H COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(92)502 final 
Brussels, 1 December 1992 
Proposal for a 
COUNCIL DECISION 
on coordination and information procedures 
in matters of officially supported export credits, 
credit insurance, credit guarantees and financial credits 
(presented by the Commission) 
»WHSB&H39BS 
EXPLANATORY MEMORANDUM 
The Arrangement on guidelines in the field of officially supported export 
credits (the OECD "Arrangement") was first incorporated into Community 
law by a 1978 Council Decision. 
This Arrangement provides the international framework for official 
support for export credits. The EEC is one of the Participants in this 
Arrangement. 
In 1973 the Community, by way of a Council Decision, imposed upon itself 
procedural rules for a certain type of credits. Since 1978 these rules 
have been applied alongside the rules of the Arrangement. 
Recently, modifications to the OECD Arrangement have been negotiated (the 
so-called Helsinki-package). These new rules have been adopted by Council 
Decision of 23rd March 1992. The rules of the Arrangement have to be 
implemented on a case by case basis. Until now the Community has adopted 
its position on the basis of an informal mandate agreed by unanimity in a 
Council Working Group. Only modifications to the Arrangement text as such 
have been negotiated following the procedure laid down by article 113 of 
the EEC treaty. 
It has become apparent that more formal procedures are necessary for the 
Community to adopt a position in the meeting of the Participants, 
especially since the question whether certain projects are eligible for 
tied or partially untied aid credits has become a controversial issue. 
In the proposal for a Decision the Commission endeavours on the one hand 
to align internal procedures with Arrangement procedures and simplify the 
administrative work, and on the other hand to set up a procedure 
consistent with the Commitology decision (87/373) which would enable the 
Community to adopt common positions swiftly which would be represented 
in the OECD. 
fc-
Proposal for a Council Decision 
on coordination and information procedures 
in matters of officially supported export credits, 
credit insurance, credit guarantees and financial credits 
THE COUNCIL OF THE EUROPEAN COMMUNITIES 
Having regard to the Treaty establishing the European Economic Community 
and in particular Article 113 thereof; 
Having regard to the proposal from the Commission; 
Having regard to the opinion of the European Parliament; 
Whereas the Community is a Party to the Arrangement on guidelines for 
officially supported export credits (hereinafter referred to as the 
Arrangement) which was brought into force in the Community by Council 
Decision of 4 April 1978, as last amended by the Council Decision of 23rd 
March 1992; 
Whereas the Helsinki package established new rules concerning export 
credits including aid credits affecting trade and also laid down new 
rules for notification and consultation especially in the field of tied 
and partially untied aid credits; 
Whereas, by a Décision of 27 September 1960(1), the Council set up a 
Policy Coordination Group for Credit Insurance, Credit Guarantees and 
Financial Credits; 
(1) OJ nr. 66, 27.10.60, p. 1339 
3 
Whereas, by its Decision (EEC) n° 73/391 of 3 December 1973 amended by 
Decision (EEC) n° 76/641 of 27 July 1976, the Council has instituted a 
consultation procedure in matters of credit insurance, credit guarantees 
and financial credits; 
Whereas it is necessary to amend this procedure to take account of the 
amendments to the Arrangement made by the Helsinki package so that an 
improved procedure applies in respect of export credits which are subject 
to prior notification and to bring it into conformity with Council 
Decision n° 87/373 of 13 July 1987 laying down the procedures for the 
exercise of implementing powers conferred on the Commission; 
Whereas the Community's position as a party to the Arrangement means both 
that to facilitate international cooperation within the Organisation for 
Economic Cooperation and Development (hereinafter referred to as the 
OECD) and to encourage internal coherence within the Community on matters 
relating to the Arrangement, a procedure is necessary to enable the 
Community to approve the grant by Members States of export credits which 
are subject to prior notification under the Arrangement so that the 
Community can express a coherent and consistent view on these 
notifications within the OECD; 
HAS DECIDED AS FOLLOWS : 
Article 1 
1. Where a Member State has, in accordance with the Arrangement, 
notified its intention to grant fully or partially credits as defined in 
Section I of the Annex, Member States shall be authorised to provide 
such export credits in accordance with the procedure set out in Article 
2. To facilitate this procedure, Member States shall provide the 
information as set out in Section II of the Annex. If provision of such 
export credits is the subject of discussion in the OECD, the Community's 
position shall be expressed by the Commission in accordance with 
decisions taken pursuant to the procedure set out in Article 2. 
2. Where a third country which is a party to the Arrangement has 
notified a proposal to grant an export credit in accordance with the 
terms of the Arrangement and such notification is to be discussed within 
the OECD, the Community's position in the OECD shall be determined by the 
procedure set out in Article 2 and shall be expressed by the Commission. 
