COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 24.07.1996 
COM(96) 384 final 
ANNUAL REPORT FROM THE COMMISSION 
TQ THE COUNCIL AND THE EUROPEAN PARLIAMENT 
on the borrowing and lending activities of the Community in 1995 
and 
REPORT FROM THE COMMISSION 
TO THE COUNCIL ANP THE EUROPEAN PARLIAMENT 
on the rate of utilization of the New Community Instrument (NCI) 
(half-year from 1 July 1995 to 31 December 1995) 

CONTENTS 
INTRODUCTION 
A. THE COMMISSIONS ANNUAL REPORT TO THE COUNCIL AND TO THE 
EUROPEAN PARLIAMENT ON THE BORROWING AND LENDING 
ACTIVITIES OF THE COMMUNITY IN 1995 
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 1995 to 
31 December 1995) 
1. Overall situation at 31 December 1995 
2. Breakdown of loans by country and sector 
Statistical annex 
REPORT ON THE BORROWING AND LENDING ACTIVITIES 
OF THE COMMUNITY 
INTRODUCTION 
A. Annual report 
This annual report is drawn up in accordance with the Council Decisions establishing 
the New Community Instrument (NCI)1 and lending instruments for Euratom research 
and finance.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 present annual report covers 
1995; it is the sixteenth report published by the Commission and is intended to comply 
with the obligation imposed on it by the Council and Parliament to provide the fullest 
information possible on all these activities. 
The European Union's financial activities in 1995 were mainly devoted to completing 
the implementation of the innovative instruments decided at preceding European 
Summits and to developing the more conventional instruments, despite the sluggish 
pace of activity on the international financial markets. As a result, EIB lending has 
increased substantially, in particular as part of the European growth initiative aimed at 
accelerating the financing of the trans-European networks. As for the outside world, 
the European Union's activities were extended when the EIB implemented the new 
Council Decisions concerning Albania, Turkey and the peace process in Graza and the 
West Bank. In addition, in the context of the process of democratic normalization in 
the world, the Union, by means of EIB loans, was present for the first time in Haiti 
and in South Africa. 
The utilization of these instruments has had an effect on the activity of the facilities 
established in 1994, in particular the European Investment Fund (EIF) and the budget 
Guarantee Fund for external actions. In view of the expansion of these activities, the 
Council began to consider4 the nature of the risks incurred (commercial or political) 
and the best way of apportioning them. This is why the November 1995 
Article 6 of Decision 78/870/EEC (OJ No L 298 of 25 October 1978); 
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); 
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 4 of Decision 77/270/Euratom (OJ No L 88 of 6 April 1977). 
Doc. PE/67134 of 5 March 1981 (OJ No C 287 of 9 November 1981). 
Statement annexed to Council Decision 93/696/EC; OJ No L 321 of 23 December 1993. 
Council asked the Commission, together with the EIB, to submit a report on the 
possibility of part of the risk being shared between the Bank and the Community 
budget. 
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 present Parliament and the Council with a 
six-monthly report 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 1995. 
A. THE COMMISSIONS ANNUAL REPORT 
TO THE COUNCIL AND TO THE EUROPEAN PARLIAMENT ON THE 
BORROWING AND LENDING ACTIVITIES OF THE COMMUNITY IN 1995 
1. COMMUNITY BORROWING 
1.1 In order to attain the objectives of the Treaty covering the territory of the 
Community, the Commission has been empowered to borrow funds on the capital 
market. These borrowings are intended for financing 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. 
Within and outside the Union, the European Investment Bank (EEB) has been 
closely involved in the financing of common policies and priorities, to the point where 
its borrowings account for most issues (see Table 1). Also, the enlargement of the 
Community to fifteen at the beginning of 1995 required technical adjustments to the 
Statute and an increase in the Bank's capital, which consolidate its position as the 
Union's principal financial instrument. 
1.2 The volume of borrowing in the market by these Community institutions in 1995 
totalled ECU 13.2 billion, a fall of 13.2% over the previous year (Table 1). The 
decline is slightly smaller for funds borrowed by the EIB (down 12.7%). As regards 
issues made by the Commission (allocated borrowings), the fall is in keeping with the 
guidelines laid down by the Council for disengaging the Commission from certain 
activities - mainly the activities of the ECSC and implicitly those of the NCI and 
Euratom - in favour of the EIB. 
The fall in EIB borrowings is not attributable to the pace of activity, as will be seen 
below, but above all to the market situation and in particular the reduction of inflation 
and the fall in interest rates. Lower interest rates have encouraged the Bank's clients 
to repay certain loans in advance to a larger extent than the institution itself has done 
in relation to its own borrowings. The result was an increase in liquidity and hence 
less need to borrow in order to finance the demand for loans, which is still increasing. 
This situation was less marked in the OECD countries, where inflation did not slow 
down so sharply, which is why the slowdown in borrowing issues for the area as a 
whole was more moderate (down 8.3%). Overall, however, the European 
Institutions' share of borrowing in the OECD area declined slightly, falling from 4.9% 
in 1994 to 4.7% in 1995. Taking account of redemptions and cancellations, the 
amount of borrowing outstanding at 31 December 1995 was ECU 102.9 billion, 
compared with ECU 100.2 billion in 1994 (see Table 2 in Annex). 
In 1995, the uncertainties which appeared on the foreign exchange markets between 
the currencies traditionally used for transactions (dollar, yen, ecu) weakened the 
demand for borrowings in those currencies. Conversely, the proportion of 
borrowings denominated in stable Community currencies, particularly the Grerman 
mark and the Italian lira, increased; demand for the lira was supported by the large 
volume of lending by the EIB in Italy and the fact that it is considered to be 
undervalued. 
Table 1 
Issues on the International market (ECU billion) 
1988 1990 1991 1992 1993 1994 1995 
1. Community 
ofwhloh: 
1.1 ECSC 
1.2 EC (a) 
1.3 Euratom 
1.4 EIB 9,6 
Cv9 
0,9 
0,1 
7,7 10,5 
0,9 
0,5 
9,0 125 
1,1 
0,4 
110 109 
1,4 
1,7 
1517 15,7 
1,5 
1,2 
130 20,1 
0,9 
5,0 
14,2 15£ 
08 
0,3 
0,1 
142 132 
0,4 
OA 
124 
2. OECD countries (b) 151,2 193,1 141,5 2003 2127 337,0 309,7 2818 
3. Community share 6,3 5,4 a8 $1 7,4 6,0 49 4,7 
(1as%of2) 
4. International issues by selected ourrendes 
4.1 US «(b) 
4.2 YEN(b) 
4.3 ECU 
4.4 US*as%of2 
4.5 Yen as % of 2 
4.6 ECU as % of 2 630 
134 
9,5 
41,7 
89 
6,3 106,6 
142 
114 
56£ 
7,4 
5,9 55,0 
17,9 
14,1 
38,9 
127 
10,0 65,9 
29,1 
26,0 
31,6 
HO 
125 79,5 
26,0 
17,1 
37,4 
122 
80 12B,1 
37,9 
6,1 
37,4 
11.2 
13 125,5 
56,5 
6,4 
406 
183 
21 110,4 
49,3 
5,4 
389 
17,4 
1,9 
(a) NCI -«balance of payments. 
