No C 165/8 Official Journal of the European Communities 6. 7. 90 
Draft Financial Regulation applicable to Development Finance Cooperation under the fourth 
Lome Convention 
COM(90) 243 final 
(Submitted by the Commission on 25 June 1990) 
(90/C 165/07) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, 
Having regard to the fourth ACP-EEC Convention, 
signd at Lome on 15 December 1989, hereinafter 
referred to as 'the Convention', 
Having regard to the Internal Agreement on the 
financing and administration of Community aid, here­
inafter referred to as 'the Internal Agreement' and in 
particular Article 32 thereof, 
Having regard to the Council Decision on the asso­
ciation of the overseas countries and territories with the 
European Economic Community, hereinafter referred to 
as 'the Decision', 
Having regard to the General Regulations and General 
Conditions for Works, Supplies and Service Contracts 
financed by the European Development Fund which 
were approved by the ACP-EEC Council of Ministers 
on . . . March 1990 (hereinafter referred to as 'the 
General Regulations and Conditions of Contract'), 
Having regard to the draft Financial Regulation 
submitted by the Commission. 
Having regard to the consultation of the European 
Parliament, 
Having regard to the opinion of the European 
Investment Bank, hereinafter referred to as 'the Bank', 
Having regard to the opinion of the Court of Auditors, 
Whereas, pursuant to Article 1 (1) of the Internal 
Agreement, the Member States have set up a Seventh 
European Development Fund, hereinafter referred to as 
'the EDF', 
Whereas under Article 32 of the Internal Agreement, the 
provisions for implementing the Agreement shall be the 
subject of a Financial Regulation adopted, upon the 
entry into force of the Convention, by the Council acting 
bv the qualified majority laid down in Article 21 (4) of 
the said Agreement, Whereas the ecu used in application of this Financial 
Regulation is defined in Council Regulation (EEC) No 
1971/89 of 19 June 1989 amending Article 1 of Council 
Regulation (EEC) No 3180/78 or in any subsequent 
Council Regulation defining the composition of the ecu, 
HAS ADOPTED THIS FINANCIAL REGULATION: 
TITLE I 
Financial arrangements 
Article 1 
1. The Council shall notify the Commission by 30 
November each year of the decision which it adopts 
pursuant to the first subparagraph of Article 6 (1) of the 
Internal Agreement and which relates to the schedule of 
calls for contributions to the EDF. 
2. Annual contributions to the EDF shall in principle 
be called up in four instalments payable on: 
— 20 January, 
— 1 April, 
— 1 July, 
— 1 October. 
The Commission shall notify the Member States as soon 
as possible, and in any event at the beginning of each 
financial year, of the amount of the quarterly instalments 
of contributions to be paid on each of the due dates. 
Supplementary contributions decided on by the Council 
in accordance with Article 6 (3) of the Internal 
Agreement shall, unless otherwise decided by the 
Council, be due and be made within as brief a period as 
possible which shall be laid down in the decision to call 
for such contributions and which may not in any case 
exceed three months. 
3. The Commission shall inform the Member States as 
soon as possible before the date on which each 
instalment of contributions is due whether it intends to 
reduce or refrain from calling the instalment after taking 
into account the actual cash situation of the EDF 
treasury and the most up-to-date available expenditure 
estimates for the remainder of the year. 
6. 7. 90 Official Journal of the European Communities No C 165/9 
4. Each Member State shall make the contributions 
referred to in this Article in proportion to its contri­
butions to the EDF as fixed in Article 1 (2) of the 
Internal Agreement. 
5. Where an instalment of contributions payable under 
this Article is not paid within 15 days of the due date, 
the Member State concerned shall, without further 
notice, be required to pay interest in respect of the 
amount not paid. The late payment penalty interest shall 
be calculated on the basis of a rate of two percentage 
points above the interest rate for short-term financing 
applicable on the date on which the instalment is due on 
the money market of the Member State for the ecu. This 
rate shall be increased by 0,25 of a percentage point for 
each month of delay. The increased rate shall be 
applicable to the entire period of delay. Amounts 
received by the Commission in respect of such late 
payment interest shall be credited to the account 
provided for in Article 9 (2) of the Internal Agreement. 
Article 2 
1. The financial contributions of the Member States 
shall be expressed in ecus. 
2. Each Member State shall pay the amount of its 
contribution in ecus. 
3. Financial contributions shall be credited by each 
Member State to a special account entitled 'Commission 
of the European Communities — European Devel­
opment Fund' opened with the bank of issue of that 
Member State or the financial institution designated by 
it. The amount of such contributions shall remain in 
these special accounts until required to meet payments 
needs provided for in Article 319 of the Convention. 
4. Upon expiry of the Convention, that part of the 
contributions which the Member States remain obliged 
to make shall be called up by the Commission, as 
required, on the conditions laid down in this Financial 
Regulation. 
Article 3 
1. In order to make payments provided for in Article 
319 of the Convention, the Commission shall open 
accounts with financial institutions in the Member States. 
Subject to the provisions of Article 319 (3) of the 
Convention, deposits in these accounts shall bear 
interest. Subject to the provisions of Article 192 of the 
Convention, such interest shall be credited to the 
account provided for in Article 9 (2) of the Internal 
Agreement. 
2. Payments from these accounts shall be made in 
accordance with the provisions of Article 319 (4) and (5) 
of the Convention. Article 4 
The signatures of the Commission officials empowered 
to carry out operations on the EDF's accounts shall be 
lodged with the banks concerned when the accounts are 
opened or, in the case of officials who are authorized 
subsequently, when they are designated. 
Article 5 
1. EDF resources must be used in accordance with the 
principles of sound financial management, and in 
particular those of economy and cost effectiveness. 
Quantified objectives must be identified and the progress 
of their realization monitored. 
2. The Commission shall, as far as possible, make any 
withdrawals from the special accounts referred to in 
Article 2 (3) in such a way as to maintain a distribution 
of its assets in those accounts corresponding to the 
proportions in which the various Member States 
contribute to the EDF. 
Article 6 
In accordance with Article 319 of the Convention and in 
line with the provisions of Article 50 of this Financial 
Regulation, payments from the EDF shall be effected, as 
the case may be, either in the national currencies of the 
ACP States or in ecus. 
Article 7 
The Commission shall transfer from the special accounts 
opened pursuant to Article 2 (3) amounts needed to 
replenish the accounts opened in its name in accordance 
with Article 3 of this Financial Regulation and with 
Article 319 of the Convention. Such transfers shall be 
made on the basis of the cash requirements to meet 
payments needs. 
