COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 18.07.1995 
COM(95) 364 final 
THE COMMISSION'S ANNUAL REPORT 
TO THE COUNCIL AND TO THE EUROPEAN PARLIAMENT 
ON THE BORROWING AND LENDING ACTIVITIES 
OF THE COMMUNITY IN 1994 
and 
THE COMMISSIONS REPORT 
TO THE COUNCIL AND TO THE EUROPEAN PARLIAMENT 
ON THE RATE OF UTILIZATION 
OF THE NEW COMMUNITY INSTRUMENT (NCI) 
(half-year from 1 July 1994 to 31 December 1994) 

CONTENTS 
INTRODUCTION 
A. THE COMMISSION'S ANNUAL REPORT TO THE COUNCIL AND TO THE 
EUROPEAN PARLIAMENT ON THE BORROWING AND LENDING 
ACTIVITIES OF THE COMMUNITY IN 1994 
1. Community borrowing 
2. Lending within the Community 
3. Lending outside the Community 
4 The European Investment Fund 
5. Budgetary impact of lending 
Statistical annex 
B. THE COMMISSION'S REPORT TO THE COUNCIL AND TO THE 
EUROPEAN PARLIAMENT ON THE RATE OF UTILIZATION OF THE NEW 
COMMUNITY INSTRUMENT (NCI) (half-year from 1 July 1994 to 
31 December 1994) 
1. Introduction 
2. Overall situation at 31 December 1994 
3. Breakdown of loans by country and sector 
Statistical annex 
<L 

REPORTS ON THE BORROWING AND LENDING ACTIVITIES 
OF THE COMMUNITY 
INTRODUCTION 
A. Annual report 
This report is drawn up each year in accordance with the Council Decisions 
establishing lending instruments for Euratom research and finance1 and for the New 
Community Instrument (NCI).2 In addition, Parliament, in its Resolution on 
improving political monitoring of the Community's borrowing and lending 
activities,3 called for the activities of the ECSC and the EIB to be included. 
The Community's financial activities in 1994 were marked by the growth and 
diversification that has characterized them in the last few years. In particular, 
lending operations in third countries have increased considerably and, in this 
respect, the Council adopted in October 19944 a Regulation establishing a 
Guarantee Fund for external actions that would provide a new warning and 
disciplinary mechanism to deal with the risk of default covered by the budget 
outside the Community. Furthermore, at the request of the Council,5 the 
Commission in collaboration with the EIB, has prepared a report concerning the 
advisability of restricting the scope of the guarantee from the Community budget 
for EIB external loans. This report will be presented to the Council and to 
Parliament in the course of 1995. 
The financing under the Edinburgh lending facility of capital infrastructure projects 
in the fields of communications, energy and environment was concluded in 1994. 
With reference to the trans-European networks (TEN), the European Council in 
Essen adopted a list of 14 priority transport projects and 10 energy projects and, at 
the same time, invited the EIB to reinforce its financing assistance. 
1 Article 4 of Decision 77/270/Euratdm (OJ No L 88 of 6 April 1977). 
2 Article 6 of Decision 78/870/EEC (OJ No L 298 of 25 October 1978); 
Article 6 of Decision 82/169/EEC (OJ No L 78 of 24 March 1982); 
Article 7 of Decision 83/200/EEC (OJ No L 112 of 28 April 1983); 
Article 9 of Decision 87/182/EEC (OJ No L 71 of 14 March 1987); 
Article 7 of Decision 81/19/EEC (OJ No L 37 of 10 February 1981); 
Article 7 of Decision 81/1013/EEC (OJ No L 367 of 23 December 1981). 
3 Doc. PE/67134 of 5 March 1981 (OJ No C 287 of 9 November 1981). 
4 Council Regulation (EC, Euratom) No 2728/94 (OJ No L 293 of 12 November 1994). 
5 Declaration annexed to the Council Decision 93/696/EC (OJ No L 321 of 23 December 1993). 
In June 1994 the European Investment Fund (EEF), an initiative adopted by the 
Edinburgh European Council, became operational. This institution grants 
guarantees for large infrastructure projects, notably in connection with the 
trans-European networks and for investment in small and medium-sized firms. 
The development and diversification of the Community's financial instruments have 
led the Council and Parliament to ask the Commission to provide the fullest 
information possible on the new activities. 
The present annual report, covering 1994, is the Commission's fifteenth and is 
intended to meet the need to provide regular information. 
B. Half-yearly report 
With a view to ensuring that borrowings designed to promote investment within the 
Community are continuously monitored, the 1983 and 1987 Decisions concerning 
the NCI also provide for the Commission to inform Parliament and the Council 
every six months about the rate of utilization of the NCI borrowing tranches. Part 
B of this document therefore provides an account of NCI activities over the period 
from 1 July to 31 December 1994. 
A. THE COMMISSION'S ANNUAL REPORT 
TO THE COUNCIL AND TO THE EUROPEAN PARLIAMENT ON THE 
BORROWING AND LENDING ACTIVITIES OF THE COMMUNITY IN 1994 
1. COMMUNITY BORROWING 
1.1 In order to attain its internal objectives, the Community is empowered to borrow 
funds on the capital market. These borrowings are intended to finance loans for 
Member States in balance-of-payments difficulties (ceiling of ECU 14 billion), for 
research and financing in connection with nuclear power stations (current Euratom 
ceiling of ECU 4 billion), for encouraging investment in the Community under the 
NCI (current ceiling of ECU 6.8 billion) and, under the ECSC Treaty, for 
promoting productive capacity or conversion projects in the coal and steel 
industries. 
On the basis of the agreements concluded with non-Community countries, the 
Commission is empowered to borrow to finance programmes of financial assistance 
for the countries of Central and Eastern Europe, for the African, Caribbean and 
Pacific (ACP) countries and for measures adopted pursuant to the Mediterranean 
protocols. 
However, the bulk of the borrowing is undertaken by the European Investment 
Bank (EIB) for loans for investment projects in the European Union meeting the 
objectives assigned to the Bank by the Treaties and for the projects undertaken 
outside the Community in support of development cooperation policy. 
1.2 The volume of borrowing in the market by the Community institutions in 1994 
totalled ECU 15.2 billion in 1994, a fall of 24.6% over the previous year (Table 1). 
The decline in Community borrowing was primarily the result of the large decrease 
in balance-of-payments loan financing and, to a much lesser extent, in ECSC loans. 
The Community's share of borrowing in the OECD area also declined in 1994. 
Taking account of redemptions and cancellations, the amount of borrowing 
outstanding at 31 December 1994 was ECU 100.2 billion compared with 
ECU 94.4 billion in 1993 (see Table 2 in Annex). 
Borrowing by the EIB in 1994 amounted to ECU 14.1 billion, slightly less than in 
1993 (see Table 1 in Annex). After a five-year period of inactivity in the financial 
markets, Euratom borrowings in 1994 were ECU 49m. EC borrowing for 
balance-of-payment support loans totalled ECU 245m, a significant decline 
compared with 1993, while NCI borrowing stood at ECU 70m. 
The breakdown of Community borrowing by currency of borrowing (see Table 3 in 
~ Annex), shows a sharp decrease in the use of ECU compared with 1993. This 
decrease was offset in part by the increase in certain issues denominated in national 
currencies. On the international capital market (OECD area), offerings in the ECU 
5 
sector amounted to ECU 6.4 billion in 1994, a modest increase compared with 
1993 (Table 1). 
