COMMISSION OF THE EUROPEAN COMMUNITIES 
COMC90) 436 final 
Brussels, 25 September 1990 
QDMMISSICN REPORT TO THR CTUMML AMD TO 
?NK[ilhWW ra *"** HTRRnwiMr; AND Tjammr; AIJI'IVITLKK <W 
TRZ QQMMTJNnY IN 1989 
QCMTENTB 
Page 
1. Introduction 1 
2. The international financial context in I960 2 
3. Ooununity borrowing in 1969 3 
3.1 Overall view 3 
3.2 Breakdown by instrument 4 
3.3 Breakdown by currency of borrowing 5 
4. Lrarllng in the Community 5 
4.1 General trends 5 
4.2 Trends in the main sectors 6 
4.3 Breakdown by country 7 
5. Landing by instrument 8 
5.1 The European Investment Bank 8 
5.1.1 General situation 8 
5.1.2 Financing within the Community broken down by objective 8 
5.1.3 Financing outside the Community 11 
5.2 The New Camraunity Instrument (NCI) 11 
5.3 The European Coal and Steel Community (ECSC) 12 
6. Euratom 13 
7. Interest subsidies 13 
A éL 
REPORT CM THE BORROWING AND LENDING ACTIVITIES OF THE QQMMONITr IN 1969 
i. Intaroductloa 
One of the Commission's duties is to inform the Council and Parliament 
every year of the Community's borrowing and lending activities in 
connection with: 
(i) Euratom projects;1 
(ii) NCE I,2 NCI II,3 NCI III,4 and NCI IV;5 
(iii) the Community aid granted by way of exception for the 
reconstruction of disaster areas in Italy;6 
(iv) the Community aid granted by way of exception for the 
reconstruction of disaster areas in Greece.7 
The present report, also drawn up to meet the wishes expressed by 
Parliament in its 1981 Resolution on Ijarproving political monitoring of the 
Community's borrowing and lending activities,8 is the Commission's tenth, 
covering 1989. It reviews all borrowing and lending for structural 
purposes, including the activities of the ECSC and the KEB. The detailed 
reports on those activities will be sent separately to the Council and 
Parliament. 
1 Article 4 of Council Decision 77/270/Euratom: OT L 88, 6.4.1977. 
2 Article 6 of Council Decision 78/870/EEC: QJ L 298, 25.10.1978. 
3 Article 6 of Council Decision 82/169/EBC: OT L 78, 24.3.1982. 
4 Article 7 of Council Décision 83/200/EEC: OJ L 112, 28.4.1983. 
5 Article 9 of Council Decision 87/182/EEC: OJ L 71, 14.3.1987. 
6 Article 7 of Council Décision 81/19/EEC: OJ L 37, 10.2.1981. 
7 Article 7 of Council Decision 81/1013/EEC: QJ L 367, 23.12.1981. 
8 Doc. PE 67134 of 5 March 1981; OJ C 287, 9.11.1981. 
At 
- 2 -
Market liquidity was ample in 1989, as it had been in the preceding years 
of the decade. Financial assets expanded much faster (by 18%) than did real 
assets In nominal terms (by 10%). This feature of the 1980s is regarded by 
some as a sign of the real economy and the financial economy drifting 
apart. The main points to note in 1989 were as follows. 
Pressure on interest rates. As a result of the reaction of the 
authorities to re-emerging fears of inflation, and of the strong 
cyclical, upswing in 1989 (particularly in Investment), interest rates 
were resolutely tending upwards. Rates for strong currencies such as 
the yen and the German mark rose appreciably, by 300 basis points in the 
case of the yen and by 200 basis points in the case of the German mark, 
reaching 7.4% and 8.9% respectively - the highest levels recorded for 
nine years. 
Two points need to be noted in this respect: firstly, an inverse yield 
curve has emerged in several countries, confirming that the markets 
consider current levels of interest rates abnormally high; secondly, 
Interest differentials between major currencies such as the German mark, 
the French franc, sterling and the US dollar have narrowed considerably 
without generating any pressure on parities. This shows that operators 
are not expecting major shifts in exchange rates In the near future. 
