ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)419
Vol.1981/0129

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COMMISSION OFTHEEUROPEAN COMMUNITIES
final
SeptemberCOM(81)419 final
Brussels,91981
REPORT ONTHE
BORROWING ANDLENDINGACTIVITIES OFTHECOMMUNITY
Financial year1980
|®3 1K r-7;,Pa !
Suri.'duSecrétariat
Généraixy
-'«..m' ;'r\1
^j*1£w*'
C0MC81)419final

Ori
CONTENTS
Measures taken orproposed in1980 inrespect of
Community borrowing and Lending
1.NewCommunity Instrument (NCI )
2.Interest subsidies onloans for the reconstruction
ofthe stricken areas inItaly
3.Euratom
4.Community borrowing
Overall view ofCommunity borrowing and lending in1980
Trends compared with previous years
1.Lending ' '„
Trends inlending operations intheCommunity -
byinstrument
ê
/
2.Borrowing
Trends inborrowing operations bythe European
Communities ,byinstrument
3.Balance between borrowing and lending ,
Lending in1980 .; ■
1.NewCommunity Instrument (NCI)
2.Euratom
3.ECSC « •
4.European Investment Bank (EIB )
Borrowing in1980
■I
1.The situation oncapital markets
2.Breakdown ofCommunity borrowing in1980
Borrowing in1980 bycurrency

Page
V.Interest subsidies 19
1.Community interest subsidy mechanisms 19
2.EMSinterest subsidies 19
3.ECSCinterest subsidies 23
ANNEXES 24
-TABLES 25-
Listofreports anddocuments onCommunity borrowing
andLendingactivities whichhavebeensubmitted to
theCouncil andtoParliament43

REPORT ONTHEBORROWING ANDLENDING ACTIVITIES OF
THECOMMUNITY
Financial year1980 .
1.ThisreportwasdrawnuptoprovidetheCouncil andParliament with
information ontheCommunity 'sborrowing andlendingactivities during1980
Itmeetsthewishesexpressed byParliament onvariousoccasions,
particularly whengranting thedischarge totheCommission ontheimplemen-
/ *tationofthegeneralbudgetoftheEuropean Communities for1978and1979,
aridinitsResolution onimproving political controlovertheCommunities'
(2)borrowing andlendingactivities . -
i ' .., , ,
2.It;alsofulfilstheCommission 'sobligation toinformtheCouncil and
Parliament eachyearabouttheactivities of:
-Euratom,inaccordance withArticle 4oftheCouncilDecision of
29March1977;
-theNCI,inaccordance withArticle 6oftheCouncilDecision of
16October 1978; 1
-theEMSinterest Subsidyinstrument ,inaccordance withArticle 10
; VoftheCouncilRegulation of3August1979.
■/ ■-'. J
*3.Furthermore ,inordertoprovide acomplete pictureoftheCommunities
borrowing andlendingactivities whichgoesbeyondthisinstitutional frame
work,thereportalsoreviewstheborrowing andlendingcarriedoutlast
♦
yearbytheECSCand-atagenerallevel-bytheEIB.TheECSC'sfinan­
cialreportandtheEIB'sannualreportwillbesenttoParliament andthe
Council asbefore. >
(1)Doc.PE65085of23May1980,p.17\
Doc.PE71.959of11March1981(points74and75)_
(2)Doc..PE67134of5March1981.

4.AListofthevariousdocumentsandreportssofartransmitted tothe
CouncilandParliament onCommunityborrowingandlendingisannexedto
thisreport.
Measurestakenorproposedin1980inrespectofCommunityborrowingand
lending
5.During1980,theCommunitytookseveralstepswhichreflectitsconcern
tokeeptheborrowingandlendinginstrumentsflexibleandtoadaptthemto
changingrequirements .ActingonproposalsfromtheCommission,theCouncil
thusauthorizedfurtherborrowings bytheNCIandEuratom.TheCommission
alsosubmittedproposalstotheCouncilforadjustingtheCommunityloan
mechanismforsupportingthebalanceofpaymentsofMemberStatesandfor
takingexceptional aidmeasuresdesignedtocontributetothereconstruction
oftheregionsinsouthernItalyaffectedbytheearthquakeinNovember1930
6.AlargenumberofmeasuresinvolvingtheCommunityborrowingand1
instruments werethereforeeitheradoptedbytheCouncilorproposed I:the
Commission in1980.
NewCommunityInstrument (NCI)
('»"J7.Thisinstrument wascreatedbyaCouncilDecisioninOctober1978,-v
whichempowerstheCommissiontocontractloans,theproceedsofwhichsre
tobelenttofinanceinvestmentprojectswhichmeet-priorityCommunity
objectivesintheenergy,industryandinfrastructure sectors.Duringon
initialperiod,thisinstrument wastobeusedonanexperimental basis.
Theamountofborrowingwasthereforelimitedto1000millionECUinprin­
cipal,tobeactivatedtranchebytranchebytheCouncil,whichwastolay
downtheguidelinesfortheeligibility ofprojects.
InMay1979,theCouncilauthorized afirsttrancheofborrowings
amountingto500millionECU,tobeusedfor.financinginvestmentprojects
intheenergyandinfrastructuresectors.^
(1)CouncilDecision78/870/EECof16October1978
(2)CouncilDecision79/486/EECof14May1979

-3-
InJuly 1980 .itauthorized asecond tranche ofborrowings of500million
(1)ECU,tobeused according tothesame criteria ; inNovember ofthesame
(2)year , it^adopted aDecision allowing infrastructure projects toinclude
housing andadvance factories ,provided that they formed part ofatotal
project ofeconomic and industrial development presenting aregional interest .
\
The initial ceiling imposed onborrowing bythis instrument was reached
when this second tranche wasauthorized .After reviewing this experimental
/ period ,theCommission proposed inOctober 1980 that theinstrument
.should continue tobeused ,butshould beamended inanumber ofrespects ,
particularly soasto.allowsimultaneous tranches . (
8.Shortly after theearthquake insouthern Italy inNovember 1980 ,the
European Council ,meeting inLuxembourg inDecember 1980 ,invited theCouncil
todecide without /delay ,onaproposal from theCommission ,onexceptional
aidmeasures designed tocontribute tothe reconstruction programme inthe ,
areas affected .TheCommission immediately submitted aproposal for a
(4)Decision providing forCommunity aid toItaly , which hassince been
adopted bytheCounci I.^
This Decision empowers theCommission ,byway ofsole exception andby
extending the initial provisions ofthe -NCI,tocontract loans forthe :
purpose offinancing investments for .the reconstruction ofthemeans of
production and the economic and social infrastructure ofthe stricken areas .
These loans maynotexceed atotal of1000million ECU inprincipal ,less
anyoperations ofthesame nature ,carried outbytheEIBoutofitsown
resources .
(1)Council Decision 80/739/EECof22July 1980
(2)Council Decision 80/1103 /EEC of25November 1980
(3)Proposal for aCouncil Decisión ,dated 30October 1980 (C0M (80)670
fir ') ' .
(4)Commission proposal.of 5December 1980 (Doe .COM (80)863 final )
(5)Council Decision 19/81/EEC of20January 1981 (0JL.37721 of
10February 1981 ). *
«

Interestsubsidies onloansforthereconstruction ofthestrickenareas
inItaly
9.TheloanstobegrantedforthispurposefromtheresourcesoftheNCI
andfromthoseoftheEIBwillbeaccompanied byinterestsubsidiescharge­
abletotheCommunity'sgeneralbudget.Theseinterestsubsidiesareto
begrantedbytheCommissionatarateof3percentagepointsperannum
(1)foramaximumperiodof12years.
Euratom
10.TheCouncilhavingdecidedin
forEuratomloansfrom500million
furtheramendments in1980tothis
isempoweredtocontractloansfor
ancingofnuclearpowerstations.1979^^toincreasetheceilingfixed
ECUto1000millionECU,therewereno
instrument,underwhichtheCommission
thepurposeofcontributing tothefin-
Communityborrowing
11.TheCouncildecided,onaproposalfromtheCommissiondated30October
(4)1980,toadoptaRegulation adjustingtheCommunityloanmechanism
designedtosupportthebalancesofpaymentsofMemberStates,whichhad
beensetupin1975.^Therevampedmechanismisabletomobilizeasub­
stantiallygreatervolumeoffunds,theceilingonitsborrowingoperations
havingbeenincreasedtotheequivalentof6000millionECUinprincipal-
(1)CouncilDecision19/81/EECof20January1981(0JL37/21of10Febri.'pr
1981)
(2)CouncilDecisionof20December1979amendingDecision77/271/Euratom
(3)Decision77/270/Euratomof29March1977
(4)CouncilRegulation (EEC)No.682/80of16March1981(0JL73of
19March1981)
(5)CouncilRegulation (EEC)i*o„397/75and398/75of17February1975
(OJL46/1of20February1975).