The bulk of Community borrowing in 1994 was contracted at fixed rates, although 
the proportion of variable-rate operations rose sharply compared to 1993. 
Table 1 
Issues on the International market 
(ECU billion) 
1987 1988 1989 1990 1991 1992 1993 1994 
1. Community 
afvAUch: 
1.1 ECSC 
1.2 EC (a) 
1.3 Euratom 
1.4 EIB 9.4 
1.5 
1.5 
0.9 
5.6 9.6 
0.9 
0.9 
0.1 
7.7 10.5 
0.9 
0.5 
9.0 125 
1.1 
0.4 
11.0 1d9 
1.4 
1.7 
ia7 157 
1.5 
12 
iao 2Û1 
0.9 
5.0 
14.2 15.2 
0.6 
0.3 
0.1 
14.2 
2. OECD countries (b 115.8 1512 193.1 141.5 208.3 2127 337.0 309.7 
3. Community share 8.1 6.3 5.4 8.8 8.1 7.4 6.0 4.9 
(1as%of2) 
4. International issues by selected currencies 
4.1 US$(b) 50.7 
4.2 YEN(b) 197 
4.3 ECU 6.5 
4.4 US $ as % of 2 438 
4.5 Yenas%of2 17.0 
4.6 ECUas%of2 5.6 630 106.6 
13.4 14.2 
9.5 11.4 
41.7 
8.9 
6.3 55.2 
7.4 
5.9 55.0 
17.9 
14.1 
38.9 
127 
10.0 659 
29.1 
26.0 
31.6 
14.0 
125 79.5 
26.0 
17.1 
37.4 
122 
ao 123.1 
37.9 
6.1 
37.4 
11.2 
1.8 125.6 
56.6 
6.4 
40.6 
183 
21 
(a) NCI -•- balance of payments. 
(b) Calculations based on the yearly average exchange rate of the ecu. 
Source: ECandCECD. 
2. LENDING WITHIN THE COMMUNITY 
2.1 Economic activity in the Community recovered in 1994, with Community GDP 
estimated to have expanded by 2.7%. The recovery has been led by the strong 
export performance of the European economies and by a pick-up in investment. 
Investment in the Community, as measured by gross fixed capital formation 
(GFCF), rose by 2.4%. Unemployment, however, remained unacceptably high in 
spite of the economic recovery. In this respect the European Council, meeting in 
Corfu and Essen in 1994, affirmed that the unemployment problem required 
structural reforms and urged the Member States to follow and develop the strategy 
set out in the Commission's White Paper on growth, competitiveness and 
employment. 
2.2 EIB activity in support of the Community's internal objectives in 1994 
remained unchanged. In 1994 loans signed for projects in the Community totalled 
ECU 17.7 billion, the same as in 1993. Projects were financed in every 
Member State as well as in the three new Member States. There was an increase 
in activity in the United Kingdom, Germany (especially in the eastern Lander), 
France and, to a lesser extent, in Greece and the Benelux countries (Table 2). 
Table 2 
ouuuurc ui DD letiuniy iiuan uunirau»aiyiieu; -Geographical distribution I 
Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
United Kingdom 
Austria 
Finland 
Sweden 
Other (Article 1Q 
Community total 
ACPCCT 
Mediterranean 
CEEC 
Latin America, Ada 
Non-Community total 
TOTAL LOANS SIGNED 1987 
ECU million % 
37.1 0.5 
315.3 4.0 
276.5 3.5 
164.8 21 
707.4 9.0 
1,006.5 128 
178.6 2.3 
3,1122 39.7 
1.6 0.0 
18.0 02 
389.9 5.0 
1,133.7 14.5 
108.7 1.4 
7,450.3 95.0 
349.4 4.5 
428 0.5 
3922 5.0 
7,8425 100 1992 
ECU million % 
396.6 23 
690.8 41 
1,663.9 9.8 
377.5 22 
3,020.6 17.7 
1,895.1 11.1 
303.5 1.8 
3,796.9 22.3 
428 0.3 
154.4 0.9 
1230.4 7.3 
2407.2 14.1 
159.7 0.9 
16,139.7 94.8 
2520 1.4 
320.8 1.9 
320.0 1.9 
8928 52 
17,0325 100 1993 
ECU million % 
371.6 1.9 
875.5 4.5 
2096.6 10.7 
511.1 26 
4,005.1 20.4 
2205.5 112 
388.2 20 
3,3620 17.1 
379.7 1.9 
1,488.8 7.6 
1,929.1 9.8 
111.0 0.6 
17,724.2 90.4 
225.7 12 
680.5 3.5 
8820 4.5 
99.0 0.5 
1,887.2 9.6 
19,611.4 100 1994 
ECU million % 
615.3 3.1 
849.7 43 
2,407.9 121 
534.7 27 
3,011.5 15.1 
2477.4 124 
291.1 1.5 
3,099.5 15.6 
5.1 0.0 
399.5 20 
1,109.7 5.6 
2454.7 123 
89.5 0.4 
602 0.3 
15.3 0.1 
260.8 1.3 
17,681.9 88.7 
461.6 23 
607.0 3.0 
957.0 4.8 
220.0 1.1 
2245.6 11.3 
19,927.5 100 
In 1994 the EIB concluded the financing of capital infrastructure projects under the 
Edinburgh lending facility, amounting to ECU 7 billion for 140 projects in the 
fields of transport, communications, energy and the environment. It has also 
implemented a system of subsidized loans linked to the creation of jobs for small 
and medium-sized enterprises. To this end, a first instalment of global loans for a 
total of ECU 650m has been committed. 
The EIB has continued its activity in favour of regional development by providing 
finance totalling over ECU 12 billion (72% of total financing in Member States). 
The investments financed are concentrated in the less-favoured regions, the 
"cohesion" countries and in Germany's eastern regions (see Table 5 in Annex). 
The EIB has continued its support for infrastructure networks, agreeing to more 
than ECU 7.2 billion for investments in transport, telecommunications, and 
electricity- and gas-transmission networks. Given their special characteristics, 
preparation of the high-priority trans-European network projects has resulted in the 
establishment of a "special desk" at the EIB allowing a flexible approach in 
handling their financing. 
Likewise, the EIB has provided financial assistance for projects designed to protect 
the environment and to improve urban living conditions (ECU 4.9 billion). In 
addition, more than ECU 3.5 billion have been directed towards better utilization 
and diversification of energy resources. 
Lastly, despite the difficult economic context, the EIB has endeavoured to sustain 
projects in the industry and service sectors, in particular those carried out by 
small and medium-sized enterprises (ECU 3.6 billion). 
2.3 Politically, it should be noted that, following the Communication to the Council of 
20 October 1993 regarding the future of the ECSC Treaty, the Commission 
decided on 28 June 1994 to redefine the conditions of ECSC borrowing and 
lending policy. 
ECSC lending (including bridging loans) totalled ECU 673.4m in 1994, a decrease 
of 26.7% on 1993 (Table 3). 
The decrease in the volume of lending is basically due to the economic recession in 
the Member States. The strong contraction of productive investments resulted in a 
reduction in the number of conversion loans (Article 56). 
