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DE LA COMMISSION 
 
 
 
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DOCUMENTS "COM" 
 
 
 
 
COM (84) 413 
 
 
 
Vol. 1984/01 77 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Economic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation. 
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 1983 über die Freigabe der historischen Archive der Europäischen 
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983, 
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003 
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit 
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5 
der genannten Verordnung freigegeben. 
COMMISSION OF THE EUROPEAN COMMUNITIES
COM(84) 413 final 
Brussels, 24 July 1984
COMMISSION REPORT TO THE COUNCIL AND TO PARLIAMENT
on the borrowing and lending activities
of the Community in 1983

COMMISSION OF THE EUROPEAN COMMUNITIES
COM(84) 413 final 
Brussels, 24 July 1984
COMMISSION REPORT TO THE COUNCIL AND TO PARLIAMENT
on the borrowing and lending activities 
of the Community in 1983
COM(84) 413 final

S U M M A R Y
This is the fourth comprehensive report drawn up by the Commission to 
provide the Council and Parliament with information on the Community's 
borrowing and lending activities. It covers the year 1983.
It was drawn up to meet the wishes expressed by Parliament on various 
occasions, and in particular in its Resolution on improving political 
control over the Communities' borrowing and lending activities.
The report reviews all the borrowing and lending activities of the 
Community institutions, including those of the ECSC and EIB, thereby 
fulfilling the Commission's obligation to inform the Council and 
Parliament each year about:
(i) the activities of Euratom, in accordance with Article 4 of
2the Council Decision of 29 March 1977;
(ii) the activities of the NCI, in accordance with Article 6 of 
the Council Decision of 16 October 1978 (NCI I), Article 
6 of the Council Decision of 15 March 1982 (NCI 11)^ and
rArticle 7 of the Council Decision of 19 April 1983 (NCI III);J
(iii) the EMS interest subsidy instrument, in accordance with 
Article 10 of the Council Regulation of 3 August 1979;
Doc. PE 67134 of 5 March 1981; OJ No C 287 of 9 November 1981. 
^Decision 77/270/Euratom; OJ No L 88 of 6 April 1977.
^Decision 78/870/EEC; OJ No L 298 of 25 November 1978.
^Decision 82/169/EEC; OJ No L 78 of 24 March 1982. 
decision 83/200/EEC; OJ No L 112 of 28 April 1983.
^Decision 79/691/EEC; OJ No L 200 of 8 August 1979.

-  2 -
(iv) the Community aid granted by way of exception for the reconstruction 
of the regions affected by the Italian earthquake in November 1980, 
in accordance with Article 7 of the Council Decision of 20 January 
1981;1
(v) the Community aid granted by way of exception for the reconstruction
of the regions affected by the Greek earthquakes in February/March
1981, in accordance with Article 7 of the Council Decision of 
214 December 1981.
Like the previous reports, this report, which covers the 1983 financial 
year, provides a complete picture of the borrowing and lending activities 
of the Community instruments within the Community. It reviews not only 
the activities of Euratom, the NCI and EMS interest subsidy instrument 
but also those of the ECSC and, in a more general way, those of the EIB.
It also includes loans granted by the Community in third countries from 
the proceeds of borrowing on capital markets. These loans concern the 
ACP States, the OCTs, and the Mediterranean countries linked to the 
Community through agreements establishing different forms of economic 
and/or financial cooperation (Maghreb and Mashreq countries, Israel, 
Cyprus, Malta, Spain, Portugal, Turkey and Yugoslavia). .
The ECSC's financial report and the EIB's annual report will, of course, 
be sent to Parliament and the Council as before.
^Decision 81/19/EEC; OJ No L 37 of 10 February 1981. 
^Decision 81/1013/EEC; OJ No L 367 of 23 December 1981.

ABBREVIATIONS AND SYMBOLS USED
Countries
B Belgium
DK Denmark
0 Federal Republic of GermanyGR Greece
F France
1RL Ireland
1 Italy
L Luxembourg
NL Netherlands
UK United Kingdom
EC Member States of the European Community as a whole
EC9 Community excluding Greece
Currencies
Belgian franc 
Danish krone 
German mark 
Greek drachma 
French franc 
Irish pound (punt) 
Italian lira. 
Luxembourg franc 
Dutch guilder 
Pound sterling 
European currency unit 
US dollar 
Swiss franc 
Yen
Canadian dollar 
Austrian schilling
Other abbreviations ■
ACP African, Caribbean and Pacific countries
ECSC European Coal and Steel Community
EDF European Development Fund
EIB European Investment BankEMCF European Monetary Cooperation Fund
EMS European Monetary System
ERDF European Regional Development Fund
Euratom European Atomic Energy Community
Eurostat Statistical Office of the European CommunitiesGDP (GNP) Gross domestic (national) product
GFCF Gross fixed capital formation
NCI New Community Instrument
OCTs Overseas Countries and Territories
OECD Organization for Economic Cooperation and Development
OPEC Organization of Petroleum Exporting Countries
SMEs Small and medium-sized enterprises
SOEC Statistical Office of the European CommunitiesBFR
DKR
DM
DR'
FF
IRL
LIT
LFR
HFL
UKL
ECU
USD
SFR
YEN
CAND
OS

CONTENTS
Foreword
1. INVESTMENT IN THE COMMUNITY
1.1 Improving performance in the Community
1.2 Widely varying results between countries
1.3 Revival of investment in plant and machinery
1.4 Contraction in the share of public investment and of 
investment in building and construction
2. COMMUNITY ACTION TO PROMOTE INVESTMENT
2.1 A more favourable environment
2.2 1983: Year of Small and Medium-sized Enterprises
2.3 Facilitating structural adjustment
3. GUIDELINES AND DECISIONS RELATING TO THE LENDING AND 
BORROWING MECHANISMS
3.1 New Community Instrument (NCI)
3.2 Financing of Innovation
3.3 '  Interest subsidies granted in the context of the
European Monetary System
3.4 Euratom
3.5 European Coal and Steel Community (ECSC)
3.6 European Investment Bank
3.7 Community coordination of borrowing and lending 
operations
3.7.1 Coordination of borrowing
3.7.2 Coordination of lending
4. '  BORROWING
4.1 Situation on capital markets in 1983
4.1.1 General
4.1.2 International bond markets
4.1.3 Interest rates and currencies of borrowing
4.2 Community borrowing in 1983
5. LENDING IN THE COMMUNITY
5.1 General
5.2 Sectoral breakdown
5.2.1 Energy
5.2.2 Productive sector
5.2.3 Infrastructure
5.3 Country breakdown and effect on regional development
5.4 Employment effectsPage
3
3
3
6
6
8
8
9
11
12
12 
14
17
17
18 
18
19
19
20
22
22
22
23
25
28
34
34
37
39
41
43
45
47

CONTENTS
N  Page
6. LENDING IN THE COMMUNITY, BY INSTRUMENT .49
6.1 New Community Instrument (NCI) 49
6.1.1 General 49
6.1.2 Country by country review 53
6.2 Subsidized loans for reconstruction in the
earthquake-stricken areas of Italy 60
6.3 European Investment Bank 60
6.4 Euratom 62
6.5 European Coal and Steel Community (ECSC) 63
7. LENDING OUTSIDE THE COMMUNITY 66
7.1 General 66
7.2 Loans to Mediterranean countries 67
7.2.1 Loans to Spain and Portugal 67
7.2.2 Loans to other Mediterranean countries 68
7.3 Loans to African, Caribbean and Pacific states and
Overseas Countries and Territories 69
8. COMMUNITY INTEREST SUBSIDIES FOR LOANS CONTRACTED WITHIN 
THE COMMUNITY
8.1 Interest-subsidy mechanisms .  70
8.2 EMS interest subsidies 70
8.2.1 Operations in 1983 71
8.2.2 Overall assessment of the system: 1979-83 72
8.3 Interest subsidies for reconstruction in
earthquake-stricken areas 77
8.4 ECSC interest subsidies 78

LIST OF TABLES IN THE TEXT
Page
Investment in the Community
(annual growth rate in volume terms) '  4
Volume of GFCF in Member States in 1982 and 1983 5
Volume of international capital markets> 1982-83 22
International bond issues by debtor country 24
Trend of borrowing by Community instruments 28 .
Community borrowing in‘1983, by currency 30
Trend of lending in the Community 34
Lending in the Community in 1982 and W Sl·, by sector
and by instrument 37
Geographical breakdown of lending in the Community 1983 46i
NCI utilization 49
Loans subsidized and subsidies’paid/ year by year 73
Loans subsidized and subsidies paid/ cumulative annual
data 73
EMS interest subsidies paid from 1979-83 appropriations 75
ECSC interest subsidies 78
!

LIST OF GRAPHS AND BOXES
Pa£e
Graph No 1 - Yields on international markets '26
t
Graph No 2 - Yields on national markets; public
sector 27
Graph No 3 - Trend of borrowing contracted by the 
European Communities, by instrument 
(1973-83) 31
Operations under the Community loan mechanism for
balance-of-payments support 32
Graph No 4 - Trend of lending in the Community, by
instrument (1973-83) 36
Graph No 5 - Breakdown of loans in the Community in 1983
by instrument and by sector 38
Graph No 6 - Breakdown of NCI loans in 1983, by country 
and by sector (including earthquake 
reconstruction loans in Italy) 52
List of NCI loans '  55

METHODOLOGICAL COMMENTS
I. The ECU 
Definition
3.1.1 The ECU is a "basket-type" currency unit made up of specific 
amounts of Member States' currencies, determined mainly by reference to 
the size of each Member State's economy.
The ECU is made up of the following amounts: BFR 3.66, LFR 0.14,
HFL 0.286, DKR 0.217, DM 0.828, LIT 109, FF 1.15, UKL 0.0885, IRL 0.00759.
The Act of Accession of Greece to the Communities provides that the
drachma is to be effectively included in the ECU before 31 December 1985
if the composition of the basket is changed before then pursuant to the 
procedures and under the conditions laid down in the Resolution of the 
European Council of 5 December 1978 .on the European Monetary System.
In any event, the drachma will be included by 31 December 1985 at the 
latest.
Calculation and publication
3.1.2 The equivalent of the ECU in any currency is equal to the sum af 
the equivalents of the amounts making up the unit.
The ECU is calculated each day on the basis of representative rates for 
each Community currency against the dollar, which is used simply as a 
common reference for expressing exchange rates. The exchange rates are 
established on each exchange market at 2.30 p.m. by the relevant central 
bank; on the basis of these rates, the Commission establishes an ECU 
equivalent in the Community currencies and in the other major currencies.

These equivalents are published each day in the Offical Journal of the 
European Communities CC' edition) and may also be obtained from the 
Commission by telex automatic answering service; they are also 
reported by the main European press agencies and are published in 
many newspapers.
II. Value of the ECU at 31 December 1983
BFR/LFRconvertible 46.0969
BFR/LFRfinancial 46.7878
DM 2.25748
HFL 2.53713
y«L 0.570600
DKR 8.18269
FF 6.90358
LIT ‘  1371.99
IRL 0.728961
DR 81.7773
USD 0.827370
SFR 1.80408
YEN 191.743

III. BALANCE BETWEEN BORROWING AND LENDING
This report is not an accounting document concerned with depicting the  
financial balance over time between borrowing and lending for all the  
instruments examined. That purpose is served by specific documents such  
as the EIB annual report (together with its balance sheet and details  
of activities under the special section)/ the ECSC financial report and,  
as far as the NCI and Euratom are concerned/ Part II of the preliminary  
draft general budget of the European Communities.
Generally speaking/ the imbalance in this report between lending and  
borrowing is due to the following main factors:
(i) loans contracted during a particular year may give rise to  
•payments/ and thus entail borrowing/ only in subsequent years;
(ii) conversely/ funds may need to be borrowed in a particular year  
in order to pay out loans contracted in previous years;
(iii) movements in the cash position may produce a temporary increase  
or reduction in the funds available out of borrowings;
(iv) lending and borrowing operations give rise to costs/ premiums  
and discounts before settlement;
(v) the EIB and ECSC have sources of revenue which go into their  
cash holdings.
In addition/ some of the discrepancies between the figures given in the  
different accounting documents are due to the special methodological  
features of certain instruments/ including:
I
(i) the dates on which operations are recorded;
(ii) the periods for which interim sub-totals are calculated;
(iii) the dates on which conversion into ECU takes place and the  
conversion rates applied.

-  1 -
FOREWORD ,
This is the fourth comprehensive report drawn up by the Commission .to  
provide the Council and Parliament with information on the Cpmmunity's  
borrowing and lending activities. It covers the year 1983.
It was drawn up to meet the wishes expressed by Parliament on various
occasions, and in particular in its Resolution on improving political
1control over the Communities' borrowing and lending activities.
The report reviews all the borrowing and lending activities of the  
Community institutions, including those of the ECSC and the EIB, thereby  
fulfilling the Commission's obligation to inform the Council and  
Parliament each year about:
(i) the activities of Euratom, in accordance with Article 4 of the
2Council Decision of 29 March 1977;
(ii) the activities of the NCI, in.accordance with Article 6 of the
Council Decision of 16 October 1978 (NCI I),3 Article 6 of the
Council Decision of 15 March 1982 (NCI II) and Article 7 of the
Council Decision of 19 April 1983 (NCI III)3
(iii) the EMS interest subsidy instrument, in accordance with Article 10  
of the Council Regulation of 3 August 1979;^
^Doc. PE 67134 of 5 March 1981; OJ No C 287 of 9 November 1981.  
2Decision 77/270/Euratom; OJ No L 88 of 6 April 1977.
^Decision 78/870/EEC; OJ No L 298 of 25 November 1978.
^Decision 82/169/EEC; OJ No L 78 of 24 March 1982.
^Decision 83/200/EEC; OJ No L 112 of 28 April 1983.
^Decision 79/691/EEC; OJ No L 200 of 8 August 1979.

-  2 -
(iv) the Community aid granted by way of exception for the
reconstruction of the regions affected by the Italian earth­
quake in November 1980, in accordance with Article 7 of the
1  JCouncil Decision of 20 January 1981;
(v) the Community aid granted by way of exception for the
reconstruction of .the regions affected by the Greek earth­
quakes in February/March 1981, in accordance with Article 7
2of the Council Decision of 14 December 1981.
Like the previous reports, this report, which covers the 1983  
financial year, provides a complete picture of the borrowing and  
lending activities of the Community instruments within the  
Community. It reviews not only the activities of Euratom, the NCI  
and the EMS interest subsidy instrument but also those of the  
ECSC and, in a more general way, those of the EIB.
It also includes loans granted*by the Community in third countries  
from the proceeds of borrowing on capital markets. These loans  
concern the ACP States, the OCTs, and the Mediterranean countries  
linked to the Community through agreements establishing different  
forms of economic and/or financial cooperation (Maghreb and  
Mashreq countries, Israel, Cyprus, Malta, Spain, Portugal, Turkey  
and Yugoslavia).
The ECSC's financial report and the EIB's annual report will, of  
course, be sent to Parliament and the Council as before.
1Decision 81/19/EEC; 0J No L 37 of 10 February 1981.  
^Decision 81/1013/EEC; 0J No L 367 of 23 December 1981.