II.Overall view ofCommunity borrowing and lending in1980 -
Trends compared with previous years
' f
1.Lending
Λ
12.The loans granted byCommunity instruments in1980 totalled 4530.4
million ECU :4152.4 million inside theCommunity and378 .million outside .
Theexternal financing operations were carried out bytheEIBand the ECSC .
Lending inmember countries in1980 increased by22.6% compared with "
1979 .This increase ,which hastaken place inaneconomic situation which
isstill difficult ,isinresponse tothecall made onseveral occasions ,
both bytheEuropean Council andtheCounci IofMinisters ,fortheCommunity
tostep upfinancial assistance toencourage investment ,stimulate job'
creation and reduce the economic disparities between member countries .
Thesupport given bylending activities totheCommunity 'smajor policy
objectives canbegauged from their breakdown bysector andbycountry .
\ ' . *
Trend inlending operations inthe Community ,
• ■. . .(1)byinstrument
/
, (inmillion ECU )
/Year ECSC EIB Euratom NIC Total
1970 31.6 338.6 370.2
1971 112.2 469.0- 581.2
<
1972 188.5 505.9/694.4 „
1973 286.4 696.8- 983.2
1974 377.9 849.7 1,227.6 ,
1975 804.9 917.5 1,722.4
1976 1,063.8 1,086.0 2,149.8 ;
1977 741.5 1,401.3 96^9 2,239.7
1978 797.7 1,966.5 70.3 2,834.5
1979 " 675.8 2,281.2 152.5 277.0 3,386.5
1980 . 1,020.3 2,753.2 181.3 197.6 4,152.4
(1)The "balance ofpayments "loans are not shown inthis table ,since
they donotserve astructural purpose .

-6-
13.Thesectoral breakdown ofLendingwithintheCommunity in1980under
thefourinstruments wasasfollows :.
(inmillionECU)
Sector Total ECSC EIB Euratom NIC
Productive sector 1,277.8 692.5 585.3
Infrastructure 1,204.8 4.61,110.6 89„6
Energy 1,669.8 323.2 1,057.3 181.3 108.0
Total . 4,152.4 1,020.3 2,753.2 181.3 197,6
14.Thepercentage sharesofthethreesectors wereasfollows ;31/4or
lending wenttotheproductive sector,29%toinfrastructure and40%to
energy.
Theenergysectorhasbecomeincreasingly dominant overtheyears(having
accounted foronly11%oflendingin1970),adevelopment clearlyinline
withoneoftheCommunity 'spriority objectives .TheCommunity borrowing
andlendinginstruments haveassistedparticularly inthedevelopment of
indigenous energyresources,inthediversification ofenergyimportsand
inenergysaving."
Lendingtotheproductive sector,ontheotherhand,showedtheslowest
growthduringtheperiod,despite asharpincrease from1979to1980due
mainlytoanupturnininvestment projectfinancing intheECSCindustries
andtomajoradvancefactoryprojects financed bytheEIBinIreland.The
productive sector'sshareoftotallendingfellfrom54%in1976to31%in
1980.Thissharpfallreflects thegeneral slowdown inproductive investment
intheCommunity.The.secto^shouldbegivenincreasedassistance sinceit
isadirectcreatorofpermanent jobs,particularly insmallandmedium-
sizedfirms,wherethegloballoans'technique hasledtothediversification
andreinforcement ofCommunity assistance .

-7-
'Lendingtotheinfrastructure sectorhasgrownsteadily since1970'
(from125millionto1205million ECU),althoughitsshareoftotalCommu­
nitylending hasfallenfrom34%to29%.TheEIBhasprovided thebulkof
thisfinance,sincetheNCI'sactivities aretoorecentandthoseofthe
ECSCarerestricted totheconstruction ofhousingforECSCworkers.The
valueofthecontributions madebytheEIBandtheNCItothefinancing of
infrastructure projectsliesmainlyintheirimpactontheeconomic devel­
opmentoftheCommunity 's"lessprosperous regions,particularly theMezzoy
giorno,Ireland,theassisted areasintheUnitedKingdom andGreenland ,
andintheimprovement incommunications betweenvarious Community member
countries .
- ,.■ ■■-• /
15.-Lendingisconcentrated inthoseCommunity countries withmajor-regional
problems .In1980,Italyaccounted for34.4%ofloans,theUnitedKingdom
for25.4%andIrelandfor9.1%(i.e.atotalof69%).Thisproportion has
remainedfairlystaticinrecentyears.Franceaccounted for15.7%ofthe
1980totalandBelgiumfor6.4%.
2.Borrowing
16.Theincrease inthetotalvolumeofborrowing -3874million ECUin
1980asagainst 3605million ECUin1979-wasduemainlytoincreased calls
bytheNCIandtheECSConthecapitalmarkets. v
Overalongerperiod,itwillbenotedthat,whiletotalborrowing by
theCommission andtheEIBisapproaching 4000million ECU,thefigureof
3000million ECUwasalmostreachedin1976owingtosubstantial borrowing
tofinance balanceofpayments deficits .
TheECSCpractically reachedthe1000million ECUmarkasearlyas1976
and1978andtheEIBhasincreaseditsborrowing verysharplysince1977,(
theyearinwhichittopped 1000million ECUforthefirsttime.Euratom
hascontinued toexpanditsborrowing steadily .Noloansinsupportofn
payments balances havebeencontracted duringthelastthreeyears.

-8-
With this growth inborrowing ,particularly since 1973 ,theCommunity
isplaying anincreasingly important role inrecycling capital from countries
with balance ofpayments surpluses and inpromoting priority investments in
theCommunity .Thanks totheCommunity 'sstanding ,duemainly tothe
guarantees itcanoffer and itsfinancial capacity ,itcan raise substantial -
amounts oncapital markets onthe best terms for investors .
Trend inborrowing operations
bythe European Communities , '
byinstrument
(inmillion ECU ;
Year ECS C EIB(1) Euratom EEC(2) NIC TocaI
1970 60 169 S>'
1971 102 413 515
1972 230 462 ó9¿
1973 263 608 87 ",
1974 528 826 1,-35 Λ
1975 731 814 1,545
1976 956 732 1,249 2,937
1977 729 1,030 99 571 2,429
1978 981 1,863 72 2,910
1979 837 2,437 153 178 3,605
1980 1,004 2,384 181 305 3,874
(1)Excluding third-party participations inEIBfinancing ,which amounted
to402.3 million ECU from 1972 to1980 (44.6 million in1979 and 83 ,.5
miIlion in 1980 ).
(2)Borrowing tofinance balance ofpayments deficits .

3.Balance between borrowing andLending
17.InthecaseoftheNCIandEuratom,Lending mustmoveinLinewith
borrowing,sinceborrowing isundertaken onLywithaviewtoLending andno
Loansaregrantedfromcashresources .Thedifference thatcanbenoted
inthecaseoftheNCIisduetoactivities straddling theyear-end andto
costsincurred infloating loans.
/ ;- . .
Thesamegenerally appliestothe'ECSC,sinceLendingfromownresources
mainlyforlow-cost housing-isrelatively limited.Thesituation is
different withtheEIB,whichhasitsownresources andcaVshholdings.It
wasduetothislattersourcethat,in1980,totallendingreached 3124.6 '
million ECU,exceeding totalborrowing bymorethan700million ECU.
(inmillionECU)
1980->
BorrowingLending
EEC Non-EEC Total
NCII
304.5 197.6 197.6
Euratom 181.3 181.3 .'' 181.3
ECSC 1,004.0 1,020.3 6.6 1,026.9
EIB(1) 2,383.5 2,753.2 371.4 3,124.6
<
Total 3,873.3 4,152.4 378.0 4,530.4
(1)Excluding operations carriedoutundermandate,onbehalf,forthe
account andattheriskoftheCommunity ,whichareaccounted for,
offbalance sheetintheEIB'sSpecialSection (inaddition tothe
NCimentioned above,176.3million ECUoffinancing outsidethe
Community ).