Nervousness on national markets. The rise in interest rates obviously 
depressed securities markets, especially bond markets. For example, the 
yield on fixed-interest securities denominated in yen declined by 2.1%. 
On the other hand, good business profits and the sustained economic 
upswing meant that share markets behaved much better: +22% for the 
Japanese stock market, +27% for the US stock market and +25% (weighted 
3 -
average) for European markets. Two reservations should be made: 
firstly, these yields do not compare favourably with those for the 
earlier part of the 1980s (except 1987); secondly, signs of nervousness 
and uncertainty have appeared - witness the mini-crash of 
October - suggesting that the very short erratic movements of share 
markets (day-to-day, or month-to-month changes) conceal a cyclical 
downturn. Developments in the early months of 1990 (a 30% drop on the 
Tokyo stock exchange) confirm this view. 
Sharp contraction in international markets. Activity fell sharply on 
international markets in 1989. Borrowings amounted to USD 430 billion, 
20% down on 1988 in nominal terms. The basic cause of this slowdown was 
probably the increased openness of national markets, for one of the 
reasons for the strong growth of international markets was the rigidity, 
regulation and fragmentation of national markets. At all events, the 
largest fall was in syndicated credits, a financing instrument of major 
importance, which were down by about 30%. The ease with which bonds 
could be placed in 1989 and the inverse yield curve mentioned above made 
the issuing of securities a more attractive method of financing than 
recourse to bank credit. 
3. nrmmmvlt^ WYrmurirxg JTI IQfiQ 
3.1 
Borrowing raised by the Community institutions reached ECU 10.5 billion in 
1989 (see Table 1). This corresponds to 18.3% of the total outstanding at 
the end of the year. The increase on 1988 is, of course, smaller, since 
account must be taken of repayments, cancellations, annulments and exchange 
rate changes (see Table 2). 
4 -
The expansion of borrowing was mainly in response to very active lending 
(see below). It is the more reircirkable as the trend of borrowing on 
international capital markets has tended to weaken, especially in the 
syndicated credits segment. 
Graph 1 : OUTSTANDING BORROWING BY INSTRUMENT 
ECU mi I Lion 
60 
60 
40 
30 H 
20 
10 H 
0 
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 
EURATOM NCI ECSC EIB 
3.2 Breakdown by tafrtrument 
Thus the Community took over, part of the running from international 
activity, channelling funds into sectors of common interest. The lead was 
taken by the European Investment Bank, whose new issues represented nearly 
22% of the amount outstanding. ECSC loans, by contrast, increased by only 
3%, for the reasons given later, and there were neither balance-of-payments 
loans nor Euratom loans, the Council having failed to take a decision 
raising the ceiling. NCI loans outstanding declined by 15.5% because the 
Graph 
STRUCTURE OF INTEREST RATES 
h 4L 
- 5 -
total amount authorized by the Council was used up, and no further 
authorization was given. Operations thus mainly served to refinance 
earlier borrowing at more favourable rates. 
3.3 ^ff^P" *? rmrrytmrj nf WmmariTig 
Community currencies continued to account for the bulk of these issues, and 
their share actually increased in 1989 to 87% of the total (cxxrrpared with 
83.5% in 1988). The ecu was once more the most frequently used currency, 
with 18.5% of the total. Sterling replaced the German mark at the top of 
the league of national Community currencies, because of major financing 
operations by the EEB (see Table 3). Borrowing by the Community 
institutions, with the purpose of giving financial support to common 
policies, also plays a key role in the development of the ecu as a 
transaction currency. 