TITLE II 
Management of the EDF 
SECTION I 
General provisions 
Article 8 
1. The EDF shall be administered financially in 
accordance with the principle that authorizing officers 
and accounting officers shall be different individuals. 
Appropriations shall be administered by authorizing 
officers, who alone shall have the power to enter into 
commitments regarding expenditure, establish sums due 
to be collected and issue recovery orders and payment 
orders. 
2. Collection and payment operations shall be carried 
out by the accounting officer. 
NoC 165/10 Official Journal of the European Communities 6. 7. 90 
3. The duties of authorizing officer, financial 
controller and accounting officer shall be mutually 
incompatible. 
Article 9 
1. Within the limit of the appropriations provided for 
in Article 1 of the Internal Agreement together with any 
other revenue accruing to the EDF, the Commission 
shall, without prejudice to Article 10 (2) of that 
Agreement, manage the EDF on its own responsibility in 
accordance with the conditions laid down in the 
Convention, the Internal Agreement and this Financial 
Regulation. 
2. The Commission may delegate part of the duties of 
the accounting officer and part of the responsibility for 
monitoring to authorized agents appointed by it. The 
rules governing responsibilities adopted under this Title 
shall apply to such authorized agents within the limits of 
the powers delegated to them. Each decision to delegate 
powers shall state the duration and extent of the 
mandate. 
3. Those to whom powers are delegated may act only 
within the limits of the powers expressly conferred upon 
them. Decisions to delegate powers shall be notified to 
those to whom powers are delegated, to the accounting 
officer, the financial controller, the authorizing officers 
and the Court of Auditors. 
4. The principles of the provisions of this Financial 
Regulation relating to the monitoring and payment of 
expenditure shall be applicable to expenditure effected by 
delegation. Such expenditure may not be finally entered 
into the EDF accounts until the Commission has verified 
that the expenditure has been correctly cleared and that 
the authorization and payments are in order, in 
accordance with the requirements of this Regulation. 
Article 10 
Where revenue and expenditure operations are managed 
by means of integrated computer systems, the provisions 
of Sections II and III of Title II of this Financial Regu­
lation shall apply with due allowance for the possibilities 
and requirements deriving from computerized 
management. 
To this end: 
— the supporting documents may remain with the auth­
orizing officer or the accounting officer for the 
purposes of checking, 
— signatures and approvals may be added in appro­
priate computerized form. 
However, the financial controller may request the 
original supporting documents if he considers it 
necessary for the purposes of checking. The financial controller must be consulted on the setting 
up of the EDF accounting system and shall have access 
to the data of the system. 
Article 11 
In accordance with Article 311 (1) of the Convention, 
the Commission shall appoint the chief authorizing 
officer of the EDF. He shall be responsible for the prep­
aration of the revenue and expenditure accounts referred 
to in Article 69 of this Financial Regulation. He may 
have recourse to deputy authorizing officers, whom he 
shall apoint, subject to approval by the Commission. 
Article 12 
1. The Commission shall appoint the financial 
controller, who shall be responsible for monitoring the 
commitment and authorization of expenditure and for 
monitoring revenue. The financial controller may be 
assisted in his duties by one or more assistant financial 
controllers. 
2. Monitoring shall be carried out by the financial 
controller by means of inspection of the files relating to 
expenditure and revenue and, if necessary, on the spot. 
3. Special rules applicable to the financial controller 
shall be formulated in such a way as to ensure his inde­
pendence in carrying out his duties. Measures taken in 
respect of his appointment and promotion, disciplinary 
action or transfer, and the various procedures of inter­
ruption or termination of his appointment shall be the 
subject of reasoned decisions which shall be forwarded 
to the Council for its information. 
4. The persons concerned or the Commission may 
institute proceedings before the Court of Justice. 
Article 13 
The collection of revenue and the payment of expen­
diture shall be carried out by an accounting officer 
appointed by the Commission. Subject to Articles 9 (2) 
and 34 (2), the accounting officer alone shall be 
empowered to manage funds and assets. He shall be 
responsible for their care. 
The accounting officer shall be responsible for main­
taining the accounts, as provided for in Articles 36 and 
37 and for the preparation of the financial statements 
provided for in Article 69. 
He may be assisted in his duties either by one or more 
assistant accounting officers appointed under the same 
conditions as the accounting officer or by authorized 
agents designated by him under the authority of the 
Commission. 
6. 7. 90 Official Journal of the European Communities No C 165/11 
Article 14 
The Court of Auditors shall be notified of the 
appointment of the authorizing officer, the financial 
controller, the accounting officer and the administrator 
of advance funds and of the accounting plan referred to 
in Article 37. The Commission shall forward to the 
Court any rules of procedure drawn up by it in respect 
of financial matters. 
SECTION II 
Revenue 
Article 15 
1. The recovery of any sum due to the EDF shall give 
rise to the issue by the authorizing officer of a recovery 
order. 
2. Without prejudice to the provisions of Article 10, 
recovery orders shall be transmitted by the authorizing 
officer to the financial controller and shall be subject to 
the latter's approval. On approval by the financial 
controller, the recovery orders shall be registered by the 
accounting officer. The purpose of approval by the 
financial controller shall be to establish that: 
(a) the revenue is correctly credited; 
(b) the recovery order is correct and in conformity with 
the provisions applicable to the management of the 
EDF and with all measures taken in implementation 
of those provisions; 
(c) the principles of sound financial management have 
been applied; 
(d) the supporting documents are in order; 
(e) the debtor is correctly described; 
(f) the due date is indicated; 
(g) the amount and currency of the sum to be recovered 
are correct. 
3. The financial controller may withhold his approval 
if he considers that the condidions laid down in 
paragraph 2 (a) to (g) are not met. 
The Commission may, by a decision stating the full 
reasons therefor and on its sole responsibility, overrule 
this refusal. This decision shall be final and binding; it 
shall be communicated for information to the financial 
controller. The Commission shall inform the Court of 
Auditors of all such decisions within one month. 4. If the authorizing officer waives the right to 
recover an established debt, he shall send beforehand a 
proposal for cancellation to the financial controller for 
his approval and to the accounting officer for his infor­
mation. The purpose of approval by the financial 
controller shall be to establish that the waiver is in order 
and conforms with the principles of sound financial 
management. The proposal concerned shall be registered 
by the accounting officer. 