(b) Calculations based on fie yearly average exchange rate of tie ecu. 
Source: EC and OECD. 
The bulk of Community borrowing in 1995 was contracted at fixed rates; however, 
the persistent downward trend of interest rates gave a strong stimulus to variable-rate 
issues. For the EIB, the proportion of such issues reached 40% of the total. 
2, LENDING WITHIN THE COMMUNITY 
2.1 Economic activity in the Community on average increased steadily (2.7%) in 1995, 
although it tended to weaken in the second half-year. The recovery was mainly led by 
the strong export performance of the European economies and by the acceleration of 
investment. Real investment in the Community, as measured by gross fixed capital 
formation (GFCF), rose by 4.5%. 
In spite of the economic recovery, the declining profile of activity during the year did 
not permit the hoped-for reduction in unemployment, in accordance with the wishes 
expressed by the European Council meeting in Corfu and Essen. In these 
circumstances, the need to pursue the proposed structural reforms and to implement 
the strategy set out in the Commission's White Paper on growth, competitiveness and 
employment seems increasingly urgent. 
2.2 In this context, EIB support for the Community's internal objectives was stepped 
up. In 1995 loans signed for projects in the Community totalled ECU 18.6 billion, 
compared with ECU 17.7 billion in 1994, an increase of 5.2%. Projects were financed 
in all the fifteen Member States, helping to create an investment volume estimated at 
ECU 53 billion, or some 4% of the GFCF achieved in the Union. A significant 
volume of lending took place in Austria, Sweden and Finland in the first year of their 
accession. The most appreciable increase in loans was seen in Germany, Ireland, 
Portugal, Italy and Luxembourg (Table 2). 
In 1994, the ED3 adapted its loan conditions to the specific requirements of 
establishing coherent and efficient networks, essential for intra-Community trade. 
The Bank thus became directly involved in financing the trans-European networks 
and more especially in the priority projects identified by the Essen European Council. 
Under this heading, it approved loan commitments of ECU 7.6 billion at the end of 
1995. 
The financing of investment contributing to regional development and to the 
strengthening of economic and social cohesion in 1995 remained the Bank's most 
important sector of activity, representing over two-thirds of lending. These loans 
were concentrated in the areas qualifying for support under the Structural Funds, 
especially in the "cohesion" countries and in Germany's eastern regions. Since the 
reform of the Funds in 1989, loans have totalled ECU 71 billion, helping to finance 
investment estimated at ECU 212 billion (see Table 5 in Annex). 
Last year financing for infrastructure in the communications sector increased 
appreciably, totalling ECU 6.6 billion compared with ECU 5.7 billion in 1994. 
Financing for the transport sector totalled ECU 5.5 billion, most of which was 
directed toward road and railway infrastructure (ECU 4.7 billion). Major works were 
also carried out on airport (Bordeaux, Dublin, Frankfurt) and port infrastructure 
schemes. However, lending for telecommunications fell, after having risen sharply for 
several years. 
Tafate2 
Sfrudu»cfBBIet»*ng(kancor»Y^ 
1987 1993 1994 1995 
ECUrrillion % ECUrrillion ECUrrillion % ECUrrillion % 
Belçjun 
Denmark 
Germany 
Ghaace 
Spain 
Franco 
Mand 
Italy 
Luxembourg 
n rti ii 11 fn 
NBuKnanos 
Ftrlugal 
unttaaningnom 
Au&ia 
Finland 
Smckn 
Other (ArictelQ 37,1 
3133 
27$5 
1643 
7374 
1.0035 
1736 
31122 
1,6 
130 
1.1337 
1037 Q5 
42 
37 
22 
35 
135 
24 
41,8 
Q0 
Q2 
52 
152 
tf 371,6 
875,5 
20936 
511,1 
4006,1 
2206,5 
3332 
3362Û 
3737 
1.4838 
1.929,1 
1110 ^^ 
49 
113 
23 
22,6 
124 
22 
190 
00 
21 
94 
1Q9 
Q6 6153 
8437 
24073 
5347 
3011,5 
2477,4 
291,1 
3099,5 
31 
3935 
1.109,7 
2454,7 
835 
632 
133 
2603 35 
43 
136 
30 
17,0 
140 
1,6 
17,5 
Q0 
23 
33 
139 
Q5 
03 
Q1 
1,5 6630 
8230 
27150 
5230 
28130 
22070 
327,0 
34330 
79 
3130 
12320 
2244,0 
242 
179 
273 
5190 36 
44 
146 
28 
131 
113 
13 
135 
04 
1,7 
36 
121 
13 
1,0 
1,5 
23 
Community total 7.4503 1030 17.7242 1QQ0| 17.6813 1030 136040 1030 
2.3. The Bank, which is careful to ensure that all the projects it finances comply with 
Community standards concerning the environment and the environmental impact, 
went a step further in 1995 by granting loans worth ECU 6 billion for this objective, 
i.e. over one-third of all funding. This increase is due to the application of national 
and Community standards, and to the development of specific programmes 
concerning air and water quality, the discharge of effluent into the atmosphere, and 
the better management of domestic or industrial waste. 
1995 was also marked by a pick-up in individual loans for industrial projects and in 
global loans for SMEs. Since July 1995 the eligibility criteria for loans have been 
extended to new types of investment in the services and distribution sector, and to the 
advance financing of research and development. Overall, lending in this area totalled 
ECU 3.5 billion, double what was signed in 1994, a year when activity was 
particularly low. This increase partly reflects the popularity of the interest subsidy 
facility, which was offered to employment-creating SMEs by the Copenhagen 
Summit. The facility had been intended to run until 31 July 1995, but was extended 
until December to enable the new Member States to take advantage of the 
arrangements. At the end of 1995, the amount of ECU 1 billion was totally 
committed; some 4 400 European firms benefited, enabling some 45 000 jobs to be 
created. 
Looking ahead to the expiry of the ECSC Treaty in 2002, the Commission in its 
Decision of 28 June 1994 redefined the conditions of ECSC borrowing and lending 
policy. On this basis, loans signed in the Community totalled ECU 360.4 million in 
1995, a decrease of 46.5% on 1994 (see Table 3). 
This decrease was caused by both the unpropitious economic conditions in the ECSC 
areas and the policy of the progressive disengagement of the ECSC instrument in 
accordance with the guidelines laid down. 