4. TfflïIlTïg 1n tftft Onimmitg 
4.1 fifflflnil tjrffnflfl 
Community lending as a whole expanded rapidly once again in 1989 (up by 
18.8%, as in 1988). This was partly due to the buoyancy of business 
investment, which increased by 13.5% in nominal terms (compared with 17.5% 
in 1988). The differential between the rate of growth of lending and that 
of investment thus widened last year; this is partially due to a 
levelllng-off of European companies' trading profits, which has led to an 
increase in their borrowing needs. This trend was probably most keenly 
felt in the sectors assisted by Community loans, in particular SMEs and 
declining regions. However, the publio sector as a whole In the Community 
6 -
managed, for th.v, third consecutive year, to reduce its borrowing 
requirement in relative terms. The increase in loan applications was 
basically acoonnnodated by the EIB, whose financing increased by 26.7%, 
after a 30% rise in 1988. These increases seem to confirm the fairly 
pronounced tendency of EEB funding to grow faster than Community financing 
as a whole. 
Graph 2: Trfln/1 Of Community Varying 
BREAKDOWN OF LOANS IN THE COMMUNITY 
BY SECTOR 
Infrastructure 
3932 Infrastructure 
6223.1 
3767.6 
1988 
BREAKDOWN OF LOANS IN THE COMMUNITY 
BY INSTRUMENT 
1988 1989 
4.2 Trfffyls In thft mln fyyftors 
The sectoral breakdown (see Table 4) shows that Cornmunity lending to 
infrastructure projects went on expanding at a rapid and indeed quickening 
pace, rising by 32.8%, after 30% in 1988. This acceleration underlines the 
scale of transport and telecommunications investment undertaken with a view 
to the completion of the large single market by 1993. 
7 -
Judging by the loans granted to the productive sector (up by 27.2%), 
substantial financing also went to the expansion of productive capaaity 
prompted by the high level of activity that has persisted for a number of 
years. 
However, the reverse oil shock of 1986 probably made energy conservation 
and energy diversification policies look less urgent. Loans for energy 
projects expanded by only 7.9%, reflecting a considerable slowdown in 
investment and research in the industry. Nevertheless, energy saving 
remained a serious concern among small businesses, their loan applications 
for the purpose increasing aj^ïreciably. 
4.3 
The breakdown of loans by country shows where financing went, on the basis 
of the economic policy priorities specific to each Member State. Lending 
expanded rapidly last year in the United Kingdom, Spain and Portugal, where 
major projects were implemented, especially infrastructure projects. 
Lending to most other countries, especially the Netherlands, Greece and 
Germany, also increased appreciably (see Table 5). 
Graph 3: C*n$THtfr\ic*i\ brvgrt^pyn of 1f=grrilTlg In tftft Commmity 
ECU billion 
1988 I0.028|0.496|0.827 
1989 0.1040.547 1.011 0.187 1.182 1.578 0.155 
0.271 1.553 1.567 0.187 448P.0020.261 
7|3.849j0.00ip.393|0.797 
1988 SSI 1989 
- 8 
5. T^nHJT^ A/rHTrt-Hftg Yiç iii&tmmfmb 
5.1.1 fifgifml filtration. 
The growing role played by the Bank as the European Community's financing 
institution has already been mentioned in the preceding sections. In 1989 
the EEB stepped up its funding of projects carried out within the 
Community. Financing outside the Ctammunity, on the other hand, slowed 
down, because appropriations under the Lomé III Convention were used up. 
Loans made for Investment projects within the Community totalled 
ECU 11 634.2 million, an increase of 22.8% on 1988. Loans granted outside 
the Community totalled ECU 611.9 million, a decline of 12.6%. 
5.1.2 T^TumniT^ xiWhirt *Ttf> fymmnlty Ytrcktm rirwn Hy rihfrrYfclw» 
The Bank continued its policy of providing financial support in the 
Community, taking account of the guidelines defined for common policies. 
The following conclusions can be drawn from the information available. 
- The main area targeted last year was once again regional development, 
which absorbed ECU 7 017.8 million, an Increase of 42.8%. Over 1-W.I-P 
this amount was concentrated in the structural Funds' Objective 1 
regions; 35% of the amount went to areas facing problems of industrial 
decline (Objective 2) or contributed to the development of rural areas 
(Objective 5(b)). 