-10-
III.Lendingin1980
1.NewCommunityInstrument (NCI)
19.LoansfromtheNCI'sresourcestotalled197.6millionECUin1980.
Theyweregrantedforinfrastructure investmenthelpingtoreduceregional
disparities,projectshelpingtoimplementCommunityenergypolicyand
projectsinvolvingbothregionalandenergypolicyaspects.
ExceptfortheFriulimotorway,theseprojectswerefinancedjointly
withtheEIB,onacomplementary basis,thuscoveringasubstantial propor­
tionoftheinvestmentcostandfacilitating theimplementation ofthe
prorityprojectsconcerned.Dependingonthetime-scale oftheprojects
andtheiramortization period,theloansarefortentotwentyyears.The
elevenprojectsfinancedrepresentbetweenthemaninvestmentof1660million
ECU,ofwhichenergyaccountsfor911millionECU.TheNCIloansthusmale
up11.9%mfthefinancerequiredonaverage,therangeforindividualpro­
jectsvaryingfrom7.4%to31.7%.
20.InItaly,morethanhalftheloansareforinvestmentprojectscontri
butingtothedevelopment ofthesouthernregions.Theimprovement ofthe;
urbanandintei–urbantelephonenetworksinApulia,withanadditional
120000lines,willstrengthenthelinksbetweenthisoutlyingregionand
therestofthecountryandtheCommunityandwillmakeiteasiertodevelcc
productiveactivities .Infrastructure work(accessroads,watersupplies,,
floodbarriers)ontheSyracuseindustrialestatewillcontributetothe
industrialization ofSicily.
Thegaspipelinebeingconstructed betweentheAlgerian/Tunisianfrontier
andnorthernItaly(thefinancedsectionofwhichcrossesSicily,thestraits
ofMessinaandpartofCalabria)willprovidetheMezzogiorno withnatural
gasand,onceconnectedtotheEuropeangaspipelinenetwork,willhelpto
diversifyandsafeguardCommunitysupplies.

Exploitation ofanumber ,ofsmallgasandoildeposits inLombardy and
intheAdriatic orTyrrhenian Seawillyieldupto1.7milliontoeperyear,
i.e.almost1.5%ofItalianoilimports.Theintroduction ofanintegrated
.systemforadministering andcontrolling thegeneration anddistribution of
electricity willleadtoenergysavingsofsome50,000toeperyear.
Finally,innorthernItaly,theconstruction ofthenewCarnia/Pontebba
sectionoftheFriulimotorwaywillimprovethelinksbetweenthismountai­
nousregionandtherestofItalyandAustria. *
I
21.InIreland,thevarious loansgrantedconstitute essential elements
oftheregional development programme .Peatproduction andthemanufacture
ofbriquettes forheatingarepartoftheprogramme forexploiting peat
resources ,whichshouldmeet20%ofthecountry'selectricity requirements .
Thecontinuation oftheprogramme formodernizing andextending thetele­
communications networkwilladdmorethan80000newtelephone subscribers
andprovidenumeroustelexfacilities ,therebyimproving conditions for
establishing andrunningfirms. \
22.InDenmark,finally,NCIassistance wasprovidedforthefiVsttime
fortwocoal-fired powerstations,oneatAsnaesforthegeneration of
electricity andtheotheratRandersforthecombined production ofelec­
tricity andheatfortheurbanheatingnetwork.
2.Euratom
23.Forvarious reasons,notalltheCommunity countries arecommitted to
thesameextenttonuclearpowerprogrammes .OnlyBelgiumandFranceturned
toEuratomforfinancial assistance in1980.
InBelgium,Euratomco-financed thesecondproduction urvit(900MW)of
theTihan;.;nuclear powerstation.

-12-
InFrance,Euratomco-financed unitsII,IIIandIV(900MWeach)of
thenuclear powerstationatOampierre-en-BurLyandcontinued toassist
theconstruction oftheNERSAfast-breeder nuclear powerstationatCreys-
Malvilles (industrial prototype of1200MW);participation intheNERSA
projectbreaksdownasfollows:EDF^^51%;ENEL35.5%,andtheGerman
company SBK14.5%(SBKcombining German,Belgian,DutchandUnitedKingdcin
interests ).
Theseprojects aredesigned toreducedependence onimportedoiland
aretherefore givenpriority bytheCommunity .
Theprojects financed byEuratom haveallalsobeenfinanced bythe
EIB.Evenwhencombined,however,thefinancing provided doesnotexceed
24.4%ofthecostoftheinvestment tranches concerned .Itshouldbeno+ed,
however,thatthetotalamountofinvestment ineachprojectissubstantial :
some1.5million ECUperMW.
3.ECSC
2k.ThelevelofECSClending wasparticularly highin1980:asin1
thefigureof1000ECUwasagainexceeded,withthenumberofloanstotal­
ling114.
Theminingofcoalanditstransportation tothermal powerstations
accounted foralmost athirdoftheloans.ItwasmainlyintheUnited
Kingdomthatlarge-scale miningprojects onnewsiteswerefinanced,parti­
cularlytheSelbyprojectinYorkshire .Inthecaseofthermal powerst^v ";~;n:
finance wenttoprojects inBelgium,Germany andFrance.
(1)EDF=Electricité deFrance
(2)ENEL=EnteNazionale perl'EnergiaElettrica .

-13-
Inthesteelindustry,finance wasprovided mainlyinGermany,France,
ItalyandLuxembourg .Thiswasthethirdconsecutive yearinwhich
Luxembourg hadappliedforECSCloans,whereasitsapplication inprevious
yearshadbeennegligible .Bycontrast,theUnitedKingdomsteelindustry,
whichhadreceived substantial loansupto1977,submitted nonewappli­
cations.Alarge-scale projectbeingprepared inBelgium hadnotbeen
finalized by1980.OwingtothesmallnumberofplantsinDenmark,Ireland
andeventheNetherlands ,thesecountries' shareinECSCfinancing mustbe
assessed overanumberofyears.
25.Loansweregrantedforinvestment projects inshipyards inItalyand
Germany,intheinterests ofproviding amarketforsteelproducts .Certain
conversion loansalsohavethissecondary effect/wheretheyare grantedto
engineering industries forexample.Theirmainaim,however,remainsthe
re-employment ofworkers maderedundant inECSCindustries .Substantial
loansweregrantedforthispurposein1980inFranceandtheUnitedKingdom
Forthefirsttime,thefinancing provided bytheECSCforconversion pro­
jectsaccounted foraquarterofitstotallending.
26.Theleveloflendingforworkers' housingin1980waslowerthanin
previous yearsowingtothefactthatprogrammes previously carriedout•
overtwoyearswerespreadoverthreeyearsandowingtothedelaysin
implementing thenewprogramme (theninth)howunderway .
4.European Investment Bank(EIB)
27.In1980theEIBprovidedfinancingtotalling 3124.6millionECU^
fromitsownresources,mainlycapitalraisedthroughborrowing .Asregards
theoperations itcarriedoutasagentoftheCommunity (leavingasideloans
fromNCIresources),theEIBgranted176.3million ECUfromtheCommunity 's
budgetary resources forprojects locatedoutsidetheCommunity .
(1)371.4million ECUoutsidetheCommunity .
\1

-14-
28.ThefinancingprovidedbytheBankfromitsownresourcesbreaksdown
asfollows:88.1%toCommunitycountries,5.5%toGreeceandPortugal,
morethan2.4%tootherMediterranean countries,and4%toACPcountries
andoverseascountries andterritories .
ThefinancingprovidedintheCommunityfromtheBank'sownresources
totalled 2753.2millionECU.Almosttwo-thirds ofthisamountwentto
regionalinvestmentprojects(irrigation,watersupply,treatmentofwaste
water;telecommunications andtransport;energy;industries,particularly
intheformofgloballoansforsmallandmedium-sized ventures)located
mainlyintheregionsgivenpriorityunderCommunityregionalpolicy(the
Mezzogiorno,Ireland,NorthernIreland,Greenland).
FinancingforprojectshelpingtoachievetheCommunityenergyobjec­
tives(development ofindigenousresources;diversification ofenergy
(1)importsandenergysavings)totalled 1102.7millionECU(432.6million
ECUforthenuclearsector)andconstituted thebulkoflendingforpro­
jectsofcommonEuropeaninterest;loansforimprovingcommunications
betweenmembercountries (sealinksbetweentheUnitedKingdomandIre!.a■iJ
andtheContinent,accesstotheFrejustunnel,etc.)totalled 103.5-rr>i11ion
ECU.
29.Asmuchasfour-fifths ofthisfinancing wasconcentrated inItaly,.
IrelandandtheUnitedKingdom-thecountrieswiththemostacutestruc­
turalproblems;theremainingloansweregrantedinFrance,Belgium,
DenmarkandGermanyandfortwoinvestmentprojectsinAustriaandTunisia
(2)whichwillhelptosafeguardtheCommunity'senergysuppljes.
(1)Thedifferencebetweenthisfigureandthe"energy"columninTable5
isduetothefactthatsomeindustrialprojectscontributetothe
Communityenergyobjectives,whileotherprojectsintheenergy
sector-e.g.distribution ofelectricity-arefinancedunderthe
regionaldevelopment policy.
(2)Loansgrantedonspecialauthorization from'theEIB'sBoardofGover­
norsunderArticle18oftheBank'sStatute.