- 3 -
1. INVESTMENT IN THE COMMUNITY
1.1. Improving performance in the Community
/
Capital spending in Member States totalled 480 000 million ECU in 1983  
4.3% higher than in 1982 and equivalent to 18.5% of the value of  
Community GDP at market prices. However, the increase in value terms  
was due exclusively to the prices of fixed capital goods rising by  
5.2% between 1982 and 1983; in volume terms, total investment was 0.9%  
down on 1982. With a volume of 250 000 million ECU, investment in  
1983 was virtually the same as in 1977 and almost 8% lower than its  
peak in 1980.
Despite this further fall in the real value of investment in the  
Community in 1983, there are now encouraging signs of an end to this  
protracted investment crisis, as a result of which the Community has  
experienced a slowdown in productivity growth and a deterioration in  
competitiviness. After falls of 4.8% in 1981 and 1.6% in 1982, the  
trend of investment in 1983 showed something of a reversal in that a  
revival setting in towards the end of the year made it possible to  
hold the decline for the year as a whole to 0.9%.
1.2 Widely varying results between countries
In 1983, the volume of investment rose in four countries (  Denmark,  
Germany, the Netherlands and the United Kingdom), compared with three  
in 1982 < Denmark, France and the United Kingdom) and none in 1981.
The year 1984 is expected to see increased investment in seven countries  
The rates of growth recorded in two of those countries in the second  
half of 1983 (9.7% in Germany and 5.3% in the Netherlands)are a measure  
of the strength of the revival.
1At 1975 prices and exchange rates

- 4 -
INVESTMENT IN THE COMMUNITY  
(annual growth rate in volume terms)
1982/1981 1983/1982
TOTALConstructionPlant and machinery TOTALConstructionPlant and machinery
Belgium
Denmark
Germany
Greece
France
Ireland
Italy
Luxemb.
Neths.
UK-2,6 (100) 
6,0 (100) 
-5,4 (100) 
-1,0 (100) 
1,1 (100) 
-8,4 (100) 
-5,3 (100) 
-0,1 (100) 
-5,0 (100) 
5,8 (100)-6,3 (65,2) 
-1,9 (55,3) 
-4,5 (61,7) 
-8,8 (56,6) 
-2,0 (56,9) 
-11,9 (53,8) 
-2,7 (59,5) 
2,1 (67,1) 
-7,9 (61,1) 
10,6 (52,2)3.3 (34,8) 
16,3 (44,7) 
-6,6 (38,3)
9.1 (43,4)
3.4 (43,1) 
-4,6 (46,2) 
-8,2 (40,5) 
“4,3 (32,8)
0,4 (38,9)
1.1 (47,8)-6,0 (100) 
2,1 (100) 
2,4 (100) 
-4,1 (100) 
-3,2 (100) 
-9,3 (100) 
-6,5 (100) 
-7,5 (100) 
1,1 (100) 
4,2 (100)-6,3 (65,2) 
-0,7 (54,1) 
0,9 (60,8) 
4,0 (59,8) 
-4,7 (57,0) 
-9,5 (53,0) 
-3,0 (61,7) 
”6,3 (67,8) 
-2,1 (58,1) 
5,5 (53,2)- 5,5 (34,8) 
5,1 (45,9)
4.4 (39,2) 
-13,0 (40,2)
-2,2 (43,0) 
-9,1 (47,0) 
-10,5 (38,3) 
-10,0 (32,2)
6.5 (41,9) 
2,4 (46,8)
EC-10-1,6 (100) -1,7 (55,1) -1,6 (44,9) -0,9 (100) -0,6 (55,2) -1,3 (44,8)
Public investment
Aggregate investment as a proportion of
ratio (as X of GDP) total investment
(%)
1982 1983 19821983
Belgium 17,0 15,8 20,318,9Denmark 16,5 16,4 17,314,9Germany 20,5 20,5 14,513,0Greece 19,4 19,0 17,320,6France 20,9 .  20,1 14*314,3Ireland 25,5 22,2 27,028,2Italy 19,0 17,9 21,624,8Luxembourg 24,4 23,3 28,528,4Netherlands 18,3 18,4 15,915,1UK 15,4 15,2 10,912,3
EC-10 19,0 18,6 16,316,5

- 5 -
In contrast to this healthy performance, however, other countries were  
experiencing continued, or indeed growing, difficulties in maintaining  
an adequate level of investment. In Belgium, Greece, France, Ireland,  
Italy and Luxembourg, gross fixed capital formation fell between 1982  
and 1983. In the case of Italy, Greece and, above all, Ireland, this  
poor performance marked a sharp break with the situation three or four  
years earlier. Except in Germany, the volume of investment in 1983 was,  
as a rule, barely higher than in 1975. Indeed, it was in some cases much  
lower (Benelux countries and Denmark), or fell a long way short of the  
best performances recorded in recent years.
Volume of GFCF in Member States in 1982 and 1983
(1975 = 100)
BDKDGRFIRLILNLUK
88,2
82,988,5
90,4115,8
118,6107,0
102,6105,0
101,7141,0
127,9111,5
104,295,0
87,990.6
91.697,3
101,4
Highest level recorded compared with 1975
108,1119,8126,0134,1106,4155,1118,0113,5111,5103,9
(1980(1972)(1980)(1973)(1980)(1979)(1980)(1974)(1978)(1973

-  6 -
1•3 Revival of investment in plant and machinery ,
Investment in the modernization of production processes has been the  
key factor in the growth in fixed capital spending in recent years. In  
four countries (Denmark/ Germany/ the Netherlands and the United Kingdom),  
the growth in fixed capital formation in 1983 resulted from buoyant  
demand for plant and machinery; this trend in demand is expected to  
continue in 1984 and to spread to most Community countries. Orders from  
European industry will however have some adverse effects on trade  
equilibria since supply from within the Community does not always meet  
users' technological requirements. In recent years, this mismatch  
has been reflected in growing penetration of the Community market by  
sophisticated equipment from the United States and Japan.
1.4 Contraction in the share of public investment and of investment in  
bui Idi-ng and construction
V
In 1983, gross fixed capital formation in four countries (Denmark, Germany,  
the Netherlands and the UK) was, broadly speaking, accompanied by a fall  
in capital spending financed by the budgetary authorities. This reduced  
use of public funds, which was dictated by the resolve to hold down  
public deficits, was particularly noticeable in .Denmark and Germany and,  
to a lesser extent, in the Netherlands.
By contrast, the public sector made a substantial contribution to  
investment in 1983 in Greece, Ireland and Italy, although this did not  
make up for the general contraction in capital spending since 1980.
In the United Kingdom, the revival in building and construction was  
underpinned in part by publicly financed housing programmes.

- 7 -
The United Kingdom apart, activity, remained slack in building and  
construction and in civil engineering. The volume of investment in  
housing and in non-residential construction has been declining steadily  
for a number of years, reflecting both the disincentive effect of high  
interest rates, especially on private individuals' building decisions,  
and the continued slowdown in productive investment, which will not  
pick up again until the economic recovery becomes established.

-  8 -
2. COMMUNITY ACTION TO PROMOTE INVESTMENT
In Line with the priorities adopted by the European Council in 1982.  
and 1983, and in particular at its meetings in Copenhagen and  
Stuttgart, promoting investment continued to be one of the Commission's  
main concerns throughout 1983. This was reflected in a number of  
initiatives.
2.1 A more favourable environment
All through 1983, the Commission continued its work on investment  
in an effort to help reverse the trend observed in the three preceding  
years.
In 1982 already, it had endeavoured to provide a framework for the
1initiatives and proposals for a coordinated investment policy and to  
identify areas for action likely to improve or to create some of the  
conditions conducive to investment. In 1983 it pressed ahead with  
its work on two fronts:
(i) It undertook an analysis of Member States' current tax and  
financial measures to promote investment. In April 1983, it  
presented a communication on the subject which, starting from a  
comparison of experience in member countries, identifies a  
number of useful measures and possible improvements in the tax  
and financial invironment for businesses which would help to  
increase the internal resources available for investment and to  
expand the supply of risk capital.^ It recommended that such  
measures be adopted or reinforced in the light of the particular  
situation in each country.
- ]Communication from the Commission to the Council of 8 June 1982 on the  
problem of investment, published in European Economy, No 14, November
1982
2Communication from the Commission to the Council of 14 October 1982  
on initiatives for promoting investment, published in European Economy,  
No 14, November 1982.
^Published in European Economy, No 16, July 1983.

- 9 -
<ii) In April 1983^ the Commission sent the Council a Communication on
1financial integration in the Community/ in which/ noting the  
weakness of the Community's financial dimension measured against  
its economic potential/ it takes the view that savings can be  
mobilised for the benefit of investment by taking full advantage  
in the financial field of the Community's economic weight. It  
proposes two main lines of action:
.  liberalization of capital flows as and when headway is made in  
restoring external positions and achieving closer convergence  
of economic performances/ the principal aims being the establish­
ment of a European risk capital market and expansion of the  
financial use of the ECU;
.  development of a more unified network of financial services in  
the banking/ insurance and stock exchange fields and the  
promotion of new financial instruments for ensuring efficient  
movement of capital within this enlarged financial area.
2.2 1983: Year of Small and Medium-sized Enterprises (SMEs)'
The Commission/ Parliament and the Economic and Social Committee  
decided to declare 1983 the Year of Small and Medium-sized Enterprises.  
The organizations representing the interests of SMEs at national and  
European level were involved in the various initiatives launched. Those  
initiatives had their basis in the finding that SMEs are one of the most  
effective vehicles for creating jobs and for disseminating technological  
innovation in a flexible and rapid manner.
iCOM (83)207 final of 18 April 1983, published in European Economy,  
No 18/ November 1983

-  10 -
Alongside the information campaigns undertaken by the various  
Community institutions/ including the Economic and Social Committe/  
as well as the meetings and symposia held on the subject and the  
studies carried out/notably for the purpose of the Parliament's  
action programme for a Community policy on SMEs and craft industries/  
Commission activity in the field of lending took three main forms:
- A substantial increase in loans actually granted by the Community  
to SMEs through the NCI/ the ECSC or the EIB. These totalled
1 264 million ECU/ in 1983 as against 907 million ECU in 1982/  
giving a rise of nearly 40%;
- Continuation of the drive to promote the financing of SMEs: it
was decided that the financing of investment by SMEs in industry
and in the other productive sectors would be a priority area for  
1NCI operations.
This priority was confirmed and spelt out more clearly in the
2Council implementing Decision of 13 June 1983 and in the guide  
lines sent by the Commission to the EIB indicating how it would  
like to see the broad policy laid down by the. Council applied;
- Presentation of a proposal for establishing a Community mechanism  
for financing innovation by SMEs (see point 3.2).
^Decision 82/200/EEC; OJ No L 112 of 28 April 1983, p. 26  
^Decision 83/308/EEC; OJ No L 164 of 23 June 1983, p. 31

-  11  -
2.3 Facilitating structural adjustment
The Commission's third line of action during the year was to promote/  
through the financial resources at its disposal/ the technological and  
financial developments best suited to assisting the European economy  
in making the structural adjustment necessary to its recovery. This  
took two main forms:
- the priority tasks assigned to the NCI. Pursuant to the first
decision implementing NCI III and under the corresponding guidelines/  
these include in particular the financing of new technologies;  
Priority is to be given not only to the efficient use of energy but  
also to infrastructure projects linked to the expansion of productive  
activities/ such as telecommunications or information technology/  
and to investment projects undertaken by SMEs;
~ the Commission proposal to the Council concerning a set of decisions  
on the financing of innovation. This proposal follows on directly  
from the conclusions of the European Council in March 1982, which  
stressed the importance of stimulating productive investment and  
promoting innovation.

-  12 -
3. GUIDELINES AND DECISIONS RELATING TO THE LENDING AND BORROWING  
MECHANISMS
3.1 New Community Instrument (NCI)
By the end of 1982, virtually all the funds from NCI II had been  
committed. Out of the 1  000 million ECU authorized by the Council  
for NCI II, loans totalling 548 million ECU had been signed, the  
balance being accounted for by loans declared eligible by the  
Commission.
As early as October 1982, the Commission had therefore asked the
Council for authorization to continue and expand NCI operations.
On 19 April 1983, following a conciliation procedure with Parliament
the Council adopted a decision empowering the Commission to contract
1loans up to a ceiling of 3 000 million ECU (NCI III).
In February 1983, the Commission had already presented a proposal  
for an implementing decision authorizing a 1 500 million ECU tranche.  
The proposal was adopted by the Council on 13 June 1983.
1 Council Decision 83/200/EEC; OJ No, L 112 of 28 April 1983, p. 26  
Council Decision 83/308/EEC; OJ No L 164 of 23 June 1983, p. 31.

- 13 -
This first tranche under NCI III gave the Council the opportunity  
to reaffirm the guidelines adopted for NCI II, notably the extension  
to investment projects by SMEs.
4-
t
Authorization was also given for the financing of investment  
projects by larger businesses and the importance of disseminating  
innovation and new technology was stressed.
The field of application of the new tranche was specified by the  
Commission in the guidelines it sent to the European Investment Bank  
indicating how it would like to implement the broad policy laid down  
by the Council. The Commission:
- confirmed and reinforced the priority accorded to investments by
SMEs in industry and in services directly linked to production;
\
- made it clear that projects in the productive sector carried out  
by businesses that were larger in size than SMEs would be eligible  
only if they permitted the application of advanced technologies  
and were cooperative efforts of businesses from different Member  
States;
•4
" indicated that, in the energy sector, special attention had to be  
paid to projects promoting the efficient use of energy;
- took the view that infrastructure projects should be treated as  
a first priority where they were linked to the expansion of  
productive activities.

- 14 _
3.2 Financing of innovation 1 1
The Commission drew attention at a very early stage to the decline  
in productive investment by businesses in Europe and to the  
deterioration in their competitiveness. It has worked to bring  
about a reversal in this tendency by proposing - and securing  
agreement for - a strenthening of lending instruments and an  
expansion of lending in favour of investment.
However, such action is confined to traditional investment,  
whereas, given the new international division of labour that is  
developing, it is now important that businesses in Europe should  
be able to control and promote technological development.
This was why the Commission took the initiative in June 1983 of
proposing to the Council that the NCI be used to establish a
1Community mechanism to finance innovation by SMEs.
<iTowards Community financing of innovation in small and medium­
sized enterprises, C0MC83) 241 of 7 June 1983 and OJ No C 178 of  
5 July 1983.

- 15 -
The financing of innovation/ defined as the introduction of  
new products/ services/ production methods or marketing and  
management techniques in the economy/ has a number of special  
features:
” abnormally high risk when measured against banking criteria;
- delay in return;
- need for a large market;
Moreover/ SMES/ which are a source and vehicle of innovation/  
encounter special financing difficulties that derive from their  
undercapitalization/ their overindebtedness and the absence or  
inadequacy of conventional security.
To remedy these difficulties/ the Commission is seeking authorization  
to make available to innovative SMEs a fioancial product ("the European  
Innovation Loan") that would be a combination of loans financed by  
borrowings (a special tranche of 100 million ECU under NCI III) and  
of grants financed out of budgetary resources.

- 16 -
Parliament strongly endorsed the proposal/ stressing in particular  
the value of making the mechanism available to the smallest SMEs,  
Work on it at the Council/ which started in Autumn 1983/ has  
brought to light certain anxieties about the budgetary implications  
of the proposed mechanism. It was therefore decided/ at the  
beginning of 1984/ to investigate possible technical improvements  
which might make it possible to contain the budgetary cost while  
still keeping the basic purpose of the proposed mechanism/ and  
without modifying it out of all recognition.

- 17 -
3.3 Interest subsidies granted in the context of the European Monetary  
System
1Pursuant to the Council Regulation of 3 August 1979, the less 
prosperous Member States effectively and fully participating in the  
European Monetary System may be granted interest subsidies financed  
by the Community budget on NCI and EIB loans made mainly for infra­
structure projects. Italy and Ireland were recognized by the  
Council as being eligible. The Regulation which was valid for  
five years, lapsed on 31 December 1983.
The Commission took the view that the differences between Member  
States' levelsof development were still significant and that  
further efforts should therefore be made to assist Ireland and  
Italy.
Accordingly, on 11 May 1983, it adopted and transmitted to the  
Council a proposal for a Regulation^ extending for swo years the  
system of interest subsidies established by the Council on  
3 August 1979. Parliament endorsed the Commission's proposal.
3.4 Euratom
In accordance with the last Council Decision of 15 March 1982  
empowering it to contract loans (82/170/Euratom), the Commission has  
to inform the Council when the total value of transactions effected  
reaches 1 800 million ECU. Since that level has been virtually  
reached, the Commission will propose to the Council a draft decision  
raising the total amount of loans that the Commission is empowered  
to contract. ,
^Decision 79/1736/EEC; OJ No L 200 of 8 August 1979, p. 1.  
2C0M(83)275; OJ No C 163 of 22 June 1983

- 18 -
3.5 European Coal and Steel Community (ECSC) x
On 16 July 1983 the Commission published in Official Journal No C 
,  191 new operating principles for ECSC conversion loans (Article 56
of the ECSC Treaty).
The most noteworthy change is the increase in the interest subsidy,  
which goes up from 3% to 5 % for global loans. There are also  
significant changes in the definition of SMEs and in the size of  
loans made, the relevant lending criteria having been relaxed and  
widened, and the manner in which the social clause is applied has  
been modified.
3.6. European Investment Bank (EIB)
Through a further strong expansion of its financing operations, the  
Bank contributed in 1983, in accordance with the task assigned to  
it by the Treaty of Rome, to the development of the least-favoured  
regions, to the reduction in the Community's dependence on imported  
oil and to the modernization or conversion of European industry,  
notably through the wider application of advanced technology. In  
this, it has acted in line with the conclusions of the European Council  
which called for higher investment and job creation.
As regards its activities outside the Community, the Bank was  
authorized by its Board of Governors to go on granting pre-accession  
aid to Portugal (75 million ECU) and to continue financial cooperation  
with Spain (100 million ECU) in the period between 1 July 1983 and  
30 June 1984. The year also saw the entry into force of the second

- 19 -
financial protocols concluded with the Maghreb and Mashreq countries  
for the period up to 31 October 1986. The financial protocol  
concluded with Israel in June 1983 took effect on 1  January 1984.
3*7 Community coordination of borrowing and lending operations
3.7.1 Coordination of borrowing
Coordination of borrowing between the Commission and the EIB took  
much the same form in 1983 as in 1982.
It will be recalled that such coordination results:
“ ^rom the fact that it is the Finance Ministers of the Member States  
who, meeting in the Council, set the ceilings for the borrowing/  
lending activities of Euratom and the NCI and who, meeting as the  
Board of Governors of the EIB, determine the EIB's lending and  
borrowing policy;
- from the close, permanent links that exist between the Commission  
and the EIB.
For all their borrowing on Member States' markets, the Commission  
and the Bank comply with the laws or regulations governing domestic  
issues, and they float issues only with the agreement of the national  
authorities. This general rule,is applied in practice not only on  
the national capital markets of the Member States' (for which it was  
established) but also in the case of loans that are denominated,  
payable or repayable in the currency of a Member State. Moreover,  
although they are not always obliged to do so, the Community  
institutions request the agreement' of the appropriate authorities  
in non-member countries when they float loans on their markets.

-  20  -
In sum/ while the number of labels under which the Community  
borrows has allowed more capital to be raised on the markets/ the  
close coordination established between the two borrowers has made  
it possible to safeguard the Community's borrowing capacity. This  
was again apparent in 1983/ when substantial borrowing for balance-  
of payments support purposes did not give rise to abnormally high  
demand on certain markets. It must be acknowledged though that on  
this occasion the Community borrowed partly at floating rates, a  
technique which it does not usually employ.
3.7.2 Coordination of lending
Lending too is coordinated between the Commission and the EIB.
In addition to the Bank's activities financed from its own  
resources, it acts as the agent of the Community, represented by  
the Commission, in the operation*of various financial instruments:  
relations between the Commission and the Bank in the performance  
of these tasks are governed by cooperation arrangements specifying  
the role and responsibilities of each party.