- The EIB helped in implementing the reform of the structural Funds, which 
came into force on 1 January 1989. It took part in the drawing-up of 
Community support frameworks, and will contribute to their financing 
under its own procedures. The Bank continued to provide funding under 
the integrated Mediterranean programmes (IMPs) and under the specific 
- 9 -
programme for the development of Portuguese industry. It supported 
reconstruction in the disaster area of Kalamata, granting loans carrying 
interest subsidies financed from the Community budget. 
The Impact of Community aid on regional development has been analysed in 
studies that show how the Community, in employing the various 
instruments, has managed over the past few years to arrest economic 
backwardness in countries with wide regional disparities. 
The boost given to economic activity by the prospect of a single market 
by 1993 no doubt explains much of the increase in major communications 
and Infrastructure projects within the Community. Financing under this 
heading went up by almost 55%. The EIB participated in the drive to 
iinprove road and rail Infrastructure, Including the Channel tunnel 
project, various motorways and telecommunications networks (Eutelsat, 
transatlantic optical fibre cable etc.). 
The Importance now attached to environmental problems at Community level 
and in the Member States encouraged Initiatives to control pollution. 
Substantial sums were devoted to projects directly aimed at protecting 
and iimproving the environment, causing EIB lending to rise by 40.4%. 
Over half was to finance projects for collecting and purifying waste 
water. About a third went to reducing industrial pollution (air 
pollution by refineries and thermal power stations). 
Development of the productive base was assisted by a major increase in 
financing intended to foster industrial coimpetitiveness (up by 23.3%). 
The main emphasis was on small business projects in manufacturing and 
services. 
10 -
Some 7 600 loans, involving a total of ECU 2 013.8 million, were granted 
to small .Uif.dnefjses, two thirds of them in the least favoured areas of 
the Couimunity. Outside the assisted areas, the EIB expanded its lending 
to ensure continuity with previous Community funding under the NCI. 
Financing applications from the energy sector declined by 6.5%. The 
relative weakening of Community productive capacity and of energy 
conservation efforts gives cause for concern about the likely long-term 
growth of imports. 
Graph 4: 
ECU million 
8 
m 
HP it 
1985* L unity, fry objective 
1988 1989 
Regional devlpmt. KMI Infrastructure 
Energy UllIaD Ind.and techn.coop. _1 Environment 
• Average 1981-1985 
Graph 4 shows the main trends in ETB financing. There was a clear Increase 
in the share of funding for regional policy, iiifrastructure schemes and 
environmental projects and a decrease in the share of energy projects (and 
also of financing outside the Community, which is not shown on the graph). 
- 11 -
5.1.3 WTuinrrtTy «Thtrifta *hft fVMiiinltY 
This type of financing declined a little, partly because fewer loan 
contracts were signed with Yugoslavia and partly because amounts available 
under the third Lomé Convention were used up. However, financing in favour 
of the southern Mediterranean countries expanded more strongly, 
particularly that under the third financial protocol signed with those 
countries. 
The basis for further expansion of the Community's external lending was 
laid by the following: 
(i) the renewal of the Lomé convention (Lomé IV), signed on 15 December 
1989; 
(ii) the environmental programme for the Mediterranean, in cooperation 
with the World. Bank and the Commission of the European Communities, 
and under the new financial protocols sighed with Malta and Cyprus; 
(iii) assistance to Eastern European countries, where the ETB has made 
arrangements to respond to requests from Community bodies to 
support Investment in those countries. 
5.2 Tnft lttty OiBBTnltiy TnRtrumeat («Hi 
The decline in resources available was reflected in a sharp reduction in 
loans sighed. 
- New commitments: New commitments totalled ECU 78.3 million, comprising 
ECU 75.1 million for global loans concluded with financial 
intermediaries in Italy and the United Kingdom, and ECU 3.2 million for 
a speciflo project in the region of Zeeland (Netherlands). 