Borrowing in1980
1.Thesituation oncapital markets
l. •
30.Borrowing conditions remained verydifficult during1980onmostcapital
markets.Theworsening inflationaty strainsresulting inparticular from
thesuccessive risesinoilpricesandalsotheuncertainty connected with
thesituation intheNearandMiddleEastwerelargelyresponsible for
thissituation .IntheUnitedStates,theadoption ofarestrictive mone­
taryandbudgetary policycausedinterest ratestorisesharply,although
thistrendwasinterrupted inthesecondquarter,whenfearsofaworsen­
ingrecession ledtoatemporary relaxatioa ofthispolicy.,
31.Inmostindustrialized countries ,widening balanceofpaymentsdeficits
wereafurtherfactorpushingup^interestrates.Asrateswererisingin
the.UnitedStates,theyalsowentupbothonnational capitalmarkets and
ontheEuro-dollar market.InEurope,theymaintained theirupwardtendency
untiltheendof1980,although therewassomeeasinginthemiddleofthe
'year. ' '
32.Onanumberoffinancial markets,short-term interest ratesreached
exceptionally highLevels,higherthanthoseoflong-term rates.Ithas
*
therefore becomeverydifficult toraiselong-term fundsthrough convent­
ionalfixed-rate bondissues,andsuchissueshavehadtobeconcentrated
onthefewperiodsinwhichtherewasaneasingoflong-term rates.This
situation ledtoar>increase invariable-rate issuesdenominated indollars
and,towardstheendoftheyear,anupturninstockmarketpricesboosted
convertible bondissues.IntheUnitedKingdom,onlyoneforeignissue
wasfloatedfollowing theabolition oftherelevantrestrictions ,while
theountofEuro-sterling issuesincreased rapidly.InGermany,the
amountofforeignpubli"cissuesdenominate^inGermanmarksremained at
roughlythesamelevelasin1979,despite manystrains causedbythe

-16-Ti Jli
deterioration inthecountry 'scurrent account .InFrance ,themaintenance
ofpositive real interest rates and the Lead enjoyed bybond market -aes
helped toboost issues onthis market .Similarly ,theamount ofissues
denominated inEuro-francs increased sharply .Issues denominates in
Belgian andLuxembourg francs fell ,reflecting exchange market pressures
onthese currencies ,while placements inguilders increased .
Outside theCommunity ,the amount offoreign public issues fell in
Japan ,but remained the same inSwitzerland .
2.Breakdown ofCommunity borrowing in1980
33.Thevolume ofborrowing carried out bythe four Community irst-t r- .
in1979 and 1980 breaks down asfollows :
1979
inmillion ECU
EIB
EuratomECSC 837
2,437
1531,004
2,384
181
NCI 178
Tota l 3,605 3,87 ^
Activity therefore increased despite thedifficulties experience' 1
carrying outoperations because ofthe sometimes unfavourable situatior
markets .

-17-
./
Communityfinancialmarketsprovided64%ofthetotalfundsraised
in1980;theproportions providedbynationalmarketsoutsidetheCommunity
(theUnitedStatesandSwitzerland )andtheinternational marketwere10%
and26%respectively .
* -
34.Abreakdownofborrowingbycurrencyisgiveninthetableonthe
followingpage.Thisbreakdownpartlyreflectsthepreferences ofloan
recipients,butisalsogreatlyinfluenced byinterestratesandthevary­
ingextenttowhichcurrencieswereavailable.
•\ ' ····· ....
Thehighnumberofoperationscarriedoutintheformofprivate
placingsshouldalsobenoted.Theusemadeofthisborrowingtechnique
wasdueusuallytothesmallamountperloanapplication ortotheimpos­
sibilityoffloatingapublicloaninthedesiredcurrencyattheparticular
moment.Onamoretechnicallevel,theuseofthistechniquemakesit
possibletospreadborrowingoveraperiodoftimeandtotakebetter
advantageofmarketfluctuations .

Borrowing in1980.bycurrency
(inmilLionECU)
Membercountrycurrencies Non-member country currenc ies
TotaLDM HFL FF LIT BFR UKL LFR USD SFR YEN
NCI 48.4 91.5 164.6 304.5
Euratom 17.5 22.3 50.5 48.5 33.9 8.6 181.3
ECSC 406.5 17.9127.1 60.5 82.0 27.8 202.3 79.9 1,004.0
EIS 814.3 226.1 136.6 42.7 45.7 51.7 666.0 233.8 166.6(1)2,383.5
TotaL 1,286.7 357.8 314.2 42.7109.0 127.7 113.4 1,032.9 322.3 166.6 3,873.3
% 33.2 9.3 8,2 1.1 2.8 3.2 2.9 26.7 8.3 4.3 100
(1)Takingintoaccountthird-party participations inEIBLoans(83.3miLLion ECU),thetotaLfunds
raisedin1980amountto2466.8miLLion ECU.

Interest subsidies
1.Community interest subsidy mecham sms
35.TheCommunity iscurrently able togrant four types ofinterest subsidy
-ECSC subsidies (onECSC Loans )
-EMSsubsidies (onNCI and EIB loans inItaly and Ireland )
(1)-ERDF subsidies (onEIB loans inERDF regions )
-Subsidies under thespecial aidarrangements for .theItalian areas
stricken bytheNovember 1980 earthquake (from NCI and EIB resources ).
The "earthquake "interest subsidies were not applied in1980 .Each of
thefour types ofsubsidy hastheeffect oflowering the interest rate by
three percentage points .However ,thetechnique ofgranting thesubsidies
varies :the EMSand ERDF interest subsidies arediscounted and charged to
theCommunity budget asasingle sum,whereas the ECSC subsidies arenot
discounted andare/charged annually totheECSC budget over thefirst five
years ofthe loan .The "earthquake "interest subsidies are also tobe '
charged annually ,but tothegeneral budget oftheCommunities and fornot
more than twelve years .
1 •*
.... (2) .· *2. EMS interest subsidies
'I , '
36.Since Council Regulation (EEC )No.1736 /79of3August 1979 came into
force ,89loans have been subsidized under theEuropean Monetary System ,
55from 1980 budget appropriations .
(1)AnERDF interest subsidy hasbeen granted only once ,since only one
.application for .such subsidies has been received from Member States .
\
(2)Discounted interest subsidies ,charged to "thegeneral budget asa
single sum foreach loan . ,

-20-
Subsidized loans Interestsubsidiespaid
NumberMillion .
ECUMiIlion
ECU%ofloans
1979
198034
55(2)885.4K'
1,030.8(2)200.0
197.022,6
19,1
TotaI 891,916.2 397.0 20.7
(1)Theamounts(inmillionsofECU)ofsubsidized loansreferredtoin
EIBdocumentsdifferslightlyfromthosegivenhereowingtothe
differentdatesusedforconvertingintoECUtheloansandtherelac
interestsubsidies.Forpurposesofconvertingthecurrencypay^ole
underaloan,theBankusesthelastworkingdayofthequarterpre­
cedingthesigningofthecontract.Forpurposesofcalculating t'-e
interestsubsidy,however,itusestheexchangeratesprevailing on
thedayofthefinalcalculation (normallytwodaysfollowingdis­
bursementoftheloan)soastoensurebettercomparability between
theamountofthesubsidyandtheamountofthesubsidized loan„Th<
figuresinthisreportarethereforebasedontheseconddate,,
(2)Onesubsidywasfinancedpartlyfrom1979appropriations andpartly
from1980appropriations .Forstatistical purposes,theamountof
theloanconcerned wasdividedbetweenthetwofinancialyearsin
proportiontotheinterestsubsidyforeachyear,eachpartbeing
countedasaseparateloan.