Table 3 
ECSC loans in 1994 (ECU '000) 
Article 54 Article 58 Housing Total 
Italy 
France 
Greece 
Portugal 
Netherlands 
Germany 
United Kingdom 
Spain 
Belgium 
Luxembourg 
Ireland 
Denmark 18,961.8 8,9252 
13,958.8 
60278.1 
245,942.1 
25,408.8 
23,2372 
82,1112 77,1492 
87,726.3 
4,627.6 
16,377.3 1,3672 
506.4 
30.8 
44.9 
5,970.3 
115.6 
415.3 
225.4 
50.3 29,2542 
14,4652 
30.8 
44.9 
143,397.6 
333,784.1 
30,451.7 
39,839.8 
50.3 
82,1112 
Total 455,9392 208,764.4 8,7262 673,429.8 
2.4 As regards NCI activities, it should be noted that no new operations have been 
undertaken since 1991 (Table 4). 
Table 4 
NO loans at 31 December 1994 I (ECU million) 
Financial agreements 
Global loans (*) 
Productive sector (*) 
Infrastructure 
Energy 
Total contracts signed, net (**) 
BB loans (own resources) 
Authorized ceilings 
Balance NCII 
5.4 
538.5 
445.7 
9905 
1,000.0 
9.5 Reconstr. 
ITALY 
598.7 
598.7 
351.6 
1,000.0 
49.7 Reconstr. 
GREECE 
80.0 
80.0 
80.0 
0 Nan 
406.8 
10.6 
279.4 
300.8 
9975 
1,000.0 
2.5 Nam 
2,138.0 
465.3 
258.3 
2,861.6 
3,000.0 
138.4 Narv 
6826 
6826 
750.0 
67.4 TOTAL 
3227.4 
15.9 
1,961.9 
1,005.8 
6,211.0 
351.6 
6,830.0 
2675 
(*) Industry and agriculture 
(•*) Contracts signed less cancellations 
2.5 The facility providing medium-term fînancial assistance for Member States' 
balances of payments was activated in 1993 in favour of Italy. Following that 
country's request for financial assistance to support its balance of payments and its 
programme of economic adjustment and reforms, the Council granted a loan of 
ECU 8 billion to be disbursed in four tranches (Council Decision 93/67/EEC of 18 
January 1993). The first two tranches of ECU 2 billion each were contracted and 
paid to Italy in March and November 1993. The Council Decision stipulates that 
the third and fourth tranches could be paid to Italy not earlier than 1 February 1994 
and 1 February 1995. The Italian Government did not request the 1994 tranche. 
Taking into account earlier loans and repayments made, the total amount of loans 
outstanding under this facility stood at ECU 5 billion at 31 December 1994, the 
authorized ceiling being ECU 14 billion through capital market financing. 
3. LENDING OUTSIDE THE COMMUNITY 
This activity involves those countries with which the Community has concluded 
cooperation agreements. A substantial volume of resources is being provided in 
forms appropriate to the specific circumstances of the countries in question 
(Table 5). 
3.1 In the context of the support for the adjustment and reform programmes of third 
countries, the Community continued to provide macroeconomic assistance in the 
form of balance-of-payments and structural adjustment support loans to 
complement the IMF programmes. In the case of the central and eastern European 
countries, Community support has been provided within the G-24 framework. 
In 1994 actual disbursements corresponding to loans previously approved 
amounted to ECU 220m (Algeria: ECU 150m; Bulgaria: ECU 70m). Moreover, 
new loans were approved for a maximum of ECU 585m (Moldavia: ECU 45m; 
Romania: ECU 125m; Algeria: ECU 200m; Slovakia: ECU 130m; Ukraine: 
ECU 85m), of which ECU 25m were actually disbursed (Moldavia). 
3.2 The Commission continued with the implementation of the Council Decision of 
December 1991 relating to the commercial credit facility of ECU 1250m in favour 
of the new independent states of the former USSR (CIS). 
Credits of ECU 59m and ECU 68m were agreed for Uzbekistan and Azerbijan. 
This operation took the total amount of credits agreed under the facility to ECU 
1132.9m and, at the end of the year, left ECU 117. lm for further funding. 
10 
Table 5 
Financing outside the Community in 1994 | 
ACP-OCT 
Mediterranean basin 
CEEC 
as 
Latin America, Asia 
Total EC and EDF 
budgetary 
resources (1) 
239.1 
28.0 
267.1 EIB own 
resources 
2225 
579.0 
957.0 
220.0 
1,978.5 (ECU million) 
Financial 
support for 
countries 
150.0 
70.0 (2) 
25.0 (3) 
245.0 ECSC 
420 
420 Total 
461.6 
757.0 
1,069.0 
25.0 
220.0 
2,5326 
(1) Granted and managed by the EIB out of the budgetary resources of the EC or the European 
De ve lopme nt Fund (EDF). 
(2) Balance-of-payments loans. Disbursement 
(3) Balance-of-payments loans and commercial credits. 
3.3 EEB financing outside the Community is made available as part of the Community's 
cooperation policy with third countries. Financing increased again in 1994, to 
ECU 2246m compared with ECU 1887m in 1993 and ECU 893m in 1992. 
Financing from own resources, guaranteed by the Member States out of the 
Community budget, totalled ECU 1979m, while financing from budgetary 
resources under mandate from and on behalf of the Community amounted to ECU 
267m (Table 5). The marked increase in lending activity in 1994 is due mainly to 
the doubling of financing in the African, Caribbean and Pacific countries as well as 
to the expansion of operations in Latin America, Asia and central and eastern 
Europe and to the continuing activity in the Mediterranean basin. 
In the African, Caribbean and Pacific (ACP) countries and the Overseas 
Countries and Territories (OCT), the EIB provided assistance amounting to 
ECU 462m (against 226m in 1993), of which ECU 223m was provided from own 
resources and carried interest subsidies financed out of the budget and ECU 239m 
was in the form of risk capital from budgetary resources. Thirty-two countries 
have benefited from these operations. Loans to industry, food processing and 
services, mainly in the private sector, accounted for more than half of the total 
funding, followed by the energy sector with almost a third. Projects for transport 
and telecommunications, water supply and sewerage infrastructure accounted for 
the rest. 
Lending in the countries of the Mediterranean basin totalled ECU 607m 
compared to ECU 680m in 1993. Financing was provided mostly under the 
Financial Protocols (ECU 397m, of which ECU 369m from own resources and 
ECU 28m in the form of risk capital from budgetary resources) but also as part of 
the non-protocol horizontal financial cooperation for regional cooperation and 
environmental protection projects (ECU 210m). Transport and 
11 
telecommunications projects represented more than 40% of the total, energy 
projects about 22% and those designed to ensure more satisfactory waste-water 
collection and treatment 15%. Over 22% of the total concerned investments in 
industry and services, many of which in the private sector, carried out in 
conjunction with Community enterprises. 
In the central and eastern European countries (CEEC), lending amounted to 
ECU 957m in 1994 (ECU 882m in 1993). Investments were financed in ten 
countries, including for the first time in Latvia and Lithuania. Projects mainly 
concern basic infrastructures essential for the development of these countries. The 
transport (41%) and telecommunications sectors (32%) benefited most, especially 
projects extending the trans-European networks. Energy (16%), forestry and 
global loans to industry (11%) accounted for the rest. 
Lastly, the Bank's operations in Latin American and Asian concerned five new 
countries and totalled ECU 220m against ECU 99m in 1993. Loans were made for 
energy transport projects (55%), telecommunications (34%) and to the 
construction of a cement production line (11%). 
3.4 On 5 March 1990 the Community decided to make ECSC loans available for 
financing industrial investment projects in Poland and Hungary up to a ceiling of 
ECU 200m. Since 1991 that decision has also applied to the Czech and Slovak 
Federal republics, Bulgaria and Romania. 
In 1994 an ECU 42m loan to finance investment in a steel plant in Poland was 
signed. 