Table 3 
ECSC loans in 1995 I (ECU "000) 
Italy 
France 
Greece 
Portugal 
Netherlands 
Germany 
United Kingdom 
Spain 
Belgium 
Luxembourg 
Ireland 
Denmark 
Total Article 54 
28.627,1 
39.809,5 
17.781,4 
86.218,0 Article 56 
60.565,3 
12.523,7 
10.178,0 
56.990,0 
98.512,6 
4.744,6 
7.257,5 
9.380,3 
260.152,0 Housing 
2.382,5 
7.956,6 
1.766,9 
438,7 
1.495,1 
47,5 
14.087,3 Total 
89.192,4 
14.906,2 
10.178,0 
104.756,1 
100.279,5 
22.964,7 
8.752,6 
9.380,3 
47,5 
360.457,3 
2.4 As regards NCI activities, it should be noted that no new lending operations have 
been undertaken since 1991 (Table 4). 
2.5 The facility providing medium-term financial assistance for Member States' 
balances of payments was activated in recent years in favour of Greece and Italy. 
Italy obtained a loan of ECU 8 billion to be disbursed in four tranches (Council 
Decision 93/67/EEC of 18 January 1993). The Council Decision provided that the 
third and fourth tranches could be paid not earlier than 1 February 1994 and 
1 February 1995. The Italian Government did not request these two tranches, the 
provision of which no longer seems necessary. 
In these circumstances and taking into account the commitments already entered into 
in favour of Greece, the total amount of loans outstanding under this facility remained 
at ECU 5 billion at 31 December 1995, the authorized ceiling being ECU 14 billion to 
be financed where necessary through the capital market. 
Table 4 
NCJ loans at 31 December 1995 1 
Financial agreements 
Global loans 0 
Productive sector (*) 
Infrastructure 
Biergy 
Total contracts signed, net (**) 
BB loans (own resources) 
Authorized ceilings 
Balance Nai 
5,4 
53a5 
446,7 
990,5 
1.CCQO 
9,5 Reconstr 
ITALY 
598,7 
598,7 
351,6 
1.000,0 
49,7 Reconstr. 
GRŒCE 
ao,o 
acto 
ao,o 
0 (ECU million) 
Nail 
4033 
10,6 
279A 
3003 
997,5 
1.000,0 
25 Nam 
2138,0 
465,3 
258,3 
2861,6 
3.000,0 
133,4 NOIV 
6683 
6683 
750,0 
81,2 TOTAL 
3227,4 
15,9 
1.961,9 
1.0053 
6197,2 
351,6 
6830,0 
267,5 
0 Industry and agicUture 
D Contracts sigied less cancellations 
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 east European countries, 
Community support has been provided within the G-24 framework. 
In 1995 disbursements made for this purpose and corresponding to loans previously 
approved amounted to ECU 285 million. They break down into ECU 100 million for 
the Mediterranean countries (Algeria); ECU 80 million for the CEEC (Lithuania: 
ECU 25m, Romania: ECU 55m); and ECU 105 million for the CIS (Moldavia: ECU 
20m, Ukraine: ECU 85m). In addition to this, new loans of 
a maximum of ECU 255m were approved in 1995 (Belarus: ECU 55m; Ukraine: 
ECU 200m), and ECU 30m of this sum was actually disbursed in 1995 to Belarus. 
3.2 Under 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 
10 
(CIS), the actual payments made in 1995, corresponding to loans signed earlier, 
amounted to ECU 95.0 million (Azerbaijan: ECU 36.2m; Uzbekistan: ECU 58.7m). 
Since no new operation was decided in 1995, the total amount of credits granted 
under the facility remained at the same level as in 1994, i.e. ECU 1 133 million. 
Table 5 
Financing outside the Community in 1995 I (ECU million) 
ACP-OCT 
Mediterranean basin 
CEEC 
as 
Latin America, Asia 
Total Financial 
support for 
countries (1) 
100,0 
80,0 
230,0 (3) 
410,0 B E 1 
EC and EDF 
budgetary 
resources (2) 
225,0 
23,0 
248,0 Own 
resources 
250,0 
1.015,0 
1.005,0 
288,0 
2.558,0 Total 
475,0 
1.138,0 
1.085,0 
230,0 
288,0 
3.216,0 
(1) Disbursements. 
(2) Signed and managed by the EIB outofthe budgetary resources ofthe ECorlhe European 
Development Fund (EDF) 
(3) Balance-of-payments loans and commercial credits. 
3.3 EIB financing outside the Community is also made available as part of the 
Community's cooperation policy with third countries. Such financing rose sharply in 
1995, up 24.9% on the previous year, and totalling ECU 2 806 million; 
ECU 2 558 million was financing from the Bank's own resources, and 
ECU 248 million came from operations using risk capital drawn from Community or 
Member States* budgetary funds (Table 5). 
The substantial increase in these loans is due both to the stepping-up of activities 
outside the Union and their extension to new geographical areas. The stepping-up of 
lending activities was very marked in the Mediterranean and in Latin America and 
Asia (ALA), while it stabilized in central Europe and in the African, Caribbean and 
Pacific countries. Loans were also granted for the first time to South Africa, Haiti 
and Palestine. 
In the African, Caribbean and Pacific (ACP) countries and the Overseas 
Countries and Territories (OCT), the EEB provided assistance amounting to 
ECU 430 million (against ECU 462 million in 1993), of which ECU 225m was in the 
form of risk capital from the resources ofthe European Development Fund (EDF). 
11 
In sectoral terms, two-thirds of financing (ECU 291m) went to basic infrastructure 
(roads, public works, ports and airports). Energy production and transportation and 
the exploitation of hydrocarbons received finance totalling ECU 108 million. Works 
to supply drinking water and sewerage works received ECU 105m, while lending for 
communications infrastructure totalled ECU 78 million. 
In Africa, the first global loans, based on a separate protocol, and totalling 
ECU 45 million, were made in the Republic of South Africa. 
Lending in the countries on the Mediterranean seaboard totalled 
ECU 1 038 million in 1995, of which ECU 23 million were drawn from own 
resources. Over two-thirds of the loans (ECU 718 million) are financed under 
non-protocol horizontal financial cooperation for regional cooperation and 
environmental protection projects; loans under the current bilateral protocols totalled 
ECU 320m. Operations encompassed eleven countries and centred on improving 
transport infrastructure, water resource management, sewerage and irrigation, and the 
generation and transportation of energy. A line of ECU 125m in global loans was 
also used for small investments carried out by local authorities and private sector 
firms. 
Under the European Union's initiative to support the Middle East peace process, the 
EIB in October 1995 signed the "framework support agreement" between the Bank 
and the Palestinian Authority. Global loans totalling ECU 26 million (of which 
ECU 6 million came from risk capital) were signed at the end of 1995 for the 
financing of new investment in industry, the agri-foodstuffs sector, tourism and 
services in Gaza and on the West Bank. Support for the peace process should be seen 
in a wider regional context characterized in 1995 by loans in Jordan, for the 
reconstruction of the Lebanon and for investment involving Israeli and Egyptian 
operators. 
Lending of ECU 15 million to Malta and ECU 10 million to Cyprus is intended to 
enable compliance with the Community Directives on the discharge of waste water 
and the extension of urban sewerage installations. 