- 12 -
Global loans from Nd resources are mainly intended to finance 
Investment by small and medium-sized firms outside the assisted regions. 
In Italy, eight loans for a total of ECU 45.7 million were granted to 
four institutions: Efibanca, Mediocredlto Lombarde, IMI and Banco di 
Sioilia. In the United Kingdom, a loan of ECU 29.4 million was granted 
to Barclays Bank. 
- Activity as a whole: The projects actually financed In 1989 involved a 
much larger total, however, since there were loans ooncluded earlier as 
well as the global loans mentioned above. Altogether, 542 loans were 
authorized Involving a total of ECU 242.7 million. Thus 159 firms were 
financed in Italy (ECU 99.1 million), 114 in Spain (ECU 47.2 million), 
60 In the United Kingdom (ECU 35.2 minion), 60 in Denmark 
(ECU 30 million), 134 in France (ECU 29.7 minion), and 15 In Greece 
(ECU 1.3 million). 
The detailed report on the Community's activities under the NCI In 1989 has 
already been sent to the Council and Parliament. 
5.3 TTlft TOTTTlIrffln flftfil fffll fitrfrffl flTTnl 1? fnTflfi) 
As a result of restructuring in the steel Industry in Europe, along with 
unstable energy prices and the outlook for investment, applications from 
heavy industry declined; conversion was the only activity that expanded a 
little. Total loans disbursed by the BCSC in 1989 thus contracted by 22.8% 
in relation to 1988, to ECU 700.1 minion. The overall decline resulted 
from a sharp drop in loans to the steel industry, partly offset by an 
Increase In loans to the energy producing sectors. 
- 13 -
- Industrial loans fell by 48% in 1989, and loans to the steel industry by 
60.8%. However, loans to the coal industry recovered In 1989, although 
loans to finance Investment to promote the consumption of Community coal 
contracted sharply to ECU 1.6 minion. 
- Loans to finance Investment to facilitate the marketing of Community 
steel increased from ECU 15.3 minion in 1988 to ECU 28.4 million In 
1989. There was no financing of thermal power stations in 1989; 
conversion loans increased slightly. 
- In 1989 the ECSC paid out a total of ECU 16.0 minion to finance housing 
for workers in the coal and steel industry. Some 987 low-cost dwellings 
were financed in this way, bringing the total number of such dwellings 
financed by the ECSC since 1951 to over 199 600. It is estimated that 
the BCSC loans granted in 1989 could lead to the conversion of about 
22 920 jobs. 
6. JSjxfiJZtt 
The overall total of Euratom loans reached its ceiling of ECU 2 800 million 
in 1988. Pending a Council decision on the proposal to raise the celling 
to ECU 4 000 million, no new loans were granted. 
7. Tnrfawrwwh gnWrlrtlftg 
Of the three sectors where interest subsidies are available (BCSC, disaster 
areas in Greece and Italy, pilot scheme to assist small businesses in 
Portugal), the only one to show an increase last year was the BCSC 
mechanism (Article 56, conversion loans), up 10% (see Table 7). 
MgfflrïTïnrrrrATi^affiK 
The purpose of this report is not to reproduce comprehensively the detailed 
analyses already carried out by the institutions directly managing the 
instruments. Bather, it is to give an overall view of Community borrowing 
and lending in its specific institutional and financial context. 
In order to ensure that the accounts for borrowing and lending balance, a 
series of adjustments would be required, involving exchange rates, cash 
needs, costs and premiums; such details are outside the scope of this 
report. However, with a view to a comparison of the Community's financial 
activity and the amounts actually flowing through the capital market, the 
method of entering NCI loans in the accounts was aligned this year on that 
used by the Effi. This method reflects actual cash flows rather than 
recording commitments at the time they are entered into. 
As a help with interpreting the tables showing amounts in ecus, the 
parities applying on 30 December 1989 are given below to provide an 
indication of national currency equivalents. 
