COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 13.05.1997 
COM(97) 208 final 
ANNUAL STATUS REPORT BY THE COMMISSION 
ON THE GUARANTEE FUND AND ITS MANAGEMENT IN 1996 

CONTENTS 
1. LEGAL BASES 1 ct 
2. POSITION OF THE FUND AT 31 DECEMBER 1996 \cu 
3. PAYMENTS INTO THE FUND 2 
3.1. PAYMENTS FROM THE GENERAL BUDGET 2 
3.2. INTEREST FROM FINANCIAL INVESTMENT OF THE FUND'S LIQUID ASSETS 3 
3.3. RECOVERY FROM DEFAULTING DEBTORS 4 
4. THE FUND'S LIABILITIES 4 
4.1. DEFAULT PAYMENTS ^ 4 
4.2. EEB REMUNERATION 4 
ANNEXES 
ANNEX I: LEGAL BASES FOR PAYMENTS FROM THE GENERAL BUDGET 6 
1. DECISIONS COVERED BY TRANSFER 5/96 6 
2. DECISIONS COVERED BY TRANSFER 42/96 7 
3. DECISION COVERED BY TRANSFER 52/96 7 
ANNEX U: EIB STATUS REPORT ON THE FUND AND ITS MANAGEMENT - REVENUE 
AND EXPENDITURE ACCOUNT AND BALANCE SHEET AT 31 DECEMBER 
1996 8 
1. DEVELOPMENT OF THE FUND IN 1996 8 
2. THE FUND'S RESOURCES 8 
2.1. THE FUND'S ACCOUNT 8 
2.1.1 Payments made by the Fund from 1 January to 31 December 1996. 9 
2.1.2 Amounts recovered from defaulting debtors from 1 January to 31 December 1996 9 
2.2. THE FUND'S .ASSETS 10 
2.3. LIQUIDITY RISK 10 
3. INVESTMENTS MADE DURING 1996 11 
3.1. TREASURY OPERATIONS 11 
3.2. INVESTMENT PORTFOLIO 13 
ANNEX III: CONSOLIDATED FINANCIAL BALANCE-SHEET AT 31 DECEMBER 1996 16 
i CL -
ANNUAL STATUS REPORT BY THE COMMISSION 
ON THE GUARANTEE FUND AND ITS MANAGEMENT IN 1996 
1. LEGAL BASES 
Council Regulation (EC, Euratom) No 2728/94 of 31 October 1994 set up a Guarantee 
Fund for external actions to repay the Community's creditors in the event of default by 
beneficiaries of loans granted or guaranteed by the Community. 
In accordance with Article 6 of the Regulation the Commission entrusted financial 
management of the Fund to the European Investment Bank (EIB) under an agreement 
signed between the Community and the ELB on 23 November 1994 in Brussels and on 
25 November 1994 in Luxembourg. 
Under Article 8.2 of the agreement, by 1 March each year the Bank must send the 
Commission a status report on the Fund and its management, the revenue and 
expenditure account and the financial statement for the Fund for the preceding year. An 
extract from the report covering 1996 is in Annex II. 
In addition, Article 7 of the Regulation establishing the Fund requires the Commission to 
send the European Parliament, the Council and the Court of Auditors a report on the 
situation of the Fund and its management for each financial year by 31 March of the 
following year. 
2. POSITION OF THE FUND AT 31 DECEMBER 1996 
At the close of the 1996 financial year, the Fund totalled ECU 557 510 343 61 
(Annex II). This is the sum, since the Fund was established, of all 
- budget payments (ECU 779 860 000), 
- incremental yearly net results (ECU 41 813 114.11), 
- late payments from non-member countries (ECU 91 345 772.68), 
- debts corresponding to the payments not made to the Bank (ECU 104 534.51) 
- minus calls on the Fund's resources (ECU 355 613 077.69). 