In the central and east European countries (CEEC), lending amounted to 
ECU 1 005 million in 1995 (ECU 957 million in 1994). Ten countries received loans, 
including Albania for the first time. Most of these loans (97%) were 
provided under the Decision of the Board of Governors of May 1994 for a 
programme of ECU 3 billion with a Community budget guarantee. In addition, 
ECU 32 million were advanced to Slovenia under the protocol which entered into 
force in 1993. 
Several of these loans contributed to projects which are the direct adjuncts to 
trans-European networks. The productive sector also received global loans totalling 
ECU 315m in six countries. 
Lastly, eight countries in Latin America and Asia, signatories to cooperation 
agreements with the European Union, received loans totalling ECU 288 million. 
These operations were mounted under the authorization given by the Board of 
12 
Governors in February 1993 to finance capital investment of mutual interest to the 
country concerned and the Union or involving European partners, up to a ceiling 
amount of ECU 750 million over a period of three years. By end-1995 financing 
under this heading had amounted to ECU 607 million. 
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. 
No new loan has been concluded since the ECU 42m loan, signed in 1994 and 
disbursed in 1995, to finance investment in a steel plant in Poland. 
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 global ceiling fixed by the Council, an amount of some 
ECU 1.1 billion could be granted under this facility. 
In 1995 the appraisal of projects was actively continued, but because of their 
technical, as well as political, complexity, no financing project has reached the final 
decision-making stage. 
3.6 The Community and the EIB are both shareholders and close partners ofthe EBRD: 
they each hold 3% ofthe 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 1995, the Board approved 134 new 
projects in the CEEC and the former Soviet Union (against 106 in 1994). Signed 
commitments amounted to ECU 2 billion (against ECU 1878m in 1994). In view of 
the increase in demand, equity holdings as a proportion of the Bank's entire activities 
rose from 21% to 24% during 1995, i.e. ECU 695m. 
4. THE EUROPEAN INVESTMENT FUND 
The European Investment Fund (ELF), which has been operational since June 1994, 
expanded its activity of providing guarantees for the financing of projects forming part 
of trans-European networks (TEN) and those undertaken by small and medium-sized 
enterprises. The Fund now has 78 shareholders, consisting of 76 banks and financial 
institutions from the member countries of the Union together with the European 
Commission and the EIB. At the end of 1995 the subscribed capital stood at 
ECU 1 784 million, i.e. 89.2% ofthe authorized capital of ECU 2 billion. 
Since it was set up 28 operations, corresponding to a volume of ECU 1441m, have 
been approved; operations signed total ECU 631.8m. TEN projects accounted for 
91% ofthe total, with the remainder being granted for SME projects. 
13 
The TEN projects signed in 1995 related to the transport, telecommunications and 
energy sectors. In December 1995 the Commission and the Fund signed an 
agreement on a pilot project entitled "Growth and Environment", under which a 
partial EEF guarantee will be provided for SME projects which have positive spin-offs 
for the environment. In this connection, the Fund has examined and offered guarantee 
contracts to a number of shareholder banks. 
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 
via the EBB as borrowings are repaid; (iii) in the context ofthe "SME 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 11.5 million in 1995 against 
ECU 114.3min 1993 and ECU 51.1m in 1994. 
The Copenhagen European Council of June 1993 increased by ECU 3 billion the 
temporary facility agreed in Edinburgh for major infrastructure projects. Of that 
amount, ECU 1 billion are directed towards 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 3 000 
peradditional job created (equivalent on average to a 2% interest rebate). Following 
the adoption ofthe 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 was closed on 
15 December 1995, the entire budget of ECU 1 billion having been allocated. The 
budgetary payments for this facility amounted to ECU 65.5m in 1994 and to 
ECU 2.8m in 1995, which demonstrates the speed with which loan applications were 
made, and consequently the interest aroused by this facility. 
Interest subsidies are also provided in connection with EIB loans outside the 
Community (see Table 8 in Annex). 
14 
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. 
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 Mediterranean, Central and east 
European (CEEC) countries, the countries in Latin America and Asia with which the 
European Union has concluded cooperation agreements and South Africa. 
Details of the Community budget guarantees provided in this connection are as 
follows: 
(i) EBB loans to Mediterranean countries: these loans are covered by a global 
Community guarantee for 75% ofthe amount of loans signed. 
At the end of 1995 outstanding loans totalled ECU 2 167 million, of which 
ECU 385 million were accounted for by loans in Spain, Greece and Portugal 
(pre-accession) and ECU 1 782 million 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 1995, the ED3 opened ECU 1 647 million in 
credit to these countries out of a total allocation of ECU 1.7 billion under the 
budget heading CEEC I. The total amount outstanding for loans at the end of 
1995 totalled ECU 837 million. 
At the end of 1993 the Community renewed its guarantee to cover EIB lending 
to the CEEC, including the Baltic States and Albania, up to a ceiling of 
ECU 3 000 million over the following three years (CEEC II). At 
31 December 1995 the EIB opened credit worth ECU 1 894 million from this 
allocation. At the same date the amount ofthe guarantee outstanding was only 
ECU 96m. 
(iii) EIB loans to other third countries: loans granted to Latin American and 
Asian countries with which the Community has concluded cooperation 
agreements are fully covered by the Community guarantee. This programme 
was decided in February 1993 and relates to a global amount of 
ECU 750 million over a period of three years, with a ceiling of ECU 250m a 
year. In 1995 loans signed stood at ECU 607m, while the guarantee 
outstanding at the end ofthe year amounted to ECU 149 million. 
15 
(iv) EEB loans to South Africa: in June 1995 the Community provided its 
guarantee for loans made by the EIB in South Africa over the following two 
years up to a maximum amount of ECU 300 million. These loans are fully 
guaranteed by the Community budget. At 31 December 1995 the EIB opened 
credit worth ECU 45 million but nothing has been disbursed. 
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 credit was repaid in full at the 
end of 1995. 
5.2.2 Outstanding guarantees at 31 December 1995 
At the end of 1995 the outstanding guarantees provided by the Community budget, 
the details of which are given in Table 6, exceeded ECU 13 billion, more than 44% 
of which were for countries outside the Community. Compared with 1994, total 
outstanding guarantees have decreased by ECU 655 million. However, the 
proportion of commitments in relation to non-Community countries has increased 
steadily from 37.5% in 1992 to 44% at present. 
The annual risk covered by the general budget, which concerns the repayment of the 
debt (principal and interest), stood at ECU 2 855 million in 1995, of which 
ECU 1 682 million related to third countries. 
At 31 December 1995 the Community's claims not as yet honoured by defaulting 
debtors stood at ECU 296.52 million, of which ECU 68.2 million are owed by some 
republics ofthe former Yugoslavia and ECU 228.3 million by the independent states 
ofthe former USSR, Tajikistan, Armenia, Georgia and Turkmenistan. 
All the provisional drawings on the Commission's cash resources in respect of the 
guarantee have been regularized by the budget up to 1993 and by the budget 
Guarantee Fund since its establishment by Council Regulation (EC, Euratom) 
No 2728/94 of 31 October 1994. 