3.5 On 21 March the Council decided to authorize the Commission to contract 
Euratom borrowings the proceeds of which will be allocated in the form of loans 
to finance improvements in the efficiency and safety of nuclear power stations in 
some CEEC and CIS countries. Under the current ceiling fixed by the Council, a 
total of about ECU 1.1 billion could be granted under this facility. 
No operations were concluded under this facility in 1994. 
3.6 The Community and the EIB are both shareholders and close partners of the 
EBRD: they each hold 3% of the Bank's capital. They work in close cooperation 
and match their resources: the Commission provides technical assistance for 
projects undertaken by the EBRD, while the EIB and the EBRD are helping to 
finance a number of projects in central and eastern Europe. 
According to the EBRD's annual report for 1994, the Board approved 109 new 
projects in the CEEC and the former Soviet Union. Signed commitments 
amounted to ECU 1878m (against ECU 1642m in 1993). At the end of the year, 
outstanding equity disbursements totalled ECU 365.6m, compared with ECU 
192.5m at the end of 1993. 
12 
4. THE EUROPEAN INVESTMENT FUND 
The European Investment Fund (EIF), which became operational in June 1994, 
provides guarantees for large infrastructure projects, notably in connection with the 
trans-European networks (TEN) and for small and medium-sized enterprises. 
The EIF, which was set up following an initiative by the Edinburgh European 
Council, is a tripartite institution jointly funded and managed by the Community 
(with 30% of the capital), the European Investment Bank (40%) and financial 
institutions from the Member States (30%). It has an authorized capital of 
ECU 2 billion. At present, it concentrates on granting financial guarantees. At a 
later stage, it could acquire stakes in enterprises participating in the construction of 
the trans-European networks or, indirectly, in small and medium-sized enterprises. 
At 31 December 1994 the EIF had signed guarantee operations for a total of 
ECU 515m, of which 15% are for SMEs. 
5. BUDGETARY IMPACT OF LENDING 
The Community's general budget is affected by lending activity where loans are 
accompanied by interest subsidies and/or budget guarantees. 
5.1 Interest subsidies 
Interest subsidies are granted in the Community in the following fields: (i) the 
industrial conversion of coal and steel areas (Article 56 of the ECSC Treaty); (ii) 
the reconstruction of the disaster-hit areas of Italy and Greece, where they are paid 
out by the EIB as borrowings are repaid; (iii) in the context of the MSME facility" 
(see Table 7 in Annex). 
No industrial loans at reduced rates for investment projects designed to promote 
consumption of Community coal (Article 54, second paragraph) have been made. 
With regard to the granting of subsidies for conversion loans in coal and steel areas 
(Article 56), interest subsidies amounted to ECU 51.1m in 1994 against 
ECU 114.3m the previous year. 
The Copenhagen European Council of June 1993 increased by ECU 3 billion the 
temporary facility agreed in Edinburgh. Of that amount, ECU 1 billion are directed 
towards the strengthening the competitiveness of small and medium-sized 
European enterprises and would carry interest subsidies linked to the creation of 
employment. The subsidy amounts to ECU 3000 per additional job created 
(equivalent to a 2% interest rebate). Following the adoption of the Council 
decision of 19 April 1994, the EIB started to sign global lending agreements with 
financial intermediaries in all Member States in the second half of 1994. The 
allocation of loans to beneficiaries is expected to be completed before the end of 
..July 1995. In 1994 the budgetary payments for this facility amounted to ECU 
65.5m. 
13 
Interest subsidies are also provided in connection with EIB loans outside the 
Community (see Table 8 in Annex). 
5.2 Budget guarantees 
5.2.1 Coverage 
All the outstanding borrowing contracted by the Community to finance loans 
managed by the Commission (Euratom, NCI, balance of payments) is guaranteed 
by the general budget. 
With the exception of loans granted under Article 18(1) of the EIB's Statute, the 
Bank's loans from own resources granted to non-Community countries in pursuit of 
the Community's policy of providing financial assistance for development are 
covered by a guarantee agreement. The guarantees are provided by Member States 
for loans in ACP countries and by the Community for those in Mediterranean, 
Central and Eastern European (CEEC) and other third countries. 
Details of the Community budget guarantees provided in this connection are as 
follows: 
(i) EIB loans to Mediterranean countries: overall, 75% of the amount of loans 
contracted are covered by a Community guarantee. 
At the end of 1994 outstanding loans totalled ECU 2161m, of which 
ECU 473 m were accounted for by loans in Spain, Greece and Portugal 
(pre-accession) and ECU 1688m by loans in non-member Mediterranean 
countries. 
(ii) EIB loans to the CEEC: loans contracted are fully covered by the 
Community guarantee. At 31 December 1994, the EIB had made available 
ECU 1650m in loans to these countries out of a total package of ECU 1.7 
billion under the heading CEEC I. The amount of outstanding loans at the 
end of 1994 totalled ECU 572m. 
At the end of 1993 the Community extended its guarantee to cover all EIB 
lending to the CEEC, including the Baltic States and Albania, and proposed 
a ceiling of ECU 3000m valid for a three-year period. At 31 December 1994 
the EIB had made available ECU 921m of loans from this package. At the 
end of 1994 the amount of outstanding loans was ECU 2m. 
(iii) EIB loans to other third countries: loans granted to countries with which the 
Community has concluded cooperation agreements are also fully covered by 
the Community guarantee. Loans in favour of these countries were decided 
in February 1993 for an amount of ECU 250m a year for a three-year period. 
At the end of 1994 the loans signed stood at ECU 319m, while the amount 
outstanding was ECU 46m. 
14 
The Community decided in 1991 to provide a guarantee covering 98% of a bank loan 
to the former USSR up to a ceiling of ECU 500m (ECU 406m in capital) for imports 
of agricultural and food products. In February 1992, this credit was allocated 
exclusively to Russia. The amount of outstanding loans at the end of 1994 totalled 
ECU 133m. 
5.2.2 Outstanding guarantees at 31 December 1994 
At the end of 1994 the outstanding guarantees provided by the Community budget 
exceeded ECU 13 billion, more than 43% of which were for countries outside the 
Community (Table 6). Compared with 1993, total outstanding guarantees have 
decreased by ECU 1 billion. However, the proportion of commitments to 
non-Community countries has increased from 37.5% in. 1993 to 43% in 1994. 
The annual risk covered by the general budget, which concerns the repayment of 
the debt (principal and interest), stood at ECU 2785m in 1994, of which 
ECU 885m related to third countries. 
At 31 December 1994 the amounts paid by the Community and not as yet 
reimbursed by the defaulting debtor countries stood at ECU 92.06m, of which 
ECU 48.3m are owed by some republics of the former Yugoslavia and a total of 
ECU 43.76 by Tajikistan, Ukraine, Georgia and Kyrgyzstan. 