The total amount of the consolidated balance sheet (see Annex III) is 
ECU 845 599-807 92, which breaks down into ECU 330 000 000 in deposits, 
ECU 14 427 909.00 on current account, ECU 204 358 136.23 in the securities portfolio, 
ECU 8 724 298.38 in interest accrued and not paid at 31 December 1996 
(ECU 1 283 620.82 in interest accrued and not yet due on fixed-term deposits, 
ECU 7 386 889.78 accrued interest and not yet due on coupons and 
ECU 53 787.78 accrued interest on sight-deposits to be paid) and 
ECU 288 089 464.31 in receivables from the recipients of loans granted or guaranteed 
by the Community, including ECU 271 154 609.44 in principal and interest due and 
ECU 16 934 854.87 in default interest incurred but not received at 31 December 1996. 
Article 3 of the Regulation establishing the Fund requires that the amount of the Fund 
has to reach an appropriate level (target amount) set at 10% of the total outstanding 
capital liabilities arising from each operation, plus unpaid interest due. 
Outstanding lending and loan guarantee operations for non-member countries plus 
unpaid interest due totalled ECU 6 715 million at 31 December 1996, of which ECU 194 
million was accounted for by unpaid interest. 
The ratio between the Fund's resources and outstanding capital liabilities within the 
meaning of the Regulation was 8.3%. Since this is lower than the target amount of 10%, 
there was no surplus to be paid back to the general budget of the Communities, as 
provided for in the third paragraph of ArticLe 3 of the Regulation. 
There was also no need to review the provisioning rate, as provided in Article 4 of the 
Regulation. 
The following sections describe developments affecting the Fund's resources and 
liabilities in 1996. 
3. PAYMENTS INTO THE FUND 
3.1. Payments from the general budget 
Articles 2 and 4 of the Regulation establishing the Fund stipulate that it is to be endowed 
by payments from the general budget equivalent to 14% of the capital value of loan and 
loan guarantee operations until the target amount is reached. Under Article 5 the 
provisioning rate rises to 15% for new operations if the Fund's resources fall below 75% 
of the target amount as a result of guarantees being activated to cover any default. 
The legal bases for the provisioning arrangements are described in Annex I. 
The Council Decision of 31 October 1994 concerning budgetary discipline authorized the 
entry in the general budget of a reserve for loan and loan guarantee operations. This 
item, which was allocated provisional appropriations of ECU 326 million in 1996, is 
intended to endow the Fund by transferring amounts into the budget item for payments 
into the Fund. 
On these legal bases, three transfers totalling ECU 235 390 000 were adopted by the 
budgetary authority in 1996 to endow the Guarantee Fund. 
- Transfer 5/96: ECU 191 890 000 
This first transfer at the beginning of the year was for payments into the Fund under 
the Council Decisions of 15 February 1993, 13 December 1993, 24 January 1994, 
21 March 1994, 1 June 1995, 10 April 1995 and 30 October 1995, in accordance 
with the arrangements set out in the Annex to the Regulation establishing the Fund 
(see Annex I). 
3-
- Transfer 42/96: ECU 2 250 000 
This second transfer was for payments into the Fund in respect of the loan operation 
adopted by the Council on 25 March 1996 for Moldova. The decision covered by 
this transfer is given in Annex I. 
- Transfer 52/96: ECU 41 250 000 
This third transfer was for payments into the Fund in respect of loan guarantee 
operations adopted by the Council on 12 December 1996 for projects in Latin 
American and Asian countries. The decision covered by this transfer is listed in 
Annex I. 
The three transfers to the Fund were made in two payments in May and December 1996. 
3.2. Interest from financial investment of the Fund's liquid assets 
The Fund's liquid assets are invested in accordance withthe management principles laid 
down in the Annex to the Community/EEB Agreement. 
These principles state that during the Fund's first years of operation it will be treated as a 
money-market investment fund dealing solely in short-term instruments up to one year, 
as long as the total amount invested does not exceed ECU 300 million. As the amount of 
the Fund exceeded this ECU 300 million threshold in 1995, the Commission agreed with 
the EEB to amend the investment principles early in 1996. 
