COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(92) 242 final 
Brussels, 3 June 1992 
COMMUNICATION FROM THE COMMISSION TO THE COUNCIL 
EXTENSION OF OPERATIONS BY THE EUROPEAN INVESTMENT 
BANK OUTSIDE THE COMMUNITY 
Proposal for a 
COUNCIL DECISION 
empowering the Commission to indemnify the European Investment 
Bank against losses under loans for projects in certain countries 
outside the Community 
(presented by the Commission) 
EXTENSION OF OPERATIONS BY THE EUROPEAN INVESTMENT 
BANK OUTSIDE THE COMMUNITY 
(Communication by the Commission) 
< 
EXPLANATORY MEMORANDUM 
The Community has an extensive network of relationships with an 
important number of countries with the aim of fostering their 
economic development. 
In particular, the Community's external policy assists 
developments towards a market economy in many countries , towards 
a more efficient Insertion In the International economy and 
fosters the process of regional Integration. In recent years the 
Community has intensified its economic co-operation with countries 
which are making sustained efforts for a sound economic 
development. 
II. The EIB represents an important element In the Community's 
external activity. It not only contributes to the economic 
co-operation policy of the Community but also intensifies, by its 
presence, the historical links that exist between Member States 
and the beneficiary countries; the extension of the EIB external 
activities to countries with which the EEC has concluded 
cooperation agreements, will therefore further enhance the impact 
of the EEC in the worId. 
III. This extension will be focused on projects of mutual interest, the 
financing of which will be subject to the Bank's usual criteria. 
Decisions to finance a specific project will be taken, on a 
case-by-case basis, by the Board of Directors of the EIB. 
An overall limit of ECU 250 million, per year, shall be set for a 
three-year period; this limit will be reviewed at the end of the 
per iod. 
There was agreement that these loans should benefit from Community 
budget guarantees. Furthermore, these guarantees should be 
treated in accordance with what will be agreed as to the future 
treatment of Community guarantees. 
IV. The Commission therefore asks the Council to: 
1. invite the EIB to extend Its lending operations, up to a limit 
of ECU 250 million per year for a three-year period, to 
projects of mutual interest in countries with which the 
Community has concluded co-operation agreements. 
2. adopt the attached Decision providing a guarantee 
Communi ty budget, in the 
note that the Commission will, within the framework of 
budgetary procedure, propose the appropriate budgetary cover. 
3 
Proposal for a 
COUNCIL DECISION 
empowering the Commission to Indemnify the European Investment Bank 
against losses under loans for projects In certain countries 
outside the Community. 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic 
Community,,and in particular Article 235 thereof, 
Having regard to the proposal from the Commission1, 
Having regard to the opinion of the European Parliament2, 
Whereas the General Affairs Council of 13 and 14 May 1991 agreed, on 
the basis of a communication from the Commission, to a limited 
extension of European Investment Bank operations in those third 
countries with which the Community has concluded co-operation 
agreements; 
Whereas the Ecofin Council of 8 July 1991 confirmed the orientations of 
the General Affairs Council; 
1 OJ No C 
2 OJ No C 
Whereas the Ecofln Council of 19 May 1992 decided on the guidelines to 
be applied for loans from the European Investment Bank granted in 
countries with which the Community has concluded co-operation 
agreements; 
Whereas the Council has invited the Bank, and the Bank has agreed, to 
make available, in conformity with Its Statutes, loans for projects of 
mutual Interest that meet its usual criteria in certain countries 
outside the Community under the guarantee provided in this Decision; 
HAS DECIDED AS FOLLOWS: 
Sole Art icle 
The Community shall fully guarantee the European Investment Bank In 
cases where the Bank does not receive the payments due under any loan 
granted in accordance with Its usual criteria in those countries 
outside the Community with which the Community has concluded co­
operation agreements. An overall limit of ECU 250 million per year, 
shall be set for a three-year period; this limit will be reviewed at 
the end of this period. 
To this end the Bank and the Commission shall agree on the procedures 
for Implementing the guarantee. 
Done at Brussels, 
For the Counc 
The President 
S 
FINANCIAL RECORD 
1. Budget line concerned 
Article BO-219: EEC guarantees for EIB loans to other countries 
outside the Community. 
2. Reference (legal base) 
To be created by the proposed decision, on the basis of 
Article 235 of the Treaty. 
3. Classification of the expenditure 
ObiIgatory. 
4. Description and justification for the action 
The budget entry is intended to provide a budgetary support for 
guarantees offered by the European Community to the European 
Investment Bank to cover loans which the Bank has been asked to 
extend to finance capital investment projects In those countries 
outside the Community with which the Community has concluded co­
operation agreements. 
5. Nature of the expendlture and method of calculation 
a) Nature of the expend! Uire 
A guarantee to the European Investment Bank. 
b) Method of calculation 
A token entry Is proposed given that the amount and timing of 
any call on this budget line cannot be calculated In advance 
and furthermore it Is to be hoped that this budget entry will 
not be called on. 
6. Effect of the action on Intervention credits 
Not applicable. 
7. Financing of Intervention expenditure 
Not applIcable. 
8. Financial Impact on staff costs and pperations 
Not applicable. 
£ 
ISSN 0254-1475 
COM (92) 242 final 
DOCUMENTS 
EN li 
Catalogue number: CB-CO-92-258-EN-C 
ISBN 92-77-44926-8 
Office for Official Publications of the European Communities 
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