-  21 -
Accordingly/ the Bank acts as an agent for Euratom and has a mandat  
from the Community for the NCI/ for the interest subsidies in the  
framework of the European Monetary System (EMS) and the special aid  
for the reconstruction of the areas affected by earthquakes/ for th  
assistance in the form of risk capital provided for by the Lome  
Convention/ and for loans on special conditions from budgetary  
resources provided for by the Mediterranean financial protocols.
The technical details of this coordination/ both with the EIB and  
within the Commission/ have also been modified over the years to  
take account of experience gained and of changes in the Community's  
financial instruments. There were thus two new developments in  
1983.
First/ the recent success of NCI loans for SMEs has given the NCI  
something of a specific bias and also greater autonomy. The  
Commission has reaffirmed and accentuated this trend by indicating  
to the EIB how it would like to implement the broad policy laid  
down by the Council for the first NCI III tranche. As a result/  
operations under the NCI and therefore also under the other  
instruments have become more transparent.
Second, in response to the request from the Stuttgart European  
Council on 17-19 June 1983 that it make "full use of Community  
financial instruments in a coordinated manner to sustain and  
consolidate the economic recovery"/ the Commission carried out an  
in-depth examination of the various structural Funds/ the findings  
of which were set out in a communication to the Council and to
-jParliament/ and undertook at the.same time to reinforce the  
internal coordination procedures with a view to harmonizing still  
further the practical operating methods of the lending instruments.
C0M(83)501

22 ~
4. BORROWING
4.1.  Situation on capital markets in 1983
4.1.1. General
Borrowing on financial markets fell appreciably, from 159 100 million  
ECU in 1982 to 138 200 million ECU in 1983, a decline of 13%. This wa  
due to a sharp fall of 27 800 million ECU in the volume of Eurocredits  
(syndicated bank credits). By contrast, bond issues were 6 800 millio  
ECU up on the already high level recorded in 1982.
The decline was attributable in part to the fall-off in demand from  
the industrialised countries and in part to banks' reluctance to  
make loans to developing countries whose economic ■ , situation was  
particularly precarious. A substantial volume of Eurocredits was  
granted under debt rescheduling agreements, and, the drop in new  
loans was therefore more marked than appears from the table.
VOLUME OF INTERNATIONAL CAPITAL MARKETS, 1982-83
(million ECU)
19 8 2•XX19 8 3 %X
International bond  
issues
- conventional foreign t  
Syndicated bank credits60 749 
onds 
98 38216 84738.2
61.810.667 592 
70 62017 63348.9
51.112.8+ 11.3 
+ 4,7 
- 28.2
- 13.1Total 159 131 100.0 138 212 100.0
Public issues only.  
Source: EIB

- 23 -
4.1.2 International bond markets
The positive trend recorded on the bond market is due to the'  
fact that this market is tapped primarily by borrowers with a  
good credit rating. Companies and governments issued bonds  
not only to meet their financing needs but also with a view  
to restructuring their external debt; even banks were active  
on the market with issues and subscriptions.

- 24 -
INTERNATIONAL BOND ISSUES BY DEBTOR COUNTRY
(million ECU)
19 8 2 11 9 R 3 %
1.Industrialized countries 
Borrowers from EC countries 
<pf which EC organizations) 
Other industrialized countries50 765 
15 037 
(2 779) 
35 72883.6
24.8 
(4.6)
58.857 952 
23 660 
(6 658,1) 
34 29285.7 
35.0 
(9.9)
50.7
2.Developing countries
OPEC countries
Other developing countries3 077 
317 
2 7605.0
0.5
4.51 940 
378 
1 5622.9
0: .  6 
2.3
3.Eastern European countries 
(including Comecon organization)- - - -
4.Other international organizations6 907 11.4 7 700 11.4
TOTAL 60 749 100.0 67 592 100.0
The table covers only public issues and hence only part of the borrowings by 
Community issuers (see Tables 1 and 2 in the Annex)
2African Development Bank, Asian Development Bank, Council of Europe, Eurofima, 
Inter-American Development Bank, Nordic■Investment Bank, World Bank.
Source :  EIB
c

- 25 -
With regard to issuing techniques, variable-rate bonds expanded  
significantly in 1983, partly in response to the uncertainty  
surrounding interest-rate movements. To a large extent, such bonds,  
in which there is an active secondary market, are thus taking the  
place of Eurocredits. Convertible bonds or bonds with warrants  
attached were also well received by investors in view of the  
favourable prospects for share prices.
The proportion of borrowing accounted for by borrowers from the  
Community rose sharply, from 24.8% in 1982 to 35% in 1983.
Borrowing by the Community institutions in particular climbed  
from 4.6% to 9.9% of the total.
4-1*3 Interest rates and currencies of borrowing
The decline in the yield on Eurocurrencies that occurred in 1982  
came to a halt in 1983. On most international markets, rates  
remained broadly stable or even rose slightly at times. Only  
on the Eurofranc market did rates continue to fall appreciably.
On countries' national markets, the significant fall in rates  
recorded in those countries where, in 1982, rates had been  
especially high (Denmark, Ireland and Italy) made for a narrowing  
of interest-rate differentials, although these remained substantial  
(see graphs). >
The dollar is still by far the most important currency of borrowing  
but its relative share fell from 69.4% in 1982 to 64.9% in 1983.
Of the other currencies, the ECU expanded its share significantly  
from 1.2% in 1982 to 2.9% in 1983^

-  26 -
GRAPH Wo 1
Yields on international markets (Bonds)
.Furo F F
Euro S
Euro £
Euro S  can.
ECU'
.YEN (foreign)
0 M(forei <Jn)
SFR (foreign)

- 27 -
GRAPH No 2
Yields on national markets; public sector (Bonds)
ITALY
DENMARK
•IRELAND
FRANCE,
BELGIUM
UNITED KINGDOM
LUXEM BOURG
NETHERLANDS
GERMANY

- 28 -
4.2. Community borrowing in 1983
Total borrowing by Community organizations for structural investment  
purposes (excluding balance-of-payments borrowings, which are dealt  
with separately in a box) was 6 244 million ECU in 1983, compared  
with 4 994 million ECU in 1982 (+ 27.2%). This large and rapid  
increase was due essentially to the sharp expansion of the NCI and  
to a lesser extent, to EIB operations.
Trend of borrowing by Community instruments
(million ECU)
Year1ECSCEIB2EURATOM NIC 1TOTAL
1974 528826 1 354
1975 731814 1 545
1976 956732 1 688
1977 7291 030 99 1 858
1978 9811 863 72 2 916
1979 8372 437 1531783 605
19801 0042 384 1813053 874
1981 3252 243 373 3393 280
1982 7123 146 3637734 994
1983 7503 508 3691 6176 244
1Up to 1982, the series are for borrowings signed during the year under  
all the instruments. The 1983 figures for the ECSC, Euratom and the  
NCI represent borrowings collected during the year. As a result of  
this change in method, a 200 million dollar borrowing under the NCI  
was counted both in 1982 and 1983.
2The EIB also raises funds by selling participations in EIB loans to  
third parties; the limited amounts involved (640 million ECU between  
1973 and 1983, of which 111 million ECU in 1983) are not included in  
the figures given.

- 29 -
The analysis of issues by source and currency of borrowing  
shows that:
/
*
- borrowing in the currencies of member currencies represents  
55% of the total, slightly down on 1982 (60%), the remaining  
45% being in non-Community currencies (25% in USD, 11% in YEN  
and 8% in SFR);
- ECU issues made in 1983, for a total of 475 million ECU,  
represent nearly 8% of total issues, compared with only 3%
in 1982; use of the ECU as a borrowing currency thus expanded  
significantly;
the share of DM and HFL issues was slightly lower than in 1982;
»
- the share of the USD rose from 20% in 1982 to 25% in 1983; to  
some degree at least, this was. due to interest-rate movements;
- as in 1982, a sizeable proportion (some 28%) of the funds borrowed  
by Community instruments was raised in the form of private placings.

- 30 -
COMMUNITY BORROWING IN 1983, BY CURRENCY
( million ECU)
Member country currenciesNon-member 
country currencies
Sub-
TotalTotalB1 BPL m  IF IFR BFR UT EOJS SUB­
TOTALUSD SFR YEN CAND OS
EIB
Euratoi
ECSC
NCI705,6 357,6 175,7 148,7 35,3 160,7 230,0 1813,6 
1146,2 54,3 61,6 10,8 21,7 50,0 344,6 
328,4 64,2 14,9 36,7 166,5 610,7 
199,3 98,5 175,3 W5,0 668,1834,3 284,7 468,5 75,6 31,7 
24,2
90,7 48,2 
574,1 166,3 208,61694,8
24,2
138,9
749,03508,4
368,8
749,6
1617,1
Total
X1379,5 574,6 365,9 210,3 82,8 348,9 * 475,0 3437,0 
22,1 9,2 5,9 3,4 1,3 5,6 7,6 55,01523,3 499,2 677,1 75,6 31,7 
24,8 8,0 10,8 1,2 0,52807,4
45,06244,4
j 100

- 31 -
BORROWING
GRAPH No 3
Trend of borrowing contracted by the European Communities, .
by instrument (1973-83)
NCI
Euratom
EIB
ECSC

- 32 -
Operations under the Community loan mechanism for balance-of-  
payments support
The purpose of this mechanism differs from that of the other  
borrowing/lending instruments dealt with in this report which are  
for the financing of investment projects. To be complete, however,  
any survey of the Community's borrowing activities on capital  
markets must include operations under this mechanism.
The Community "balance-of-payments" loan mechanism, which was set up
1 2 in 1975 , was modified in a number of respects in 1981 although its
basic design remained unchanged. The principle is still that the
Community will use its credit standing to borrow funds and to
re-lend them on the same terms to a Member State in balance-of-
payments difficulties. For the loan to be granted, the Member State
concerned must undertake,to implement an adjustment programme
designed to re-establish a sustainable balance-of-payments situation.
The loan decision is taken unanimously by the Council, which
determines the amount of the loan, the disbursement technique
(single or staggered payment) and the economic policy conditions.
The total outstanding amount of borrowing authorized under this
mechanism is at present limited to 6 000 million ECU in principal.
In the context of this mechanism, the Council, acting on a proposal  
from the Commission and after consulting the Monetary Committee,  
decided on 16 May 1983 to make available to the French Republic a  
loan equivalent to 4 000 million ECU^. The loan was linked to the  
decision by the French authorities to implement an economic policy  
programme with a view to re-establishing a sustainable balance-of-  
payments position, reducing the rgte of inflation and ensuring  
closer convergence of economic policies within the Community.
^Council Regulations (EEC) No 397/75 and No 398/75 of 17 February.1975.  
^Council Regulation (EEC) No 682/81 of 16 March 1981.
^Council Decision 83/298/EEC.

- 33 -
The size of the operation, the relatively short time allowed to  
complete it without disrupting the markets, and the average  
maturity agreed for the loan (under six years) meant that  
appropriate forms of borrowing had to be used; the bulk of thè  
funds was therefore raised on the Eurodollar market and on  
variable-rate terms.
Borrowing was in four tranches:
- a public issue of seven-year floating-rate notes (1.8% per annum  
above·Libor) for an amount of USD 1 800 million;
- a public issue of four-year fixed-rate bearer notes (11% per annum  
for an amount of USD 350 million;
- a public issue of fixed-rate ECU denominated bonds for a total of  
150 million ECU, in three sub-tranches:
- 80 million ECU for four years at 11 1/8% per annum;
- 40 million ECU for seven years at 11 1/4% per annum;
- 30 million ECU for ten years at 11 1/2% per annum;
- a syndicated seven-year floating-rate bank credit (3.8% per annum  
above Libor) for an amount of USD 1 240 million.
All the borrowing was completed in August 1983. The speed of  
implementation and the terms obtained on the market demonstrated the  
Community's credit standing and the effectiveness- of the procedures  
applied under the mechanism.
On the basis of the ECU's conversion rate obtaining on 31 December 1983  
borrowing under this mechanism in'1983 totalled 4 247.3 million ECU,  
compared with 1 249 million ECU in 1976 and 571 million ECU in 1977 in  
favour of Italy and Ireland.

- 34 -
5. LENDING IN THE COMMUNITY  
5.1. General
The total value of loans granted in 1983 was 6 612 million ECU/  
compared with 5 347 million ECU in 1982. After falling between  
1980 and 1981/ lending expanded sharply in 1982 (29%) and in 1983  
(25%).
1Trend of (ending in the Community
(million ECU)
- Annual
EIB4growth
YearECSC Euratom NCITotal rate%
1974377,9814,7 1 192,6 25
1975804,9
989,0917,5 1 722,4 40
1976 1065,4(2) 2 054,4 19
1977709,01309,9 96,9 2 196,8 7
1978797,71966,5 70,3 2 834,5 29
1979 ■675,82281,2 o 151,6 277,03 385,6 19
19801 030,72753,2(2) 181,3 197,64 162,8 23
1981387,62805,9(2-3) 364,3(3)539,84 097,6 - 1
1982740,63453,2(3) 361,8(3)791,05 .346,6 29
1983778,14255,7(2-3) 366,4(3)1211,86 612,0 25
1 "Balance-of-payments" loans are not included in this table.
,2 including loan guarantees:1976 :  118,1 million ECU
1980 :  14,2 million ECU
1981 :  282,1 million ECU '
1983 :  97,6 million ECU
8 Including the loans for reconstruction in areas stricken by the earthquakes  
in Italy in November 1980 and in Greece in February/March 1981.
4After removal from the statistics of contracts under which no disbursement  
was made and of operations which led to early repayment because the investment  
was not carried out.

35 -
This general expansion was the result of the following developments:
- NCI lending rose by 53% as a result of the extension of this  
facility to the productive sector. The NCI thus gained· in  
relative importance. NCI loans granted accounted for 15% of  
total Community lending in 1982 and over 18% in 1983;
“ the EIB too stepped up its lending, which was more than 23%  
higher than in 1982;
- by contrast, Euratom financing has remained broadly unchanged for  
three years;
- the ECSC expanded its activities slightly, notably as a result
of the growth in lending for the construction of coal-fired power  
stations. .

- 36 -
GRAPH No A
Trend of lending in the Community, by
instrument (1975-83)
NCI
Euratom
EIB
ECSC

- 37 -
5.2. Sectoral breakdown
Lending in the Community in 1982 and 1983,  by sector 
k and by instrument
(million ECU)
Sector ECSC
1982 1983EIB
1982 1983Euratom 
1982 1983NCI
1982 1983TOTAL
1982 1983%
1982 1983
Productive
sector
- of which 
SMEs1
Infra­
structure
- of which 
small-sc 
infra- 
structur
Energy425,3 372,3 
(65,3) (70,3) 
18,1 20,2
lie
2
' 297,2 385,61040.1 1076,2 
(592,9) (707,7) 
1369,9 1777,0
(61,4) (275,1)
1043.2 1402,5 361,8 366,4261.3 489,1 
(249,1)(485,3)
429.4 443,7 
(67,8)
100,3 279,01726,7 1937,6 
(907,3)(1263,3)
1817.4 2240,9
1802.5 2433,532 29 
34 34
34 37
Total 740,6 778,1 3453,2 4255,7 361,8 366,4 791,0 1211,8 5346,6 6612,0 100 100
*In the form of gl-obaL Loans to finance productive investments by small and medium-sized 
enterprises.
2
In the form of global loans to finance small-scale infrastructure projects.
(4)

- 38 -
GRAPH No 5
Breakdown of loans in the Community in 1983, by  
instrument and by sector
E C S C
E I B
Euratom
N C I

39
5.2.1 Energy
One of the Community's prime objectives during the last ten years  
or so has been to become less dependent on oil imports through:
- more efficient use of energy;
- exploitation of Europe's own energy resources;
.  - diversification of energy imports (reducing the share of oil and  
increasing the share of other fuels such as natural gas and coal).
Financing in this sector rose by 35% between 1982 and 1983, from  
1 803 million ECU to 2 434 million. The share of lending going  
to the energy sector rather than the productive sector or infra­
structure thus expanded from 34% to 37%.
Most of this lending was by the EIB, although the NCI recorded the  
sharpest increase.
This will have a significant impact on the energy balance. It is  
reckoned that the energy projects financed by the EIB and the NCI  
in 1983 should, once fully operational, permit import savings of  
22 million tonnes of oil a year.

- 4 0  -
O v e r  the y ears since 1 9 7 7 / the E I B  (fro m  o w n  reso u rces) a n d  the N C I  
h a v e  th u s h e lp e d  to fin an ce e n e rg y  projects that sh o u ld  m a k e  it 
possible to re d u c e  oil im p o rts b y  s o m e  1 0 0  m illion to n n e s a  year/ 
equivalent to a ro u n d  2 0 %  o f the C o m m u n ity 's  total oil im p o rts.
A  larg e proportion o f this le n d in g  h a s  g o n e  to fin an ce e n e rg y  
production. T h e  projects in  question h a v e  in clu d ed  the construction 
o f co al-^fired / hydroelectric a n d  g e o th e rm a l p o w e r  stations, th e  
c o n v e rsio n  to coal-firing o f oil-fired p o w e r  stations, th e  
exploitation o f g a s  a n d  oil fields a n d  the m in in g  o f lignite.
D e m a n d  for b o th  E I B  a n d  E u r a to m  lo a n s for the construction o f 
nu clear p o w e r  stations re m a in e d  at a  relatively l o w  lev el ( s o m e  
8 0 0  m illion E C U ,  o r ro u g h ly  th e s a m e  a m o u n t a s in  1 9 8 ^  c o m p a re d  
w ith  o v e r 1  0 0 0  m illion E C U  in  1 9 8 1 ).
T h e  m a in  area in  w h ic h  financing ro se  significantly ( b y  m o r e  th a n  
3 0 0 %  c o m p a re d  w ith  th e p rev io u s year, to 7 0 0  m illion E C U )  w a s  th e 
transm ission o f en erg y . A m o n g  the projects w e r e  lo n g  sections o f 
gaslines fo r integrating g a s  grids in  E u ro p e  m o r e  closely a n d  th e 
construction o f p o w e r  lines, n o tab ly  the u n d e rw a te r c ro ss-C h a n n e l 
link b e tw e e n  th e F re n c h  a n d  U K  grids.