If approval is withheld, the Commission may, by a 
decision stating the full reasons therefor and on its sole 
responsibility, overrule this refusal. This decision shall be 
final and binding. It shall be communicated for infor­
mation to the financial controller. The Commission shall 
inform the Court of Auditors of all such decisions within 
one month. 
5. Where the financial controller finds that a 
document establishing a debt has not been drawn up or 
that a sum due has not been recovered, he shall inform 
the Commission thereof. 
Article 16 
1. The accounting officer shall assume responsibility 
for recovery orders forwarded to him by the authorizing 
officer. 
2. The accounting officer shall do all in his power to 
ensure that EDF resources are recovered with a 
minimum of delay and that the Community's rights are 
safeguarded. 
3. The accounting officer shall inform the authorizing 
officer and the financial controller of any revenue not 
recovered within a reasonable time and shall indicate 
what action has been taken to recover the amount due 
and what further steps are proposed to be taken. 
SECTION III 
Commitment, clearance, authorization and payment of 
expenditure 
1. Commitment of expenditure 
Article 17 
1. All measures which may give rise to expenditure 
payable by the EDF must be preceded by a proposal for 
commitment of expenditure from the authorizing officer. 
A provisional commitment may be entered into in respect 
of current expenditure. 
2. Without prejudice to Article 34, decisions taken by 
the Commission in accordance with the provisions auth-
NoC 165/12 Official Journal of the European Communities 6. 7. 90 
orizing it to grant financial aid from the EDF shall 
constitute commitments of expenditure. 
3. An account shall be kept of commitments and auth­
orizations. 
Article 18 
Without prejudice to Article 10, proposals for 
commitments accompanied by the suporting documents, 
shall be transmitted to the financial controller. They shall 
show in particular the purpose of the expenditure, the 
estimated amount involved, the item to which it is to be 
charged and the name and description of the creditor. 
They shall be registered by the authorizing officer after 
approval by the financial controller. 
Article 19 
1. The purpose of approval of proposals for 
commitment by the financial controller shall be to 
establish that: 
(a) the expenditure has been charged to the correct 
item; 
(b) appropriations are available; 
(c) the expenditure is correct and in conformity with the 
provisions applicable to the management of the EDF 
and with all measures taken in implementation of 
those provisions, in particular, the general and 
special conditions of the financing agreement 
relating to the operation; 
(d) the principles of sound financial management 
referred to in Article 5 have been applied. 
2. Approval may not be conditional. 
Article 20 
1. The financial controller may withhold his approval 
if he considers that the conditions laid down in Article 
19 are not met. If he withholds his approval, he shall 
furnish a written statement giving the reasons therefor. 
The authorizing officer shall be notified accordingly. 
Where approval is withheld and the authorizing officer 
maintains his proposal, the refusal shall be referred for a 
decision to the Commission. 
2. Except where the availability of appropriations is in 
doubt, the Commission may, by means of a decision 
stating the full reasons therefor and taken on its sole 
responsibility, overrule such a refusal. This decision shall be final and binding; it shall be communicated for infor­
mation to the financial controller. The Commission shall 
inform the Court of Auditors of all such decisions within 
one month. 
2. Clearance of expenditure 
Article 21 
The clearance of expenditure shall be the act whereby 
the authorizing officer: 
(a) verifies the existence of the creditor's claim; 
(b) determines or verifies the existence and the amount 
of the sum due; and 
(c) verifies the conditions under which payment falls 
due. 
Article 22 
1. Clearance of any expenditure shall be subject to the 
submission of supporting documents showing the 
creditor's claim and, where appropriate, the service 
rendered or the existence of a document justifying 
payment. The Commission shall lay down the nature and 
contents of the supporting documents to be enclosed 
with the payment orders. 
2. For certain categories of expenditure, advances may 
be granted under the conditions laid down by the 
Commission. 
3. The supporting documents relating to the accounts 
and to the establishment of the revenue and expenditure 
account and the balance sheet referred to in Title V shall 
be kept for a period of five years following the date of 
the decision giving discharge in respect of the implemen­
tation of the EDF, referred to in Article 33 (3) of the 
Internal Agreement. However, the documents relating to 
transactions not finally closed shall be kept beyond this 
period until the end of the year following the closure of 
the transactions concerned. 
4. The authorizing officer empowered to clear expen­
diture shall personally check the supporting documents 
or shall, on his own responsibility, ascertain that this has 
been done. 
3. Authorization of expenditure 
Article 23 
Authorization is the act whereby the authorizing officer, 
by the issue of a payment order, atuthorizes the 
accounting officer to pay an item of expenditure which 
he has cleared. 
6. 7. 90 Official Journal of the European Communities NoC 165/13 
Article 24 
The payment order shall state: 
(a) the item against which payment shall be charged; 
(b) the amount to be paid, showing the currency; 
(c) the name and address of the payee; 
(d) the bank account; 
(e) the method of payment; 
(f) the purpose of the expenditure. 
The payment order shall be dated and signed by the 
authorizing officer. 
Article 25 
1. The payment order shall be accompanied by the 
original supporting documents, which shall bear or be 
accompanied by the statement of the authorizing officer 
confirming that the amounts to be paid are correct and 
that the supplies have been received or the service 
performed. The payment order shall show the numbers 
and dates of the relevant approvals of commitment. 
2. Copies of the supporting documents, certified as 
true copies by the authorizing officer or the Commission 
delegate, may, in duly warranted cases, be accepted in 
place of the originals. 
Article 26 
For payments by instalment, the first payment order shall 
be accompanied by documents establishing the creditor's 
claim to payment of the instalment in question. 
Subsequent payment orders shall refer to the supporting 
documents already furnished and repeat the reference 
number of the first payment order. 
Article 27 
Without prejudice to the provisions of Article 10, 
payment orders shall be sent to the financial controller 
for prior approval. The purpose of this prior approval 
shall be to establish that: 
(a) the payment order was properly issued; 
(b) the payment order agrees with the commitment of 
expenditure and that the amount thereof is correct; 
(c) the expenditure is charged to the correct item; (d) the appropriations are available; 
(e) the supporting documents are in order; 
(f) the payee is correctly named and described. 
Article 28 
Should approval be withheld, the provisions of Article 20 
shall apply. 
Article 29 
After approval, the original of the payment order, 
together with all supporting documents, shall be 
forwarded to the accounting officer. 