The list of banks authorized to receive deposits is agreed by the Commission and the 
EIB. The original list has been revised several times in the light of the latest changes in 
bank ratings. Most of the banks are members of the ecu clearing system. They all have a 
Moody's rating of at least Al for long-term investments and PI for short-term ones and 
investments made with them are governed by rules to ensure a good spread and avoid 
risk exposure. 
In 1996 interest on deposits, the Guarantee Fund current account, and securities, totalled 
ECU 19 834 606.07, broken down as follows: 
- deposits: ECU 13 598 452.62. This represents the situation at 31 December 
including interest received on bank deposits (ECU 14 120 687.93) and interest 
incurred (ECU 1 283 620.82) in 1996. The interest incurred corresponds to 
interest which has not been received by the Fund at the end of the year but will 
be paid at the dates fixed for maturity of the investments. The interest accrued, 
as shown in the end-1995 situation but received in 1996 (ECU 1 805 856.13) is 
deducted from the interest entered in the accounts during 1996. 
- current account: ECU 522 831.55, comprising interest recorded on the current 
account. 
» - securities portfolio: ECU 5 713 321.90. The interest on securities is generated by 
investments placed in the form of securities in accordance with the principles of 
investment laid down in the Agreement giving the EIB the task of managing the 
Fund's liquid assets. 
-4-
The interest received is entered in the results for the financial year. 
3.3. Recovery from defaulting debtors 
Any late repayments by defaulting countries on operations where the Fund has honoured 
the guarantee are paid into the Fund. The amount recovered in 1996 totalled ECU 
55 715 204.14 (see point 2.1.2 cf Annex II). 
4. THE FUND'S LIABILITIES 
4.1. Default payments 
The Fund's guarantee was called in on five occasions in 1996, involving a total of 
ECU 52 540 496.79 (see point 2.1.1 of Annex II). 
4.2. EIB remuneration 
Article 6 of the management agreement between the Commission and the EIB sets an 
annual commission of 0.125%) calculated on the Fund's average monthly balances. The 
figure is to be reviewed at the end of any year in which the Fund's liquid assets reach 
ECU 300 million and no later than three years following the date of the first payment 
into the Fund, taking into account such things as the growth of the Fund's activities. 
As the Fund had reached ECU 300 million at the end of 1995, the EEB's remuneration 
was reviewed. Taking into account the Bank's experience of the workload involved in its 
management, a supplementary agreement dated 17 September and 23 September 1996 to 
the Agreement on the financial management of the Fund took the annual payment to 
0.05%) of the Fund's assets; this rate was applied retrospectively on 31 December 1994. 
In 1996 the remuneration paid to the Bank was ECU 205 638.05 entered in the profit 
and loss account, including ECU 104 534.51 entered as accruals (liabilities) on the 
balance sheet. This payment will be made to the EIB at the beginning of January 1997. 
-5-
ANNEXES 
ANNEX I: LEGAL BASES FOR PAYMENTS FROM THE GENERAL BUDGET 6 
1. DECISIONS COVERED BY TRANSFER 5/96 6 
2. DECISIONS COVERED BY TRANSFER 42/96 7 
3. DECISION COVERED BY TRANSFER 52/96 7 
ANNEX U: EIB STATUS REPORT ON THE FUND AND ITS MANAGEMENT - REVENUE 
AND EXPENDITURE ACCOUNT AND BALANCE SHEET AT 31 DECEMBER 
1996 8 
1. DEVELOPMENT OF THE FUND IN 1996 8 
2. THE FUND'S RESOURCES 8 
2.1. THE FUND'S ACCOUNT 8 
2.1.1 Payments made by the Fund from 1 January to 31 December 1996 9 
2.1.2 Amounts recovered from defaulting debtors from 1 January to 31 December 1996 9 
2.2. THE FUND'S ASSETS 10 
2.3. LIQUIDITY RISK 10 
3. INVESTMENTS MADE DURING 1996 11 
3.1. TREASURY OPERATIONS 11 
3.2. INVESTMENT PORTFOLIO 13 
ANNEX LTJ: CONSOLIDATED FINANCIAL BALANCE-SHEET AT 31 DECEMBER 1996.. 16 
-6 
ANNEX I 
LEGAL BASES FOR PAYMENTS TO THE GUARANTEE FUND FROM THE GENERAL 
BUDGET 
The Annex to the Regulation concerning arrangements for payments under the 
Guarantee Fund stipulates that for borrowing/lending operations or guarantees to 
financial bodies under a framework facility spread over several years and with a micro-
economic and structural purpose, payments will be made in annual tranches calculated on 
the basis of the annual amounts, indicated in the financial statement attached to the 
Commission proposal, adapted, where appropriate, in the light of the Council decision. 