The1980operations relatedto44investment projects whichwere
financed by47LoansfromtheEIB'sownresources (884million ECU)and
■'■ '-, - / 7\
by8loansfromNCIresources (147million ECU)>giving atotalof.1031
(
million ECU;7projects werefinancedjointlyfromtheEIB'sownresources
andfromthoseoftheNCI.Fourprojects received severalsubsidized loans.
Thediscounted amountofinterest ratesubsidies totalled 197million
ECU.Theratioofthetotalamountofinterest subsidies tothatofsub­
sidizedloanswas19.1%,asagainst 22.6%in1979;thisratiodependsinter ,
aliaonthelengthoftheloans.
Theamountofeachinterest subsidy andofeachsubsidized loanis
givenintheannexedlists.' .'
Theinterest subsidies breakdownbyrecipient country asfollows :
two-thirds forItalyandone-third forIreland.- ,
Byoriginofresources lent,theybreakdownintoeightloansfrom
NCIresources and47loansfromtheEIB'sownresources (i.e.15%and85%
respectively ). , -
37.Ananalysis bysectorofuseshowsthat44^ofthetotalamountof
interest subsidies wenttoprojects intheenergysector:22%forthe
development ofprimaryenergysources (hyrdocarbons ,peat,hydroelectric
power),5%forthermal powerstations andheatproduction ,and17%for
energytransmission (gaspipeline andpowerlines).Infrastructure projects
intheothersectorsaccounted fortheremaining 56%oftheinterest subsi­
dies:30%wenttowatersupplies andirrigation ,16%totheconstruction
ofturnkeyfactories andvariousinfrastructure projects inindustrial areas
,and10%totheimprovement oftelecommunications networksandsea'linksand
thedevelopment offishingportsandforests.
Amostfour-fifths oftheinterest ratesubsidies relatedtoprojects
locatedwhollyorpartlyinpriority regions.Sincetheprojects involve
^infrastructure ,thenumberofnewpermanent jobs .forrunningthecompleted
projects isnecessarily limited,exceptfortheestablishments thatwill
occupytheadvancefactories constructed inIreland.Nevertheless ,these

-22-
projects will eventually contribute ,largely indirectly ,tothedevelopment
ofproductive activities which will create asubstantial number ofjobs ;
moreover ,the work involved and the supplies needed for carrying out these
infrastructure schemes will have direct and indirect temporary repercussions
ontheemployment situation over whay may,insome cases ,berelatively
long periods .
EMS Interest Subsidies paid from 1980 Appropriations
Subsidized loans Interest subsidies paid
Number Mi11ionECU MiIlion ECU©/·
/»
Byrecipient country
Italy
Ireland34
21731,9
298 =9'
129.8
67.265.9
34„1
55 1,030.8 197.0 I100.0
Í
Byorigin ofresources lent
NCI
EIB8
47146.8
884.0! Ì
i 1
29-6 115.0
167.4 IS3.0 j
55 1,030.8 197.0 100.0
Bysector ofuse
Primary energy production
Transformation ofenergy
Transmission ofenergy12
5
7253.8
51.9
177.0: i
¡ I
i i
43.5 j¿2,'i
10.7 5.4 j
32.9 ¡16«? I
i '
Sub-total :energy 24 482.7 87«1 ¿4.,? å}
Water engineering
Industrial infrastructure
Transport and communiti cations
IForestry ,fishing17
8
5
1312.4
146.0
79.4
10.3t ;
59.0 30,0
ι
31-3 ¡15.9
17.3 !8,7
ι
2.3 : "-2
1
SuD-total :other infrastructure 31 548.1 109 ,,9 5«5.3
Total 55 1,030.8I
197.0 !10Π.0
i

-23-
(1)3.ECSCinterest subsidies
' • /
38.ECSCinterest subsidies werefirstused-inthe1960s-tomakecon­
version loansmoreattractive andthusprovide amoreeffective meansof
re-employing labour.Theyhavealsobeenused,sincethe1970s,topromote
thoseinvestments projects intheECSCindustries whicharebeneficial to
theenvironment ,toovercome bottlenecks (cokingplantsinthesteelindustry )
andtosetupresearch orvocational training centres.Finally,duringthe
lastthreeyears,interest subsidies havebeengrantedmainlytosupport
investment projects contributing totherequired restructuring ofthesteel
industry. '
Theallocations madein1980,boththoseforconversion andthosefor
restructuring ,werethehighest sofarmade,andtheyarecontinuing to
increase .Itshouldbenoted,however,thattheincentive effectofthese
interest subsidies -whichareuniformly fixedatthreepercentage points
forfiveyears-diminishes asinterest ratesincrease . ,.
.D Β F LNL UK DKIRLITotal
Article54
restructuringΊ
8.01.98.05.40.31.50.5-1.827.4
Article 56
conversion1.1 17.70.8-13.6■- ·0.1ι
33.3
Total 9.11.925.76.20.315.10.50.11.860.7
(1)Non-discounted interest subsidies,paidannually .

-24-
ANNEXES
TABLES
Table 1Borrowing bytheEuropean Communities (amountsoutstanding )
Table2Commission borrowing in1980
Table3Trendinlendingoperations intheCommunity,bysector
Table4Totalamountofloansgranted bytheCommunity inmemberand
non-member countries -1975to1980
Table5Breakdown ofloansintheCommunity in1980
Table6NCIloans
Table 7Euratom loans
Table8 ECSCloans
Table9EIBloan«
Table10ListofNCIloansin1980
Table11ListofEuratom loansin1980
Table12Breakdown oftheamountofECSCloanspaidoutduring1980
Table13Interest subsidies granted bythevarious Community mechanism :
(1970-80 )
Table14EMSinterest subsidies .Financial year1980:Italy
Table15EMSinterest subsidies -Financial year1980:Ireland
Listofreports anddocuments onCommunity borrowing and
lendingactivities whichhavebeensubmitted totheCouncil
andtoParliament

Tabla1
BorrowingsbytheEuropeanCommunities(anountsoutstanding)
(atendofeachyear,inmillionECU)
Tear ECSC EIBEuratoa^EECW NCI Total
1970ι 741 1020 1761
1971 802 I423 2225
1972 963 1784 ; – 2747
1973 i172 2287 • . – 3459
1974 1617 3124 . 4741
1975 2393 3926 17 – 6336
1976- ,3477 4732 14 I161 -– 9384
1977 3956 5421 110 1500 , 10986
1978 4416 6715 182 I36! 12674
1979 4713 8541 333 965 178 14730
1980 5300O10598 502 1016 .402 17898
(1)ExcludingEuratoa fortheperiodpriorto1975
(2)Balanceofpayaentsfinancino
(3)Estiaate
Sources:CoanissionstaffandElB

TA8LE 2
Commission borrowings in1980
No TypeLife
(years)Coupon
.%Currency and
amount (million )MiIlion
ECU
Λ)NCI
1publicissue 15 113/4 US220 15,:,
2privateplacing 15 103/8 HFI40 14,3
3η15 8,3 DM 41 1o,0
I(15 117/8 HFL CO 14,3
5M10 9,45 DM27,9 10,9
6tl10 14 US28.
7oublieissue 15 11 US275 57,3
8
9II
privateplacing15
1511
13US2
US270
2053.
1'"
10M10 83/8 DM22 ,.,6
11«I15 8,3/8 DM33
12II20 11 HFl75 Ó'
13II20 111/4 HFl26 ■°r■'·
14l(15 111/4 HFl 51
15M15 111/4 HFl25 9/,
16publicissue 15 133/4 US226 \/Ó
NCI Total 304::
B)
Euratom
17 publicissue δ 93/4 LFR500 12,09
18II12 14,60 FF300 50,51
19 privateplacing 10 8 DM45 17,3,
20II15 111/4 HFl15 5,1'
21It20 107/8 HFl47,5 17,.02
22•I6 6 SFR20 8,0',·
23It7 123/4 LFR250
CH17 123/4 LFR300 (217
2517 123/4 LFR350 c
26 publicissue 7 13 ΒF/2000 43.38
Euratom Total181..'