16 
Table 6 
Capital outstanding on guaranteed operations (at 31 Dec 1995) (1) 
(ECU million) 
Operation 
Amount 
ceiling Amount 
outstanding at 
31 Dec 1994 Amount 
outstanding at 
31 Dec 1995 
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. EJB Mediterranean (E,GR,P) 26.330 
14.000 
4.000 
6.830 
1.500 7.844 
5.022 
1.000 
4.022 
2.822 
779 
1.570 
473 7.263 
5.045 
1.000 
4.045 
2.218 
720 
1.113 
385 
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. CIS 
10. Moldavia 
11. Ukraine 
12. Belarus 
B. Other 
13. SB Mediterranean 
14. EIB CEEC I and II 
15. EIB Latina America, Asia 
16. South Africa 
17. CIS guarantee 17.782 
5.170 
1.050 
250 
255 
400 
580 
600 
160 
220 
1.250 
45 
285 
75 
12.612 
6.362 
4.700 
750 
300 
500 5.926 
3.485 
790 
250 
125 
360 
455 
400 
160 
110 
810 
25 
2.441 
1.688 
574 
46 
133 5.851 
2.987 
440 
250 
125 
360 
510 
500 
160 
135 
347 
45 
85 
30 
2.864 
1.782 
933 
149 
TOTAL 44.112 13.770 13.114 
(1) Exchange rate as at31/12/95. 
(2) Extension of Euratom loans to certain third countries (Council Decision of 21/03/94). 
17 
STATISTICAL ANNEX 
18 
Table 1 
Trend of borrowing and lending in the Cornrnunity (ECU million) 
(BCU rate at year-end) 
1985 1986 1987 1938 1989 1990 1991 1932 1993 1994 1995 
I. Borrowing 
ECSC 
Balance of payments (1) 
Euratom 
Nd 
Total Commission 1.265 1.517 1.487 880 
862 880 
344 488 853 93 
860 541 611 945 
2469 a408 3.811 1.918 913 1.086 
360 1.446 1.474 
1.695 1209 
522 76 49 -
1.435 1.512 3190 2683 906 
4.969 
5.877 644 
245 
49 
70 
1.008 386 
410 
66 
862 
BB(2) 5.699 6.786 5.593 7.663 9.034 10.996 13.672 12974 14224 14.148 12395 
Total EC ai68 10.194 9.404 9.584 10.469 12508 16.862 15.657 20.101 15.156 13257 
II. Lending 
ECSC 
Balance of payments (1) 
Euratom 
NCI 
Total Cornrrisdon 1.010 1.069 
862 
211 443 
884 393 
2105 2767 969 
860 
314 
425 
2568 908 
357 
1355 700 
78 
778 993 1.382 1.486 918 
360 1.695 1209 4.969 
24 39 9 30 
1.367 3.116 2454 5.917 674 
245 
49 
968 403 
410 
813 
BB(3) 5.641 a678 6.967 8.844 11.507 12605 14.438 16.066 17.724 17.682 18.604 
Total BC 7.746 9.445 9.535 10.109 12285 13972 17.554 18520 23.641 18.650 19.417 
Note: The differences between total borrowing and lending by the Commission are due to borrowing operations undertaken 
for refinancing purposes and to changes in fe balance of loans not assigned by the end ofthe year. 
The differences between borrowing and lending by the EIB are due to the fact that EIB lending operations are f nanced both 
from borrowings and from the Bank's own resources. 
(1) Mechanism for providing financial support for Member States and assistance for non-member coutries. 
(2) Total resources raised. 
(3) Loans signed out of own resources, no accourt being taken ofthe guarantees provided by the EIB to promoters (none 
in 1995) or of operations financed out of NCI resouces. 
19 
Table 2 
Community borrowings outstanding (at year-end) (1) (2) (ECU million) 
ECSC EIB Euratom NCI Sub-total Balance-of-pa 
borrowings Total 
borrowing 
1982 
1963 
1984 
1985 
1986 
1987 
1988 
1989 (3) 
1990 
1991 
1992 
1993 
1994 
1995 ai78 
a539 
7.119 
7.034 
a761 
6689 
6825 
a738 
a673 
7.139 
7.327 
7.331 
a548 
&966 16570 
20.749 
25.007 
2a736 
30271 
31557 
36.928 
42330 
4a459 
5a893 
67.784 
78.661 
8a673 
87.079 1.272 
1.680 
1.892 
2013 
2168 
2500 
2164 
1.945 
1.687 
1.563 
1.338 
1.018 
779 
720 1.747 
a269 
4432 
4960 
5.202 
5229 
5514 
5.122 
4542 
a817 
a326 
2202 
1.570 
1.113 25.767 
32237 
38.450 
4Û743 
44.402 
46.375 
51.431 
55.135 
61.361 
71.412 
79.775 
89212 
92570 
94878 591 
4.610 
4932 
3236 
1.890 
2997 
2459 
2075 
(4)2045 
3516 
4.026 
5204 
7.697 
a032 2a358 
3&847 
4a382 
4a979 
46292 
49.372 
5a890 
58210 
6a405 
74.928 
aaaoi 
94.416 
10Q267 
102910 
(1) The conversion rates used were those obtained on 31 December of each year. As the majority of borrowings 
are denominated in national currencies,*-» difference betweentwo year-ends relects,onihe one hand,changes 
in the valuation of te e*sfing stock and, on tie other, tie net volume of borrowings during tie year. 
(2) Original amount of borrowings, plus or minus repayments of tie principal, cancellations, annulments and 
e>change-rate adjustments. 
(3) As from 1989including shortterm (newEIB approach). 
(4) As from 1990also includes balance-of-payments and Inarcial assistance for non-member countries. 
20 
Table 3 
Community borrowings in 1995, by currency J (ECU mill 
ECU 
BFR 
DKR 
DM 
ESC 
FF 
DRA 
HFL 
IRL 
LFR 
LIT 
OSC 
PTA 
SFM 
SVK 
UKL 
Sub-total 
SFR 
USD 
YEN 
CAD 
Sub-total 
TOTAL Balance-of- Total 
EIB Euratom ECSC NCI Payments(l) Borrowing 
400 410 810 
7 - - 7 
2397 - 182 - 2579 
1.004 - 10 - 1.014 
342 14 356 
149 149 
145 145 
135 135 
193 9 202 
a343 - 46 - a389 
1.574 - 20 - 1.594 
18 18 
77 77 
996 - 98 - 1.094 
1Q773 - 386 410 11.569 
323 - - 66 - 389 
528 528 
771 771 
1.622 - - 66 - 1.688 
12395 - 386 66 410 ia257 1995 
% 
ai 
0,1 
19,5 
7,6 
2,7 
1,1 
1,1 
1,0 
1,5 
25,6 
120 
0,1 
0,6 
a3 
87,3 
29 
4,0 
5,8 
127 
100,0 ion) 
1994 
% 
4,1 
5,5 
0,3 
14,1 
a9 
7,7 
Q2 
4,4 
1,2 
1,3 
17,0 
0,4 
6,5 
12,3 
7a8 
5,6 
11,1 
4,4 
21,2 
100,0 
(1) Balance of payments and fnancial assistance for non-member countries. 