The provisional drawing on the Commission's cash resources to cover the 
guarantee has been regularized by the budget up to 1993 and by the Guarantee 
Fund since its establishment by Council Regulation (EC, Euratom) No 2728/94 of 
31 October 1994. 
15 
Table 6 
Capital outstanding on guaranteed operations (at 31 Dec 1994) (1) 
(ECU million) 
Operation 
Member States 
A. Balance of payments 
1. Greece I 
2. Greece II 
3. Italy 
B. Other 
4. Euratom (2) 
5. NCI (including earthquake reconstr.) 
6. BB Mediterranean (E,GR,P) 
Non-Communitv countries 
A. Financial assistance 
1. Hungary 
2. Czech Republic 
3. Slovak Republic 
4. Bulgaria 
5. Romania 
6. Algeria 
7. Israel 
8. Baltic States 
9. as 
10. Moldavia 
11. Ukrania 
B. Other 
12. BB Mediterranean 
13. BB CEEC I 
14. BB CEEC II 
15. BB Latin America, Asia 
16. CIS guarantee 
TOTAL Amount 
ceiling 
26.330 
14.000 
4.000 
6,830 
1,500 
17,127 
1,050 
250 
255 
400 
580 
600 
160 
220 
1,250 
45 
85 
6,282 
1,700 
3,000 
750 
500 
43,457 Amount 
outstanding at 
31 Dec 1993 
8,982 
200 
1,000 
3,990 
1,018 
2,202 
572 
5,395 
790 
250 
125 
290 
455 
250 
160 
110 
803 
1,596 
300 
266 
14,377 Amount 
outstanding at 
31 Dec 1994 
7,843 
1,000 
4,022 
779 
1,570 
473 
5,925 
790 
250 
125 
360 
455 
400 
160 
110 
810 
25 
1,688 
572 
2 
46 
133 
13,768 
(1) Exchange rate as at 31/12/94. 
(2) Extension of Euratom loans to certain Ihird countries (Council Decision of 21/03/94). 
16 
STATISTICAL ANNEX 
17 
Table 1 
Trend of borrowing and lending In the Community | (BCU million) 
n"'",™^™",l,™™"^^™,"^^™—™^^^^^^™^™""™lil™™^ (BCU rate at year-end) 
1964 1985 1986 1987 1988 1969 1990 1991 1992 1993 1994 
I. Borrowing 
BCSC 822 1.265 1.517 1.487 880 913 1.086 1.446 1.474 906 644 
Balance of payments (1) 862 860 350 1.695 1,209 4,969 246 
Euratom 214 344 488 853 93 49 
NCI 967 860 541 611 945 522 76 49 - - 70 
Total Commission 2,003 2.469 3.406 3.811 1,918 1.435 1,512 3.190 2.683 5,877 1.006 
BB(2) 4.339 5,699 6,786 5,593 7.666 9.034 10,996 13,672 12.974 14,224 14,148 
Total EC 6,342 8,168 10,194 9,404 9.584 10,469 12.508 16,862 15.657 20,101 15,156 
II. Lending 
BCSC 825 1,010 1,069 969 908 700 993 1,382 1,486 918 674 
Balance of payments (1) 862 860 - 360 1,695 1.209 4,969 245 
Euratom 186 211 443 314 - 49 
NCI 1,182 884 393 425 357 78 24 39 9 30 -
Total Commission 2,193 2.IO6 2.767 2^68 1.265 778 1,367 3,116 2.454 5,917 968 
BB(3) 5.007 5.641 6,678 6,967 8£44 11,507 12,606 14.438 16,066 17,672 17.656 
Total BC 7,200 7.746 9.445 9,535 10.109 12,295 13,972 17,554 18,520 23,589 18,624 
Nate: The dfferences between total borrowhg and lendng by the Cbmrission are due to borrowing operations undertaken for reTnanctig 
purposes and to changes in the balance of bans not assigned by the end of the year. 
The dfferences between borrowing and lendhg by the BB are due to the fact that BB lendng operations are financed both from 
borrowings and f romthe Banks own resources. 
(1) Mxtfianismforprwidhflrnancaalsuppcrtta 
(2) Iota] resources raised. 
(3) Loans signed out of own resources, no account being taken of the guarantees provided by the BB to promoters (B3J 26 rrlon h 
1994) or of operations financed out of NCI resources. 
18 
Table 2 
Community borrowings outstanding (at year-end) (1) (2) 1 
1982 
1983 
1984 
1985 
1986 
1987 
1988 
1989 (3) 
1990 
1991 
1992 
1993 
1994 ECSC BB Euratom NCI Sub-total 
6,178 16,570 1,272 1,747 25,767 
6,539 20,749 1,680 3,269 32,237 
7,119 25,007 1,892 4.432 38,450 
7,034 26,736 2,013 4,960 40,743 
6,761 30,271 2,168 5,202 44,402 
6,689 31,957 2,500 5,229 46,375 
6,825 36,928 2,164 5,514 51,431 
6,738 42,330 1,945 5,122 56,135 
6,673 48,459 1,687 4,542 61,361 
7,139 58,893 1,563 3,817 71,412 
7,327 67,784 1,338 3,326 79,775 
7,331 78,661 1,018 2^02 89,212 
6,548 83,673 779 1,570 92,570 (ECU million) 
Bala nee -of-pay. 
borrowings 
591 
4,610 
4,932 
3,236 
1,890 
2,997 
2,459 
2,075 
(4)2,045 
3,516 
4,026 
5,204 
7,697 Total 
borrowing 
26,358 
36,847 
43,382 
43,979 
46,292 
49,372 
53,890 
58,210 
63,406 
74,928 
83,801 
94,416 
100,267 
(1) The conversion rates used were those obtained on 31 December of each year. As the majority of borrowings 
are denominated in national currencies, the difference between two year-ends reflects, on the one hand, changes 
in the valuation of the existing stock and, on the other, the net volume of borrowings during the year. 
(2) Original amount of borrowings, plus or minus repayments of the principal, cancellations, annulments and 
exchange-rate adjustments. 
(3) As from 1989 including short term (new EIB approach). 
(4) As from 1990 also includes balance-of-payments and f nancial assistance for non-member countries. 
19 
Table 3 
Community borrowings In 1994, by currency | 
ECU 
BFR 
DKR 
DM 
ESC 
FF 
DRA 
HFL 
IRL 
LFR 
UT 
OSC 
PTA 
UKL 
Sub-total 
SFR 
USD 
YEN 
CAD 
Sub-total 
TOTAL Balance-of- Total 
BB Euratom ECSC NO Payments^) Borrowing 
300 70 245 615 
752 49 40 - 841 
53 53 
2,051 - 86 - 2,137 
584 584 
1,153 - 14 - 1,167 
36 36 
661 - - - 661 
177 177 
201 201 
2,560 - 14 - 2,574 
59 59 
948 30 - - 978 
1,518 - 339 - 1,857 
11,053 49 523 70 245 11,940 
856 856 
1,659 - 30 - 1,689 
580 91 671 
3,095 - 121 - 3216 
14,148 49 644 70 245 15,156 (ECU million) 
1994 
% 
4.1 
5.5 
0.3 
14.1 
3.9 
7.7 
02 
4.4 
12 
1.3 
17.0 
0.4 
6.5 
123 
78.8 
5.6 
11.1 
4.4 
212 
100.0 1993 
% 
29.5 
0.1 
11.1 
12 
10.9 
1.1 
0.6 
0.5 
10.4 
62 
13.5 
852 
23 
7.9 
3.3 
14.8 
100.0 
(1) Balance of payments and fnancial assistance for non-member countries. 