PARITIES AGAINST THE ECU 
"CtanverWhie" BFR/LFR 42.71 
EKR 77.895 
EM 2.032 
ESC 178.14 
FF 6.943 
HFL 2.293 
IBL 0.7706 
LIT 1509.5 
PTA 131.20 
UKL 0.7315 
USD 1.167 
YEN 167.72 
SFR 1.83 
ft 
LIST OF TAfffiffi 
TaMfiJl: 
Tabled: 
Table g: 
Ta]7le 4: 
Tattle 5: 
Iable_£: 
Tafcie_7: Borrowing by Community institutions 
Community borrowings outstanding 
Community borrowings in 1989, by currency 
Lending in the Community in 1988 and 1989, by sector and by 
instrument 
Geographical breakdown of lending in 1988 and 1989 
Loans granted in the Ctammunity by the EIB in 1989, by 
economic objective 
ECSC interest subsidies paid out in 1989 
/Ç 
Table 1 
Borrowing by Community institutions 
BCU million 
Year1 ECSC EIB2 Euratom NCT Total 
1977 
1978 
1979 
1980 
1981 
1982 
1983 
1984 
1985 
1986 
1987 
1988 
1989 729 
981 
837 
1 004 
325 
712 
750 
822 
1 265 
1 517 
1 487 
8804 
913 1 030 
1 863 
2 437 
2 384 
2 243 
3 146 
3 508 
4 339s 
5 699s 
6 766 
5 573 
7 6663 
9 0345 99 
72 
153 
181 
373 
363 
369 
214 
344 
488 
853 
93 
_ 6 178 
305 
339 
773 
1 617 
967 
860 
541 
611 
9454 
522 1 858 
2 916 
3 605 
3 874 
3 280 
4 994 
6 244 
6 342 
8 168 
9 312 
8 524 
9 584 
10 469 
1 Up to 1982, the figures are for loans sighed during the year under all 
the instruments. From 1983, the figures for the BCSC, Euratom and the 
NCI represent loan proceeds collected during the year. As a result of 
the change in method, a USD 200 million borrowing under the NCE was 
counted in both 1982 and 1983, and major refinancing transactions are 
•Included in the figures from 1987 on. 
2 The ETJB also raises funds by selling participations in EEB loans to 
third parties (BCU 32 million in 1989) (amounts before any swaps). 
3 Including the following short-term operations: 
1984: ECU 289 million (ECU 189 million in commercial paper and 
ECU 100 million in certificates of deposit) ; 
1985: ECU 374 million in commercial paper; 
1988: ECU 252 million in certificates of deposit. 
4 Including the ECU 500 million "Jean Monnet" Community loan divided 
equally between the ECSC and the NCI. 
5 TnolTiding ECU 200 million in commercial paper and BCU 37.5 million in 
certificates of deposit. 
6 Pending a decision on the borrowing celling, no Euratom loans were 
issued. 
U 
Table 2 
COWOIITY BORRCfeTItsJGS OUTSTANDING 
(at the end of; each year) (^)(2) 
YEAR 
1977 
1978 
1979 
1980 
1981 
1982 
1983 
1984 
1985 
1986 
1987 
1988 
1989 ECSC 
3.955 
4.416 
4.675 
5.406 
5.884 
6.178 
6.539 
7.119 
7.034 
6.761 
6.689 
6.825 
6.738 GIB 
5.421 
6.715 
8.541 
10.604 
13.482 
16.570 
20.749 
25.007 
26.736 
30.271 
31.957 
36.928 
41.332 EURATOM 
99 
172 
323 
502 
902 
1.272 
1.680 
1.892 
2.013 
2.168 
2.500 
2.164 
1.945 NCI 
-
178 
491 
894 
1.747 
3.269 
4.432 
4.960 
5.202 
5.229 
5.514 
5.122 ECU 
Total 
borrowings 
for struc­
tural 
purposes 
9.475 
11.303 
13.717 
17.003 
21.162 
25.767 
32.237 
38.450 
40.743 
44.402 
46.375 
51.431 
55.137 million) 
Balance 
of 
payments 
loans 
1.500 
1.361 
965 
1.016 
1.062 
591 
4.610 
4.932 
3.236 
1.890 
2.997 
2.459 
2.075 Total 
borrow­
ings 
10.975 
12.664 
14.682 
18.019 
22.224 
26.358 
36.847 
43.382 
43.979 
46.292 
49.372 
53.890 
57.212 
2 The conversion rates used were those obtaining on 31 December of each 
year. As the majority of borrowings are denominated in national 
currencies, the difference between two year-ends reflects, on the one 
hand, changes in the valuation of the existing stock and, on the other, 
the net volume of borrowings during the year. 