21 
Table 4 
Lending intfn Cuimuityin 1994and 1995 by sector and instaurent 
(ECUrrillion) 
ECSC JBffi. Euratom Nd(D Total %of total 
1994 1995 1994 1995 1994 1995 1994 1995 1994 1995 1994 1995 
Producflve sector 
of wfttr allocators 
ftomglobal loans 
Infrastructure 
crfwttdrtalloGtions 
tomgjobal loans 
Bwgy 
of whldt allccalcns 
tomojobal loans 3337 3m 389*3 4617,1 
21Q0 2213 
3337 141 1.7936 29549 
96182 10031,5 
8075 12990 
33839 3083,1 
ea3 S98i 114 
114 39124 4933/U 228 27A\ 
20180 31^7 
99329 1QCB5,6 
897,5 12330 
33339 30831 
6213 933 11,7 17,5 
57.7 56£ 
52 73 
195 170 
Q4 Qd 
TOTAL 6734 3304| 1662V4 17.^1,7 114 173392 181421 100 100 
'D Rraiang gated (indvidjd leers axl alosalcreforfigobà loans) 
22 
Table S 
Financing in the Community by the EIB in 1994 and 1995, 
by economic objective 
1994 1995 
ECU million ECU million 
1. Regional development 
1.1 By country 
Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
United Kingdom 
Austria 
Finland 
Sweden 
1.2 By major sector 
Energy 
Transport 
Telecommunications 
Water, sewerage 
Other infrastructure 
Industry, agriculture 
Services 12.035,1 
178,6 
506,9 
1.801,6 
632,1 
2.659.2 
1.571,7 
237,7 
2.159,2 
17,7 
1.127.1 
1.143,3 100 
1.5 
4,2 
15,0 
5,3 
22,1 
13,1 
2,0 
17,9 
0,1 
9.4 
9,5 
2.104,4 
4.209,8 
1.925,2 
766,2 
404.0 
2.09Z9 
532,6 17,5 
35,0 
16,0 
6,4 
3,4 
17,4 
4.4 12.143,5 
249,0 
304,0 
1.786,3 
335,7 
2.697,0 
1.440,1 
165,5 
2.458,8 
79,3 
24,0 
1.252,8 
1.258,6 
63,8 
23,7 
4,7 
2.009,0 
4.385,0 
885,0 
1.229,0 
385,0 
2.534,0 
718,0 100 
2,1 
2,5 
14,7 
2,8 
22,2 
11,9 
1,4 
20,2 
0,7 
0,2 
10,3 
10,4 
0,5 
0,2 
0,0 
16,5 
36,1 
7,3 
10,1 
3,2 
20,9 
5,9 
2. Infrastructure of Community interest 
2.1 Transport 
2.2 Telecommunications 
2.3 Other 5.698,3 
3.543,2 
2.155,1 100 
62,2 
37,8 6.592,0 
5.494,0 
1.098,0 100 
83,3 
16,7 
3. Environmental protection and improvement 
3.1 Environment 
3.2 Town planning 4.866,0 
3.152,1 
1.713,9 100 
64,8 
35,2 6.044,0 
3.972.0 
2.072,0 100 
65,7 
34,3 
4. Energy 
4.1 Indigenous resources 
4.2 Import diversification 
4.3 Efficient use of energy 3.525,6 
850,8 
919,8 
1.755,0 100 
24,1 
26,1 
49,8 3.433,0 
1.037,0 
894,0 
1.502.0 100 
30,2 
26,0 
43,8 
5. Industrial competitiveness 
of which: small and medium-sized enterprises (1) 1.791,5 
1.693,4 Numuui 
6.776 3.450,0 
2.881,0 Numb» 
11.736 
(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. 
23 
Table6 
Geographical breakdown of lending (1) in the Community In 1994 and 1995 
1994 (ECU million) 
ECSC EIB Euratom NCI Balance of 
payments Amount % 
Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
United Kingdom 
Austria 
Finland 
Sweden 
Art 18 (2) 39,8 
82,1 
143,4 
0,0 
30,7 
14,5 
0,1 
29,3 
333,8 615,3 
849,7 
2407,9 
534,7 
aon,5 
2477,4 
291,1 
a099,5 
5,1 
399,5 
1.109,7 
2454,7 
89,5 
60,2 
15,3 
260,8 655,1 
931,8 
2551,3 
534,7 
a0422 
2491,9 
291,2 
312a8 
5,1 
399,5 
1.109,7 
2788,5 
89,5 
60,2 
15,3 
260,8 3,6 
5,1 
ia9 
29 
16,6 
ia6 
1.6 
17,0 
0,0 
22 
6,0 
15,2 
0,5 
0,3 
0,1 
1,4 
Total 673,7 17.681,9 ia355,6 100 
1995 
ECSC EIB Euratom NCI Balance of 
payments Amount % 
Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
United Kingdom 
Austria 
Finland 
Sweden 
Art 18 (2) a7 
104,8 
229 
14,9 
89,2 
9,4 
10,2 
100,3 666,0 
825,0 
2715,0 
525,0 
281*0 
2207,0 
327,0 
a435,0 
79,0 
319,0 
1.2320 
2244,0 
2420 
179 
273 
519 67a7 
825,0 
2819,8 
525,0 
2840,9 
2221,9 
327,0 
a524,2 
8a4 
319,0 
1.2422 
2344,3 
2420 
179,0 
273,0 
519,0 a6 
4,4 
14,9 
28 
15,0 
11,7 
1,7 
ia6 
0,5 
1,7 
6,6 
124 
1,3 
0,9 
1,4 
27 
Total 360,4 iaeo4,o ia964,4 100 
(1) Loans granted 
(2) Community projects Ihatcannotbe located ina particular Member State (e.g. telecommunication cables 
and satellites, North Sea Oil). 
24 
Table 7 
Interest subsidies paid out in the Community by the various 
Community mechanisms, 1977-1995 I (ECU million) 
Year 
1977 
1978 
1979 
1980 
1981 
1982 
1983 
1984 
1985 
1986 
1987 
1988 
1989 
1990 
1991 
1992 
1993 
1994 
1995 Non-discounted systems (1) 
ECSC Art54 ECSC Art.56 
(restruot) (oonvers.) 
1,3 27 
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 
26 425 
1.3 40,6 
1,0 48,6 
106,0 
114,3 
51,1 
11,5 Employmen Earthquake 
in Portugal reconstr. 
3,0 
14,4 
24,4 
28,4 
28,6 
4,0 28,6 
3,9 27,8 
28,6 
23,1 
20,1 
17,2 Discounted systems (2) 
EMS ERDF SME 
facility 
200,0 121 
197,0 
193,2 
209,8 
200,0 
65,5 
28 
(1) Interestsubsidies spread overtime and charged to the funds setaside forthis purpose in the 
annual budgets. 