4. Payment of expenditure 
Article 30 
1. Without prejudice to the provisions of Article 313 
and 319(8) of the Convention concerning respectively 
the responsibilities of the national authorizing officer 
and the financial liabilities of the agents responsible for 
the management and execution of development finance 
cooperation, payment is the final act whereby the EDF is 
discharged of its obligations resulting from carrying out 
the operations financed. 
2. Payment shall be made by the accounting officer 
within the limits of the funds available. 
Article 31 
In the event of a substantive error or of the validity of 
the discharge being contested or of failure to observe the 
formalities prescribed by this Financial Regulation, the 
accounting officer shall suspend payment. 
Article 32 
1. If payment is suspended, the accounting officer 
shall give the reasons for his decision in a written 
statement which he shall send forthwith to the author­
izing officer and, for information, to the financial 
controller. 
2. Except where the validity of the discharge is 
contested, the authorizing officer may, where payment is 
suspended, refer the matter to the Commission. The 
latter may require, in writing and on its own responsi­
bility, that payment be effected. 
Article 33 
1. Payments shall, as a general rule, be effected 
through a bank account. The procedures for opening, 
NoC 165/14 Official Journal of the European Communities 6. 7. 90 
administering and using such accounts shall be 
determined by the Commission. 
2. Without prejudice to the provisions of Article 10, 
these procedures shall in particular require two 
signatures on cheques and on transfer orders, one 
signature necessarily being that of the accounting officer, 
an assistant accounting officer or a duly authorized 
administrator of advance funds; the procedures shall, 
moreover, require the specification of the expenditure in 
respect of which payment must necessarily be made 
either by cheque or by transfer. 
Article 34 
1. For the payment of certain categories of expen­
diture, advance funds may be set up under the conditions 
laid down by the Commission. 
2. The rules governing the management of the 
advance funds shall cover in particular: 
(a) the appointment of administrators of advance funds; 
(b) the nature and maximum amount of each item of 
expenditure to be incurred; 
(c) the maximum amounts which may be advanced; 
(d) the procedures for the production of supporting 
documents and the time within which they must be 
produced; 
(e) the responsibility of the adminstrator of advance 
funds. 
3. The authorizing officer and the accounting officer 
shall take the necessary steps towards clearing, in respect 
of the exact amounts and within the appropriate period, 
advances granted under the terms of Article 319 (2) of 
the Convention. 
Article 35 
The conversion rates to be used for the definitive 
accounting in ecus of payments made for the purpose of 
the projects or programme referred to in Title III of Pan 
Three of the Convention shall be those applicable for the 
effective date of such payments. This date shall 
correspond to that on which the Commission accounts 
referred to in Article 319 of the Convention and in 
Article 3 of this Financial Regulation were debited. 
SECTION IV 
Accounts 
Article 36 
The EDF accounts shall be kept in ecus by the double 
entry method and on the basis of the calender year. They shall show all revenue and expenditure for the year and 
shall be substantiated by supporting documents. The 
financial statements provided for in Title V shall be 
drawn up in ecus. However, when debts or commitments 
are expressed in national currencies, the accounting 
system should make it possible, where necessary, for 
them to be recorded in national currencies as well as in 
ecus. 
Article 37 
1. Entries in the accounts shall be made on the basis 
of an accounting plan comprising a nomenclature of 
budgetary items which makes a clear distinction between 
the balance sheet and the revenue and expenditure 
accounts. These entries shall make it possible to draw up 
a general monthly balance and a statement of expen­
diture and revenue. 
2. The detailed conditions for drawing up and 
operating the accounting plan shall be defined by the 
Commission. 
Article 38 
The accounts shall be closed at the end of the calendar 
year to enable the financial statements of the EDF to be 
drawn up. These shall be submitted to the financial 
controller. 
SECTION V 
Responsibilities of authorizing officers, financial 
controllers, accounting officers and administrators of 
advance funds 
Article 39 
Without prejudice to Articles 313 (1) (f) and 319 (8) of 
the Convention, authorizing officers who, when estab­
lishing entitlements to be recovered, or issuing recovery 
orders, entering into commitments of expenditure or 
signing payment orders, do so without complying with 
this Financial Regulation, shall render themselves liable 
to disciplinary action, and where appropriate, to 
payment of compensation. The same shall apply if they 
omit to draw up a document establishing a claim or if 
they neglect to issue recovery orders or are, without 
justification, late in issuing them thus incurring civil 
liability for the Commission with regard to a third party. 
Article 40 
Financial controllers shall be liable to disciplinary action 
and, where appropriate, to payment of compensation for 
any action taken during their term of office, in particular 
where they approve expenditure in excess of appropri­
ations. 
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Article 41 
1. The accounting officer and assistant accounting 
officers shall be liable to disciplinary action and, where 
appropriate, to payment of compensation as regards 
payments they make in disregard of Article 31. 
They shall render themselves liable to disciplinary action 
and to payment of compensation as regards any loss or 
deterioration of the monies, assets and documents in 
their charge where such loss or deterioration was caused 
intentionally or was due to serious negligence on their 
part. 
Under the same conditions, they shall be responsible for 
the correct execution of orders received by them in 
respect of the use and administration of bank accounts 
and, in particular: 
(a) where the recoveries or payments made by them do 
not agree with the amounts on the corresponding 
recovery or payment orders; 
(b) where they effect payments to a party other than the 
entitled payee. 
2. Administrators of advance funds shall be liable to 
disciplinary action and, where appropriate, to payment 
of compensation: 
(a) where they cannot show due warrant with proper 
documents for payments made by them; 
(b) where they effect payments to a party other than the 
entitled payee. 
They shall be liable to disciplinary action and to payment 
of compensation in respect of any loss or deterioration 
of the monies, assets and documents in their charge 
where such loss or deterioration was caused intentionally 
or was due to serious negligence on their part. 
3. The accounting officer, assistant accounting 
officers and administrators of advance funds shall insure 
themselves against any risk they may incur under this 
Article, and which cannot be covered by the guarantee 
fund provided for in paragraph 4 of this Article. 
The Commission shall cover the relevant insurance costs. 
It shall specify the categories of officials qualifying as 
accounting officers or administrators of advance funds 
and the terms on which it shall cover the insurance costs 
borne by these officials in order to protect themselves 
against the risks involved in their duties. 