In the case of other borrowing/lending operations such as balance of payments loans to 
non-member countries, irrespective of whether they are made in one or more than one 
tranche, the amount to be paid into the Fund will be calculated on the basis of the total 
amount for the operation decided on by the Council. 
Three transfers were made under this procedure in 1996. 
1. DECISIONS COVERED BY TRANSFER 5/96 
- Council Decision of 15 February 1993 calling on the ELB to grant loans for 
projects of mutual interest in certain non-member countries with which the 
Community has cooperation agreements, within a fixed ceiling of 
ECU 250 million a year for a period of three years. 
- Council Decision of 13 December 1993 renewing the Community guarantee of 
EIB loans in the countries of Central and Eastern Europe, with a ceiling of 
ECU 3 billion over three years. 
- As part of the financial cooperation with the Mediterranean countries: 
- Council Decision of 24 January 1994 for a three-year loan of 
ECU 115 million for Syria. 
- Council Decisions of 30 October 1995 for three-year loans of 
ECU 30 million for Malta and ECU 50 million for Cyprus. 
- Council Decision of 10 April 1995 concerning the granting of macro-financial aid 
of ECU 75 million to Belarus. 
- Council Decision of 1 June 1995 granting a Community guarantee to the EIB 
against losses under loans for projects in South Africa, with an overall loans 
ceiling of ECU 300 million over two years. 
7-
Council Decision of 21 March 1994 empowering the Commission to contract 
Euratom loans to contribute to financing improvements in the safety and 
efficiency levels of the nuclear capacity of certain non-member countries for an 
amount of ECU 1 100 million. 
DECISIONS COVERED BY TRANSFER 42/96 
- Council Decision of 25 March 1996 providing further macro-financial assistance 
for Moldova. 
3. DECISION COVERED BY TRANSFER 52/96 
- Council Decision of 12 December 1996 granting a Community guarantee to the 
European Investment Bank against losses under loans for projects of mutual 
interest in Latin American and Asian countries with which the Community has 
concluded cooperation agreements. An overall ceiling of ECU 275 million is set. 
ANNEXE 
EIB STATUS REPORT ON THE FUND AND ITS MANAGEMENT 
REVENUE AND EXPENDITURE ACCOUNT AND BALANCE SHEET 
AT 31 DECEMBER 1996 
1. DEVELOPMENT OF THE FUND IN 1996 
The total holdings of the Fund stood at "ECU 548.8 million at 31 December 1996 as 
compared with 298.4 million in 1995. In view of the drop in rates on the ecu market over 
the year, the operating result fell from ECU 23.3 million in 1995 to 18.0 million in 1996. 
In view of the level of liquid assets, part of the Fund's holdings has been placed in an 
investment portfolio. 
2. THE FUND'S RESOURCES 
2.1. The Fund's account 
Resources 
- Provisions + 
- Activation of guarantee 
- Late recovery + 
Account balance at 31/12/95 
544 470 000.00 
303 072 580.90 
35 630 568.55 
277 027 987.65 in 1996 
235 390 000.00 
52 540 496.79 
55 715 204.13 
238 564 707.34 TOTALS 
779 860 000.00 
355 613 077.69 
91345 772.68 
.515 592 694.99 
The activations of the guarantee were lower than in 1995, and, in contrast to 1995, 
amounts recovered exceeded payments. 