20 
Table 4 
Lending in the Community in 1993 and 1994, by sector and instrument I (BCU million) 
Productive sector 
of which: allocations 
from global loans 
Infrastructure 
of which: allocations 
from global loans 
Energy 
of which: «locations 
from global loans 
TOTAL BCSC 
1993 1994 
7893 336.7 
3892 210D 
129.0 3367 
9183 673.4 BB(1) 
1993 1994 
42235 35943 
1.731.7 1.796J6 
9579.7 9,6462 
822D 8975 
25762 33833 
99.7 69.3 
16.779.4 16.624.4 Euratom 
1993 1994 
-
. NCI(1) 
1993 1994 
258 11.4 
258 11.4 
25.8 11.4 Total 
1993 1994 
5.038.6 3,942.4 
2.146.7 2£18J0 
10.1087 9,9623 
822J0 8975 
25762 33833 
99.7 69.3 
17.7235 17.3092 % of total 
1993 1994 
28.4 228 
121 11.7 
57.0 57.7 
4J6 52 
14.5 195 
05 0.4 
100 100 
(1) Financing granted (indvidual loans and allocations from global loans) 
21 
mnandncMnttieComunlt^ Tables 
1993 
ECU million 1994 
ECU million 
1. Regional development 
1.1 By country 
Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
United Kingdom 
1.2 By major sector 
Energy 
Transport 
Telecommunications 
Water, sewerage 
Other Infrastructure 
Industry, agriculture 
Services 12,4622 
76.2 
667.7 
1,508.5 
4924 
3,831.9 
1,135.7 
407.2 
2,084.7 
15.3 
1,317.9 
924.7 
1,5820 
4,0027 
1,660.0 
1,366.1 
539.8 
3,004.2 
307.4 100 
0.6 
5.4 
121 
4.0 
30.7 
9.1 
3.3 
16.7 
0.1 
10.6 
7.4 
127 
321 
13.3 
11.0 
4.3 
24.1 
2.5 12,035.1 
178.6 
506.9 
1,801.6 
6321 
2,659.2 
1,571.7 
237.7 
2,159.2 
17.7 
1,127.1 
1,143.3 
2,104.4 
4209.8 
1,925.2 
766.2 
404.0 
2,0929 
5326 100 
1.5 
42 
15.0 
5.3 
221 
13.1 
2.0 
17.9 
0.1 
9.4 
9.5 
17.5 
35.0 
16.0 
6.4 
3.4 
17.4 
4.4 
2 Infrastructure of Community interest 
2.1 Transport 
2.2 Telecommunications 5,807.0 
3,7128 
2,0942 100 
63.9 
36.1 5,698.3 
3,5432 
2,155.1 100 
622 
37.8 
3, Environmental protection and Improvement 
3.1 Environment 
3.2 Town planning 4,385.0 
3,483.0 
9020 100 
79.4 
20.6 4,866.0 
3,1521 
1,713.9 100 
64.8 
352 
4. Energy 
4.1 Indigenous resources 
4.2 Import diversification 
4.3 Efficient use of energy 2,766.8 
560.8 
6326 
1,573.4 100 
20.3 
229 
56.9 3,525.6 
850.8 
919.8 
1,755.0 100 
24.1 
26.1 
49.8 
5. Industrial competitiveness 
of which: small and medium-sized enterprises (1) 2,705.9 
1,541.5 Number 
5257 1,791.5 
1,693.4 Numoei 
6.776 
(1) Including allocations from NCI global loans. 
N.B. As some loans serve a number of purposes simultaneously, the amounts shown under the different 
headings cannotbe aggregated. 
22 
Table 6 
Geographical breakdown of lending (1) in the Community in 1993 and 1994 
1993 
Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
United Kingdom 
Art 18 (2) 
Total 
1994 
Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
United Kingdom 
Austria 
Finland 
Sweden 
Art 18 (2) 
Total (ECU million) 
ECSC 
11.9 
225.3 
89.8 
1.1 
391.8 
126.6 
0.1 
0.3 
71.4 
918.3 BB 
371.6 
875.5 
2,096.6 
511.1 
4,005.1 
2205.5 
3882 
3.3620 
379.7 
1.488.8 
1,929.1 
110.0 
17,724.2 Euratom 
-
-NCI 
-
-Balance of 
payments 
3,989.0 
3,989.0 Amount 
383.5 
875.5 
2,321.9 
600.9 
4,006.2 
2,597.3 
388.2 
7,477.6 
0.1 
379.7 
1,489.1 
2,000.5 
111.0 
22,631.5 % 
1.7 
3.9 
10.3 
27 
17.7 
11.5 
1.7 
33.0 
0.0 
1.7 
6.6 
8.8 
0.5 
100 
ECSC 
39.8 
821 
143.4 
0.0 
30.7 
14.5 
0.1 
29.3 
0.0 
333.8 
673.7 BB 
615.3 
849.7 
2,407.9 
534.7 
3.011.5 
2.477.4 
291.1 
3.099.5 
5.1 
399.5 
1,109.7 
2.454.7 
89.5 
602 
15.3 
260.8 
17,681.9 Euratom 
-
-NCI 
-
-Balance of 
payments 
-
-Amount 
655.1 
931.8 
2,551.3 
534.7 
3,0422 
2,491.9 
2912 
3,128.8 
5.1 
399.5 
1.109.7 
2.788.5 
89.5 
602 
15.3 
260.8 
18,355.6 % 
3.6 
5.1 
13.9 
29 
16.6 
13.6 
1.6 
17.0 
0.0 
22 
6.0 
152 
0.5 
0.3 
0.1 
1.4 
100 
(1) Loans granted 
(2) Community projects that cannot be located ina particular Member State (e.g. telecommunication cables 
and satellites, North Sea Oil). 
23 
Table 7 
Interest subsidies paid out in the Community by the various 
Community mechanisms, 1977-1994 (ECU million) 
Year 
1977 
1978 
1979 
1980 
1981 
1982 
1983 
1984 
1985 
1986 
1987 
1988 
1989 
1990 
1991 
1992 
1993 
1994 Non-discounted systems (1) 
ECSC Art54 ECSCArt56 
(restruct) (convers.) 
1.3 2.7 
9.8 16.5 
10.4 8.0 
25.7 33.4 
7.6 6.3 
10.5 19.3 
4.0 7.1 
6.2 34.0 
3.6 74.9 
5.9 33.1 
24 35.6 
3.0 38.6 
26 42.5 
1.3 40.6 
1.0 48.6 
106.0 
114.3 
51.1 Employment Earthquake 
in Portugal reconstr. 
3.0 
14.4 
24.4 
28.4 
28.6 
4.0 28.6 
3.9 27.8 
26.6 
23.1 
20.1 
17.2 Discounted systems (2) 
EMS ERDF SME 
facility 
200.0 12.1 
197.0 
193.2 
209.8 
200.0 
65.5 
(1) Interest subsidies spread overtime and charged to the funds set aside for this purpose in the 
annual budgets. 
(2) Interest subsidies paid by the Commission after discounting to a presentvalue, and charged 
to the budget as a single sum in the initial year. 