4. Special allowances shall be granted to accounting 
officers and administrators of advance funds. The 
amount of these allowances shall be determined by the Commission departments. The sums corresponding to 
these allowances shall be credited each month to an 
account opened by the Comission on behalf of each of 
these officials in order to establish a guarantee fund to 
cover any cash or bank shortage for which the person 
concerned might render himself liable, in so far as such 
shortage has not been covered by refunds from insurance 
companies. 
The credit balance in these guarantee accounts shall be 
paid over to the persons concerned after they terminate 
their appointment as accounting officer or administrator 
of advance funds. 
Article 42 
The liability of authorizing officers, financial controllers, 
accounting officers, assistant accounting officers and 
administrators of advance funds to payment of compen­
sation and disciplinary acting may be determined in 
accordance with Articles 22 and 86 to 89 of the Staff 
Regulations of officials of the European Communities. 
Article 43 
The Commission shall be allowed a period of two years 
from the date on which the financial statements are 
submitted to the Council to take a decision on the final 
discharge to be given to accounting officers for the 
transactions relating thereto. 
TITLE III 
Implementing measures 
Article 44 
Commitments of amounts from the EDF shall be decided 
on in accordance with the terms of the relevant 
provisions of the Convention following the procedures in 
Articles 21 to 27 of the Internal Agreement in respect of 
aid managed by the Commission and in Articles 28 and 
29 of that Agreement for aid managed by the Bank. 
SECTION I 
EDF operations administered by the Commission 
1. General 
Article 45 
1. Where aid accorded is onlent to the final borrower 
in accordance with Articles 219 (5), 233 (3) and 266 of 
the Convention, the financial agreement shall specify the 
terms of such lending, including rates of interest, 
duration of loan and arrangements for the utilization of 
funds provided by reimbursement of capital and interest. 
In fixing these terms due regard will be had to the 
NoC 165/16 Official Journal of the European Communities 6. 7. 90 
provisions of Articles 233 (4) (b) and 240 (1) (a) of the 
Convention. 
2. No expenditure in excess of the amount provided 
for in the financing agreement may be charged to the 
EDF unless a decision has been taken to commit 
additional funds thereto under the conditions laid down 
in Articles 21 to 27 of the Internal Agreement and 
Article 61 of this Financial Regulation. The request for 
the commitment of additional funds shall be addressed to 
the Commission and appraised under the conditions laid 
down in Article 292 of the Convention. 
2. Tenders and contracts 
Article 46 
Without prejudice to the provisions of Article 20 (1) (c) 
of the Internal Agreement, the Commission shall take all 
appropriate measures to ensure the effective dissemi­
nation of information for the economic operators 
concerned, notably through periodical publication of 
forecasts of contracts to be financed from the resources 
of the EDF. 
Article 47 
The Commission shall inform the Council each year of 
any contract concluded during that year. Where appro­
priate, it shall notify the Council of any measures it has 
taken or proposes to take to improve the terms of 
competition for participation in invitations to tender 
issued by the EDF. 
In its report, the Commission shall provide the Council 
with information enabling it to assess whether the 
measures taken by the Commission have in fact given all 
undertakings of the various Member States, of the ACP 
States and of the associated countries and territories 
equal opportunity of access to works and supply 
contracts financed by the EDF. 
Article 48 
Within the framework of Articles 298 to 302 of the 
Convention and without prejudice to the provisions of 
Article 293 of the Convention and of Article 24 of the 
Internal Agreement, a favourable opinion of the EDF 
Committee shall be required prior to the placing of 
contracts by direct agreement or after restricted invi­
tations to tender or where recourse is had to direct 
labour. 
However, where they are justified by urgency and by 
unforeseen circumstances, the above exceptions to the 
rules governing competition may be authorized by the 
Commission without a prior opinion from the EDF 
Committee. In that event, the Commission shall 
immediately inform the EDF Committee thereof. Article 49 
The results of international invitations to tender referred 
to in this Section shall be published as soon as possible in 
the Official Journal of the European Communities. 
Article 50 
1. Without prejudice to the provisions of Article 
20 (1) (c) of the Internal Agreement, the provisions of 
the General Regulations and Conditions of Contract 
shall apply to all tenders and contracts financed from the 
EDF. The payments arrangements and the currency or 
currencies of payment shall be those specified in the 
relevant contracts. 
2. The price offered in tenders for contracts financed 
by the EDF shall take into account the applicable tax 
arrangements provided for in Articles 308 to 310 of the 
Convention. 
3. Where payment is made in the currency of an ACP 
State, it must be made through a bank established in that 
State. 
Where payment is made in ecus it must be made through 
the intermediary of an approved bank or agency estab­
lished in a Member State. 
Article 51 
1. The Commission whether acting through its 
services or its Delegate as appropriate shall take all 
measures necessary to comply with the provisions of 
Article 314 of the Convention. 
2. Claims for delayed payments for which it is 
responsible by virtue of Article 319 of the Convention 
shall be borne by the Commission from the account 
provided for in Article 9 (2) of the Internal Regulation. 
3. Structural adjustment support 
Article 52 
Support for structural adjustment programmes provided 
under the Convention shall be implemented in 
accordance with the following principles: 
1. Contracts arising in the case of sectoral import 
programmes which take the form of provision of 
foreign exchange, may be expressed in currencies 
other than the ecu or those of ACP States, such other 
currencies to include those of countries which are not 
contracting parties to the Convention. 
2. On the occasion of each advance of funds provided in 
structural adjustment programmes, the Commission 
6. 7. 90 Official Journal of the European Communities NoC 165/17 
shall check the regularity and conformity with respect 
to the rules in force, the justification of the use of 
funds and in particular the eligibility of goods 
imported, the extent to which rules of origin have 
been respected, the application of competition rules as 
well as the price/quality ratio of imports. Article 54 
Where advance use is made of the following year's 
instalment as provided for in Article 194 of the 
Convention, the advances referred to in Article 206 of 
the Convention shall be reduced proportionately. 
4. Management of the export earnings 
stabilization system 
Article 53 
The annual resources available to the Stabex system 
provided for in Article 191 of the Convention shall be 
managed by the Commission in accordance with the 
following procedures: 
(i) half of each annual instalment shall be credited to 
the system on 1 April and 1 July respectively. 