Original amount of borrowings, plus or minus repayments of the 
principal, cancellations, annulments and exchange rate adjustments. 
n 
Table 3 
COMMUNITY BORROWINGS IN 1989, BY CURRHICY 
ECU million 
EIB 
EURATOM 
ECSC 
NCI 
TOTAL Community currencies 
ECU 
1801.3 
-
41.0 
85.0 
1927.3 BFR 
345.6 
-
46.9 
-
392.5 DM 
958.9 
-
371.5 
-
1330.4 ESC 
86.3 
-
-
-
86.3 FF 
1164.3 
-
55.2 
-
1219.5 HFL 
317.2 
-
1.8 
52.5 
371.5 IRL 
51.6 
-
-
-
51.6 LFR 
91.9 
-
23.6 
10.5 LIT 
626.0 
-
165.9 
_ 
126.0 791.9 I PTA 
700.8 
-
9.3 
114.5 
824.6 UKL 
1769.0 
-
170.7 
-
1939.7 Sub­
total 
7916.9 
-
885.9 
262.5 
9065.3 Other currencies 
SFR 
263.8 
-
22.6 
-
286.4 USD 
384.8 
4.8 
116.9 
506.5 YEN 
431.5 
-
-
84.3 
515.8 Sub­
total 
1080.1 
-
27.4 
258.9 
0) 
1366.4 
0) TOTAL 
8997.0 
-
913.2 
521.4 
10431.7 
1 ) Plus a borrowing of ECU 57.7 million in Canadian dollars. 
^<\ 
Table 4 
LENDING IN THE COMMUNITY IN 1988 AND 1989, BY SECTOR AND BY INSTRUMENT (a) 
Sector 
Productive 
sector 
(of which 
allocations 
from global 
loans) 
Infrastructure 
Energy 
(of which 
allocations 
from global 
loans) 
TOTAL ECSC 
1988 
855.8 
(441.0) 
21.0 
31.0 
(1.3) 
907.8 1989 
639.1 
(445.1) 
16.0 
45.0 
(1.6) 
700.1 EIB 
1988 
2,641.0 
(1,547.4) 
3,905.5 
1,772.0 
(237.8) 
8,318.5 1989 
3,909.7 
(2,121.2) 
5,207.1 
1,903.2 
(441.3) 
11,020.0 EURATOM 
1988 
-
-1989 i ill i 
...., NCI 
1988 
270.7 
(270.7) 
5.5 
6.1 
(6.1) 
282.3 1989 
242.7 
(242.7) 
3.2 
245.9 Total 
ECU million 
1988 
3,767.5 
(2,259.1) 
3,932.0 
1,809.1 
( 243.9) 
9,508.6 1989 
4,791.5 
(2,809) 
5,223.1 
1,951.4 
(442.9) 
11,966.0 Total as 
% 
1938 
39.6 
(23.8) 
41.4 
19.0 
(2.6) 
100.0 1989 
40.0 
(23.5) 
43.7 
16.3 
(3.7) 
100.0 
(a) Financing granted (individual loans and allocations from global loans) 
^-J& 
<o Table 5 
GEOGRAPHICAL BREAKDOWN OF LENDING IN 1988 AND 1989 
ECU million 
Country BDKDGREFIRL ILMLPUK Total 
1988 
Amount 28.3 496.1 826.6 186.7 1182.1 1578 154.9 3448.2 2.5 260.9 560.4 1372.9 10,382.6(1) 
% 0.3 4.8 8 1.8 11.4 15.2 1.5 33.2 - 2.5 5.4 13.2 
1989 
Amount 104 546.8 1011.3 271.5 1553.4 1567.5 186.9 3848.8 1.2 392.9 796.6 1887.9 12,334.3 
% 0.8 4.4 8.2 2.2 12.6 12.7 1.5 31.2 - 3.2 6.5 15.3 
of which: 