9-
2.1.1 Payments made by the Fund from' 1 January to 31 December 1996 
VALUE DATE AMOUNT 
26/01/1996 5 199 025.76 
15/04/1996 31 199 184.87 
11/06/1996 6 387 972.88 
04/10/1996 8 886 702.48 
15/10/1996 867 610.80 
TOTAL 52 540 496.79 
2.1.2 Amounts recovered from defaidting debtors from 1 January to 31 December 1996 
VALUE DATE AMOUNT 
26/01/1996 2 297.68 
15/02/1996 15 239.78 
17/05/1996 17 291251.52 
21/08/1996 46 715.01 
22/08/1996 11 837 400.00 
30/09/1996 111 449.97 
10/10/1996 6 961 662.79 
17/10/1996 11 625 570.00 
21/10/1996 34 126.37 
31/12/1996 7 789 491.01 
TOTAL 55 715 204.14 
-10 
2.2. The Fund's assets 
The Fund's assets totalled ECU 548.8 million at 31 December 1996, of which 
330 million is invested in short-term monetary deposits, 14.4 million on current account 
and 204.4 million in the investment portfolio (see table below 2.3). 
600 T 
500 -
400 --
300 -~ 
200 -: 
100 -
0 -
co 
CD 
CD 
c 
CO THE FUND'S ASSETS UP TO 31.12.1996 (ECU millions) 
CO o 
CD 1996 
1995 \ 
CD 
CD 
CD 
03 
2 CO 
CD 
QL 
< »8 CO 
CD 
CD CO 
CD 
CD 
3 
—i CO 
CD 
CD 
T-
I 
O) 
< CO o> 
CD 
i 
Q. 
d) 
CO CO 
CD 
CD 
O 
O CO 
CD 
CD 
T-
I 
> 
o CO 
CD 
CD 
Q 
2.3. Liquidity risk 
Current accounts 
Fixed-term deposits 
Securities portfolio 
TOTALS 
in percentages Investments at less 
than 3 months 
14 427 909.00 
310 000 000.00 
76 601318.92 
404 029 227.92 
73.62 Investments at 3-6 
months 
20 000 000.00 
26 265 895.01 
46 265 895.01 
8.43 Variable-rate 
securities 
98 490 922.30 
98 490 922.30 
17.95 TOTALS 
14 427 909.00 
330 000 000.00 
204 358 136.23 
548 786 045.23 
100.00 
Cover of more than 60% at less than three months is maintained to correspond to the 
time by which the Commission must call on the Fund in the event of defaults on loan 
repayments. 
11 -
3. INVESTMENTS MADE DURING 1996 
3.1. Treasury operations 
The Fund operates in a single currency: the ecu. 
The yield on investments in 1996 averaged 4.5% as against 6.12% in 1995. 
The yield obtained is 24 basis points above the three-month LEBID rate which was the 
1996 reference. In 1995, the reference was the one-month LIB ED. 
MONTH 
January - December YIELD 
4.50% LIBID 
three months 
4.26% MARGIN 
0.24% 
Movements in rates over 1996 
The table below shows the rates obtained for interbank money-market investments as 
compared with the three-month LIBED reference rate. 
6 
5 + 
4 
3 -
2 -
1 -
0 
CD 
CD 
C 
CD EVOLUTION DES TAUX DES DEPOTS A TERME 
RATE 
CD 
CD 
i 
jQ 
CD CD 
CD. 3-MONTH LIBID 
CD 
CD 
i!. 
Q. 