However, the first half annual instalment in each 
year shall be reduced by the amount of any 
advances granted in the preceding year under 
Article 194 (1) of the Convention. Any sums due to 
the Stabex system in the calendar year in which the 
Convention came into force shall be transferred to 
the system on the date of entry into force of this 
Financial Regulation, with effect from the due dates 
laid down above; Article 55 
Wherever the calculation of the amount of a transfer or 
advance requires the conversion of statistics expressed in 
the national currency of the ACP State concerned, or of 
any other currency, into ecus, the exchange rate 
applicable shall be the average annual rate in force in the 
calendar year to which the amount concerned refers. 
SECTION II 
Aid managed by the Bank 
Article 56 
The Bank shall forward to the Commission at the 
beginning of each (quarter) (month) estimates of all 
amounts expected to be claimed from the EDF in that 
(quarter) (month) in respect of risk capital and interest 
rebates. 
(ii) interest at the rate obtained on the liquid assets of 
the EDF shall be provided on the amounts of annual 
instalments credited to the system's resources as 
follows: 
— from 1 April each year on the amount of the first 
half of each annual instalment less any advance 
and transfers paid from the system's resources, 
— in like manner, from 1 July each year in respect 
of the second half of each annual instalment; 
(iii) any part of annual instalments which has not been 
advanced or transferred shall continue to bear 
interest which will be added to the system's 
resources; 1. Risk capital 
Article 57 
1. Each decision to grant risk capital shall set a limit 
to the Community's commitment and financial responsi­
bilities and, in the case of shareholdings, to the extent of 
the rights in the company to which such operations 
relate. The decision shall also take into account the 
provisions in Article 234 (2) of the Convention relating 
to responsibility for exchange rate risks. 
The instruments giving effect to risk capital operations 
shall be concluded by the Bank acting as the 
Community's authorized agent. 
(iv) the transfers referred to in Article 211 of the 
Convention shall be made in ecus into an interest-
bearing bank account chosen by mutual agreement 
between the ACP State and the Commission. All 
interest accruing shall be credited to that account. 
All withdrawals from the account shall require two 
signatures, one being that of a person designated by 
the ACP State concerned, the other that of the 
Commission delegate. 
The funds in the account, including interest, shall be 
mobilized in accordance with Article 186 (2) of the 
Convention as the operations specified in the 
agreement on the use of the resources referred to in 
Article 210 of the Convention are implemented. 2. The Bank, acting for and on behalf of the 
Community, shall manage the operations referred to in 
paragraph 1 which have been the subject of a financing 
decision by the Board of Directors of the Bank. 
3. When each disbursement takes place, the Bank shall 
request the Commission to pay in ecus the amount of the 
risk capital disbursed. The Commission shall pay this 
amount within 21 days of receipt of the request for 
payment with the same value date as that of the dis­
bursement by the Bank. 
4. Amounts due in respect of receipts, income and 
repayments relating to risk capital operations shall be 
NoC 165/18 Official Journal of the European Communities 6. 7. 90 
collected by the Bank on behalf of the Community, in 
accordance with the provisons of Article 58 of this 
Financial Regulation. 
Article 58 
The sums collected by the Bank in the form of products, 
revenue or repayments from risk capital operations shall 
be credited to a special account opened on behalf of the 
Community for the Member States in proportion to their 
contributions to the EDF. The account shall be 
denominated in ecus and managed by the Bank in 
accordance with the provisions of Article 9 of the 
Internal Agreement. The Bank shall agree with the 
Member States on the information to be supplied 
concerning the account. 
The technical procedures for the management of the 
account, including those relating to the fixing of the 
rates of interest on it, shall be decided upon by the 
Council and the Bank in agreement with the 
Commission. 
2. Subsidized loans 
Article 59 
1. The aggregate amount of interest rate subsidies on 
each loan from the Bank shall be calculated in ecus in 
accordance with Article 235 of the Convention on the 
basis of the composite interest rate to be fixed in 
accordance with the procedures set out in paragraph 
3 (iii) below. 
2. On the signing of each loan contract, the Bank 
shall communicate to the Commission the estimated total 
amount of the interest rate subsidy expressed in ecus. 
3. Upon the disbursement of each instalment of the 
loan, the Bank shall request the Commission to pay the 
interest subsidy relating to the instalment based on the 
following calculations: 
(i) the equivalent in ecus of the amounts of currencies 
in which the loan instalment was disbursed at the 
conversion rates for those currencies and the ecu as 
published in the Official Journal of the European 
Communities in operation on the date on which the 
amount of currencies to be disbursed is determined, 
which date shall be communicated to the 
Commission; 
(ii) application of the percentage rate of interest subsidy 
to the declining annual capital balance due at each 
repayment date; 
(iii) the present value of the interest subsidies relating to 
the loan disbursement. Calculation of the present 
value shall be made by reference to a composite 
discount rate equal to the annual interest rate(s) 
which the Bank would in fact receive in the 
currency or currencies used for the relevant disbur­
sement of the loan if the loan did not benefit from 
an interest subsidy. The actual calculation of present 
value shall use this composite discount rate reduced 
by four-tenths of a percentage point. 4. The Commission shall pay in ecus the amount of 
subsidy, discounted in accordance with the procedures 
described in paragraph 3, within 21 days of receipt of the 
request for payment, the value date being that of the 
disbursement of the relevant loan instalment. 
5. Where the whole of an interest subsidized loan is 
repaid in advance, the Bank shall pay to the Commission 
the total balance of the discounted subsidy, adjusted for 
the period between receipt and payment by the Bank, on 
the first contractual repayment date subsequent to the 
advance payment. Where only part of such a loan is 
repaid, the payment by the Bank to the Commission shall 
relate to that part of the loan which has been repaid. 
6. The sums reimbursed to the Commission shall be 
credited to the amount of ECU 286 million provided for 
in Article 4 of the Internal Agreement to finance interest 
rate subsidies. 
7. All payments provided for in this Article shall be 
made in ecus. 
TITLE IV 
Executive agents 
l.The chief authorizing officer 
Article 60 
1. The Chief Authorizing Officer of the EDF, 
referred to in Article 311 of the Convention, shall take 
all measures necessary for the implementation of the 
provisions of Articles 294 to 307 of the Convention. 
Where he deems it appropriate, the Chief Authorizing 
Officer shall consult experts chosen for their technical 
competence and their independence vis-d-vis the firms 
concerned with the award of contracts. 
2. The Chief Authorizing Officer shall ensure, before 
the publication of an invitation to tender, that the 
documents relating to tenders do not contain any direct 
or indirect discriminatory provisions. He shall ensure 
that tenders are compared under equal conditions and, in 
particular, that the import duties or taxes of the recipient 
State, country or territory do not constitute an obstacle 
to participation in invitations to tender. 