- 4 1
T h e re  w a s  also a n  e x p a n sio n  in  L e n d in g  to fin an ce g ro u p s o f 
sm all-scale infrastructure projects d e sig n e d  to p ro m o te  th e 
efficient u se  o f e n e rg y . In v e stm e n t to  im p ro v e  e n e rg y  efficiency 
h as/ in  fact, b e c o m e  increasingly im p o rta n t in  recen t years. 
T a k in g  all th e L o a n s  g ran ted  for s u c h  in v e stm e n t in  industry, th e 
E I B  a n d  th e N C I  h a v e  L e n t o v e r 2  0 0 0  m iL L io n  E C U  in  th e L a s t five 
years, m o r e  th a n  6 1 0  m iL L io n  E C U  o f w h ic h  w a s  in  1 9 8 3 .
5.2.2 P ro d u ctiv e sector
L e n d in g  to th e p ro d u ctiv e sector ro se  b y  s o m e  1 7 %  in  1 9 8 3 , 
alth o u g h  its sh are o f total fin an cin g  fell fr o m  3 2 %  to 2 9 % .
T h e  m o s t striking feature w a s  th e excep tio n al increase in  N C I  
L e n d in g  to this sector (8 7 % ), w h ic h  w a s  partly offset b y  th e  
relative stagnation in  E C S C  a n d  E I B  L e n d in g .
A  further d e v e lo p m e n t w o rth  n o tin g  in  this sector w a s  th e
increase o f o v e r 3 9 %  in  g lo b a L  L o a n s  m a d e  to b a n k s  a n d  other
financial institutions (credit L in e s  to fin an ce in v estm en ts b y
S M E s ) . N e a rly  3  2 5 0  credits w e r e  g ran ted  o u t o f g lo b al lo a n s
d u rin g  the y e a r b y  the E I B  a n d  the N C I  to assist th e setting-up,
. b « 1 e x p a n sio n  o r m o d ern iz a tio n  o f businesses. T h is c o m p a re s  w ith
a ro u n d  1  2 0 0  s u c h  operations in  1 9 8 2  a n d  8 6 0  in  1 9 8 1 . C redits o u t
o f E C S C  g lo b al lo a n s in creased  fr o m  6 5  m illion E C U  in 1 9 8 2  to
7 0  m illion E C U  in  1 9 8 3 .
O f  w h ic h  1 3 9  credits for in v estm en ts to im p ro v e  e n e rg y  efficiency

- 4 2  -
O v e r  half o f these sm all-scale in v estm en ts w e re  carried o u t in  
assisted regions.
T h e  C o m m is s io n  attaches special im p o rta n c e  to e n c o u ra g in g  th e u s e  
o f g lo b al lo an s, th ro u g h  w h ic h  fu n d s c a n  b e  m a d e  available to  
m o d est-sized  industrial firm s w h o s e  in v e stm e n t projects are to o  sm a ll 
to b e  fin an ced  directly b y  the C o m m u n ity  b o rro w in g /len d in g  instrum ents. 
A r o u n d  o n e  third o f the firm s receiving g lo b al lo a n  fin an ce in  1 9 8 3  
e m p lo y e d  fe w e r th an  tw e n ty  p e o p le  a n d  o v e r 6 0 %  e m p lo y e d  fe w e r th a n  
fifty p eo p le. S o m e  5 2 5  credits h e lp e d  to finance the setting u p  
o f n e w  firm s.
N evertheless, the su rg e  in  le n d in g  to  S M E s  w a s  partly offset b y  th e 
s lo w d o w n  in  le n d in g  for larger industrial projects. T o tal E I B  
le n d in g  for th e latter a m o u n te d  to o n ly  just o v e r 3 7 0  m illion E C U  
( 4 6 0  m illion E C U  in  1 9 8 2 ), w h ile  n o  lo a n  w a s  m a d e  b y  th e N C I  for 
that p u rp o se . S e v e ra l o f the projects fin an ced  w e r e  in  "sunrise" 
industries, a n d  n o tab ly  electrorfics a n d  its application in  m a c h in e  
tools a n d  industrial robots.

- 4 3  -
5.2.3 Infrastructure
A t  3 4 % , the sh are o f C o m m u n ity  financing g o in g  to infrastructure 
projects w a s  th e s a m e  in  1 9 8 3  a s in  1 9 8 2 .
L e n d in g  to this sector ro se  f r o m  1  8 1 7  m illion E C U  in  1 9 8 2  to  
2  2 4 1  m illion E C U  in  1 9 8 3 , w ith  virtually all o f it c o m in g  f r o m  
th e E I B  a n d  th e N C I .
G en erally  sp eak in g , th e lo a n s w e r e  m a d e  to h e lp  a c h iev e  C o m m u n ity  
objectives in  th e three m a jo r fields o f b asic infrastructure; 
protection o f the e n v iro n m e n t; a n d  transport.
First, a  special effort w a s  m a d e  to fin an ce b asic infrastructures, 
w h ic h  are essential to s m o o th  e c o n o m ic  d e v e lo p m e n t a n d  a c c o u n te d  
for o v e r 5 0 %  o f th e lo a n s m a d e , c o v erin g :
- ex ten sio n  a n d  adaptation to m o d e r n  te c h n o lo g y  o f tele c o m m u n ic a tio n s 
n etw o rk s, a n d  d e v e lo p m e n t o f transport infrastructures;
- im p ro v e m e n t o f regional electricity a n d  g a s  grids;
- se w e ra g e , w ater-su p p ly  a n d  irrigation projects ( a  larg e n u m b e r  
o f s e w e ra g e  projects also m a k e  a  significant contribution to 
the fight against pollution);.

- 4 4  -
- creation a n d  d e v e lo p m e n t o f industrial estates;
- reconstruction w o r k  in  the reg io n s o f th e M e z z o g io rn o  affected 
b y  the earth q u ak es in  1 9 8 0 .
A  particularly attractive fo rm  o f financing w a s  th e granting o f 
g lo b al lo a n s for a  n u m b e r  o f local infrastructure projects in  
G re e c e  a n d  F ra n c e  (ro a d  im p ro v e m e n t ports, p u blic lighting a n d  
d rain ag e s c h e m e s ) the individual co st o f w h ic h  is to d  sm a ll for 
the E I B  o r the N C I  to part-finance th e m  directly.
S e c o n d ly , lo a n s to protect the e n v iro n m e n t a n d  to safeg u ard  th e 
cultural heritage, w h ic h  w e r e  all fr o m  E I B  o w n  resources, a m o u n te d  
to s o m e  1 3 0  m illion E C U  in  1 9 8 3 , c o m p a re d  w ith  just o v e r 6 0  m illion 
E C U  in  1 9 8 2  a n d  2 0  m illion E C U  in  1 9 8 1 . T h e y  h e lp e d  to fin an ce 
th e installation o f s e w a g e  treatm en t facilities in  th e B a y  o f 
N a p les, a lo n g  the T ib er a n d  a lo n g  th e co ast n e ar R o m e  a s w e ll a s 
other, sim ilar projects to r e d u c 'e  pollution at different points 
a lo n g  th e coasts o f G re e c e  a n d  D e n m a r k . A  lo a n  w a s  also m a d e  fo r 
th e restoration a n d  protection o f the D o g e s ' P a lac e  in  V e n ic e .
P art o f th e lo a n  for th e latter carried a n  interest su b sid y  fin an ced  
o u t o f the C o m m u n ity  b u d g e t.

4 5  -
T hirdly/ in  o rd er to im p ro v e  transport a n d  c o m m u n ic a tio n s  in  E u ro p e / 
th e E I B  a n d  the N C I  m a d e  lo a n s w o rth  a ro u n d  1 1 0  m illion E C U  for th e 
c o m p le tio n  o f a  section o f the Friuli m o to r w a y  (essentia^ link' 
b e tw e e n  the m o to r w a y  sy ste m s o f Italy a n d  A u stria a n d  therefore also 
G e rm a n y ); for th e ex ten sio n  o f B ir m in g h a m  airport ( 6 0 %  o f flights 
b e in g  to o r f r o m  other E u ro p e a n  countries); a n d  for th e partial 
re n e w a l o f the fleet o f A ir F ra n c e  th ro u g h  the p u rc h a se  o f five 
aircraft in ten d ed  for service w ith in  th e C o m m u n ity .
5 .3  C o u n try  b re a k d o w n  a n d  effect o n  regional d e v e lo p m e n t
T a k in g  the g eo g rap h ical b re a k d o w n / C o m m u n ity  le n d in g  co n tin u es to 
b e  co n cen trated  in  th e countries w ith  serious structural p ro b le m s/ 
notably in  th e regions. Italy, the U n ite d  K in g d o m , Ireland a n d  
G re e c e  receiv ed  6 8 %  o f len d in g . L e n d in g  operations e x p a n d e d  sh arp ly  
in  F ra n c e , w h o s e  sh are o f total le n d in g  ro se  fro m  1 5 %  to just 
u n d e r 2 1 % .

- 4 6
Geographical breakdow n of L ending in the C o m m u n ity  
in 1 9 8 2  and 1 9 8 3
(million E C U )
C ountry B I K D G R F I K L I L N L I K Total
1 9 8 2
A m o u n t 1 5 1 ,3 3 0 7 ,1 2 0 5 ,5 4 6 9 ,8 7 8 9 ,8 4 0 8 ,6 2 1 3 3 ,4 5 .5. 4 4 ,1 7 5 9 ,7 5  3 4 6 ,6  C 1 )
% 2 ,9 5 ,8 3 ,9 8 ,9 1 5 ,0 7 ,7 4 0 ,0 0 ,8 1 4 ,4 1 0 0
1 9 8 3A m o u n t 3 6 ,4 3 6 5 ,1 3 0 1 ,6 4 5 0 ,0 1 3 7 0 ,6 3 0 8 ,4 2 7 3 2 ,2 0 ,0 3 3 9 ,5 1 0 0 8 ,2 6  6 1 2 ,0
% 0 ;5 5 ,6 4 ,6 6 ,8 2 0 ,7 4 ,6 4 1 ,3 — 0 ,6 1 5 ,3 1 0 0
of w hich E C S C 3 ,9 0 ,0 1 1 4 9 ,4 0 ,4 2 7 7 ,8 . M 3 2 ,2 0 ,0 3 3 9 ,4 2 7 0 ,5 7 7 8 ,1
E IB 2 5 9 ,7 1 5 2 ,2 3 6 4 ,3 7 0 7 ,9 2 3 4 ,6 1 9 4 5 ,7 5 9 1 ,3 4  2 5 5 ,7
E uratom 3 2 ,5 1 9 8 ,6 8 9 ,0 4 6 ,3 3 6 6 ,4
N C I 1 0 5 ,4 8 5 ,3 1 8 6 ,2 6 9 ,4 6 6 5 ,4 1 0 0 ,1 1  2 1 1 ,8
^■Including 71.8 million E C U  for one E C S C  loan outside the C o m m u n ity

- 4 7  -
E x a m in a tio n  o f the regional b re a k d o w n  o f le n d in g  reveals that o v e r 
6 0 %  w e n t to reg io n s that w e r e  la g g in g  b e h in d  e c o n o m ic a lly  o r 
exp erien cin g  serious p ro b le m s  o f industrial decline, co n v ersio n  
o r u n e m p lo y m e n t. L e n d in g  b y  th e E I B  a n d  th e N C I  to th o se re g io n s 
c a m e  to m o r e  th an  3  3 0 0  m illion E C U ,  o f w h ic h  7 5 %  w a s  to areas 
in  w h ic h  th e u n e m p lo y m e n t rate w a s  in  e x c e ss o f th e C o m m u n ity  
a v erag e  b y  2 5 %  o r m o re .
5 .4  E m p lo y m e n t effects
In v e stm e n t projects in  the C o m m u n ity  part-financed u n d e r th e 
C o m m u n ity 's  financial in stru m en ts h a d  a  significant im p a c t o n  
e m p lo y m e n t.
A c c o rd in g  to estim ates, the projects w h ic h  th e E I B  a n d  th e N C I  
h e lp e d  to finance in  1 9 8 3  sh o u ld  create directly s o m e  3 3  5 0 0  jobs, 
m o s t o f th e m  in  industry.
AP e rm a n e n t a n d  te m p o ra ry  e m p lo y m e n t effects are calculated fr o m  th e  in fo rm atio n  o b tain ed  w h e n  in v e stm e n t projects are b e in g  appraised. 
It is im p o rtan t to stress the h ig h ly  a p p ro x im a te  nature o f th ese estim ates, w h ic h  sim p ly  g iv e  a n  o rd er o f m a g n itu d e .

- 4 8  -
T h e  effect o n  safeg u ard in g  existing jo b s sh o u ld  also b e  n o ted : 
le n d in g  to  p ro m o te  industrial m o d ern izatio n , prim arily in  sm a ll 
businesses, h e lp e d  to im p ro v e  productivity in  firm s e m p lo y in g  
in  all s o m e  1 9 5  0 0 0  w o rk e rs.
In  addition, there w e re  the te m p o ra ry  - but, in  m a n y  cases, 
e x te n d e d  - effects that projects h a d  o n  e m p lo y m e n t w h ile  th e y  
w e re  b e in g  carried out, a n d  the indirect effects s te m m in g  fr o m  
the su p p ly  o f the required services, plant a n d  m a c h in e ry  a n d  r a w  
m aterials; these w e re  particularly significant in  th e c a se  o f 
large-scale e n e rg y  a n d  infrastructure projects. In  all, th e 
direct a n d  indirect e m p lo y m e n t effects o f projects part-financed 
b y  the E I B  a n d  the N C I  in  1 9 8 3  are p u t at s o m e  4 8 0  0 0 0  m a n -y e a rs, 
equivalent to s o m e  1 4 0  0 0 0  jo b s in  1 9 8 3  a n d  1 9 8 4 , w ith  th e figure
gradually declining in  th e fo llo w in g  years.*
W h ile , b y  their nature, projects fin an ced  b y  E u r a to m  create f e w  
n e w  jo b s directly, E C S C  c o n v ersio n  lo a n s m a d e  in  1 9 8 3  m ig h t h e lp  
to p ro v id e jo b s for a ro u n d  1 0  0 0 0  w o rk ers, in clu d in g  7  0 0 0  w h o  h a d  
fo rm erly  b e e n  e m p lo y e d  in the c o a l a n d  steel industries.

- 4 9  -
6 . L E N D I N G  I N  T H E  C O M M U N I T Y ,  B Y  I N S T R U M E N T
6.1. N e w  C o m m u n ity  In stru m e n t ( N C I )
6.1.1. G e n e ra l
B o rro w in g  a n d  le n d in g  b e g a n  in  1 9 7 9  a n d  th e table b e lo w  s h o w s  the 
len d in g  position a s at 3 1  D e c e m b e r  1 9 8 3 / specifying th e b o rro w in g  
authorization a n d  ceiling.
N C I  utilization
(m illion E C U )
N I C  I N I C  IIM T T T T T R E C O N S T R U C T I O NNil 111(firsttranche)Italy G re e c e
C eilin g  L o a n s  sig n e d1  0 0 0  9 7 9 ,41  0 0 0  9 1 8 ,91  5 0 0  4 5 6 ,11  0 0 0  C 1 )  7 9 2 ,18 08 0
B a la n c e 2 0 ,6 8 1 ,1 1  0 4 3 ,9 2 0 7 ,9 0
^ ■L o a n s  g ran ted  fr o m  th e E IB 's o w n  reso u rces (209.2.m illion E C U )  a n d  f r o m  N C I  reso u rces (5 8 2 .9  m illion E C U ) .
B y  3 1  D e c e m b e r/ nearly 9 8 %  o f N C I  I  fu n d s a n d  9 2 %  o f N C I  II fu n d s 
h a d  b e e n  c o m m itte d / th e b ala n ce  b e in g  a c c o u n te d  for b y  lo a n s a p p ro v e d  
b u t· n o t y e t signed. Just u n d e r o n e  third o f th e 1  5 0 0  m illion E C U  
ceiling for th e first tranche u n d e r N C I  III h a d  b e e n  c o m m itte d .
In  1 9 8 3 / lo a n s contracted fr o m  N C I  reso u rces totalled 1  2 1 1 .8  m illion E C U .

- 5 0  -
S o m e  N C I  projects receiv ed  lo a n s fr o m  th e E IB 's o w n  reso u rces b efo re 
o r d u rin g  1 9 8 3 ; th e c o m b in a tio n  o f these tw o  so u rces o f financing 
p erm its m o r e  effective utilization o f th e C o m m u n ity  institytions' 
b o rro w in g  capacities o n  financial m ark ets. W h e n  co-financing 
operations w e r e  m o u n te d  in  1 9 8 3 , N C I  a n d  E I B  lo a n s together represented, 
o n  av erag e, 3 5 %  o f the in v e stm e n t fin an ced .
T h e  m aturity o f N C I  lo a n s w a s  a ro u n d  8 -1 0  y ears for g lo b al lo a n s 
to  industry a n d  a n  a v e ra g e  o f 1 5  y ears in  the c a se  o f infrastructure 
projects.
L e n d in g  to th e pro d u ctiv e sector e x p a n d e d  rapidly in  1 9 8 3 , to 4 8 9 .1- |m illion E C U ,  virtually all o f w h ic h  to o k  th e fo r m  o f g lo b al lo a n s 
c o n c lu d e d  w ith  lo n g -te rm  financing institutions, w h ic h  in  turn w e r e  
able to g ran t 1  4 9 6  credits to  S M E s  o u t o f these lo a n s a n d  o u t o f 
th o se c o n c lu d e d  previously.
T h e  C o m m is s io n  a n d  th e E I B  e n d e a v o u re d  in  1 9 8 3  to c o n c lu d e  g lo b al 
lo a n s w ith  a  larg e n u m b e r  o f financial interm ediaries a n d  to secu re 
m a x i m u m  c o m p le m e n ta rity  b e tw e e n  N C I  a n d  E I B  g lo b al loans, b o th  
g eographically a n d  in  te rm s o f th e recipient industries.
F in a n c in g  w e n t first a n d  fo re m o st to businesses in  the m e ta l g o o d s  
industry a n d  in  m e c h a n ic a l engineering, fo llo w e d  b y  businesses in  
th e fo o d , p a p e r a n d  printing, c h e m ic a l a n d  building m aterials 
industries.
1T h e  b a la n ce  o f 3 .8  m illion E C U  w a s  a c c o u n te d  for b y  tw o  financing operations for a d v a n c e  factories in  Ireland.