< CO 
CO 
I 
03 CD 
CO CO 
CO CO 
co 
3 
< CD 
CO 
i 
CL 
CD 
C7> CO 
CO 
I o O CD 
CO 
I > o CD 
CO 
Ô CD 
Q 
- 12-
Geographical breakdown of the countries with which the Fund made fixed-term deposits 
with indication of the average capital (ECU million). 
- Germany: 
- Austria: 
- Belgium: 
- Spain: 
- Denmark: 
- Finland: 
- France: 
- Ireland: 
- Italy: 
- Luxembourg: 
- Netherlands: 
- United Kingdom 
TOTALS Situation at 31.12.1996 
(million) 
45 
25 
25 
30 
80 
65 
15 
45 
330 Average capital in 1996 
(million) 
47,7 
5 
42,5 
8.5 
22,4 
0,9 
69,2 
13 
17.3. 
15,4 
31,8 
28,7 
302,4 Average capital in 1995 
(million) 
35,4 
9.4 
65,5 
0 
16,2 
0 
160,2 
0 
0 
21,9 
53,3 
11.3 
373,2 
The objective of better geographical distribution has been pursued throughout the year, 
with the result that the deposits operation could be extended to counterparts in Spain, 
Finland, Ireland and Italy. 
70 y 
60 -
50 --
40 --
30 -
20 --
10 --GEOGRAPHICAL DISTRIBUTION OF FIXED-TERM INVESTMENTS 
(average capital in million ecus) 
14, 
3 
E 
0) 
13 
3.2. Investment portfolio 
The securities portfolio, seen as an investment portfolio, is made up of securities in ecus 
acquired with the intention of keeping them until maturity: the fixed-interest securities 
whose residual period to maturity is less than 6 months total ECU 105 867 213.93 and 
the variable-rate securities total ECU 98 490 922.30. 
The starting value of the securities in this portfolio is the cost of acquisition. The 
difference between the entry price and the redemption value is divided pro rata temporis 
over the remaining life of each of the securities. 
At 31 December 1996 the nominal value of the investment portfolio was 
ECU 203.8 million against a book value of 204.4 million (including the premium to be 
written off). 
The portfolio gave a result of 4.1 million at 31 December 1996. This result breaks down 
as follows: 
Interest received 
Appreciation 
Depreciation 
Spread of the premium 5 713 321.90 
7 943.70 
- 6 179.80 
- 1 625 722.05 
4 089 363.75 
Taking account of the acquisitions made in the second half of the year, the book profit of 
the investment portfolio came to 4.53%. 
Redemptions 
35.000 
30.000 
25.000 
20.000 
15.000 
10.000 
5.000 
0 MATURITIES OF FIXED-RATE SECURITIES 
(THOUSANDS) 
DUE DATES 
Jan-97 Feb-97 Mar-97 Apr-97 May-97 Jun-97 
- 14 
25000 -r 
20000 -
15000 
10000 --
5000 --MATURITIES OF VARIABLE-RATE SECURITIES 
(THOUSANDS) 
DUE DATES 
Apr-1997 Jul-1998 Feb-2000 Apr-2000 Aug-2001 
Profile of issuers: in accordance with the agreement between the Community and the 
Bank on the management of the Guarantee Fund, all the securities held have a minimum 
credit rating of Al. 