ι
TypeLife Coupon Currency and MiIlion
No(years)% amount (million ) ECU
C)ECSC
27 bondissue 8 77/8 DM150 58,5
28 bondissue 8 111/2 USS40 30,3
29 bondissue 10 115/8 US250 38,2
30privateplacing 8 107/8 FF20 3,4
31It10. 8 DM40 15,6
32 bondissue 10 10LFR500 12,1
33f*6 141/4 FF150 25,3
34II12 14 FF400 67,3
35II8 111/2 US$100 ~76,4
36 .II7 11 :USt25 19,1
37M10 111/4 US%50 38,2
38II12 77/8 DM150 58,5
39II8 91/2 DM150 58,5
40II10 6 SFR80 34,5
41II8 131/2 UKfc20 36,4
42privateplacing 12 12,225 FF20 3,4
43M15 123/4to
131/4FF80 J3'5
44II5 13,30 FF20 3,4
45If5 13,60 FF10 1,7
46II8 13,95 FF20 3,4
47II7 14,30 FF15 2,5
48997 14,30 FF20 3,4
49•I'10 9,65!DM50 19,5
50II8 83/4 DM40 15,6
51II8 81/4 DM70 27,3
52II8 81/8 DM35 13,6
53II8 81/8 DM10
\3'9
54II8 81/8 DM50 19,5
55II12 8-10 DM12 4,7
56II12 8 ;DM12 4,7
57II12 8 DM12 4,7
58II12 7,90 · DM12 4,7
59If8 8,35 DM250 97,4
60II8 12-10 LFR250 6,0
61II8 113/4 LFR400 9,7

No TypeLife
(years)Coupon
%Currency and
amount (miIlion)MiIlion
ECU
62privateplacing 8 131/2 BF500 12,1
63M8 133/8 BF2000 48,4
64II6 51/4 SFR38 16,4
65II6 51/4 SFR17 7,3
66M5 61/4 SFR30 13,0
67II5 57/8 SFR20 8,6
68II15 107/8 HFI50 17,9
69•I5 17-143/4 UKt25 45,5
ECSC Total 1004,0
NCI+Euratom +ECSC 1489,,δ

Year
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980TABLE3
TrendinlendingoperationsintheCommunity
bysector (inmillionECU)
Productivesector Infrastructure Energy Total
203,9 :125,1 ^41,2 370,2
340,3 192,6 48,3 581,2
328.3 191,2 174,9 694,4
503,8 196,9. 282,5 983,2
604,0_ 143,4 '480,2 1.227,6
758.7 469,9 488,8' 1.722,4
1.163,5 429,9 556,4' 2.149,8
«
938.8 607,7 693,2 2.239,7
745.4 1.000,0 1.089,1 2.834,5
756,4 1.055,8 . 1.574,3 3.386,5
1.277,9 1.204,7 1.669,8 4.152,4

TABLE4
TotalAmountofLoansgranted bytheCommunity inMemberandNon-Member Countries -
1975to1980
(inmiLLionECU)
1975
EIB+ECSC1976
EIB+ECSC1977
EIB+ECSC+EUR *1978
EIB+ECSC+EUR1979
EIB+ECSC+EUR
+NCI1980
EIB+ECSC+EUR
+NCITOTAL
1975/1980
MiIlion %Million %ΜΠIion %MiIlion %«liIlion XMiIlion */.Mi11ion
BeIgium 52„93.1 55.22.615.9 0.764.1 2.3139.6 4.1264,6 6.4592.3 3.6
Denmark AO.72,4 9.10.433.2 1.5119.5 4.215.9 -0.5103.5 2.5321.9 1.95
Fed.Rep,ofGermany 150.98.7297.7 13.8221.0 9.9218.9 7.7196.9 5.8143.3 3.41228.7 7.5
France 275.1 16.0193.3 9.0490.8 21.9486.4 17.2391.5 11.6653.5 15.72490.6 15.1
Ireland 37.92.258.1 2.779.9 3.6117.4 4.1353.5 10.4377.1 9.11023.9 6.2
11aly 535.431.1530.4 24.7599.2 26.71007.3 35.61126.0 33.3 1430»Π34.45228.3 31.7
Luxembourg 1.10.1 0.1- 0.6-73.9 2.619.8 0.668.6 1.6164.1 1.0
Netherlands 30.41.769.0 3.2 0.5- 42.8 1.50.Ó-4.90.1148.2 0.9
UnitedKingdom 597.934„7936.9 43.6749.8 33.5704.0 24.81103.3 32.61056.0 25.45147a931.2
Non-EEC (1) - »48.8 2„2- -39.4 1.157o5 1.4145.7 0.9
Total 1722e41002.149.8 1002239.7 1002834.5 1003386.5 too4159.0 10016491.6 100
Source:Borrowing andLendinginstruments inthecontextoftheCommunity'sfinancial instruments (updated)-
European Economy,July1980,No.6=
*EUR=Euratom
(1)TheEI3statistics fortheCommunity includeoperations ....directinteresttotheCommunity carriedoutunderthe
"secondsub-para-jrapbofArticle 18(!>oftheBank'sStatute,whichstipulates thattheBoardofGovernors may
authorize loansforinvestment projects outsidetheCcmr.n<nity„

TABLE 5
Breakdown ofLoans inthe Communrty in1980 ""
(mmillion ECU )
NCI Euratom ECSC EIΒ• » .Total
Infr .Energy Total Energy Total Pr.S.Infr .Energy Total Pr.S. Infr .Energy Total Pr.S.Infr .Energy Total
Β-
82,2 82,2 29,17 29,17 6,2 147,0 153,2 6,2•258,4 264,6
D 18,1 18,1 4,29 4,29 9,6 25,1 -46,4 81,1 13,9 25,1 64,5 103,5
FRG 98,48 0,78 29,79 129,05 14,2 14,2 98,5 .0,8 44,0 143,3
F 99,1 99,1 237,55 0,51 37,41 275,47 1,7 63,4 213,9 279,0 239,3 63,9 350,4 653,6
IRL 27,3 14,4 41,7 3,97 0,13 1,10 177,2 114,0 43,1 334,3 178,2 141,4 57,5 377,1
IT 62,3 75,5 137,8 138,63 1,13 139,76 223,8 578,5 350,2 1152,i >362,4 641,9 425,7 1430,0
L ■ 68,62 68,62 68,6 68,6
NL 4,59 0,27 4,86*4,6 0,3- A'9
UK 139,37 1,73 226,85 367,95 166,8 329,6 191,6 688,0 256,2 331,3 418,4 1055,9
Non-EEC
<1)6,63 6,63- 50,9 50,9 6,6 50,9 57,5
Total 89,6 108,0 197,6 181,3 181,3 699,13 4,55 323,22 1026,90 585,3 1110,6 1057,3 2753,2 1277,9 1204,7 1669,8 4152 ,4
Pr.S.=Productive sector
>Infr .=Infrastructure . v
(1)TheEIBstatistics fortheCommunity include operations ofdirect interest totheCommunity carried outunder the
second sub-paragraph ofArticle 18(1)oftheBank 'sStatute ,which stiupulates that theBoard ofGovernors may
authorize loans forinvestment projects outside theCommunity .
\

TAPLcJ_
NC'Loane19?3-1fPQ
in3nM,r;i
1fíSÍ!
¡.a]?ι°»3.Infr«En*
Belgiuæ a»η -ι- - "
Deraark ~ -ί
m }, 18,118„1
FRofGere?.ny- -i
I- --
France . i. .. M
ire:and 6?,024.785.7"I7<,3Η,A41.7
Italy 39.5'SΛ8e.0ìrΛλ,β Ci-,?5,J137«8
Luxembourg », **I«Β »®
Ksthorìanos - -i
" - ~
UnitedKíngdon 25β979«Λ105.3[ -
Nor¡"EEC -ι
- »
Totai -127,5Η9.5277J)j89,.6lÜSr.Q197.6
Pr.S.
!cfr.-Producnve seetor
»Infrastructure