Article 2 
1. The Commission shall be assisted by a Committee composed of the same 
members as described in Article 3 of the Council Decision of 27 September 
1960(1) creating a Policy Coordination Group for Credit insurance, 
credit guarantees and financial credits, and be chaired by the 
representative of the Commission. 
2. The representative of the Commission shall submit to the committee a 
draft of the measures to be taken. The committee shall deliver its 
opinion on the draft within a time limit which the chairman may lay down 
according to the urgency of the matter. The opinion shall be delivered 
by the majority laid down in Article 148(2) of the Treaty in the case of 
decisions which the Council is required to adopt on a proposal from the 
Commission. The votes of the representatives of the Member States within 
the committee shall be weighted in the manner set out in that article. 
The chairman shall not vote. 
The Commission shall adopt measures which shall apply immediately. 
However, if these measures are not in accordance with the opinion of the 
committee, they shall be communicated by the Commission to the Council 
forthwith. In that event : 
The Commission may defer application of the measures which it has decided 
for a period of not more than one month from the date of such 
communication; 
The Council acting by a qualified majority may take a different decision 
within the time limit referred to in the previous paragraph. 
3. At the request of a Member State or the Commission, the Committee may 
examine any question relating to : (a) the grant of untied credits with a 
(1) OJ L nr. 66, 27.10.60, p. 1339 
Ç 
duration of more than five years calculating from the starting point as 
defined in the Arrangement; or departing from any other norm adopted by 
the Member States or; (b) agreements concluded by the Member States with 
third countries referring to the possible grant of credits without 
specifying the precise terms thereof; or (c) any other transactions 
relating to credit insurance, credit guarantees and financial credits not 
subject to the coordination procedure. 
Article 3 
Council Decision (EEC) No. 73/39l(1) of 3 December 1973 and Council 
Decision (EEC) No. 76/641 of 27 July 1976(2) are hereby repealed. 
Article 4 
This Decision is addressed to the Member States. 
(1) OJ No L 346, 17.12.1973, p.l 
(2) OJ No L 223, 16.8.1976, p. 25 
G 
ANNEX 
Scope of the procedure set out in Article 2 of the Council Decision ("the 
coordination procedure") and information to be supplied in Matters of 
Officially Supported Export Credits, Credit Insurance, Credit Guarantees 
and Financial Credits. 
TITLE I 
GENERAL PROCEDURE 
Section I 
Scope 
Article 1 
The procedure set out in Article 2 of the Council Decision shall apply 
where it is contemplated by a Member State, any other state organisation 
or any body for credit insurance or finance to grant or guarantee, fully 
or partly export credits 
linked to exports to non EC-countries or to transactions between EC-
countries relating to goods or services 
with a duration of more than five years calculated from the starting 
point as defined in the Arrangement on guidelines for officially 
supported export credits (hereinafter called "the Arrangement"), or 
which depart from any other norm adopted by the Member States, or 
which are subject to prior notification under the Arrangement or 
which are defined in the Arrangement as "common line" proposals. 
Article 2 
The procedure shall be applicable : 
whether supplier credits or financial credits are concerned 
whether these credits form the subject-matter of individual contracts 
or lines of credit as described in Article 3 
t 
whether the credits are purely private or are sponsored fully or 
partially, out of public funds. 
Mixed credits combining public and private funds and private credit 
arrangements combined with public fund interest subsidies shall for the 
purpose of this procedure be considered as public credits. 
Article 3 
1. A "line of credit" shall be defined in accordance with the definition 
of that term in the Arrangement. 
The procedure shall be applicable to lines of credit even where the 
nature of the transactions has not been specified and no formal 
commitment to open a line of credit has been made, without prejudice 
to its application to each particular contract. 
2. Any Member State which has granted a line of credit shall, upon 
request, give information of the use made of that arrangement. 
Section II 
Exchange of information 
Article 4 
In cases subject to the coordination procedure, the Member States shall 
supply to the Commission and the Member States all the information 
foreseen in the Arrangement and where relevant the precise grounds for 
not applying, or departing from the norms set out in article 1 of this 
Annex. 
Where relevant, the following circumstances must be specified : aid 
credit, competition from a Member State or a third country (with 
indication whether or not supported); transaction to be charged to a line 
of credit which has been the subject of previous consultation. 
Article 5 
The following numbering shall be observed when, transmitting information z 
- for all individual credits and lines of credit notifiable under the 
Arrangement : the number of the Arrangement notification 
for all other credits or lines of credit : the letters "EC" followed 
by the letter corresponding to the initiating Member State, a serial 
number for each year, and an indication of the country of 
destination. 