PROFILE OF ISSUERS 
12% Other 
88% Government securities 
- 15-
PosrnoN OF THE GUARANTEE FUND AT 31 DECEMBER 1996 
ASSETS 31 December 1996 
Receivables with credit institutions 
CURRENT ACCOUNT 
FIXED-TERM DEPOSITS 
Investment portfolio 
SECURITIES PORTFOLIO 14 427 909.00 
330 000 000.00 
344 427 909.00 
204 358 136.23 
204 358136.23 
Other receivables 
ACCRUALS 
TOTAL 8 724298.38 
8 724 298.38 
55751Q343 6J 
LIABILITIES 31 December 1996 
Guarantee Fund 
GUARANTEE FUND 
Other liabilities 
ACCRUALS 
Result 
Result carried over 
Result for 1996 515 592 694.99 
515 592 694.99 
104534.51 
104 534 51 
23 819 842.85 
17 993 271.26 
41813114.1' 
TOTAL 557 510 343 61 
PROFIT AND LOSS AT 31 December 1996 
1. INCOME 
Interest and similar income 
Appreciation on transfer of investment securities 
Interest on investments 
Interest on current account 
SUB-TOTAL 5 713 321.90 
7 943.70 
13 598 452.62 
522 831.55 
19 842 549.77 
2. COSTS 
Spread of premium or discount 
Commissions 
Financial charges 
Depreciation on transfer of investment securities 
SUB-TOTAL -1 625 722.05 
-205 638.05 
-11738.61 
-6 179.80 
1349 2n 51 
NET RESULT 1793327125 
- 16-
ANNEXin 
CONSOLIDATED FINANCIAL BALANCE SHEET OF THE GUARANTEE FUND AT 
31 DECEMBER 1996 
The consolidated financial balance sheet at 31 December 1996 is provided to supplement 
the position of the Guarantee Fund as set out in Annex II. The consolidated balance 
sheet also includes an additional ECU 288 089 464.31 which breaks down as follows: 
- on the assets side, receivables with recipients of loans granted or guaranteed by the 
Commission totalling ECU 271 154 609.44 for third countries' arrears on the 
payment of principal and interest and ECU 16 934 854.87 for default interest incurred 
but not received at 31 December 1996. This default interest has been calculated in line 
with the penalty rates laid down in the loan contracts. 
- on the liabilities side, the Fund's resources which still have to be replenished 
(ECU 264 267 305.01), default interest incurred but not received 
(ECU 16 934 854.87), interest received on late recoveries (ECU 6 887 304.43) 
entered in the profit and loss account. 
-17-
CONSOLIDATED FINANCIAL BALANCE SHEET OF THE GUARANTEE FUND AT 31 DECEMBER 1996 
ASSETS 31 December 1996 
Receivables with credit institutions 
CURRENT ACCOUNT 
FIXED-TERM DEPOSITS 14 427 909 00 
330 000 000 00 
Investment portfolio 
SECURITIES PORTFOLIO 
Receivables with recipients of loans granted or guaranteed by the Community 
ARREARS COVERED BY THE FUND 
DEFAULT INTEREST INCURRED BUT NOT RECEIVED 204 358 136 23 
271154609 44 
16 934854 87 
288 089 464 31 
Other receivables 
ACCRUALS 
TOTAL 8 724 298 38 
fl77A79fl3fl 
845 599 807 92 
LIABILITIES 31 December 1996 
Guarantee Fund 
PAYMENTS FROM THE BUDGET 
DEFAULT INTEREST INCURRED BUT NOT RECEIVED 779 860 000 00 
16 934 85487 
796794 854 87 
Other liabilities 
ACCRUALS 104 534 51 
104 534 51 
Result 
Result carried over 
Result for 1996 
TOTAL 23 819 84285 
24 880 575 69 
48 700 418 54 
845 599 807 92 
PROFIT AND LOSS AT 31 December 1996 
1. INCOME 
Interest on investment securities 
Appreciation on transfer of investment securities 
Interest on investments 
Interest on current account 
Default interest received on late recoveries 
SUB-TOTAL 5 713 32190 
7 943 70 
13 598 452 62 
522 831 55 
6 887 304 43 
26 729 854 20 
2. COSTS 
Spread of premium or discount 
Commissions 
Financial charges 
Depreciations on transfer of investment securities 
SUB-TOTAL 1 625 722 05 
205 638 05 
11738 61 
6 179 80 
1849 778 51 
NET RESULT 24 880 575 69 



ISSN 0254-1475 
COM(97) 208 final 
DOCUMENTS 
EN 01 03 17 
Catalogue number : CB-CO-97-193-EN-C 
ISBN 92-78-19476-X 
Office for Official Publications of the European Communities 
L-2985 Luxembourg