- 5 1
L e n d in g  for projects in  th e e n e rg y  sector also ro se  sharply, to  
2 7 9  m illion E C U .  T h e  projects fin an ced  in v o lv e d  gaslines, h ig h - 
voltage p o w e r  lines a n d  electricity-generating plants u sin g  
in d ig e n o u s resources.
T h e  projects, w h ic h  serv e th e C o m m u n ity 's  e n e rg y  objectives, 
contributed to th e d e v e lo p m e n t o f th e C o m m u n ity 's  internal h y d ro ­
c a rb o n  a n d  lignite resources, to im p o rt diversification a n d  to 
e n e rg y  efficiency. In  addition, 1 9 4  credits totalling 5 2 .6  m illion 
E C U  w e re  g ran ted  fr o m  g lo b al lo a n s for industrial e q u ip m e n t a n d  
sm all-scale infrastructure s c h e m e s  lead in g  to greater efficiency 
in  e n e rg y  use. T h e  C o m m is s io n  w o u ld  like to se e  a n  iric re a se  in  
this ty p e o f financing.
Infrastructure sc h e m e s, w h ic h  receiv ed  fin an ce totalling 2 3 5 .8  
m illion E C U ,  w e r e  d e sig n e d  prim arily to  im p ro v e  ro a d  links a n d  
te le c o m m u n ic a tio n s a n d  to p ro v id e h o u sin g  in  th e c o n tex t o f 
overall projects for the e c o n o m ic  a n d  industrial d e v e lo p m e n t o f 
various reg io n s in  the M e z z o g io rn o .
Finally, five lo a n s totalling 2 0 8 .1  m illion E C U  w e r e  g ran ted  
p u rsu an t to the C o u n c il D e c isio n  o f 2 0  Ja n u a ry  1 9 8 1  for projects 
for the reconstruction o f the e c o n o m ic  a n d  social infrastructure 
(railw ays, p u b lic buildings, sch o o ls a n d  b asic infrastructure) 
in  th e areas o f C a m p a n ia  a n d  B asilicata w h ic h  w e r e  struck b y  th e 
earth q u ak es o f N o v e m b e r  1 9 8 0 . In clu d in g  the a m o u n t o f 3 7 5  m illion 
E C U  lent fr o m  N C I  reso u rces in 1 9 8 1  a n d  1 9 8 2  a n d  th e a m o u n t o f 
2 0 9 .2  m illion E C U  lent fr o m  the E IB 's o w n  resources, a  total o f 
7 9 2 .1  m illion E C U  h a s  b e e n  c o m m itte d ; this represents nearly four- 
fifths o f th e total v o lu m e  o f 1  0 0 0  m illion E C U  o f su b sid ized  lo a n s 
p la n n e d  for th e p u rp o se .

5 2
G R A P H  N o  6
B r e a k d o w n  o f N C I  L o a n s  in  1 9 8 3 , b y  co u n try  a n d  b y  sector 
(in clu d in g  earth q u a k e  reconstruction L o a n s  in  Italy)
I N O U S T R  Y
E  N  E  R  G  Y
I N F R A S T R U C T U R E

5 3  -
6.1.2 C o u n try -b y -co u n try  re v ie w
In  D e n m a r k , lo a n s totalling 1 0 5 .4  m illion E C U  w e n t prim arily to 
in v e stm e n t projects in  the e n e rg y  sector. In  addition/ three 
g lo b al lo a n s w e r e  sig n e d  w ith  tw o  financial interm ediaries to 
h elp  fin an ce in v e stm e n t b y  S M E s .
In  G re e c e , lo a n s totalling 8 5 .3  m illion E C U  w e re  g ran ted  for a  
n u m b e r  o f infrastructure projects contributing to reg io n al 
d e v e lo p m e n t a n d  for projects to diversify e n e rg y  sources/ 
in v o lv in g  the w o rk in g  o f a  lignite m in e  a n d  the construction o f 
a n  electricity-generating plant fired b y  lignite.
In  F ran c e , the lo a n s m a d e  totalled 1 8 6 .2  m illion E C U  a n d  se rv e d  
the C o m m u n ity 's  e n e rg y  .o b jectiv es o r contributed to p roductive 
in v e stm e n t b y  S M E s .
A  n u m b e r  o f th e m  w e n t to financing a n  electricity-generating 
plant a n d  the m in e  to p ro d u c e  the lignite n e e d e d , a s w e ll a s 
projects to im p ro v e  e n e rg y  efficiency.
U n d e r  five g lo b al lo a n s to financial interm ediaries, 8 5 1  credits 
totalling 1 4 0 .3  m illion E C U  w e re  g ran ted  to S M E s . ·
(5)

- 5 4  -
In  Italy, apart fr o m  th e five "reconstruction" loans, sev e n tee n  
lo a n s totalling 4 5 7 .3  m illion E C U  w e re  g ran ted  for projects 
contributing to p ro d u ctiv e in v e stm e n t b y  S M E s  in  the centre a n d  
n o rth  o f th e cou n try , to the d e v e lo p m e n t o f the so u th ern  
reg io n s a n d  to the C o m m u n ity 's  e n e rg y  objectives. In  addition, 
a  n e w  lo a n  w a s  m a d e  for th e · Friuli m o to rw a y .
U n d e r  the g lo b al lo a n s c o n c lu d e d  in  1 9 8 3  a n d  at th e e n d  o f 
1 9 8 2 , 4 9 1  S M E s  in  m a n u fa c tu rin g  a n d  services (e x c lu d in g
distribution) in  non-assisted areas receiv ed  credits totalling 
3 0 3 .8  .m illio n  E C U .
L e n d in g  in  Ireland totalled 6 9 .4  m illion E C U  a n d  lik ew ise h e lp e d  
to reinforce th e basic infrastructure n ecessary  for the country's 
e c o n o m ic  d e v e lo p m e n t in  the e n e rg y  a n d  tele c o m m u n ic a tio n sisectors. F in a n c e  w a s  also p ro v id e d  for a  n e w  p h a se  in  th e 
construction o f tu rn k ey  factories o n  a  n u m b e r  o f industrial 
estates.
In  the U n ite d  K in g d o m , in  addition to a  lo a n  for the construction 
o f a  c ro ss-C h a n n e l link b e tw e e n  the F re n c h  a n d  U K  electricity 
grids, lo a n s totalling 1 0 0 .1  m illion E C U  w e r e  g ran ted  u n d e r g lo b al 
lo a n s c o n c lu d e d  w ith  fo u r financial interm ediaries for projects 
in  non-assisted areas, n o tab ly  in  the S o u th  E ast.

- 5 5  -
L ist o f N C I  L o a n s
L o a n s  fro m  N C I  reso u rces sig n e d  in  1 9 8 3 , b y  c o u n try
m illion E C U *D E N M A R K
D K R  8 5 1  m illion 1 0 5 .4
P lan t at N y b r o  (R ib e ) for treating natural g a s  fro m  the T y ra  field in  the N o rth  S e a ; gasline a n d  c o m p re sso r station at E g tv e d  (S o u th  Jutland)D a n s k  O lie o g  N a tu rg a s A / S - D O N G  D K R  3 4 5  m illion
O il pipeline 3 3 0  k m  lo n g  b e tw e e n  th e oil fields in  th e D a n is h  sector o f the N o rth  S e a  a n d  Fredericia o n  th e Jutland c o a stD a n s k  O lierdr A /S -D o ra s  D K R  3 2 6  m i  Ilion
G lo b a l lo a n s to F inancie- ringsinstituttet for Industri o g  H a a n d v a e rk  A /S  for 
financing pro d u ctiv e invest­m e n t b y  S M E s- D K R  2 5  m illion- D K R  5 5  m illion
G lo b a l lo a n  to D e n  D a n s k e  B a n k  International S .A . fo r financing p roductive invest­m e n t b y  S M E s  D K R  1 0 0  m i  Ilion 1 2 .34 3 .3
3 9 .9
3 .16 .7m i  Ilion E C U
G R E E C E  ■  '
D R  6  7 1 2 .4  m illion 8 5 .3
Electricity-generating plant at A m y n te o n  (2 x 3 0 0  M W )  u sin g  .  lignite fr o m  th e n e a rb y  m in e  (w e ste rn  M a c e d o n ia ) P u b lic  P o w e r  C o rp o ra tio n  C o n tra c t d e n o m in a te d  in  E C U s  for a n  a m o u n t equivalent to D R  8 5 2 .5  m illion 1 1 .0
W o r k in g  o f a n  o p en -cast m in e  at A m y n te o n  to su p p ly  lignite to a  n e a rb y  electricity-generating plant (w e ste rn  M a c e d o n ia ) P u b lic P o w e r  C o rp o ra tio n  C o n tra c t d e n o m in a te d  in  E C U s  for a n  a m o u n t equivalent to D R  1  8 5 9 .9  m illion 2 4 .0
E x te n sio n  a n d  m o d ern iz a tio n  o f telep h o n e a n d  telex n e tw o rk s a n d  infrastructure H ellen ic T e le c o m m u n ic a tio n s O rg an izatio n  S .A .D R  1  5 0 0  m illion 1 8 .9
G lo b a l lo a n  to C o n sig n a tio n s a n d  L o a n s  F u n d  for th e financing o f sm a lt a n d  m e d iu m -s iz e d  infrastructures 
b y  local authorities o r a g en ciesD R  2  5 0 0  m illion 3 1 .5
*  T h e  national c u rre n c y /E C Uco n v ersio n  rates u se d  w e re  th o se obtaining o n  the last d a y  o f th e quarter p reced in g  that in  w h ic h  the lo a n  contract w a s  sig n ed .★♦Subsidized lo a n s - " E u ro p e a n  M o n e ta ry  S y ste m " .★★★Subsidized lo a n s - "E a rth q u a k e  reconstruction".

- 5 6  -
m illion E C U  m illion E C U
F R A N C E
F F  1  2 7 5  m illion 1 8 6 .2
L ignite m in e  a n d  6 0 0  M Wlignite^fire d  p o w e r  station ,at G a rd a n n e , n e ar A ix -e n -P ro v e n c e ;
(P ro v e n c e -A lp e s-C ô te  d 'A z u r)C h a rb o n n a g e s  d e  F ra n c eF F  2 0 0  m illion 2 9 .7
L in k  b e tw e e n  F re n c h  a n d  U K  
high-voltage electricity grids in v o lv in g  fo u r pairs o f u n d e rw a te r cab les crossing th e c h a n n e l b e tw e e n  B o n n in g u es-lès-C alais ( N o r d  - P as- de-C alais) a n d  S ellindge (S o u th  E a st) Electricité d e  F ra n c e  F F  1 0 0  m illion 1 4 .6
G lo b a l lo a n  to C réd it N a tio n a l for financing in v e stm e n t b y  S M E s  in  industry
F F  3 5 0  m illion 5 0 .9
G lo b a l lo a n  to C réd it 
d 'E q u ip e m e n t d e s  Petites et M o y e n n e s  E ntreprises fo r c in an cin g  pro d u ctiv e invest­m e n t b y  S M E s
F F  2 5 0  m illion 3 6 .4
G lo b a l lo a n s to three R e g io n a l 
D e v e lo p m e n t C o rp o ra tio n s for fin an cin g  p ro d u ctiv e in v e stm e n t b y  S M E s :
- S D R - N o r m a n d ieF F  2 5  m illion 3.6G lo b a l lo a n  to F o n d s  S p écial d e  G ra n d s  T ra v a u x  for financ-. in g  e n e rg y  - sa v in g  in v e stm e n t 
in  lo cal authority buildings, se c o n d a ry  sch o o ls a n d  hospitals F F  2 5 0  m illion 3 6 .4
I R E L A N D
I R L  4 9 .7  m illion 6 9 .4
C oal-fired p o w e r  station (tw o  3 0 0  M W  units) at M o n e y p o in t (M id -W e s t)Electricity S u p p ly  B o a rd
- I R L  1 8 .5  m illion 2 6 .1 * *- I R L  1 5 .0  m illion 2 0 .7 * *
E x te n sio n  a n d  m o d ern iz a tio n  o f te le c o m m u n ic a tio n s facilities serv in g  s o m e  4 8  0 0 0  telep h o n e a n d  telex subscribers.D e p a rtm e n t o f P o sts a n d  T ele­g ra p h s
I R L  1 3 .6  m illion 1 8 .9 * *
C o n stru ctio n  o f tu rn k e y  a n d  cu sto m -b u ilt factories th ro u g h  th e in term ed iary  o f th e Irish G o v e r n m e n t (M in istry  o f F in a n c e )
- S h a n n o n  F re e  A irp o rt 
D e v e lo p m e n t C o m p a n y  L im ite dI R L  0.7  m illion 1 .0 * *
- U d a ra s  n a  G aeltach taI R L  1.9  m illion 2 .7 * *
- S D R  C E N T R E S T
F F  6 0  m illion 8 .7
- S D R  S U D E S T  F F  4 0  m illion 5 .8

- 5 7  -
m illion E C U m illion E C U
I T A L Y
L I T  9 0 2  2 0 0  m i  I  lion 6 6 5 .4
E n la rg e m e n t o f u n d e rg ro u n d  storage tan k s for natural g a s  at M in e rb io  (E m ilia -R o m a g n a ) a n d  R ipalta ( L o m b a r d y )A z ie n d a  G e n e ra le  Industria Petroli S .p .A .
L I T  3 0  0 0 0  m illion 2 2 .6 * *
S ix  gaslines o f a n  overall le n g th  o f 2 1 0  k m  linked.to the m a in  pipeline carrying A lg e rian  natural g a s (Sicily)
S o cietà N a z io n a le  M e ta n o d o tti S.p.A ./ th ro u g h  th e in term ed iary  o f E n te  N a z io n a le  Idrocarburi L I T  2 0  0 0 0  m illion 1 5 .1 * *
Friuli m o to rw a y : 2 5 .7  k m
section P o n tebba-T arvisio-A ustrian frontier (F riuli-V enezia G iu lia) A U T O S T R A D E - C o n c e s s io n i e  C o n stru zio n i A u to strad e S.p.A ./ th ro u g h  the in term ed iary  o f B a n c a  N a z io n a le  d el L a v o ro  - O p e re  P u b b ic h eL I T  4 0  0 0 0  m illion 3 0 .2
R eco n stru ctio n  o f th e rail n e tw o rk  d a m a g e d  d u rin g  th e N o v e m b e r  1 9 8 0  e arth q u ak es
- s e c o n d  p h a se  o f w o r k  (C a m p a n ia  a n d  B asilicata) - A z ie n d a  A u to n o m a  delle F erro v ie dello S tato
L I T  2 0  0 0 0  m illion 1 5 .0 * * *
D e v e lo p m e n t a n d  e q u ip p in g  o f se v e n  industrial estates in  th e areas o f B asilicata a n d  C a m p a n ia  hit b y  th e N o v e m b e r  1 9 8 0  earth­q u a k e sItalian G o v e r n m e n tL I T  9 0  0 0 0  m illion 6 5 .7 * * *R e p a ir o f thirty-five p u b lic buildings a n d  reconstruction o f thirty other buildings d a m a g e d  d u rin g  th e N o v e m b e r  1 9 8 0  earth q u a k es ( C a m p a n ia  a n d  B asilicata)Italian G o v e r n m e n tL I T  1 0 0  0 0 0  m illion ·  7 4 .9 * * *
R eco n stru ctio n  o f three university buildings a n d  repair o f fifteen others in  N a p le s  a n d  S a lern o  d a m a g e d  d u rin g  th e N o v e m b e r  1 9 8 0  earth q u ak es in  C a m p a n ia  Italian G o v e r n m e n t (M in istero  della P u b b lic a  Istruzione)L I T  2 7  0 0 0  m illion 1 9 .7 * * *
O p e ra tin g  b a se  at P e rsa n o  ( C a m p a n ia ) for services to  protect th e civil p o p u latio n  in  th e M e z z o g io rn o  Italian G o v e r n m e n tL I T  4 5  0 0 0  m illion 3 2 .8 * * *
C o n stru ctio n  o f d w ellin g s for w o rk e rs in  th e M e z z o g io rn o  H o u s in g  co operatives th ro u g h  th e in term ed iary  o f
- Istituto B a n c a rio  S a n  P a o lod i T o rin oL I T  3  4 0 0  m illion 2 .5 * *L I T  2 .4 0 0  m illion 1 .8 * *L I T  2 9  0 0 0  m illion 2 1 .6 * *
- B a n c a  N a z io n a le  d el L a v o ro
- S e z io n e  C red ito  F o n d iarioL I T  6  0 0 0  m illion 4 .6 * *
- C A R I P L 0L I T  7  0 0 0  m illion 5 .2 * *L I T  3 2  2 0 0  m illion 2 3 .9 * *