Article 6 
The information prescribed under Article 4 must be transmitted as soon as 
possible after initiation of the study either of the guarantees and the 
proposed credits proper, or of any other decision which, under the terms 
of national regulations or national administrative practices, would 
constitute a prerequisite for the subsequent examination of such 
guarantees or credits. 
^ 
Article 7 
Where there are changes in the factors justifiying departure from the 
norms or if new basic terms of the credit are proposed which differ from 
^those initially specified, the new information shall be transmitted under 
-±he initial reference, followed by the letters "rev" and the export 
irrredit shall be subject to renewed approval in accordance with the 
procedure set out in Article 2 of the Council Decision. 
3î, however, the new terms proposed are more restricitve, the Member 
JState concerned shall be committed only to direct information under the 
smitial reference. 
Article 8 
The information specified in Article 4 shall be transmitted by telex or 
online to recipients designated by each Member State and the Commission. 
All correspondence shall bear the relevant number and an indication of 
the country of destination. 
JW 
FINANCIAL STATEMENT 
SECTION 1: FINANCIAL IMPLICATIONS 
1. Title of operation 
Council Decision on coordination and information procedures in matters of 
officially supported export credits, credit insurance, credit guarantees 
and financial credits. 
2. Budget heading involved 
A-250 Meetings in general 
A-2510 Expenditure on meetings of committees whose consultation is 
compulsory in the procedure for drafting Community 
legislation. 
3. Legal basis 
Article 113 of the EEC Treaty 
4. Description of operation 
4.1 Specific objectives 
The Decision provides for the creation of a committee chaired by the 
Commission. It will assist the Commission in coordinating policy on 
officially supported export credits. In particular, it will assist 
the Commission in adopting a Community position within the OECD on 
individual credits which are subject to a consultation procedure 
wi thin the OECD. 
To ensure that its proposals to that committee, and where 
appropriate to the Council, are as sound as possible, the Commission 
will sometimes need to seek opinions from outside advisers. For this 
purpose, there is a budget for studies and consultations. 
4.2 Duration 
There is no time limit for this operation. 
4.3 Target population 
The Decision is addressed to the Member States. 
5. Classification of expenditure or revenue 
5.1 Compulsory/Non-compulsory 
Non-compulsory 
5.2 D i f ferent i ated/Non-d i fferentIated 
Non-differentiated. 
5.3 Type of revenue involved 
No revenue is envisaged. 
6. Type of expenditure 
Implementing the Decision wiI I require: 
the organization of meetings in Brussels of the committee of Member 
States' experts, 
consultation of experts to enable the Commission to make well-
founded proposals. 
7. Financial impact on appropriations for operations (part B of the budget) 
None. 
8. What anti-fraud measures are planned in the proposal for the operation? 
None. 
SECTION 2: ADMINISTRATIVE EXPENDITURE (part A of the budget) 
1. Will the proposed operation involve an increase in the number of 
Commission staff? If so, how many? 
No. 
2. indicate the amount of staff and administrative expenditure involved in 
the proposed operation. Explain the method of calculation. 
The following table gives a forecast of annual expenditure, assuming 
12 meet ings a year. 
Methods of calculation for 1992 to 1997 (assuming the Directive is 
adopted by the Council this year or early 1993): 
1992: no expenditure 
A<L 
1993 to 1997: Estimated annual expenditure: 
1. Experts' expenses for committee meetings In Brussels (the Committee) 
2 experts x 12 Member States x 12 one-day meetings 
- 24 Committee members x ECU 600 - 14 400 x 12 meetings 
- ECU 172 800 
A-2510 (group 3) +/- ECU 173 000 
2. Consultancy expense? 
A-250 ECU 5 000 
Annual total 1993-97: 
A-2510 ECU 173 000 
A-250 ECU 5 000 
ECU 178 000 
Timetable for planned administrative expenditure (in constant ECU) 
Heading 1992 1993 1994 1995 1996 1997 Total 
A-2510(group 3) - 173 000 173 000 173 000 173 000 173 000 865 000 
A-250 - 5 000 5 000 5 000 5 000 5 000 25 000 
Total 890 000 
SECTION 3: ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 
1. Objectives 
The Decision is aimed at enabling the Community to take a position within 
the OECD on individual credits under an International agreement. 
2. Grounds for the operation 
The Decision is a direct consequence of the Treaty. 

ISSN 0254-1475 
COM(92) 502 final 
DOCUMENTS 
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Catalogue number : CB-CO-92-523-EN-C 
ISBN 92-77-50025-5 
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