24 
1*te8 
UareandftaiclalaEshta^ outride thaConrnur^ | (BUmHon) KMaA 
Loans andft«nclala&shtaiuB outside tha CBnwiwKyfciterotcr under nagoBatlonrt 31 Wrch 199* (SUrrNon) 
A3>aates-0CT 
MP 
OCT 
mU<MT«:ntiiifaiP) 
TUtay 
Agaria 
Nbroooo 
Tunisia 
Sw< 
Jordan 
Lebanon 
%*• 
kraal 
OxuatodTarribortas (7) 
M*a 
Cyprus 
Tfcn-pratocaT 
nonBonDi mncsi 
CSC 
Nand, 
GBaohffepublc 
SovakffepUbac 
angaria 
UticSbtes 
>uv»y 
Rjiiuta 
Albania 
Souania 
Former USSR 
Mafcbuta 
Urania 
Ijtin American and 
Asian countries Agrooiiuit 
RuthLoné QrMrtoi 
Gbunl Cbctsbrt 
FbulhR u uU Rokxot 
Nftyethface 
Rx/tfiRrB'tti Rckxd 
Rectal reocnEtnxtknaid 
SBocrd financial pncÉxd 
ItiUriuùd probed 
Rinti financial pratocd 
IhrdfrBTDEl probed 
Fajthfrercci pnjfexd 
RxrthR axa Rckxd 
Gtuid DBàscn 
Ruth financial Rckxd 
RxrthRrancël Robed 
QxnXOecém 
Qxrd Dfeaaon 
financial protocol 
QudCteciscn 
GQLrd OBCSOTI Oration 
1990-1995 
1990-1995 
1993-1996 
1992-1996 
1987-1991 
1932-1906 
1932-1996 
1994-1998 
1994-1995 
1994-1996 
1932-1996 
1994-1996 
1993-1997 
1991 
1993-1995 Loans from 
BBown 
rasoras 
1,200 
25 
225 
2B3 
220 
1€B 
310 
80 
90 
34 
S3 
45 
110 
115 
82 
23) 
30 
50 
1,830 
3,000 
133 
793 OperaL from buckjaL ras. 
RskcapU ttxvrapayable 
oparations aid 
« (4 
825 9,975(4 
25 115(4 
50 
18 52 
25 193 
15 101 
16 242 
2 44 
1 19 
2 22 
2 34 
2 41 
230 
2 13 
2 22 
25 235(3 
20(9) Mnoflnandal 
assistance ft 
Grandad Dsbursed 
8G0 43) 
ieo ieo 
25D . 250 
235 125 
42) 390 
233 1D 
1,050 790 
590 435 
1C6 (10) 70 
1,233 (11) 1,133 
45 25 
85 B2SC 
loans 
42 Total 
12,-KB 
12,000 
165 
$387 
600(6, 
950 
433 
294 
593 
126 
90 
34 
73 
69 
143 
153 
242 
500 
45 
74 
2,030 
6JOT2 
3,000 
232 
295 
433 
22) 
1,050 
983 
105 
173 
1,250 
45 
85 
79) 
(1) U»<allrasBrgirtareBt»faiclHBfrurtrBBjcpOT 
garEral tubal of tEEnsBanGDnmrteBhtBcaeeo' projects hcertanMdtaauiiacuirB&TrerBxseGfiaYanajlBfathe 
rtereat SLbstdes are charcBdto norvrepa^fcte ad 
(2) QartadardraracEdb/tfeEB 
ft Granted and i m ugadty Irs Gi nriBbui 
(4) hlxi^antu1siiudBdfcriBJHyt8JD6id8ScnffitaarB. 
(5) TreanprtsavaiatteinfrtrBFrertiBrrBT^ 
(Lebanon, SVria) or residual armrte. 
(6) hdudroSUcLbnfcncf barefionrtu^jatatyreBcucEsonqjecycandUcrs 
(7) V^&rkandGBzasb^barsffOTKwnrescucesa^ 
(8) rciJiysaneKLrlGQrriOTrfrterert 
(9) ChyfarterestsUsctefaEBIcarBfapicjBSfe^ 
(13) NTWB^erJeasssiarce(straic/t grant). 
(11) GnnETCial crafts. (1) U»<aliracgrgirtaBBt»tHClHBfr<jrnteBj^ 
gaTBndbjo)jÉtftBEïnxBanConmrtiBShte 
HEreataJsdBBaredMtf^toiTrHBEB^fcleakl 
(2) QartadardnarECBdb/tfeEB 
ft Granted and i m sjadb/ Irs Qi TIIBUUI 
(4) rtiJdrpaniu1siiudBdfcriBJHyt8JD6i(i8ScnŒtaarB. 
ft Trean«utsa/aiattein^1rBpre*XBrrHTa 
(Lebanon, SVria) or residual armrte. 
(6) taludncjEEL&£nScnof bars fiomtudjstaryreacuoas on qjecy canotiers 
(7) V^EtefcardGBzasbto bars fioro^rescuT» are c^ 
(8) rciJorrjacnetnJiœrriOTrfrtereBtsu^^ 
(9) CnyfartereetsLtetiœfaœicBnBfaprcjŒtsc^ 
fC) NTwe^erJeassEterœ(straid"tçrart). 
M1^ CtTmwrTv4 cfptWR 
25 
B. THE COMMISSION'S REPORT TO THE COUNCIL 
AND TO THE EUROPEAN PARLIAMENT 
on the rate of utilization of the 
New Community Instrument (NCI) 
(half-year from 1 July 1994 to 31 December 1994) 
1. Introduction 
Council Decisions 83/200/EEC (Article 6) and 87/182/EEC (Article 8) on the 
financing of the NCI require the Commission to draw up a six-monthly report on 
the rate of utilization of the tranches of NCI in and IV. 
The present report covers the period from 1 July 1994 to 31 December 1994. 
Overall situation at 31 December 1994 
The different legal bases determine the method of assessing the amount of loans 
signed in relation to the maximum authorized borrowing: 
(i) for NCI HI, the volume of loans is lower than that of borrowings in order 
to take account of the currencies borrowed and the associated costs and 
expenses; 
(ii) for NCI IV, the ceiling applies to the loans signed. 
At the end of 1994 the situation regarding the use of the tranches for which a 
six-monthly report has to be drawn up was as follows: 
Use of NCI: situation at 31/12/1994 (ECU million) 
Ceiling Amounts used Balance 
NCI III 
NCI IV 3,000 
750 2,862 
683 138 O 
67 
(*) The special borrowing of ECU 100 million for European innovation 
projects has not yet been authorized by the Council. 
26 
The borrowing operations carried out in the six months under review with a view 
to financing NCI activities are shown in Annex 2(B). No new issue was floated 
during the period under review. 
3. Breakdown of loans by country and sector 
The table below provides an overall view of loans signed, converted into 
"borrowing equivalents" at 31 December 1994. The loans in the various currencies 
have been converted into ecus at the exchange rate in force on the last working day 
of the quarter preceding the signing of the contract. 
Distribution of loans signed by country at 31.12.1994 (ECU million) 
Country 
Belgium 
Denmark 
Greece 
Spain 
France 
Ireland 
Italy 
Netherlands 
Portugal 
UK 
Total NCI I 
66.8 
70.0 
239.0 
479.9 
134.9 
990.5 NCI II 
100.6 
114.9 
125.0 
116.6 
473.4 
67.1 
997.5 NCI III 
303.0 
1112 
692 
938.7 
68.4 
1228.5 
32 
29.9 
109.3 
2,861.6 NCI IV 
23.6 
632 
132.0 
72.3 
285.7 
9.9 
95.8 
682.6 NCI 
Reconstr. 
80.0 
598.7 
678.7 Total 
23.6 
533.5 
306.1 
201.2 
1206.0 
424.0 
3,066.3 
3.2 
39.8 
407.1 
6210.9 % 
0.4 
8.6 
4.9 
32 
19.4 
6.8 
49.4 
0.1 
0.6 
6.6 
100.0 
SECTOR 
NCI III 
NCI IV Productive sector 
52.8 % 
100 % Infrastructure 
26.5 % Energy 
20.7 % 100% 
100% 
NIC IV is of interest because of its special features, such as the options of 
converting loans into risk capital, using loans to finance the purchase of intangible 
assets and deferring interest payments. 
No loan transaction have been carried out since 1991. 