(2) Interestsubsidies paid by the Commission after discounting to a presentvalue, and charged 
to the budgetas a single sum in tie initial year. 
25 
Table 8 
Programmas of financial assistance outside the Community in force or under negotiation at 31/12/1985 
(InMioKU) 
Agreement CuratJori Loans 
from 
BBown 
resources 
0) Operations from 
budgetary resources 
resK capital 
operations 
(2) Non-repayable 
aid 
(3) Macro-flnandal 
assistance (3) 
Granted Osbursed BCSC 
loans Total 
committed 
ACPStatas-OCT 
ACP 
OCT 
ACP 
OCT -Rrst financial Rotocd 
Fourth Lomé Convention 
Qxrcl Decision 
-Second Financial Rotocd 
Fourth Lomé Gbnvenfion 
Qjurici Decision 1996 
1996 
2000 
2000 1,200 
25 
35 825 
25 
1,000 
33 9.975 (4 
115 (4 
11,967 (4; 
100 (4 12,000 
165 
14.625 
165 
South Africa Cbuncl Decision 1997 300 300 
MedrterrxountrlesfS) 
Turkey 
Algeria 
Morocco 
Tunisia 
Egypt 
Jordan 
Lebanon 
Syria 
Israel 
Gaza and Ctsjordanla(6) 
Malta 
Cyprus 
"Nan-protocoT 
horizontal financial 
cooperation Kbt yet in force 
Fourth Financial Rotocd 
Fourth financial protocol 
Third financial protocol 
Fourth financial protocol 
Fourth financial Rctocd 
Counci Decision 
Fourth financial Rotocd 
Fourth Financial Rotocd 
Counci Decision 2000 
1996 
1996 
1998 
1998 
1996 750 
280 
220 
168 
310 
80 
45 
110 
115 
82 
250 
30 
50 
1,800 18 
25 
15 
16 
2 
2 
2 
2 
25 52 
193 
101 
242 
44 
22 
34 
41 
250 
13 
22 
205 (7j 600 500 
160 160 5,630 
950 
438 
284 
568 
126 
69 
146 
158 
242 
500 
45 
74 
2,030 
Czech FkpuoUc, 
Slovak RipuMc, 
Bulgaria. 
Baltic States, 
tingary, 
Fbmanta, 
Albania. 250 
255 
400 
220 
1,050 
580 
105 (9) 250 
125 
360 
135 
790 
510 
85 
Counci Decision 1996 3,000 8.030 
250 
255 
400 
220 
1,050 
580 
105 
3,000 
Slovenia financial protocol 1997 150 _20J81 170 
as 
Former USSR 
Moldova 
Ukraine 
Belarus 1,250 (10) 
45 
285 
55 1,133 
45 
85 
30 1,635 
1,250 
45 
285 
55 
Latin American and 
Asian countries Counci Decision 1996 750 750 
d) 
(2) 
(3) 
(4) 
(5) 
(6) 
(7) 
(8) 
(9) 
(10) Loans attracting interest subsides from the Hjropean Devebprrent F^ in the case of projected the ACP Sra^ 
general budget of the Bjropean Cbrrrrunibes in the case tf projector certain Medterraneanca 
interest subsidies are charged to non-repayable aid 
Granted and managed by the BB 
Granted and managed by the Corrrrfesion. 
hdudng amounts intended fa interest subsides on BB loans. 
The arrtxjrte avaiabë under tre previous financial pr^ 
(Lebanon, Syria) a residual amounts. 
Loans fromown resources wB be attributed to 'non-prctoccf cooperation. 
West Bank and Gaza strip; loans from own resources are covered by tre'NxvprcAxof hortecrtalfiraic^ 
hcludng some HU100 rrilon of interest subsides fa FJB bare in the err^ronrrental sector. 
Nan-repayable assistance (straight grant). 
Commercial credts. 
26 
B. THE COMMISSION'S REPORT TO THE COUNCIL 
AND TO THE EUROPEAN PARLIAMENT 
on the rate of utilization ofthe 
New Community Instrument (NCI) 
(half-year from 1 July 1995 to 31 December 1995) 
1. Overall situation at 31 December 1995 
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 ofthe tranches of NCI III and IV. 
The present report covers the period from 1 July 1995 to 31 December 1995. 
The different legal bases determine the method of assessing the amount of loans 
signed in relation to the maximum authorized borrowing: 
(i) for NCI III, 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 1995 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 31.12.1995 (ECU million) 
Ceiling Amounts used Balance 
NCI III 
NCI IV 3.000 
750 2.862 
669 138 n 
81 
H The special borrowing of ECU lOOmillion for European innovation 
projects has notyetbeen authorized by the Council. 
The borrowing operations carried out in the six months under review with a view to 
financing NCI activities or refinancing previous activities are shown in Annex 2(B). 
27 
2. Breakdown of loans by country and sector 
The table below provides an overall view of loans signed, converted into "borrowing 
equivalents" at 31 December 1995. 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 ofthe contract. 
Distribution of loans signed by country at 31.121995 | 
Country 
Belgium 
Denmark 
Greece 
Spain 
France 
Ireland 
Italy 
Netherlands 
Portugal 
UK 
Total Nai 
66,8 
70,0 
239,0 
479,9 
134,9 
990,5 Nan 
100,6 
114,9 
125,0 
116,6 
473,4 
67,1 
997,5 Nam 
303,0 
111,2 
69,2 
938,7 
68,4 
1.228.5 
3,2 
29,9 
109,3 
2861,6 Naiv 
23,6 
6^2 
1102 
72,3 
285.7 
9.9 
95,8 
6583 Na 
Reconstr. 
80,0 
598,7 
678,7 (ECU million) 
Total 
23,6 
533,5 
306,1 
187,4 
1.206,0 
424,0 
a066,3 
3,2 
39,8 
407,1 
6197,1 % 
0,4 
8,6 
4,9 
3,0 
19,5 
6,8 
49,5 
0,1 
0,6 
6.6 
100,0 
SECTOR 
Nam 
NCMV Productive sector 
52,8% 
100.0 % Infrastructure 
26,5% Energy 
20,7% 100,0% 
100,0% 
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 transactions have been carried out since 1991. 