TABLE7
'/
EuratomLoans1977-1979
(InmillionECU)
1977 1978 1979' 1980
Pr.S.Infr.EnergyTotalPr.S.Infr.EnergyTotalPr.S.Infr.EnergyTotalPr.S.Infr.EnergyTotal
Belgium mm m «-- 50.5450.54««82.282.2
Oenmark m« m- - « - «· m m m
FRofGermany 77.0577.05 34.3734.37 m m m m- m
France .19.8519*85 m'm' m m 67.8867.88 99.199.1
Ireland - - m m m- m m m m
Italy --- 35.8935.89 34.0434.04mm m m
Luxembourg - -- - m m m m _
Netherlands mm m m''m'm m ,m m m m m m m m
UnitedKingdom--~- mm m m-
Ron-EEC - - •- .m m m m
Total
1--96.9096.90--70.2670.26 -152.46152.46--181.3181.3
PP.S.*Productivesector
Infr.■Infrastructure

e
ECSCLoans1970-1980
(1970-1974) (inmi11ionECU)
£ne'-Totm S^-:tin£n«'Tout £«*:•m.£n®f.Toiai S*:*ini-,*tT^'it
P'CX5FRÛSg.» Ç><X3frâî£t« prooIrysg.« pr^jfr.s:- 0.x
Belgium 290––290 1993– l'sf93I5M120-16S3–07?067iV
IJenaark -c?'
FRofGermany 8891,1~100028M0469Sd:v6jaw0322$70171% 1-*v;;.-
France i04- 184786 S3So–>222*t7b S35.226*?0653.410(02 Cf
\r«:and
11aly>00 1.60– >60*4r$144-?s73o.'6 "GI- N S4 ,M r.5»d
Luxembourg 200–-2.00 02?– 02"
Nethsr]unas 74004ê– q.os–coo'osi >0«»3;e0BO–j$8 1041_04'
19*j
unitedKingdom 3?76172XV6505
Non-*EC
Total 28231.9»1643160 0.5:21.80'.1219165987.36M.671865022594£56548123641299964467J4Ô377 8/
(l)Industry
(1975-1979 ) (?n«tllicaECU)
1975 1976
Soct.(T)tn-£rv#r-TotatSeel'n-cner-T^tul
Prod »r«#yw pr&df'a#guS?ciintnef-To'iai
P<OG'r^Sgie5€C'
D'CXJin-En«f-Tûia <
fras a.eSdC' in- Totic
pT-JCF'15 R,F
Belgium 403S177-42*234582f9– 3·*27 15.0^oes 1587 - ï89– ι89 30?·ϋU 3¿'5
Osnaark 725«0.41 -2299 - - - - - 0w- 0fi 1307010– .3V 0?9 Ο:Β
FRofGsrraanyIIS327.902366150.87 16676 96?1049 164)91 2*.»5.H681.76:ιό51 115.63 560!7&o-3*03 125AC606•·56'49Ob
France11214495-117.09 10'9242627,00 133.20 12S27Ü8'¿β3.''7<51 A99*2773443il'14 69Λ297αηOCιΜ
Ireland-0.17- 017054015– 069 - 019– 010 -00/–002 1390003–ι393
Italy17575064-176S3146*3 091– 14/74 170062.69–1-355 123-'3263–12636 9425733 mise
Luxembourg06504«-1.i3 - 0út- ο,οβ– C56 036 73SOÜA4-·7394 194ο031 1977
Netherlands 29340.69 -304336.16 039– 36;>5 – 0.51 0.51 <<;OCcΡ:-*¿52 - 05ό 055
UnitedKingdoa125.12 1.1313722263*7376.92 0.041423651Ü.32 173*>9-067326Ü32 2&963.0'.241¿427331 2«3536222S0425901
Non-EEC- --- -- - - - - - - " - -- - - - -
Total 620441S.5416ΰ.β7004.ίβ 866.70 19.21:t*-A10Λ076 512c:i?o*:16.GS741.52 462»41726297.567376837Ü.Ä3 21012753367578
(1)Industry
;9h0
1
I Prod,Se;t. !nfras.ímrçjf Total
3üigiuia - - 29,17 29.17
Geneark - - K¿ri
jFRofGer«any 98Jtë 0,7o 29.79 129.03
!France 237»55 0.51 37JA 275Λ7
i
!!reland η»97 υ.13 - 1.10
Italy 138,es U3 - 139.76
Luxeßbourg tí8v62 - - 68.62
Nettierìands 4.59 0¿7 4.86
UnitedKiîigdo® 139.37 1.73 225.85 367.95
!Non-fEC 5,63 - - 6.53
....
Total 659.13 ΐ,50 323,22 1026„90

TABLE9
LoansfroaEIBotmresources
(1970-197%)
Belgiwi(inMillionECU)
1970 1971 1972/1973 1974
Sec.m-Éner.Total'SectIn-Enor-TotalSortIn.tn.r-TotalSe*^n''eTol>lp,odlr»«0i.P'od"a.0'»prodl.a,g.»P'Qfl"«»8'«
S0–16.0220–14.414,4.–»16116.^
Denaark––3.5336.86.4S4
29.7266546V96*813047901255204,5265–696961
France£00teO23.«»V454.9S3!»16.0124.5 4.560.4600144,953865631.2170.6455566914m?
Ireland__>_– - --.---7.315.3–22621.-2252--<€4
Italy1000104.5–205.21579111.75.0274.6113.2ÎG3.0-216.270.786624.4181.9136138510342:*0·
Luxenbourg–1.0–1.0–.--- - •--–– ■– – -–■–
Netherlands2,«--2.»6.0–-6.0 -- - –– ––___319319
UnitedKingdom––.–––.–-- --- ■- ■67.1––67.166.3.13.16611495
Non-EEC■––––-'–-- -----, 43,3<2)43.3–18*?)184»
Total 175.7123.5394336.6250.4192.126.4469.0162.3183.4160.2505.9277.9191.2v227.7606.6304,01390406.76497
.1
2
3Industry,
Austriaagricultureandservices-
[1i75-1979)» (inmillionECU)
1·75 tfTf19771976197»
5*ciI1)In-Toul
Prodfra·Q*Sertfrv£n«r-
pfOdfra·.0'·TotalSect
prodin-
fra·'£f>ar-
flietotalSect <la-
prodfra·Ên^r-
o··TotalS»eiIn-ë"«'·Total
prodfresfl*e
Belgiun––toeio,·17.9––17.9---'--;–62.262.2a,7–497«<
Den·ark11,6–e.11779.1–-■9.112.67.112832,712.451.442510635.430'6316S
FRofGeraany––.––-9.2–101.6110.6--26426.4 >23–43245540–43β47a
France •2126.920.9156.0–60.1–-60.1196119.5157.42965236237.6,98.1359317122.1βββ7
1reland7.730.0–37,729.»24.23.357.416361.4-797:4,873.630.01-17449.21244793252»
Italy52'9206.2977366J137.5195.150,03626197.1189.3393425.7142.2374.0328.984$12446356330459054
Luxembourg_.––––L.-'- ■--- ––– –
,ï...
Netherlands–"–––––30.430.4--
.■-–––■·–– –
UnitedKingdom57·§4.3192.4334.594.1132.3191.2417.«178.4218.4926,469,567.3247.01164430.76402999375,1"739.0
.Non-EEC_––;–––'----488<2>48.6––––_394<î)304
Total 136.2461.4327.9«17.5297.·411.Τ376.510660426,2595.7379.51401.3£62«982.6721.31966.53Τ7.»906β«7022812'
8_J I ι...I "' !
Industry,agricultureandservices
AustriaandNorway J '■–– ~
1980
Prod.Sect.Infras.Energy Total
Belgim 6.2147 153.2
Oeiwark 9.6 25.1 46.4 81.1
FRofôereany- --14.2 14.2
France 1.7 63.4 •213»9 279J)
1reland 177.2 114.0 43.1 334.3
Italy 223.8 578»5350.21152.5
Luxenbourg- - m•- ■
Netherlands mm - ■- -
UDÌtedMngcta 166JB 329.6 191.6 688J)
NOIHEEC«■ -50.9 50.9
Total 585.3 1110.8 1057.3 2753.2

TABLE10
ListofNCILoansin1980
(inmiI.LionECU)
TitleofProjectf ,–-,IcalyIrelandjDenmar,<jTotalj%
|A„Infrastructure
1.Friulimotorway
2.Apuliatelephone
3.Syracuseindustrialestate
4.Ireland-telecommunicationsï2β5
>2,5
27,3_
!
i
ί
!TOTAL 62,327,3j a*,6
■«5,3!
ί
iö.Energy
!5.Algeria-Italy gaspipeline
''6.Controlsystemforelect,grid
7.Hydrocarbon deposits
8.Peatproduction
9.Peatproduction andmanufacture
ofbriquettes
10.Coal-fired powerstation-Asnaes
11.Combinedheatandpowerstation
-Randers41,7
17,i
lij
5,5
δ,9.-
i
ι
1
8,9
9,2¡....
·.
TOTAL 75,5jÍMj13,Í108,0 54,7
TOTALA+Β 527,84ί»7!18,1
ïÎ97,6
69,7 2ϊ,1Γ J¡Li-2J iS
!00 I
»
Forthistable,theamountsoftheloanswereconvertedintoECUinthesameway
forallloans,whethersubsidizedornot.Theamountsofthesubsidizedloans
thereforedifferslightlyfromthoseshownintheothertables,whichcomparethe
sizeofthesubsidywiththatoftheloan.