27 

STATISTICAL ANNEX 
28 
Annex 1 
NCI IV LOANS 
CEIUNG: ECU 750 MILLION (1) - (Situation at 3LU.1994) 
Réf. Project description Date of 
contract ECU 
mflhon(2| Breakdown by country (2) 
DK UK 
I. LOANS SIGNED 
64/87 FIH(SmalBusiness)PG-VI/A 
64/87 FIH (Small Business) PG-VI/B 
68/87 BNL-PMIV/A 
68/87 BNL-PMIV/B 
69/87 IMI-PMIV/A 
69/87 IMI -PMI V/B 
70/87 MEDIOCR CENTR - PMIIV/A 
70/87 MEDIOCR CENTR. - PMI I V/B 
70/87 MEDIOCR CENTR - PMI IV/C 
70/87 MEDIOCR. CENTR - PMI IV/D 
70/87 MEDIOCR CENTR - PMI IV/E 
7 V87 INTERB ANCA - PMI I V/A 
7V87 INTERB ANCA -PMI I V/B 
73/87 BPI-PGV 
105/87 CENTROBANCA - PMI I V/A 
D5/87 CENTROBANCA - PMI I V/B 
106/87 SAN PAOLO Agroindustria II 
107/87 CREDIOP - PMI I/A 
107/87 CREDIOP - PMI I/B 
108/87 BANCO DI NAPOLI - PMI A 
D8/87 BANCO DI NAPOLI - PMI B 
110/87 B°DE SANTANDER - P YME 
EV87 B°DE BILBAO-PYME 
148/87 EFIBANCA - PMI I V/A 
148/87 EFIBANCA - PMI I V/B 
148/87 EFIBANCA - PMI I V/C 
M8/87 EFIBANCA - PMI I V/D 
206/87 B°DE VIZCA YA - PYME A 
206/87 B °DE VIZCA Y A - PYME B 
207/87 B°ESPANOLDECREDITO-PYME 
207/87 B0ESPANOLDECREDITO-PYME 
23V87 CREDITNATIONAL-PMIIII 
64/88 INVESTORSIN INDUSTRY -
GROUPED LOAN V 
» V88 EFIBANCA - PMI V/A 
» V88 EFIBANCA - PMI V/B 
10 V88 EFIBANCA - PMI V/C 
DV88 EFIBANCA - PMI V/D 
103/88 MEDIOCR LOMB ARDO - PMI A 
103/88 MEDIOCR. LOMB ARDO-PMI B 
D3/88 MEDI OCR LOMB ARDO - PMI C 
D3/88 MEDI OCR. LOMB ARDO-PMI D 
109/88 BARCLAYSBANKIIGL 
E8/88 CENTROBANCA -PMI V/A 
E8/88 CENTROBANCA - PMI V/B 
D5/88 CREDIOP - PMI II/A 
D5/88 CREDIOP - PMI II/B 
K5/88 BANCO DI SI CILIA -PMI II/A 
B5/88 BANCO DI SI CILIA -PMI II/B 
»9/88 CREDIT INDUSTRIEL ET COMML 
237/88 IMI-PMIVI/A 
237/88 IMI-PMIVI/B 
237/88 IMI -PMI VI/C 
237/88 IMI-PMIVI/D 
175/89 BARCLAYS BANK III/A 
119/90 KREDIETBANKN.V.-GL 
119/90 KREDIETBANKN.V.-GL 
48/91 B'ESPANOLDECREDITOPGPY 15.09.87 
24.05.88 
12.10.87 
12.10.87 
3L07.87 
3L07.87 
15.09.87 
10.12.87 
03.02.88 
16.03.88 
23.06.88 
07.10.87 
07.10.87 
22.07.87 
1112.87 
1LE.87 
05.1L87 
18.12.87 
B.E.87 
B.E.87 
B.C.87 
24.07.87 
23.07.87 
17.12.87 
I7.E.87 
24.06.88 
24.06.88 
I7.E.87 
30.1L88 
B.E.87 
B.1L88 
05.02.88 
28.E.88 
05.10.88 
05.10.88 
16.0L89 
•5.0L89 
10.10.88 
». 10.88 
06.02.89 
06.02.89 
2LE.88 
19.E.88 
19.E.88 
09.E.88 
09.E.88 
25.05.89 
25.05.89 
29.1188 
19.E.88 
B.E.88 
06.02.89 
06.02.89 
30.1189 
20.E.90 
20.E.90 
28.0551 31,80 
31,43 
B.68 
8.01 
37,29 
15,98 
6,19 
5,88 
4,81 
3,27 
B.98 
9,34 
4,00 
9,91 
9,34 
4,00 
B.34 
4,67 
2,00 
4,60 
197 
20,19 
3L64 
4,67 
2,00 
4,55 
195 
9,37 
8.60 
E.04 
10,94 
20,00 
20.90 
4.53 
194 
4.57 
L96 
6.79 
2,91 
9,14 
3,92 
45.55 
B.23 
5,67 
4,53 
L94 
4,58 
L96 
52^2 
9.06 
3.88 
13.72 
5.88 
29^8 
B.04 
5.54 
39,19 31.80 
3L43 
20,19 
3L64 
9,37 
8,60 
E.04 
10^4 
20,00 
5232 
B.04 
5.54 B.68 
8,01 
37.29 
15,98 
6,19 
5,88 
4,81 
3,27 
18,98 
9,34 
4,00 
9,34 
4,00 
B34 
4,67 
2,00 
4,60 
197 
4,67 
2,00 
4,55 
195 
4,53 
L94 
4,57 
196 
6,79 
2,91 
9,14 
3.92 
B.23 
5.67 
4.53 
194 
4.58 
196 
9.06 
3,88 
B.72 
5.88 
39.» 9.91 
20.90 
45.55 
2938 
TOTAL I 682.56 23,58 63.22 B197 7232 285.73 9.91 95.83 
II. LOANS APPRO VED. 
AWUTING SIGNATURE 30.» 
BALANCE 3734 
CEIUNG 750.00 
(I) JOL*. 271of M.03.1987 (bans ceiling). 
(2)Conveisbn rates are those obtaiied on the last workhg day of the quarter preceding the signing of each ban. 
29 
NCI BORROWING, BY CURRENCY Annex 2 
A.-Pebt outstanding at 31.12.1994 (1) | 
Currency (million) Equivalent in 
ECU million 
(2) 
ECU 160.0 160.0 
BFR 
DM 440.9 231.1 
FF 2,100.0 319.3 
HFL 595.3 278.9 
LFR 1,600.0 40.9 
UT 100,000.0 50.1 
PTA 10,000.0 61.7 
UKL 12.6 16.0 
CAD 
SFR 292.0 181.0 
USD 280.5 228.0 
YEN 3302 27 
Total I | 1,569.7 
B.- New operations: 1.07.1994-31.12.1994 
Date 
of issue 
17/08/1994 Duration 
(years) 
7 Coupon 
(%) 
725 Currency 
(million) 
ECU 70 | 
Equivalent in M ECU (3) 
Fresh 
capital (1) 
70 Re­
financings 
-
(1) Excluding refinancing operations, designed to reduced the cost of servicing existing 
debt initially contracted at higher interest rates. 
(2) Exchange rates as at 31.12.1994 
(3) Exchange rates at signature. 
30 
ISSN 0254-1475 
COM(95) 364 final 
DOCUMENTS 
EN 01 
Catalogue number : CB-CO-95-391-EN-C 
ISBN 92-77-92076-9 
Office for Official Publications of the European Communities 
L-2985 Luxembourg