5 8  -
m illion E C U m illion E C U
C o n stru ctio n  o f d w ellin g s for w o rk e rs  in  th e M e z z o g io rn o  Private building firm s, th ro u g h , th e in term ed iary  o f B a n c a  N a z io n a le  d el L a v o ro  - S e z io n e  
C red ito  F o n d ia rioL I T  5 5  2 0 0  m illion 4 0 .3 * *
G lo b a l lo a n  to I M I  for financing p ro d u ctiv e in v e stm e n t b y  S M E s  in  non-assisted areas in  th e centre a n d  n o rth  o f th e c o u n try ;L I T  1 3 0  0 0 0  9 4 .9
G lo b a l lo a n  to M E D I 0 C R E D I T 0  C E N T R A L E  fo r c in an cin g  p ro d u ctiv e in v e stm e n t b y  S M E s  in  n o n -- assisted areas in  th e centre a n d  n o rth  o f th e c o u n try  L I T  1 3 0  0 0 0  m illion “  9 4 .9
G lo b a l lo a n  to C E N T R 0 B A N C A  for financing p ro d u ctiv e in v e stm e n t b y  S M E s  in  non-assisted areas in  th e centre a n d  n o rth  o f th e c o u n tryL I T  5 0  0 0 0  m illion 3 6 .5
G lo b a l lo a n  to I N T E R B A N C A  for financing p ro d u ctiv e in v e stm e n t b y  S M E s  in  non-assisted areas 
in  the centre a n d  n o rth  o f th e 
c o u n tryL I T  2 0  0 0 0  M illio n  1 5 .0 '
G lo b a l lo a n  to E F I B A N C A  for financing p ro d u ctiv e in v e stm e n t b y  b y  S M E s  in  non-assisted areas in  th e centre a n d  n o rth  o f th e c o u n tryL I T  1 5  0 0 0  m illion 1 1 .3G lo b a l lo a n  to B a n c a  N a z io n a le  d el L a v o ro  fo r financing p ro d u ctiv e in v e stm e n t b y  S M E s  in  non-assisted areas in  th e centre a n d  n o rth  o f th e  
c o u n tryL I T  3 0  0 0 0  m illion 2 1 .9
G lo b a l lo a n  to B a n c aN a z io n a le  d e l L a v o r o - S A C A Tfor financing sm a ll a n d  Im e d iu m -s iz e d  ven tu res inth e hotel trade a n d  into u rism  in  the centre a n dn o rth  o f the c o u n tryL I T  2 0  0 0 0  m illion 1 5 .1
U N I T E D  K I N G D O M
U K L  6 0  m illion 1 0 0 .1
L in k  b e tw e e n  F re n c h  a n d  U K  jhigh-voltage electricity j
grids in v o lv in g  fo u r pairs io f u n d e rw a te r cab les !crossing the C h a n n e l b e tw e e n  jS ellindge (S o u th  E a st) a n d  iB o n n in g u e s-L è s-C ala is j(N o rd /P a s-d e -C ala i s )C en tral Electricity G e n e ra tin g  B o a rd , th ro u g h  th e Electricity C o u n c il a s in term ed iary  
U K L  2 0  m illion 3 2 .0
G lo b a l lo a n s to Investors in  Industry P L C , th ro u g h  Investors 
in  Industry G r o u p  P L C  a s  interm ediary, for financing pro d u ctiv e in v e stm e n t b y  S M E s  in  non-assisted areas j- U K L  1 0  m illion 1 6 .7  !- U K L  1 0  m illion 1 7 .4  ;
iG lo b a l lo a n  to B arclay s ;B a n k  P L C  for financing jp roductive in v e stm e n t b y  S M E s
in  non-assisted areasU K L  1 0  m illion 1 7 .4  j____________   _J

- 5 9  -
m illion E C U m iL L ion E C U
G lo b a l lo a n  to M id la n d  B a n k  P L C  for financing p ro d u ctiv e in v e stm e n t in  sm a ll a n d  m e d iu m -  sized v en tu res in  m an u factu rin g , to u rism  a n d  services in  n o n -
acciçtpH araacG lo b a l lo a n  to N a tio n a l W e stm in ste r B a n k  for .  financing p ro d u ctiv e in v e stm e n t in  sm a ll a n d  m e d iu m -s iz e d  v en tu res in  m an u factu rin g , to u rism  a n d  services in  n o n - assisted areas U K L  5  m illion 8 .3
U K L 8 .3

- 60 -
6.2 Subsidized loans for reconstruction in the earthquake-stricken  
areas of Italy
The nine subsidized Loans from NCI and EIB resources intended  
for reconstruction in the areas of Campania and Basilicata stricken  
by the November 1980 earthquakes totalled 269.2 million ECU,  
compared with loans of 194.8 million ECU in 1982.
Loans from NCI resources, totalling 208.1 million ECU, helped to  
finance the reconstruction of the railway network (second phase),  
the development and equipping of seven industrial estates, the  
construction at Persano of an operating base for services to  
protect the civilian population in the Mezzogiorno and, above  
all, the reconstruction or repair of some eighty administrative,  
school and university buildings and of buildings for civilian  
protection services.
«
Loans from the EIB's own resources totalled 61.1 million ECU.
They helped to finance repairs to over a hundred road and  
motorway sections, the provision of drinking water and sewage  
disposal facilities in thirty-two communes'in which some  
80 000 persons were rehoused, and the reconstruction in Naples  
of a motor vehicle component factory (one of the largest  
factories destroyed in 1980).
A6.3 European Investment Bank (EIB)
In 1983 the EIB made loans from its own resources totalling  
4 682.9 million ECU; loans and .guarantees within the Community  
accounted for 4 255.7 million ECU and loans outside the Community  
for 427.2 million ECU.
See also the annual report of the Bank.

- 61 -
s
Table 9 in the Annex gives a breakdown by country and sector of·
EIB financing in the Community. Lending to the three countries  
with the greatest structural problems accounted for some 60% of  
the total (Italy 46%/ Greece 9%/ Ireland 6%). Lending rose  
sharply in France (17% of the total)/ the United Kingdom (14%)  
and/ to a lesser extent/ Denmark; in Germany, two thirds of the  
financing was in the form of guarantees.
Two thirds of the loans helped to finance regional development  
projects, mainly in regions accorded priority under Community  
regional policy: the Mezzogiorno (1 233.7 million ECU), Greece
(364.3 million ECU) and Ireland (234.6 million ECU). The projects  
were concerned chiefly with telecommunications and roads, followed  
by'industry (assisted ma.inly in the form of global loans); other  
projects involved water engineering and various other types of  
infrastructure, and energy infrajstructure.
Financing for projects helping to attain the Community's energy  
objectives accounted for 36% of all loans; loans for investment  
in the efficient use of energy in industry and in infrastructure  
facilities rose sharply and, at 530.9 million ECU, exceeded the  
amount, of lending in the nuclear sector (442.1 million ECU);  
this was followed by loans for developing other indigenous resources  
(417.2 million ECU) and for diversifying imports (115.7 million ECU).

- 62 -
Loans for environmental protection purposes totalled 129.9  
million ECU, most of them being for projects to reduce pollution  
in the Mediterranean.
Lending for projects in the productive sector continued at a  
high level. 707.7 million ECU went into global loans for the  
financing of small and medium-sized ventures and 368.5 million  
ECU into loans for larger-scale investment projects, particularly  
in the motor vehicle industry; loans totalling 172.2 million  
ECU helped to finance investment in the development or intro­
duction of advanced technology in Italy.
From global loan credit on tap in 1983, 2 037 allocations  
totalling 697.8 million ECU were made for small and medium-sized  
ventures in industry (notably mechanical engineering and the food  
industry), tourism, agriculture and fishing; for small-scale  
infrastructure projects and for investment in the efficient use of  
energy.
6.4 Euratom i
In 1983 the Commission continued its lending·activities through  
Euratom under the 1982 Council Decision raising the ceiling on  
lending to 2 000 million ECU, to finance investment in nuclear  
power stations and in the fissile materials enrichment sector. It  
paid out ten loans totalling 366.6 million ECU for investment projects  
undertaken by the following six firms:

63 -
- Belgelectric Finance B.V. (Amsterdam and Tihange, Belgium);
- Eurodif S.A. (Bagneux, France);
- EDF (Belleville/ France);
- NERSA (Paris);
- ENEL (Rome);
- South of Scotland Electricity Board (Glasgow).
Between the inception of Euratom lending activities and 31 December  
1983/ the Commission paid out loans totalling 1 662.4 million ECU.
The balance available under the ceiling stands at some 3000 million  
ECU. The EIB/ in its capacity as Euratom agent/ signed these loan  
contracts jointly with the Commission of the European Communities.
16.5 European Coal and Steel Community (ECSC)
The total amount of loans paid out by the ECSC in 1983 was little  
changed from 1982. The small absolute increase in loans to the  
steel industry reflects the highly selective nature of the Commission's  
policy concerning that industry. Given the difficult situation in  
which firms still found themselves/ the Commission was anxious to  
ensure that the projects financed were strictly in line with its  
restructuring policy.
See the Financial Report of the ECSC for 1983. ECSC lending accounts  
are drawn up in terms of loans "paid out". The Commission takes a  
decision in principle to Lend a certain amount to a firm to finance  
an investment. The loan contracts signed relate either to all or  
part (a tranche) of the amount decided on by the Commission. Usually,  
disbursement takes place immediately after signature of the contract,  
so that the total for loans signed during a particular year is the  
same as the total for loans paid out. However, for global loans and  
for workers' housing loans, the funds are usually paid out in successive  
tranches; hence the discrepancy between loans paid out and loans signed.

- 64 -
The 222 million ECU in loans paid out to steel firms was divided  
between fourteen loans to firms in five Member States (the Federal  
Republic of Germany/ France/ Italy/ the Netherlands and ,the United  
Kingdom).
The level of financing for the coal industry was virtually unchanged.  
With seventy loans for projects located in the Federal Republic  
of Germany/ France and the United Kingdom/ the Commission mainly  
supported investment projects for modernization and rationalization  
intended to preserve or raise the level of output in the most  
productive mines. In 1983/ the ECSC thus provided finance for  
some 14% of total capital spending in coalmining.
By contrast/ loans for coal use/ paid out for investment in thermal  
power stations/ trebled .between 1982 and 1983/ from 41 million ECU  
to 128 million ECU.
Conversion loans in 1983 were 14% down on 1982/ when they had/  
however/ shown an 89% increase over 1981. Global loans to encourage  
SMEs to take on workers formerly employed in the steel industry  
accounted for around 50% of the conversion loans paid out in 1983.  
They totalled 70 million ECU/ compared with 65 million ECU in 1982.
However/ the beneficial effects of the increase in the interest  
subsidy from 3% to 5%/ decided in July 1983/ will not show up in the  
trend of global loans before 1984.

■  65 -
Loans for tow-cost housing/ which carry an extremely favourable  
interest rate (1%), were slightly higher in 1983/ totalling 20.2 million  
ECU or some 12% up on 1982. Over four thousand new low-cost dwellings  
were financed in this way.
Lastly/ low-interest loans were made to investment projects accorded  
priority in the interests of job creation and research promotion..

-  66  -
7. LENDING OUTSIDE THE COMMUNITY
7.1 General
Since 1963 loans have been granted outside the Community in
1 . . .Greece and Turkey; in the African, Caribbean and Pacific States
under the Yaoundé and Lomé Conventions; in most of the countries
in the Mediterranean region: Yugoslavia, Algeria, Morocco,
Tunisia, Egypt, Jordan, Lebanon, Syria, Israel, Malta and Cyprus;
and lastly in the applicant countries Spain and Portugal.
The loans to projects fostering the economic and social advance­
ment of those countries are granted from the resources of the  
EIB, the EDF and the General Budget of the Communities.
In 1983 operation? in the ACP states and in the Overseas Countries  
and Territories (OCT) amounted.to 102.9 million ECU, comprising  
55.3 million ECÜ in special Loans and 47.6 million in risk capital.  
From budgetary resources, the EIB granted loans totallying 5.5  
million ECU and the Commission a special loan of 12 million ECU  
in the Mediterranean region.
In 1983 EIB loans from own resources amounted to 4.27 million ECU,  
with 337.2 million ECU going to the Mediterranean countries and  
90 million ECU to the African, Caribbean and Pacific states pursuant  
to the second Lomé Convention.
1Up to its accession to the Community on 1 January 1981.

- 67 -
7.2 Loans to Mediterranean countries
Financing from the EIB's own resources in the Mediterranean -  
region continued to be concentrated Largely on the applicant  
countries Spain and Portugal (190 million ECU); in addition/ with  
the entry into force of the new financial protocols concluded with  
the Maghreb and Mashreq countries/ financing operations were  
resumed in a number of them (80.5 million ECU). A new loan was  
made to Yugoslavia. Of these operations/ loans amounting to
104.5 million ECU carried interest subsidies from the General  
Budget of the Communities/ which also guarantees 75% of EIB  
lending to those countries.
7.2.1 Loans to Spain and Portugal
In Spain, six loans totalling 105 million ECU/ primarily for  
SMES/ were granted under two global loans to promote the  
industrialization of the least developed regions and under one  
global loan to foster investment in tourism in the least well-  
equipped inland areas. Out of ongoing global loans, 109  
allocations were made totalling 33.9 million ECU.
The other loans went towards improving infrastructures:  
modernization of the rail link between the coal port of Gijon and  
Leon; minor road-improvement schemes; solid-waste processing  
plants; and electrification and tourism projects in Andalusia to  
promote the development of this outlying region. A global loan  
facility was made available to local authorities to improve the  
road network and the water supply system. Under that facility  
and the global loan granted in ^982, nineteen small-scale infra­
structure projects were financed (29 million ECU).

-  68 -
In Portugal, the 85 million ECU of loans went towards improving  
infrastructure at Porto airport in the north of the country and  
at Faro airport on the Algarve coast and towards financing an  
additional unit at the Sines coal-fired power station. Two new  
global loans will help to finance the modernization and expansion  
of an increasing number of SMEs. Out of ongoing global loans, 59  
allocations were made totalling 46.2 million ECU.
7.2.2 Loans to other Mediterranean countries
In Yugoslavia, a 66.7 million ECU loan will part-finance further  
work on the trans-Yugoslavia motorway, which will improve  
Community road links with Greece.
In Morocco, EIB loans were granted for improving the oil port of  
Mohammedia to the north of Casablanca and for the construction of  
a dam as part of the integrated project at Ait-Chouarit to the  
east of Marrakech.
In Egypt, a global loan will assist the development of SMEs in  
industry and tourism.
In Jordan, loans were made to strengthen the small business sector,  
to improve the distribution of electricity in the areas north of the  
capital and to finance investment in farming.
Lastly, a loan was granted in Lebanon for the Zouk oil-fired power  
station to the north of Beirut.

69 -
7.3 Loans to African, Caribbean and Pacific states and Overseas  
Countries and Territories -
The EIB granted six loans from its own resources in the African  
and Caribbean States (88 million ECU and 2 million ECU  
respectively); it also provided assistance in twenty-four  
cases in the form of risk capital, from the resources of the  
European Development Fund (47.6 million ECU).
More than half of total lending from the EIB's own resources  
related to investments under global loans (50 million ECU) to  
finance SMEs in manufacturing, agricultural processing, mining, ·  
transport and tourism. One loan was granted for boosting the  
capacity of a power station (25 million ECU). Lastly, a major  
telecommunications project received a loan of 15 million ECU.
All these loans were granted dt a maximum rate of 8%, which  
includes an interest subsidy from the resources of the European  
Development Fund.

- 70 -
8. COMMUNITY INTEREST SUBSIDIES FOR LOANS CONTRACTED WITHIN THE  
COMMUNITY
8.1 Interest-subsidy mechanisms
In 1983, as in 1982, the Community had at its disposal four  
interest-subsidy mechanisms for lending within the Community:
- European Monetary System (EMS) subsidies (on NCI and EIB loans  
in Italy and Ireland);
1- ERDF subsidies (on EIB loans in ERDF regions);
- subsidies related to the special aid for the Italian and Greek  
areas hit by earthquakes in November 1980 and February /March  
1981 respectively (from NCI and EIB resources);
- ECSC subsidies (on ECSC loans).
Each of the first three types of subsidy has the effect of lowering  
the interest rate by three percentage points; the fourth can go up  
to five points since the entry into force of the new ECSC rules in  
1983. As regards the technique of subsididation, the EMS and ERDF  
subsidies are calculated over the entire period of the loan and  
discounted, being charged to the General Budget of the Communities  
as a lump sum; ECSC subsidies are granted for the first five years  
of the loan and are not discounted, being charged annually to the  
ECSC budget. The "earthquake reconstruction" interest subsidies are  
also charged annually, but to the General Budget of the Communities,  
and for up to twelve years.
1An ERDF interest subsidy has been granted only once: Member States
prefer capital grants and only one application for a subsidy has  
ever been received.

- 71 -
8.2 EMS interest subsidies'
The system of EMS interest subsidies was set up by Council '  
Regulation (EEC) No 1736/79 of 3 August 1979 for a five-year  
period (1979-83)/ in response to a request by the European  
Council of December 1978. A description is given below of the  
operations carried out during the final year (1983)/ followed by  
an assessment of how the system functioned throughout the five-  
year period.
i
8.2.1 Operations in 1983
The operations in 1983 related to thirty-one investment projects  
financed by thirty-two loans from the EIB's own resources  
X736 million ECU) and by eighteen loans from NCI resources (327  
million ECU)/ giving a total of 1 063 million ECU for fifty  
loans.
The discounted amount of interest subsidies totalled 200 million ECU,  
bringing the cumulative total over the system's five years of  
operation to 1 000 million ECU. Following a change in the discounting  
method, the ratio of the total amount of interest subsidies to that  
of subsidized loans fell to 18.8% in 1983/ compared with an average  
of 20.1% for the period 1979-82. This ratio depends inter alia on  
the length of the loans/ the interest rate and the grace period.
The amount of each interest subsidy and of each subsidized loan is  
given in Tables 15 and 16 in the annex.
1Discounted interest subsidies, charged to the General Budget as a  
single sum for each loan (cf. Tables 15, 16, 17 in the annex).