3. The Chief Authorizing Officer may suspend the 
publication of a notice of invitation to tender where it is 
found that corrections must be made to the specifications 
or other documents in replacement thereof. To this end, 
6. 7. 90 Official Journal of the European Communities NoC 165/19 
he shall inform the relevant authorities of the recipient 
State, country or territory of his observations. 
Article 61 
In accordance with Article 292 of the Convention, 
decisions to commit additional funds required to cover 
any excess expenditure incurred on a project or 
programme shall be taken by the Chief Authorizing 
Officer where the excess expenditure is equal to, or 
lower than, a ceiling of 20 % of the original commitment 
set out in the financing decision. Where the excess is 
greater than the 20 % ceiling, the procedures of Articles 
21 to 24 of the Internal Agreement shall apply to the 
relevant financing decision. 
Article 62 
1. The Chief Authorizing Officer shall take all 
measures to ensure that National Authorizing Officers 
perform the tasks for which they are responsible by 
virtue of Articles 312 to 315 of the Convention and in 
particular that they comply with the provisions of this 
Financial Regulation regarding commitment, clearance 
and authorization of expenditure. 
2. Where the Chief Authorizing Officer becomes 
aware of delays in the carrying out of procedures 
relating to projects financed by the EDF he shall, in 
conjunction with the National Authorizing Officer, 
make all contacts necessary to remedy the situation. 
3. If, for any reason whatsoever, services have been 
rendered but further delay in clearance, authorization or 
payment gives rise to difficulties likely to call into 
question the full performance of the contract, the Chief 
Authorizing Officer may take all appropriate measures to 
resolve these difficulties, to remedy, where necessary, the 
financial consequences of the resultant situation and, 
more generally, to enable the project, projects or 
programmes to be completed under the best economic 
conditions. He shall inform the National Authorizing 
Officer of such measures as soon as possible. If payments 
are thus made directly by the Commission to the 
beneficiary of the contract, the Community shall auto­
matically acquire that beneficiary's right as creditor 
vis-d-vis the national authorities. 
4. The provisions of this Article shall apply, mutatis 
mutandis, to measures to ensure that Regional Author­
izing Officers referred to in Article 164 (f) (ii) of the 
Convention perform tasks assigned to them in the 
Convention. 2. The Commission delegate 
Article 63 
The Commission delegate shall comply with this 
Financial Regulation in the performance of his duties, as 
provided for in Articles 316 to 318 of the Convention. 
Article 64 
During the performance of operations financed by the 
EDF, the delegate shall verify on the spot and on the 
basis of records that work carried out or services 
rendered correspond with their descriptions as given in 
the financing agreements, or other contracts or estimates. 
Article 65 
In the event of failure to comply with this Financial 
Regulation, of misconduct or gross negligence in the 
performance of his duties, the delegate shall render 
himself liable to disciplinary action, and where necessary, 
to payment of compensation. 
3. The paying agent 
Article 66 
The Commission shall include in the agreements 
governing its relation with each paying agent appropriate 
provisions requiring that in the performance of his tasks, 
as laid down in Article 319 of the Convention, the 
paying agent shall comply with this Financial Regulation. 
Article 67 
In the event of failure to observe the provisions in force, 
of misconduct or of gross negligence which entails 
financial loss for the Community, the paying agent shall 
be held financially responsible under the conditions and 
in accordance with the terms laid down in the contract 
binding it to the Commission. 
TITLE V 
Presenting and auditing accounts 
Article 68 
1. The Commission shall draw up, not later than 1 
May each year, a balance sheet of assets and liabilities of 
the EDF as at 31 December of the preceding year and a 
statement of sources and uses of funds since the date of 
the previous balance sheet. 
2. The financial statements referred to in paragraph 1 
shall be accompanied by a table of revenue showing: 
— estimated revenue for the financial year, 
No C 165/20 Official Journal of the European Communities 6. 7. 90 
— amendments to the revenue estimates, 
— entitlements established in the course of the financial 
year, 
— amounts still to be collected at the end of the 
financial year, 
— additional revenue. 
Article 69 
1. The Commission shall in respect of each calendar 
year, draw up not later than 1 May of the following 
year, revenue and expenditure accounts for the EDF. 
2. The revenue and expenditure accounts shall 
include: 
(a) a table of revenue containing the items specified in 
Article 68 (2); 
(b) expenditure tables which shall comprise: 
— a table showing the decisions taken by the 
Commission or the Council during the calendar 
year, together with a table showing the overall 
situation regarding sums committed, 
— a table showing the situation regarding delegated 
appropriations and expenditure authorizations 
effected during the calendar year, together with a 
table showing the overall situation regarding 
delegated appropriations and expenditure auth­
orizations effected. 
3. The tables referred to in paragraph 2 shall be 
accompanied by a cumulative statement showing for 
each recipient country or territory the aggregate figure 
for the commitment decisions taken, for delegated 
appropriations granted and for expenditure author­
izations effected. 
Article 70 
Without prejudice to Article 33 (5) of the Internal 
Agreement, the Commission shall forward the balance 
sheet, statement of sources and uses of funds and the 
revenue and expenditure accounts to the European 
Parliament, the Council and the Court of Auditors not 
later than 1 May of the following financial year. 
Article 71 
The Court of Auditors and its members may, in carrying 
out the task of the Court, seek assistance from officers 
of the Court. 
In such cases, the Court itself, or one of its members, 
shall notify to the authorities with whom such officers 
shall work, the tasks delegated to these officers. Article 72 
1. The audit carried out by the Court of Auditors 
shall be based on records and, if necessary, be performed 
on the spot. Its purpose shall be to establish that all 
revenue has been received and all expenditure incurred 
in a lawful and regular manner with regard to the 
provisions applicable and that the financial management 
has been sound. 