ECSC 12.9 1.0 154.8 0.1 11.7 54.7 0.1 114.4 1.2 72.6 40.9 235.7 700.1 
EIB 91.1 545.8 856.5 271.4 1541.7 1512.8 186.8 3688.7 - 317.1 755.7 1622.8 11,555.9(1) 
Euratom - - - - - -. _ - _ . _ 
NCI ------- 45.7 - 3.2 - 29.4 78.3 
(1) Including ECU 285 million in 1988 and ECU 165.5 million in 1989 under Article 18 of the EIB Statute for projects of 
Community interest. 
Table 6 
LOANS GRANTED IN THE COMMUNITY BY THE EIB(1) IN 1989, 
BY ECONOMIC OBJECTIVES) 
ECU million % 
1. Regional development 7,017.8 100.0 
1.1 By country 
Belgium 12.9 0.2 
Denmark 363.9 5.2 
Germany 185.9 2.6 
Greece 261.6 3.7 
Spain 1,153.5 16.4 
France 1,017.8 14.5 
Ireland 191.8 2.7 
Italy 2,381.5 55.9 
Netherlands 82.1 1.2 
Portugal 751.5 10.7 
United Kingdom 615.3 8.8 
1.2 By major sector 
Energy 1,102.7 15.7 
Transport 1,438.4 20.5 
Telecommunications 1,086.2 15.5 
Water, sewage 507.4 7.2 
Other infrastructure 322.2 4.6 
Industry, agriculture 2,121.4 30.2 
Services 439.6 6.3 
2. Infrastructure of Community interest 2,676.9 100.0 
2.1 Transport 1,847.9 69.0 
2.2 Telecommunications 817.0 30.5 
2-3 Other 12.0 0.5 
(1) Including NCI loans. 
(2) As certain loans serve a number of purposes simultaneously, the amounts 
shown under the different headings cannot be aggregated. 
\A 
Table 6 (continued) 
ECU million % 
3. Environmental protection and 1,728.0 100.0 
improvement 
3.1 Environment 1,549.6 89.7 
3.2 Town planning 178.3 10.3 
4. Energy 1,719.0 100.0 
4.1 Indigenous resources 783.9 45.6 
4.2 Import diversification 592.5 34.5 
4.3 Efficient use of energy 342.6 19.9 
5. Industrial competitiveness 1,014.4 
Number 
6. Small and medium-sized enterprises 2,013.8 7,605 
<D~ 
Table 7 
ECSC INTEREST SUBSIDIES PAID OUT IN 1989 
Country 
Article 54 
Article 56 
Total B 
0 
0.74 
0.74 DK 
0 
0.17 
0.17 D 
2.19 
24.07 
26.26 ESP 
0 
0.51 
0.51 F 
0.09 
1,53 
1.62 IRL 
0 
0 
0 I 
0 
2.9 
2.9 L 
0 
0.1 
0.1 NL 
0 
0.19 
0.19 ECU million 
UK 
0.28 
12.3 
12.58 Total 
2.56 
42.54(1) 
45.1 
(') The total includes an amount of ECU 0.54 million for the special Saarland-Lorraine-Luxembourg project. 
ISSN 0254-1475 
COM(90) 436 final 
DOCUMENTS 
EN 10 oi 
Catalogue number : CB-CO-90-473-EN-C 
ISBN 92-77-64266-1 
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