- 72 -
By origin of resources lent, the subsidies were for eighteen Loans  
from NCI resources and thirty-two Loans from the EIB's own resources.  
The respective percentages of the amounts paid out were 31% and 69%.  
Five projects were financed jointLy by Loans from the EIB's own  
resources and by the NCI.
The interest subsidies from 1983 budget appropriations break down  
by recipient country as foLLowd: 70% to ItaLy and 30% to Ireland,
the two countries eLigibLe under CounciL Decision 79/691/EEC of  
3 August 1979.
An ana Lysis by sector of use shows that 32% of the totaL amount of  
interest subsidies went to projects in the energy sector: 12% for
the development of primary energy sources (hydroelectric and nuclear  
power, and natural gas fields); 9% for thermal power stations arid  
11% for energy transmission (gas pipelines and distribution grids).  
Infrastructure projects in other sectors accounted for the remaining  
68% of the interest subsidies, and related mainly to the improvement  
of telecommunications and road networks (27%), housing forming part  
of overall economic and industrial development projects (23%),  
water supplies and irrigation (17%), and industrial estates (2%).
8.2.2 Overall assessment of the system: 1979-83
In all, 231 loans received interest subsidies during the five years  
of the system's operation. Full use was made of the 1 000 million  
ECU suggested for this purpose by the European Council in December  
1978. The budget appropriations in question were equivalent to  
19.8% of the total amount of subsidized loans (5 038 million ECU).  
The table below shows the course of the operations, on the basis of  
the year in which the subsidies were charged to the General Budget:

- 73
Loans subsidized and subsidies paid, year by year
Loans subsidized Interest subsidies paid
Number million ECU million ECU % of loans
1979 34 885,4 200,0 22,6 ·
1980 551 030,8 197,0 19,1
1981 581 017,5 193,2 19,0
1982 341 041,4 209,8 20,1
1983 501 062,9 200,0 18,8
Total 231 5 038,0,1 1 000,0 19,8
This amount differs slightly from that given in the EIB's own documents  
for'technical reasons to do with the rates used for converting the  
different currencies into’ECUs.
This time pattern was dictated bythe five annual tranches prescribed  
by Regulation (EEC) No 1736/79. In point of fact the regularity is even  
more striking if the annual data are cumulated:
Loans subsidized and subsidies paid, cumulative annual data
Cumulative  
totals as atLoans
(million ECU)Subsidies 
(million ECU)Subsidies 
as % of loans
end 1979 885,4 200,0 22,6
end 1980 1 916,2 ,  397,0 20,7
end 1981 2 933,7 590,2 ' 20,1
end 1982 3 975,1 800,0 20,1
end 1983 5 038,0 1 000,0 19,8
Two thirds of the 1 000 million ECU of interest subsidies went to loans  
in Italy and one third to loans in Ireland.  As regards the origin of  
the resources lent at subsidized rates, loans under the New Community  
Instrument (NCI) attracted 16% of the subsidies and loans from the EIB's  
own resources 84%.

- 74 -
An analysis by sector of use of the loan shows that roughly  
two-fifths of the interest subsidies paid out were on loans for.  
infrastructure projects in the energy sector and three-fifths for  
other types of infrastructure.  In the energy sector, primary  
energy sources, such as hydroelectric and nuclear power, and the  
exploitation of oil and natural gas deposits as well as of peat  
bogs and geothermal sources of energy received 14% of all interest  
subsidies. Loans for the transformation of energy (particularly in  
conventional power stations) received 8% of all interest subsidies,  
and loans for the transmission of energy (gas pipelines, distribution  
grids) 19%.
As regards non-energy infrastructure, the projects that benefited  
most related to water engineering, including water supply, sewage  
disposal, irrigation and land drainage (23% of all interest  
subsidies) and to transport and communications, including road, rail,  
maritime and telephone networks (24%). Industrial infrastructure  
(industrial estates, training establishments) accounted for 7% and  
forestry and fishing ports for 1%. Loans for housing forming part  
of overall economic and industrial development projects received  
4% of the interest subsidies granted.

- 75 -
EMS interest subsidies paid from 1979-83 appropriations  
(by country, instrument and sector)
Subsidized loans1Interest subsidies paie
Number Mi liions 
ECUMi liions 
ECU%
By recipient country
- Italy
- Ireland150
813 569,7 
1 468,3666,6
333,466,7
33,3
231 5 038,0 1 000,0 100,0
By origin of resources  
lent
- NCI
- EIB46
185848,2 
4 189,8161,2
838,816,1
83,9
231 5 038,0 1 000,0 100,0
By sector of use
Energy•
- Primary energy  
production
- Transformation of  
energy35
19814,2
382,4140,9
80,814,1
8,1
- Transmission of energy
- Global loan40
1978,4
14.7184,7 
.  2,4 ·18,5
0,2
Sub-total: Energy 95
■ ■ ■ ■ n a a i M x · ·2 189,7 408,8
■ M K a a s a s s a s i a40,9
n a s s a s s B
Other infrastructure
- Water engineering 60 1 149,1 233,8 23,4
- Industrial infrastructu
- Transport and  
Communications
- Forestry and fishing
- Housingre 20 ,
38
2
16322,3
1 119,2 
32,2 
225,566,0
237,8
8,1
45,56,6
23,8
0,8
4,5
Sub total: other  
infrastructure136 2 848,3 591,2 59,1
Total 231 5 038,0 1 000,0 100,0

- 76 -
All the interest subsidies for Loans in IreLand and most of those  
for Loans in ItaLy reLated to projects Located in priority regions.  
Since the projects involve infrastructure, the number of new  
permanent jobs created for running the completed projects is  
necessarily Limited. Nevertheless/ these projects wiLl eventually  
contribute/ largely indirectly/ to the development of productive  
activities which will create a substantial number of jobs;  
moreover/ the work involved in and the supplies needed for,  
carrying out the infrastructure schemes will have significant  
direct and indirect temporary effects on the employment situation  
over what may/ in some cases be relatively long periods.
This method of transferring resources was chosen because it serves  
to stimulate and direct investment. It was felt that the development  
gap between the less prosperous and the other Member States should  
be closed by stimulating capital expenditure projects for which  
insufficient internal finance was available. Hence the idea of  
encouraging recourse to Community loans by combining them with a  
subsidy. As a result/ between 1979 and 1983/ loans carrying an  
interest subsidy covered more than 1% of gross fixed capital  
formation in Italy and around 7% in Ireland.
As regards the specific impact of this financial aid/ it is note­
worthy that subsidized loans in Ireland accounted for nearly one-third  
of public expenditure on "productive infrastructures" (roads, ports,  
energy, etc.).

- 77 -
8.3 Interest subsidies for reconstruction in earthquake-stricken areas
These interest subsidies are governed by Council Decisions 81/19/EEC  
of 20 January 1981 in the case of Italy and 81/1013/EEC of 14 December 
1981 for Greece. They are paid annually on the loan interest dates, 
in non-discounted form, a rate of 3% per annum being applied to the 
capital still outstanding; the loans and subsidies have a maximum,  
life of twelve years.
The first subsidized loans for Italy were signed in 1981, so that  
the first interest subsidies were paid on the 1982 interest dates.
The single loan for Greece was signed in 1982 and interest subsidies  
were paid for the first time in 1983. Tables 18 and 19 list all the  
loans signed by the end of the financial year, with the amount of.  
each interest subsidy paid in 1983.
By the end of 1983, the loans Signed for Italy totalled 792 million  
ECU out of the 1 000 million ECU authorized, and the entire 80  
million ECU authorized for Greece had been taken up by a single  
operation. For the two countries together, over three quarters of  
the 872 million ECU in loans signed were financed from NCI resources.
With regard to the purpose of the loans, 53% of the amount signed  
was for economic infrastructure (roads, railways, telephones,electricity,  
water supply, industrial estates), 45% for social infrastructure (housing,  
school and public buildings) and 2% for the rehabilitation of the  
means of production.
As a result of the loans signed since 1981, interest subsidies worth  
14.4 million ECU were paid out i'n 1983, split equally between economic  
and social infrastructure.

- 78 -
8.4 ECSC interest subsidies
The interest subsidies granted by the Commission on EQSC Loans
*
in 1983 were used to finance the following investments:
~ conversion projects financed by loans under Article 56 of the 
Treaty;
~ investments to maintain and/or increase coal-mining capacity, 
financed from loans under Article 54, para. 1 of the Treaty;
- investments to increase consumption of Community coal, financed 
from loans under Article 54, para. 2 of the Treaty.
In 1983, as in previous years, the major share of interest subsidies 
went to conversion projects.
ECSC INTEREST SUBSIDIES PAID IN 1983
(million E C U )
BDKDFIRLILNL U KTotal !
Art.54 
Art.568,4
3,70,84,12,9
1,81
6,5--2,3
4,113,6 j
21,01  i
I
■ —  I
Total12,10,84,14,7-6,5--6,434,6 ji
Vto this should be added an amount of 23.0 million ECU reflecting the cost of increasing 
the interest subsidy from 3% to 5% for a series of global loans.

A N N E X

LIST OF TABLES
Table 1 Community borrowings in 1983
Table 2 EIB borrowings in 1983
Table 3 Borrowings by the European Communities
Table 4 Breakdown of loans in the Community in 1983 by instrument,
sector and country
Table 5 Trend in lending operations in the Community, by sector
Table 6 NCI loans, 1979-83
Table 7 ECSC loans paid out, 1974-83
Table 8 EURATOM loans, 1977-83
Table 9 Loans from EIB own resources in the Community, 1974-83
Table 10 List of NCI loans in 1983
Table 11 List of Euratom loans in 1983
Table 12 ECSC loans by sector, 1980, 1981, 1982 and 1983
Table 13 EIB loans outside the Community from borrowings, 1976-83
Table 14 Interest subsidies paid out in the Community by the various 
Community mechanisms, 1973-83
Table 15 EMS interest subsidies, 1983 financial year : Italy
Table 16 EMS interest subsidies, 1983 financial year :  Ireland
Table 17 EMS interest subsidies paid from 1983 appropriations (by  
country, instrument and sector)
Table 18 "Earthquake reconstruction” loans carrying interest subsidies,  
1983 financial year :  Italy
Table 19 "Earthquake reconstruction" loan carrying interest subsidy,  
1983 financial year :  Greece
Table 20 Subsidized loans for reconstruction in earthquake-stricken  
areas (by country, instrument and sector)

Table 1
COMMUNITY BORROWINGS IN 1983
LifeCoupon Currency Million
N° Type a n damount ECU
(yrs) %(million) (1)
a) N C I
1Public issue 1211.5 USD200241.73
2Public issue 1011.625 ECU5050.00
3Public issue 811.875 UKL5087.63
4Public issue 127.75 DM200 88.60
5Public issue 108.0 YEN20 000 104.31
6Private placing 75.5 SFR5027.71
7Public issue 1210.75 USD7590.65
8Public issue 105.75 SFR100 55.43
9Private placing 108.625 HFL5019.71
10Public issue 108.75 HFL200 78.83
11Public issue 108.25 DM250110.74
12Private placing 65.875 SFR5027.71
13Public issue 1011.25 ECU7070.00
14Public issue 1012.0 USD100120.86
15Public issue 1011.875 UKL5087.63
16Public issue 106.0 SFR100 55.42
17Public issue 107.7 YEN20.000 104.31
18Public issue 1011.0 ECU5050.00
6.0 ECU2525.00
19Public issue 1012.0 USD50120.86
1512.125 USD50
TOTAL 1617.10
b) BALANCE OF PAYMENTS
20Public issue 7(2) USD1.800 2 175.6
21Public issue 411 USD350 423.0
22Public issue a) 3 11.125 ECU80150.0
b) 7 11.25 ECU40
c)10 11.50 ECU30
23Public issue 7(3) USD1.240 1 498.7
TOTAL 4 247.3
(1) The conversion rates used were those obtaining on 31 December 1983.
(2) Variable (1/8% over Libor per annum - minimum of 5% per annum).
(3) Variable (3/8% over Libor per annum).

Table 1 (cont'd)
LifeCoupon Currency Million
N° Type a n damount ECU
(yrs) %(million) (1)
c) E U R A T 0 M
24Public issue 1011.0 LFR500 10.85
25Public issue 1011.605 ECU5050.00
26Public issue 107.375 DM150 66.44
27Public issue 1015.0 FF425 61.56
28Private placing 108.28 DM8035.44
29Private placing 129.6467 HFL62.8 24.75
30Private placing 108.50 DM5022.15
31Private placing 712.125 USD2024.17
32Private placing 1011.50 FB1.000 21.69
33Private placing 128.75 HFL7529.56
34Private placing 128.25 DM5022.15
TOTAL 368.76
d) E C S C
35Public issue 107.50 DM150 66.44
36Private placing 813.62 LFR340 7.4
37Public issue 107.75 HFL100 39.4
38Private placing 108.05 DM38.3 16.96
39Private placing 1213.00 FB936 20.31
40Private placing 57.65 DM9.35 4.14
41Private placing 158.00 HFL23.0 9.08
42Private placing 512.50 UKL1.5 2.63
43Public issue 107.50 DM200 88.60
44Private placing 512.06 UKL 35.25
45Private placing 108.00 DM6227.46
46Private placing 108.00 DM0.60 0.26
47Private placing 78.00 DM4720.82
48Private placing 512.00 FB100 2.17
49Private placing 108.4 DM 12.080 5.35
50Private placing 65.50 SFR5228.82
51Private placing 159.625 HFL17.760 7.00
52Private placing 108.50 DM4.40 1.94
53Public issue 78.00 DM160 70.87
54Private placing 1012.00 FB40 0.86
55Public issue 711.875 USD7590.65
56Private placing 1011.75 FB2.500 54.23
57Private placing 811.875 LFR750 16.27
58Private placing 1011.19 FB3.200 69.42
59Private placing58.25 DM3515.50
(1) The conversion rates used were those obtaining on 31 December 1983.

Table 1 (cont'd)
N# TypeLife
(yrs)Coupon
%Currency  
and amount  
(million)Million
ECU
(1)
60
61
62
63
64
65
66 
67Private placing  
Private placing  
Private placing  
Private placing  
Public issue  
Private: placing  
Private placing  
Private placing10
12
10
15
8
10
6
511.5
8.25
9.00
9.00 
10
8.60
6.00 
11.375FB 900  
DM 16  
HFL 10  
HFL 12.2  
LFR 600  
DM 6.650  
SFR 35  
UKL 419.52
7.11
3.94 
4.81
13.02
2.94 
19.40
7.01
TOTAL749.58
TOTAL NCI + BALANCE OF PAYMENTS + EURATOM + ECSC 6.982.74
(1) The conversion rates used were those obtaining on 31 December 1983.

Table 2
EIB BORROWINGS IN 1983
Life Subs- Amount Million
Coupon cription ECU
(years) currency (million) (1)
PUBLICISSUES
10 7,800 YEN 20.000 88,044
10 7,750 DM 200 86,951
811,000 USD 125 129,177
811,750 ECUS 60 60,000
812,750 FB 3.000 66,195
10 5,750 SFR 100 51,988
811,750 UKL 50 80,034
31,745 10 8,250 SCH 500
10 7,500 DM 200 89,186
1010,750 USD 200 216,499
10 9,250 HFL 150 59,369
1014,800 FF 1.000 148,715
10 6,000 SFR 100 53,272
10 9,875 LFR 600 13,214
10 8,000 DM 200 88,175
10,  8,250 DM 200 88,175
1011,875 USD 150 168,205
10 7,800 YEN 20.000 98,802
10 5,750 SFR 100 54,844
1011,125 ECUS 50 50,000
10 8,500 HFL 250 98,881
711,500 USD 200 232,727
88,000 DM 250 110,549
812,125 CAND 80,06 75,617
510,625 ECUS 50 50,000
1510,000 ECUS 25 25,000
2315,364

Table 2 (cont'd)
Number Life Subs- Amount Million
of ope- Coupon cription ECU'
rations (years) currency (million) (1)
PRIVATE PLACINGS
85-10 7,500 - 8,200 DM 430,0 190,295
58.-1011,250 - 12,750 UKL 56,0 95,650
2110-20 7,625 - 9,000 HFL 479,8 189,507
312-15 11,125 - 13,000 FB 4.300,0 94,468
26- 712,375 - 12,750 LFR 1.000,0 22,065
1 15 12,000 ECU 45,0 45,000
36-1011,000 - 11,625 USD 81,9 87,675
3 65,500 - 6,000 SFR 230,0 124,614
310 8,400 - 8,600 YEN 60.000,0 281,642
1.130,916
MEDIUM-TERM INTERBANK OPERATIONS
Number 
of ope­
rationsCurrencyAmount
(million)Million
ECULife
(years)Coupon
5 DM 120 52,245 2-3 4,000 - 7,800
1 HFL 25 9,835 2 6,800
62,080
Total borrowings and interbank
operations 3.508,360(2)
(1) The conversion rates used were those obtaining on the last working day of  
the quarter before the contract was signed.
(2) To this must be added an amount of 111 million ECU for funds raised in the  
form of third-party participations in the financing of EIB loans.

Table 3
BORROWINGS BT THE EUROPEAN COMMUNITIES
(amounts outstanding at end of each year)(^)
(million ECU)
YEAR E C S C E I B EURATOM E E C (2) N C I TOTAL
1974 1.615 3.124 - - — 4.739
1975 2.391 3.926 - - - 6.317
1976 3.478 4.732 - 1.161 - 9.371
1977 3.955 5.421 99 1.500 - 10.975
1978 4.416 6.715 172 1.361 - 12.664
1979 4.675 8.541 323 965 178 14.682
1980 5.406 10.604 502 1.016 491 18.019
22.224 1981 5.884 13.482 902 1.062 894
1982 6.178 16.570 1.272 5913) 1.747 26.358
1983 6.539 20.749 1.680 4.610 3) 3.269 36.847
(1) 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.
(2) "Balance of payments" borrowings.
(3) Including borrowings for reconstruction loans for the earthquake-stricken 
areas of Italy and Greece.

