"^ I COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 16.01.1997 
COM(96) 704 final 
96/0015 (CNS) 
Amended proposal for a 
COUNCIL DECISION 
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 
(Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, 
Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Salvador, Uruguay and 
Venezuela; Bangladesh, Brunei, China, India, Indonesia, Macao, Malaysia, Pakistan, 
Philippines, Singapore, Sri Lanka, Thailand and Vietnam) 
(presented by the Commission pursuant to Article 189 a (2) 
of the EC-Treaty) 

EXPLANATORY MEMORANDUM 
1. On 18 July 1996 the European Parliament adopted an opinion on the proposal for a Council 
Decision 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 (Argentina, Bolivia, Brazil, 
Chile, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, 
Panama, Paraguay, Peru, Salvador, Uruguay and Venezuela; Bangladesh, Brunei, China, 
India, Indonesia, Macao, Malaysia, Pakistan, Philippines, Singapore, Sri Lanka, Thailand 
and Vietnam). 
2. Of the five amendments adopted by Parliament, the Commission accepted two in their 
entirety. The Commission accepted all Parliament's amendments which did not alter the 
intent or structure of the original proposal and which improved upon it. The amendments 
are summarized below, followed by a summary of those amendments which the 
Commission did not accept. 
II 
New Recital 6a (EP Amendment 1) 
The recital emphasizes the commitment of the European Union to the regions of Latin 
America and Asia and the role of the EIB in this connection. 
Article 3 (EP Amendment 4) 
The insertion specifies that the economic and social impact of the scheme in recipient 
countries should be included in the assessment to be submitted to Council and Parliament 
at the end of the loan period. 
Ill 
The amendments which the Commission did not accept were the following: 
Inserting a recital (Amendment 2) and a new paragraph in Article 3 (Amendment 5), 
because the Union's financial contribution is already given a high profile through press 
releases issued following the approval and signing of loans, through EIB publications 
concerning the Bank's activities in the area and through participation in seminars and 
conferences. Furthermore, the Bank, when operating outside the Community, works in 
conjunction with, and informs, the Commission's delegation of the activities undertaken 
in that particular country. In turn, the delegation disseminates the information through 
its usual channels; 
Deletion of part of the second paragraph of Article 1 (Amendment 3), because the 
proposed six-month automatic extension of the loan period is required in proposals of 
this nature to ensure that the EIB has the necessary flexibility to utilize in full the ioar. 
ceiling approved by Council. 
Amended proposal for a 
COUNCIL DECISION 
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 (Argentina, Bolivia, Brazil, Chile, 
Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama, 
Paraguay, Peru, Salvador, Uruguay and Venezuela; Bangladesh, Brunei, China, India, 
Indonesia, Macao, Malaysia, Pakistan, Philippines, Singapore, Sri Lanka, Thailand and 
Vietnam) 
Following Parliament's opinion dated 18 July 1996, the following amendments are made to 
the recitals and Article 3 of the Commission's original proposal (COM(95)742): 
Original proposal Amended proposal 
Recital 6a 
Whereas the European Union's decision 
to allow the EIB to operate in Latin 
America and Asia has given it a basic 
financial instrument that will enable it to 
reaffirm its strong political commitment 
to both regions and support the efforts of 
European firms to penetrate the emerging 
markets there; 
Article 3 
At the end of the loan period the 
Commission shall inform the European 
Parliament and the Council of the loan 
operations and shall, at the same time, 
submit an assessment of the operation of 
the scheme and of coordination between 
the financial institutions operating in that 
area. Article 3 
At the end of the loan period the 
Commission shall inform the European 
Parliament and the Council of the loan 
operations and shall, at the same time, 
submit an assessment of the opera ion of 
the scheme, of its economic and social 
impact on the recipient countries and of 
coordination between the financial 
institutions operating in that area. 
ISSN 0254-1475 
COM(96) 704 final 
DOCUMENTS 
EN 01 n 09 
Catalogue number : CB-CO-96-710-EN-C 
ISBN 92-78-13815-0 
Office for Official Publications of the European Communities 
L-2985 Luxembourg