2. As provided for in Article 33 (6) of the Internal 
Agreement, the Court of Auditors may participate in 
on-the-spot checks carried out by the Audit Committee 
of the Bank. The following procedures shall be adopted 
in respect of such participation: 
(a) the Court shall inform the Commission at regular 
intervals of operations managed by the Bank which 
the Court considers should be subject to on-the-spot 
checks. At the same time, the Court shall intimate to 
the Commission in which of the on-the-spot checks 
in question it wishes to participate; is shall also 
propose a timetable for their execution; 
(b) the Commission shall request the Bank: 
— to invite its Audit Committee to carry out those 
checks, 
— to associate the Court with the checks to be 
organized by its Audit Committee in which the 
Court wishes to participate; 
(c) the Audit Committee of the Bank shall be responsible 
for the organization of on-the-spot checks. Rep­
resentatives of the Court participating in such checks 
may examine any documents they consider necessary 
and may ask questions which they judge to be 
useful; 
(d) following each on-the-spot check, the Audit 
Committee of the Bank and the representatives of 
the Court shall draw up their respective mission 
reports which they will forward to one another and 
to the Commission; 
(e) the Court shall transmit to the Bank and to the 
Commission the text of its observations before their 
final adoption and publication. The Commission and 
the Bank, acting through the Commission, may make 
known their views on these observations; 
(f) in the case of checks of projects cofinanced by the 
EDF and the Bank, the Court shall refrain from 
using information it may obtain in the course of 
on-the-spot checks relating to the part financed from 
the own resources of the Bank; 
(g) in participating in on-the-spot checks carried out by 
the Audit Committee of the Bank, the representatives 
of the Court, in common with all members of the 
control missions, shall respect the provisions laid 
down in Article 214 of the Treaty relative to 
6. 7. 90 Official Journal of the European Communities No C 165/21 
professional secrecy; they shall also preserve 
confidentiality in relation to banking matters of 
which they may become aware. 
3. In the performance of it tasks, the Court of 
Auditors may, under the conditions laid down in 
paragraph 6, consult all documents and information 
relating to the financial management of the departments 
subject to its inspection; it has the power to hear any 
official responsible for revenue and expenditure oper­
ations and to use any of the auditing procedures appro­
priate to those departments. 
4. The Court of Auditors shall ensure that all 
securities and cash on deposit are checked against 
vouchers signed by the depositaries. The Court may itself 
carry out such checks. 
5. At the request of the Court, the Commission shall 
authorize banks, which hold funds which are the 
property of the EDF, to allow the Court to verify that 
the information disclosed by the EDF's accounting 
corresponds to that shown in the bank's books. 
6. The Commission shall provide the Court of 
Auditors with all the facilities and give it all the infor­
mation which the Court may consider necessary for the 
performance of its tasks. In particular, it shall place at 
the disposal of the Court all documents concerning the 
conclusion and implementation of contracts and all 
accounts of cash or materials, all accounting records or 
supporting documents and also the administrative 
documents pertaining thereto, all documents relating to 
revenue and expenditure, all inventories, and all lists of 
posts in the departments which the Court of Auditors 
may consider necessary 
To this end, officials subject to audit by the Court of 
Auditors shall in particular: 
(a) submit the supporting documents in respect of their 
management of which they are the depositaries and 
any books, registers and other documents relating 
thereto; 
(b) present the correspondence or any other document 
required for the full implementation of the audits. 
The information referred to under (b) may be requested 
only by the Court of Auditors. 
The Court of Auditors shall be empowered to audit the 
documents in respect of EDF revenue and expenditure 
which are held by the Commission's departments and, in 
particular, by the departments responsible for decisions 
on such revenue and expenditure. Article 73 
1. In addition to the annual report, the Court of 
Auditors may also, at any time, submit observations, in 
the form of special reports, on specific questions and 
deliver opinions at the request of one of the institutions 
of the Communities. 
2. The special reports shall be transmitted to the 
institution or body concerned. 
The institution concerned shall have two and a half 
months in which to inform the Court of Auditors of any 
comments it wishes to make on the observations in 
question. 
Should the Court of Auditors decide to have such obser­
vations published in the Official Journal of the European 
Communities, it shall include after them any comments 
submitted by the institution or institutions concerned. 
The special report shall be transmitted to the European 
Parliament and the Council, each of which shall decide 
in conjunction with the Commission what action, if any, 
is to be taken in response. 
Article 74 
1. The Court of Auditors shall communicate to the 
Commission, not later than 15 July in any year, any 
observations which it considers should appear in the 
annual report provided for in Article 206a of the Treaty. 
These observations shall remain confidential. 
The Commission shall forward its replies to the Court of 
Auditors not later than 31 October of the relevant year. 
2. The Court of Auditors shall attach to its report an 
assessment of the soundness of the financial 
management. 
3. The Court of Auditors may also, at any time, 
submit observations on specific questions and deliver 
opinions at the request of one of the institutions of the 
Community. 
Article 75 
The Court of Auditors shall send its annual report, 
together with the Commission's replies, not later than 30 
November in any year, to the European Parliament, to 
the Council and to the Commission and shall ensure its 
publication in the Official Journal of the European 
Communities. 
Article 76 
1. Before 30 April of the following year, the European 
Parliament, upon a recommendation from the Council 
No C 165/22 Official Journal of the European Communities 6. 7. 90 
acting by a qualified majority, shall give the Commission 
a discharge in respect of the financial management of the 
EDF for the preceding year, in accordance with Article 
33 (3) of the Internal Agreement. 
2. The financial controller shall take account of the 
observations appearing in the decision giving discharge. 
3. The Commission shall take all appropriate steps to 
act on the observations appearing in the decision giving 
discharge. At the request of the European Parliament or 
the Council it shall report on the measures taken in the 
light of these observations and in particular on the 
instructions given to those of its departments which are 
responsible for the management of the EDF. Such 
reports shall also be forwarded to the Court of Auditors. 
4. Subject to the second sentence of paragraph 3, the 
Commission must, in an Annex to the revenue and 
expenditure account for the next financial year, give an 
account of the measures taken in the light of the obser­
vations appearing in the decision giving discharge. 
5. The balance sheet, statement of sources and uses of 
funds and the revenue and expenditure accounts for each 
financial year and the decision giving the discharge shall 
be published in the Official Journal of the European 
Communities. TITLE VI 
General and final provisions 
Article 77 
Unless otherwise specified, references in this Financial 
Regulation to the provisions of the Convention shall be 
deemed to refer to the corresponding provisions of the 
Decision as shown in the Annex. 
Article 78 
This Financial Regulation shall be applicable to the aid 
specified in the Financial Protocol to the Convention. 
The provisions of this Financial Regulation shall also 
apply to aid provided under earlier Lome Conventions 
except where such application would be inconsistent with 
the provisions of the relevant Convention. 
Subject to the provisions of Article 34 of the Internal 
Agreement, this Financial Regulation shall cover the 
same period as the Convention.