TABLE11
ListofEuratomLoansin1980
(inmiLLionECU)
i
TitLeofProject Loans
France:
NERSAfast-breeder nucLearreactorfornuclear "
powerstationatCreys-MaLvi Lie48,6
ELectricité deFranceforpowerstationat
Dampierre-en-BurLy.g
50,5
BeLgium':
Intercom,forunitIIoftheTihangepowerstation 82,2 ,
-\
TOTAL 181,3
V

TABLE12
Breakdown oftheAmountofECSCLoanspaidoutduring1980
Sectoe
Coalîndustry
(Art.54§i)
Ironoremines(Art.54§1)
Steelindustry
(Art.54§1)
Thermal powerstations
(Ært.54§2)
Otherprojects (Art.54§2)
TotaL
Conversion (Art.56)
Workers 1housing (Art.54)
OveraLL total .c
X
CD
cr
o
c:
63s78
63,78
4,β4
66.62CD
A>
c
30)
3
3
CJ
-J
17
29,17
29,174,o
4,29
4,29ro
CDQ.
(Τ)·
3^3
Ο)Φ
3-o
X•
6,40
90,92
23»39
120,71
7,5*0.'
"3
121,30
37,41
116,25
0.73\0,51Φ
O)
D
CL
129,275,470,97
0,13
1,10CJ
133,56
5,07
1iC,£3
1,13
139,76-»•CZ
33
O-J-
CLrt
O(15
3α
226,6$
3,52 1T
Φ
R–
ÛJ
3
Û.
I/)
230,37
!53,63
1,734,59
4,59
0.27
367,95 |4,86o
O
3
ΒΤ±
co
"DDCommunity
inmi11ionin
-» 1ECU %
X
233,25 22,72
6,63 424,00 41,29
89,97 8,IC
(
!9,660,9'
6f63756,88 73,7
265,47 25,2
4,550,4'
6,63 1026,90 100,Oí

TABLE13
Interest Subsidies granted bythevarious Community
Mechanisms (1970-1980 )
(inmiLLionECU)
ECSC<1*
EMS(2) ERDFC2),YearArticle 54Article 56
(3) (4)
1970 1 6,8
1971 2,2 2,2
1972 4 3
1973 0,6 3•' ''
1974 6,1 5,4
1975 6,4 6,6
1976 3,4 6,7
,1977 2,5 17,3
1978 12,2 18,1
1979 .21,7 25,5 200 ,12,1
1980 25,6 33,3 ''γ197
«
t
(1)Non-discounted interest .subsidies,paidinannualtranches .,
(?)Discounted interest subsidies,chargedtothegeneralbudget
asasinglecapitalized sum. ^
(3)Restructuring .
'
(4)Conversion .

TABLE14
EMSInterestSubsidies,FinancialYear1980:ITALY
Borrower
NCIicans
AGIPS.p.A.
EnteNazionale
perl'Energia
Elettrica (ENEL)
ENELProiect
Hydrocarbons
Hydroelectricpowerstation
atAltoGesso
Controlsystein
EnteNazionale Gaspipeline AIgeria/Italy
Idrocarburi (ENI)I+II
Cassaperil
MezzogiornoIndustrialestateSyracuseIV
NCItotalLcan
16,5
18,2
16,9
41,7
12,4(mmillionECU)
Interest
subsidy
i)
105,72,88
3,86
3,38
8,35
2,65
21,12
EIBloans
AGIPS.p.A. Hyarocarbons
-Ni(.de 5,5 0,47
-SettalaAmeliaΒ 7,5 1,09
-Cupello 3,3 0,43
ENEL Hydroelectric powerstations :
-AltoGesso3 60,5 10,02
-EdoloA 51,9 9,26
-EdoloΒ 50,88,26
-Prescenzano 16,4 2,66
ENEL Thermalpowerstations:
-BrindisiIIA 8,4 1,40
-Sulcis 5,3 0,86
Kunicipa1ityDistrictheatingBresciaΒ4,2 0,83
ofBrescia
ENEL Electricity Sardinia A 8,4 1,45
ENEL Electricity LazioSouth 14,8 2,41
ENI Gaspipeline AIgeria/ItalyIIB37,6 6,78
ENI GaspipelineIVCalabria 32,9 6,52
SNAMS.p.A, GaspipelineMinerbio-Zimella 24,7 3,99(1)
(1)Excludingpartfinancedfrom1979appropriations

(inmillionECU)
Borrower Project Loan Interest
subsidy
Cassaperil Irrigation :
Mezzogiorno -Oristano 18,6 3-80
-Fortore (Foggia) 70,5 12,08
-Campidano 24,9 4,26
-Corfinio (Peligna),16,5 2,85
-Nurra(Sassari) 18,1 3,14
-Chilivani , 4,1 0,71
-AltaStornara B(Taranto)32,9 6,65
Cassaperil ^Aqueducts :
Mezzogiorno -Verde 8,2 1*43
-PertusilloHIB 41,2 7,12
-RuzzoA 4,1 0,68
-Basilicata IA 12,4 2,15
Cassaperil Industriai estates:
Mezzogiorno -Latium/Abruzzt ,IIA 20,9 3,66
,-Campania/SicilyIIIA 12,5 2,16
-SyracuseIIIB 9,1 1„59
EIBtotal 626,2 108,71
TOTAL ITALY 731,9 129,83

TABLE15
EMSInterest Subsidies -Financial Year1980;IRELAND
(inmiLLionECU)
Borrower Project Loan Interest
subsidy
NCILoans
BordNaMona Peatproduction 5,5 1,11
BordNaMona Peatproduction andmanu- 8,8 1,77
factureofpeatbriquettes »
IrishGovernment Telephoneenetwork VIIA 26,8 5,55
NCItotal 41,1 8,43
EIBloans
BordNaMona Peatproduction IC 8,9 1,65
Electricity SupplyPeatpowerstations A
Board(ESB) Shannonbri dgeandLanesborough 4,4 0,97
FS8 Coal-fired powerstation
Moneypoint A 29,6 6,66
IrishGovernment Waterengineering Shannon B9,9 2,32
Watereng.Mayo-Sligo B 7,4 1,73
Watereng.East&South-East B5,9 1/35
Watereng.South-West A 14,8 3,47
Watereng.Midlands &North-East 14,7 3,38
AIrishGovernment Landdrainage B 8,2 1,91
IrishGovernment Advancefactories :
-Industrial Devt.Auth .II49,0 10,85
IIB27,1 7,04
-Shannon FreeAirport 10,9 2,42
Devt.Co .II
-Gaeltarra EireannII 4,1 0,92
IrishGovernment Telephone network
-VIIA 29,7 6,85
-VIIB 3,3 0,75
British andIrishRollon/rolloffvessel 11,1 2,11
SteamPacket Co.
IrishGovernment Forestry development 10,3 2,36
IrishGovernment Development offisningports 8,5 1,98
EIBtotal 257,8 58,72
TOTAL IRELAND298,9 67,15

ofreDorts anddocuments onCommunity borrowing andlendingactivities
whichhavebeensubmitted totheCouncil andtoParliament
Theannualfinancial reportsoftheECSC.
Theannualreports onEuratomborrowing andlendingactivities ,the
latestinrespectofthefinancial year1979anddated28February 1980
(Doc.COM(80)70).
Theannualreportontheborrowing andlendingactivities oftheNIC-
financial year1979-dated16April1980(Doc.COM(80)192).
Theannualreportontheapplication ofEMSinterest subsidies (to
NCIandEIBloans),financial year1979,dated16April1980
(Doc.COM(80)192). '
Thegeneralreports onCommunity borrowing andlendingactivities :
(a)Thefirstdated17March1976(Doc.COM(76)111).
(b)Theseconddated22January 1981(Doc.COM(81)8).
Theaccounts drawnupforalltheborrowing andlendingguaranteed
bytheCommunity 'sgeneralbudget:
(a)InPartIIofthegénéral budget.
(b)Intherevenue andexpenditure accounts andbalance sheets
relating to,theimplementation ofthebudget.
(c)Intheannextothebudget,provided asanalternative to
inclusion therein *,concerning capitaloperations anddebt
management ,inaccordance withArticle .16(3)(b)ofthe
Financial Regulation .

-LU-
7.TheEIBsubmits anannualreport,withabalance sheetandprofit
andlossaccount,afterapproval byitsBoardofGovernors,onthe
Bank'sactivities fromitsownresources andonthosecarried out
undermandate .
8.Thereportontheexperience gainedinapplying theNCI,rogetner
withaproposal foritscontinued use,d3ted30October 1980(Doc.
COM(80)670).
9.Thereportontheexperience gainedinapplying EMSinterest subsidies,
abouttobetransmitted toParliament .