampleifno
othermeansispracticable .'
Article6 Deleted
Article4(2)(a)shallbeamendedasfollows :
'(a)astatement oftheannualpercentage rateof
charge,accompanied bythesymbolas
mentioned inArticle 1ofthisDirective'.
Article7 Article4
AnnexIattachedheretoshallbecomeAnnexII,Unchanged
replacing AnnexIIofDirective 87/102/EEC(as
amendedbyDirective 90/88/EEC).
Article8 Article5
AnnexIIattachedheretoshallbecomeAnnexIII,Unchanged
replacing AnnexIIItoDirective 87/102/EEC(as
amendedbyDirective 90/88/EEC).
Article9 Article6
1.MemberStatesshallbringintoforcethelaws,
regulations andadministrative provisions necessaryfor
themtocomplywiththisDirective nolaterthan
31December 1996andshallinformtheCommission
thereof .1.MemberStatesshallbringintoforcethelaws,
regulations andadministrative provisions necessaryfor
themtocomplywiththisDirective nolaterthan
1January1999andshallinformtheCommission
thereof .
0)OJNoL250,19.9.1984,p.17.

3.5.97 EN OfficialJournaloftheEuropeanCommunities NoC137/13
ORIGINAL PROPOSAL OFTHECOMMISSION AMENDED PROPOSAL
Unchanged WhenMemberStatesadoptthosemeasures ,theyshall
includereferences tothisDirectiveorshallaccompany
themwithsuchreferences ontheirofficialpublication .
TheMemberStatesshalllaydownthemannerinwhich
suchreferences shallbemade.
2.TheMember Statesshallcommunicate tothe
Commission thetextsoftheprovisions ofnationallaw
whichtheyadoptinthefieldgovernedbythisDirective .Unchanged
Article10 Article7
ThisDirective isaddressed totheMemberStates. Unchanged
ANNEXI ANNEXI
ANNEXII
BASICEQUATIONANNEXII
BASICEQUATION
THEBASICEQUATION EXPRESSING THEEQUIV­
ALENCE OFLOANS ONTHEONEHAND AND
REPAYMENTS ANDCHARGES ONTHEOTHERTHEBASICEQUATION EXPRESSING THEEQUIV­
ALENCE OFLOANS ONTHEONEHANDAND
REPAYMENTS ANDCHARGES ONTHEOTHER
K'=m' Unchanged\AK_X1A'K'
K=1(l+i)tKK'=1+
where :
Kisthenumberofaloan,
K'isthenumberofarepayment orapaymentofcharges,
AKistheamountofloannumberK,
A'K'istheamountofrepayment numberK',
Erepresentsasum,
misthenumberofthelastloan,
m'isthenumberofthelastrepayment orpaymentof
charges,
tj,istheinterval,expressedinyearsandfractionsofayear,
betweenthedateofloanNo1andthoseofsubsequent
loansNos2tom,
tj,,istheinterval,expressedinyearsandfractionsofayear,
betweenthedateofloanNo1andthoseofrepayments
orpaymentsofchargesNos1tom',

NoC137/14fENl OfficialJournaloftheEuropean Communities 3.5.97
ORIGINAL PROPOSAL OFTHECOMMISSION AMENDED PROPOSAL
iisthepercentage ratethatcanbecalculated (eitherby
algebra,bysuccessive approximations ,orbyacomputer
program)wheretheothertermsintheequationare
knownfromthecontractorotherwise .
Remarks:
Unchanged (a)Theamountspaidbybothpartiesatdifferenttimesshallnot
necessarily beequalandshallnotnecessarily bepaidat
equalintervals .
(b)Thestartingdateshallbethatofthefirstloan.
(c)Intervalsbetweendatesusedinthecalculations shallbe
expressed inyearsorinfractionsofayear.Ayearis
presumedtohave365or366days.(c)Intervalsbetweendatesusedinthecalculations shallbe
expressedinyearsorinfractionsofayear.Ayearshallbe
takentobeeither:(i)acalendaryearcomprising 365or,for
leapyears,366days,or(ii)astandardyearcomprising 365
days,52weeksor12equalmonths .Anequalmonthis
presumedtohave30,41666days(i.e.365/12).
Unchanged ' (d)Theresultofthecalculation shallbeexpressed withan
accuracyof2decimalplaces.Ifthefigureatthethird
decimalplaceisgreaterthanorequalto5,thefigureatthe
seconddecimalplaceshallbeincreasedbyone.'