28 
STATISTICAL ANNEX 
29 
Annex 1 
NCI IV LOANS 
CEILING: ECU 750 MILUON (1) - (Situation at 31.12.1995) 
Ref. Project description Date of 
contract ECU 
m illion (2) Breakdown by country (2) 
DK UK 
64/87 
64/87 
68/87 
68/87 
69/87 
69/87 
70/87 
70/87 
70/87 
70/87 
70/87 
71/87 
7V87 
73/87 
105/87 
105/87 
106/87 
107/87 
107/87 
108/87 
108/87 
110/87 
CV87 
M 8/8 7 
M 8/8 7 
M 8/8 7 
M 8/8 7 
206/87 
206/87 
207/87 
207/87 
23V87 
64/88 
»l/88 
101/88 
101/88 
101/88 
»3/88 
B3/88 
103/88 
H3/88 
109/88 
128/88 
128/88 
135/88 
D5/88 
185/88 
185/88 
199/88 
237/88 
237/88 
237/88 
237/88 
175/89 
119/90 
119/90 
48/91 I. LOANS SIGNED 
FIH(SmallBusiness)PG-VI/A 
FIH(SmallBusmess)PG-VI/B 
BNL-PMI V/A 
BNL-PMI V/B 
IMI-PMI V/A 
IMI-PMI V/B 
MEDIOCR. CENTR. - PMI I V/A 
MEDIOCR. CENTR. - PMI I V/B 
MEDIOCR. CENTR. - PMI IV/C 
MEDIOCR.CENTR. -PMI IV/D 
MEDIOCR. CENTR. - PMI IV/E 
INTERBANCA -PMI IV/A 
INTERBANCA-PMI IV/B 
BPI-PGV 
CENTROBANCA -PMI IV/A 
CENTROBANCA -PMI IV/B 
SAN PAOLO Agrohdustria II 
CREDIOP-PMII/A 
CRBDIOP-PMII/B 
BANCO DI NAPOLI - PMI A 
BANCO DI NAPOLI - PMI B 
B°DE SANTANDER - P YME 
B°DE BILBAO-PYME 
EFIBANCA-PMI IV/A 
EFIBANCA-PMI IV/B 
EFIBANCA-PMI IV/C 
EFIBANCA-PMI IV/D 
B°DE VIZCAYA-PYMEA 
B°DE VIZCAYA-PYMEB 
B°ESPANOLDE CREDITO -PYME 
B°ESPANOLDE CREDITO-PYME 
CREDITNATIONAL-PMIIII 
INVBSTORS IN INDUSTRY -
GROUPED LOAN V 
EFIBANCA-PMI V/A 
EFIBANCA-PMI V/B 
EFIBANCA-PMI V/C 
BFIBANCA-PMI V/D 
MEDIOCR. LOMBARDO - PMI A 
MEDIOCR. LOMBARDO - PMI B 
MEDIOCR. LOMBARDO - PMI C 
MEDIOCR. LOMBARDO - PMI D 
BARCLAYS BANK II GL 
CENTROBANCA -PMI V/A 
CENTROBANCA -PMI V/B 
CREDIOP-PMI Il/A 
CREDIOP-PMIII/B 
BANCO DI SICILIA - PMI Il/A 
BANCO DI SICILIA - PMI II/B 
CREDIT INDUSTRI EL ET COMML. 
IMI-PMI VI/A 
IMI-PMI VI/B 
IMI-PMIVI/C 
IMI-PMI VI/D 
BARCLAYS BANK III/A 
KREDIETBANK N.V. -GL 
KREDIETBANK N.V. -GL 
B°ESPANOL DB CREDITO PG PY 15.09.87 
24.05.88 
12.10.87 
12.10.87 
31.07.87 
31.07.87 
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 
IL 12.87 
05.1187 
18.12.87 
18.12.87 
18.12.87 
18.12.87 
24.07.87 
23.07.87 
17.12.87 
H. 12.87 
24.06.88 
24.06.88 
17.12.87 
30.1188 
18.12.87 
18.1188 
05.02.88 
28.12.88 
05.10.88 
05.».88 
16.0189 
16.0189 
10.10.88 
10.10.88 
06.02.89 
06.02.89 
21.12.88 
19.12.88 
19.12.88 
09.12.88 
09.12.88 
25.05.89 
25.05.89 
29.1188 
19.12.88 
19.12.88 
06.02.89 
06.02.89 
30.1189 
20.12.90 
20.12.90 
28.05.91 3180 
31.43 
18,68 
8,01 
37,29 
15,98 
6.19 
5,88 
4,81 
3,27 
18,98 
9,34 
4,00 
9.91 
9,34 
4.00 
13,34 
4,67 
2,00 
4,60 
197 
20,19 
3164 
4,67 
2,00 
4.55 
195 
9,37 
8,60 
12,04 
M,94 
20,00 
20,90 
4,53 
194 
4.57 
196 
6,79 
2,91 
9,14 
3,92 
45,55 
13,23 
5,67 
4,53 
194 
4,58 
196 
52,32 
9,06 
3,88 
13,72 
5,88 
29,38 
18,04 
5,54 
25,44 3180 
3143 
18,04 
5,54 20,19 
3164 
9,37 
8,60 
12,04 
10,94 
25,44 20,00 
52,32 18,68 
8,01 
37,29 
15,98 
6,19 
5,88 
4,81 
3,27 
18,98 
9,34 
4,00 
9,34 
4,00 
D.34 
4,67 
2,00 
4,60 
197 
4,67 
2,00 
4,55 
195 
4,53 
194 
4,57 
196 
6,79 
2,91 
9,14 
3,92 
13,23 
5,67 
4,53 
194 
4,58 
196 
9,06 
3,88 
13,72 
5.88 9,91 
20,90 
45,55 
29.38 
TOTAL I 668,82 23,58 63,23 118,22 72,32 285.73 9,91 95,83 
II. LOANS APPROVED, 
AWAITING SIGNATURE 0,00 
BALANCE SU8 
CEILING 750,00 
(1) JO L°. 271 of 14.03.1987 (loans ceiling). 
(2) Conversion rates aie those obtained on the last working day of the quarter preceding the signing of each loan. 
30 
Annex 2 
NCI BORROWING, BY CURRENCY 
A.-Debt outstanding at 31.12.1995 (1) || 
Currency (million) Equivalent in 
ECU miHion(2) 
ECU 90.0 90.0 
BFR 
DM 408-6 216.9 
FF 2,100.0 326.1 
HFL 387.5 183.8 
LFR 1,000.0 25.8 
LIT 
PTA 
UKL 12-0 14.2 
CAD 
SFR 100.0 66.1 
USD 250.0 190.2 
YEN 
Total | | 1/113.1 
B.- New operations: 1.07.1995 - 31.12.1995 | 
Date 
of issue 
24.11.95 
24.11.95 
24.11.95 
24.11.95 Duration 
(years) 
2 
3 
5 
4 Coupon 
(%) 
3 
3.5 
4 
3.75 Currency 
(million) 
FS25 
FS25 
FS25 
FS25 Equivalent in MECU (3) 
Fresh 
capital (1) 
-
-
-
-Re­
financings 
16.5 
16.5 
16.5 
16.5 
(1) Excluding refinancing operations,designed to reduced Die costofservicing existing 
debt initially conlracted athigher interestrates. 
(2) Exchange rates as at31.12.1995 
(3) Exchange rates atsignature. 
31 

ISSN 0254-1475 
COM(96) 384 final 
DOCUMENTS 
EN 01 09 
Catalogue number : CB-CO-96-382-EN-C 
ISBN 92-78-07369-5 
Office for Officiai Publications of the European Communities 
L-2985 Luxembourg 
3Z