Table 4
UIAIDOII OF LOANS 1» Til CONOIITT II 198 3 ,  BY IIITIHIIT, SBCTOB ill COUNTRY
(million ECU)
N CI E U RATOM: E  IB ECS c TOTA  L
COUNTRY Productive Infra- Energy Total Energy Total Productive Infra- Energy Total Productive Infra- Energy Total Productive Infra- Energy Total
sector struct. sector struct. sector struct.
|sector struct.
BELGIUM__ __ 32,5 32,5- - - - 3,0 0,9 - 3.9 3,0 0,932,5 36,4
DENMARK 22,2_83,2105,4 - - 20,5 28,9210,3 259,7 - 0,01 --  42,7 28,9293,5 365,1
FR of GERMANY _ _ - - - 22,9 -129,3 152,2 74,5 2,272,7149,4 97,4 2,2202,0 301,6
GREECE-50,3 35,0 85,3 - - 63,2193,3 107,8 364,3 - 0,4 - 0,4 63,2244,0 142,8 450,0
FRANCE  105,5 36,4 44,3186,2 198,6 198,6 152,8 345,7 209,4 707,9 127,0 2,1148,7 277,8 385,3 384,2 601,01.370,6
IRELAND 3,818,8 46,8 69,4 - - 13,9201,4 19,3234,6 4,2 0,2 - 4 ,4 21,9220,4 66,1308,4
ITALY 289,5338,2 37,7665,4 89,0 89,0 749,5 737,8 458,41 945,7 19,4 12,8 -32,2 1 058,4 1 088,8 585,12 732,2
LUXEMBOURG- _ . - - - - - - - - 0,03 - - - 0,03 - 0,03
NETHERLANDS- - - - - - - - - 39,4 0,1 -39,4 39,4 0,1 -39,5
UNITED KINGDOM 68,1 -32,0100,1 46,3 46,3 53,4269,9 268,0 591,3 104,8 1,5164,2 270,5 226,3 271,4 510,51.008,2
TOTAL 489,1 443,7 279,01 211,8 366,4 366,4 1 076,2 1 777,0 1 402,5 4 255,7 372,3 20,2385,6 778,1 1 937,6 2 240,9 2 433,5 6 612,0
X SECTOR 40,3 36,7 23,0100 100 100 25,3 41,8 32,9100 47,8 2,649,6100 29,4 33,8 36,8100
X INSTITUTION 18,4 5,5 64,4 11,7 100

Table 5
TREND IN LENDING OPERATIONS IN THE COMMUNITY, BY SECTOR
(million ECU)(1)
YEAR Productive Infra- Energy Total
structure structure
1974 604,0 143,4 480,2 1.227,6
1975 758,7 469,9 488,8 1.722,4
1976 1.163,5 429,9 556,4 2.149,8
1977 938,8 607,7 693,2 2.239,7
1978 745,4 1.000,0 1.089,1 2.834,5
1979 756,4 1.055,8 1.574,3 3.386,5
1980 1.277,9 1.204,7 1.680,2 4.162,8
1981 788,0 1.390,2 1.928,5 4.106,5
1982 1.726,7 1.817,4 1.802,5 5.346,6
1983 1.940,4 2.240,8 2.431,0 6.612,0
(1) The conversion rates used were those obtaining on  
31 December of the year in question in the case of ECSC  
loans and those obtaining on the last working day of the  
quarter before the contract was signed in the case of  
EIB, NCI and Euratom loans.

Table 6
ICI LOANS, 1979-83
(million ECU)(1)
1 9  7 9 1 9  8 0 1 9  8 1
COUNTRY Infra- Energy Total Infra- Energy Total Infra- Energy Total
struct. struct. struct.
•
BELGIUM_ - - - - - - - -
DENMARK - - - - 18,1 18,1 “ -
FR of GERMANY - - - - - *—
GREECE (2) - - - - *
FRANCE - - - - - - 40,3 40,3
IRELAND 62,0 24,7 86,7 27,3 14,4 41,7 8,1 9,2 17,3
ITALY (3) 39,6 45,4 85,0 62,3 75,5 137,8 363,9 84,4 448,3
LUXEMBOURG - - - - - “ “
NETHERLANDS - - - ”
UNITED KINGDOM 25,9 79,4 105,3 * “ 33,9 33,9
TOTAL 127,50 149,50 277,00 89,60 108,00 197,60 446,20 93,60 539,80
X 46,0 54,0 100 45,3 54,7 100 82,7 17,3 100
-1 98 2 1 98 3
COUNTRY Infra- Energy Productive Total Infra- Energy Productive Total
struct. sector struct. sector
BELGIUM- - - - - - -
DENMARK 48,6 47,4 - 96,0 - 83,2 22,2 105,4
FR of GERMANY - - - “ “
GREECE (2) 124,9 - -124,9 50,3 35,0 - 85,3
FRANCE - - 37,6 37,6 36,4 44,3 105,5 186,2
IRELAND 45,3 37,8 - 83,1 18,8 46,8 3,8 69,4
ITALY (3) 210,7 15,1 223,7 449,5 338,2 37,7 289,5 665,4
LUXEMBOURG - - - - - - “
NETHERLANDS - - - - - - -
UNITED KINGDOM - - - 32,0 68,1 100,1
TOTAL 429,50 100,30 261,30 791,10 443,7 279,0 489,1 1 211,8
X 54,3 12,7 33,0 100 36,7 23,0 40,3 100
(1) The conversion rates used were those obtaining on the last working day of the quarter before the
contract was signed.
(2) Including “earthquake" operations In 1981 and 1902.
(3) Including “earthquake" operations In 1981, 1982 and 1983.

Table 7
1CSC ions PAID 00 T ,  1974-83
(million ECU)(l)
COUNTRY19 7  4 19 7  5 19 7  6 19 7  7
Productive Infra- Energy Total 
sector struct*Productive Infra- Energy Total 
sector struct.Productive Infra- Energy Total 
sector struct*Productive Infra- Energy Total 
sector struct.
BELGIUM
DENMARK
FR of GERMANY
GREECE
FRANCE
IRELAND
ITALY
LUXEMBOURG 
NETHERLANDS 
UNITED KINGDOM10,3 - - 10,3 
0,3 - 0,3 
108,5 0,6 41,0 150,1
82,5 0,4 1,9 84,8
64,1 1,1 - 65,2 
0,4 - 0,4 
1,8 - - 1,8 
32,7 1,7 30,6 65,040,3 1,8 - 42,1 
22,6 0,4 - 23,0 
119,3 7,9 23,7 150,9
112.2 4,9 - 117,1 
0,2 - 0,2
175,8 0,8 - 176,6 
0,6 0,5 - 1,1 
29,5 0,9 - 30,4
125.2 1,1 137,2 263,534,6 2,7 - 37,3
166.7 9,7 10,5 186,9
101,9 4,3 27,0 133,2 
0,6 0,1 - 0,7
146.8 0,9 - 147,7 
0,1 - 0,1
38,2 0,4 - 38,6
376.9 0,0 142,4 519,315.0 0,9 - 15,9 
0,5 - 0,5
28.0 5,8 81,7 115,5
125,2 0,9 48,4 174,5 
0,2 - 0,2 
170,9 2,7 - 173,6 
0,5 - 0,5 
0,5 - 0,5 
173,6 - 86,7 260,3
NON-EEC - .- -
TOTAL 299,9 4,5 73,5 377,9 625,5 18,5 160,9 804,9 865,7 18,2 179,9 1.063,8 512,7 12,0 216,8 741,5
COUNTRY19 7  8 19 7  9 19 8  0 19 8  1
Productive Infra- Energy Total 
sector struct.Productive Infra- Energy Total 
sector struct*Productive Infra- Energy Total 
sector struct*Productive Infra- Energy Total 
sector struct.
BELGIUM
DENMARK
FR of GERMANY
CRF.ECE
FRANCE
IRELAND
ITALY
LUXEMBOURG
NETHERLANDS
UNITED KINGDOM1,9 - 1,9 
13,1 0,1 - 13,2 
111,6 5,6 21,8 139,0
89,9 2,8 34,4 127,1
123,8 2,6 - 126,4 
73,5 0,5 - 74,0
42.0 0,8 - 42,8
29.0 3,0 241,3 273,30,4 - 0,4 
0,3 - 0,3 
122,0 6,1 21, 144,1
99.5 3,2 28,7 131,4 
13,9 - - 13,9 
94,2 7,4 - 101,6
14.5 0,1 - 19,6 
0,5 - 0,5
26,4 3,6 229,0 259,029,2 29,2 
4,3 - - 4,3
98.5 0,8 29,8 129,1
237.5 0,5 37,4 275,4 
1,0 0,1 - 1,1
138.6 4,4 - 143,0
68.6 - - 68,6 
4,6 0,3 - 4,9
140,0 1,7 226,8 368,50,5 - 0,5 
53,2 5,9 33,2 92,3
85.1 2,3 24,0 111,4 
11,0 - - 11,0
96.2 5,3 - 101,5 
0,1 - 0,1 
0,5 - 0,5
70.2 0,1 - 70,3
NON-EEC - . 6,6 - - 6,6 -
TOTAL 482,9 17,3 297,5 797,7 375,5 21,6 278,7 675,8 699,7 7,8 323,2 1.030,7 315,7 14,7 57,2 387,6
COUNTRY19 8  2 19 8  3
Productive Infra- Energy Total 
sector struct»Productive Infrs- Energy Total 
sector struct*
BELGIUM
DENMARK
FR of GERMANY
GREECE
FRANCE
IRELAND
ITALY
LUXEMBOURG 
NETHERLANDS 
UNITED KINGDOM17,0 1,0 - 18,0 
1,7 0,1 - 1,8 
89,3 5,0 90,4 184,7 
10,9 0,4 - 11,3
10.6 3,7 54,8 69,1 
0,1 - 0,1
62.7 2,4 - 65,1 
5,2 0,3 - 5,5
43.7 0,4 - 44,1 
112,4 4,7 152,0 269,13,0 0,9 - 3,9 
0,0 - 0,0 
74,5 2,2 72,7 149,4 
0,4 - 0,4 
127,0 2,1 148,7 277,8 
4,2 0,2 - 4,4
19.4 12,8 - 32,2
0,0 - 0,0
39.4 0,1 - 39,4 
104,8 1,5 164,2 270,5
NON-EEC 71,8 - - 71,8 -
TOTAL 425,3 18,1 297,2 740,6 372,1 20,2 385,6 778,1
(1) The conversion races used were Chose obtaining on 31 December of each year*

Table 8
EURATOM LOAMS, 1977-1983
(million ECU)(1)
COUNTRY19 7  7 19 7  8 19 7  9 19 8  0
Energy Total Energy Total Energy Total Energy Total
BELGIUM
DENMARK
FR of GERMANY
GREECE
FRANCE
IRELAND
ITALY
LUXEMBOURG 
NETHERLANDS 
UNITED KINGDOM77 77 
19,9 19,934,4 34,4 
35,8 35,850,5 50,5
67,9 67,9 
34 3482,2 82,2 
99,1 99,1
TOTAL 96,9 96,9 70,2 70,2 152,4 152,4 181,3 181,3
COUNTRY1  98  1 1  98  2 1  98  3
X
Energy Total Energy Total Energy Total
BELGIUM 225,2 225,2 72,9 72,9 32,5 32,5 8,9
DENMARK - - -
FR of GERMANY - - - - - - -
GREECE- - - - - - -
FRANCE 98,8 98,8 258,9 258,9 198,6 198,6 54,2
IRELAND - - - -
ITALY 33,6 33,6 30,0 30,0 89,0 89,0 24,3
LUXEMBOURG - - - “ - -
NETHERLANDS - - - - - -
UNITED KINGDOM — 46,3 46,3 12,6
TOTAL 357,6 357,6 361,8 361,8 366,4 366,4 100,0
(1) The conversion rates used were those obtaining on the last working day of the quarter before 
the contract was signed.

Tabi· 9
LOUS MON CIS 099 IKSO0IC1S 19 T9B eOMNVIZTT, 19 7  4-0
(aiUioo ECU)(1)
C0V2TXI19 7  4 19 7  5 19 7  6 19 7  7
Productiv· Infra- Energy Total 
aector(2) struct.Productive Infra- Energy Total 
aector(2) struct.Productive Infra- Energy Total 
eector(2) struct.Productive Infra- Energy Total 
sector(2) struct*
BELGIUM
DENMARK
ft of germant
GREECE
FIANCE
IRELAND
ITALY
LUXEMBOURG 
NETHERLANDS 
UNITED KINGDOM- - 16,1 16,1 
6,4 5,4 7,8 11,8 
16,6 - 69,6 86,2
32,9 56,8 91,4 181,2 
16,5 25,2 - 41,7 
136,1 38,5 103,4 278,0
- - 31,9 31,9 
68,3 13,1 68,1 149,510,8 10,8 
11,6 - 6,1 17,7
8,2 128,9 20,9 158,0 
7,7 30,0 - 37,7 
52,9 208,2 97,7 358,8
57,8 84,3 192,4 334,517.9 - - 17,9
9.1 - - 9,1
9.2 - 101,6 110,8
60,1 - 60,1
29.9 24,2 3,3 57,4 
126,7 195,1 40,2 362,0
30,4 30,4 
94,1 132,3 191,2 417,612,8 7,1 12,8 32,7 
28,* 28,*
19,6 119,5 157,* 296,5 
18,3 61,* - 79,7 
197,1 189,3 39,3 *25,7
167,9 218,* 92,8 *79,1
NON-EEC 18,4(4) 18,4 - -- - 48,8(3) 48,8
TOTAL 276,8 139,0 399,0 814,7 138,2 451,4 327,9 917,5 286,9 411,7 366,7 1.065,4 415,7 595,7 379,5 1.390,9
*
COUNTRY19 7  8 19 7  9 19 8  0 19 8  1
Productive Infra- Energy Total 
sector(2) struct.Productive Infra- Energy Total 
sector(2) struct.Productive Infra- Energy Total 
eector(2) struct.Productive Infra- Energy Total 
sector(2) struct*
BELGIUM
DENMARK
PR of GERMANY
GREECE
PRANCE
IRELAND
ITALY
LUXEMBOURG 
NETHERLANDS 
UNITED KINGDOM62,2 62,2 
12,4 51,4 42,5 106,3 
2,3 - 43,2 45,5
23,6 237,6 98,1 359,3 
14,8 72,6 30,0 117,4 
142,2 374,0 328,9 845,1
67,3 247,0 116,4 430,78.7 - 49,7 58,4 
5,4 3,9 6,3 15,6 
4,0 - 43,8 47,8
1.7 122,1 98,9 222,7 
49,2 124,4 79,3 252,9
244,6 356,3 304,5 905,4
64,0 299,9 375,1 739,06,2 - 1*7 153,2
9.6 25,1 *6,* 81,1
1*,2 14,2
1.7 63,* 213,9 279,0 
177,2 ll*,0 *3,1 33*,3
223.8 578,5 350,2 1152,5
166.8 329,6 191,6 688,012.3 - 170,2 182,5
13.3 10,6 119,0 1*2,9 
- - 292,0 292,0
61,2 82,5 - 1*3,7 
67,7 159,0 226,7 
81,9 113,7 129,7 325,3 
277,7 52*,8 *48,8 1251,3
25,8 193,0 - 218,8
NON-EEC - 39,4(5) 39,4 50,9 50,9(5) 22,8 22,8(6)
TOTAL 262,6 982,6 721,3 1.966,5 377,6 906,6 997,0 2.281,2 585,3 1.110,6 1.057,3 2.753,2 *72,2 1 992,3 1.341,5 2.805,9
1 9 82 1 9A 3
COUNTRY Productive Infra-Energy Total Productive Infra-sn«rgr Toeal
aector(2) struct· aector(2) •truct.
BELGIUM 5,5_55,060,5 ----
DENMARK 9,899,2100,3209,3 20,528,9210,3259,7
PR of GERMANY 20,820,8 22,9 -129,3152,2
GREECE 138,7144,1 50,8333,6 63,2193,3107,8364,3
PRANCE 39,872,7311,7424,3 152,8345,7209,4707,9
IRELAND 113,8145,0 66,6325,4 13,9201,4 19,3234,6
ITALY 652,6686,5249,61588,7 749,5737,8458,41.945,7
LUXEMBOURG --- ---“
NETHERLANDS -•- -- -- .--
UNITED KINGDOM 79,9222,3188,3490,6 53,4269,9268,0591,3
NON-EEC - -
TOTAL 1.040,11.369,91.043,23.453,2 1.076,21.777,01.402,54.255,7
(1) Tb« conversion rat·· used v«rs thoea obtaining on the last working day of tha quarter before
the contract was signed.
(2) Industry, agricoltura and earvlcae.
(3) Austria and Norway.
(4) Norway.
(9) Austria and Tunlala.
(6) Tunlala.

Table 10
LIST OF NCI LOANS IN 1983
Denmark Greece France Ireland Italy United
KingdomTotal *
A. Infrastructure
1· Telecommunications Greece 
2. Global loan : small and medium sized 
Infrastructures for local authorities 
3* Telecommunications Ireland
4. Global loan : energy conservation - 
public buildings
5. Friuli-Venezia Giulia motorway
6. Workers1 housing Mezzogiorno
7. Workers' housing Mezzogiorno
8. Workers' housing Mezzogiorno
9. Workers' housing Mezzogiorno
10. Workers* housing Mezzogiorno
11. Workers' housing Mezzogiorno 
12 Workers' housing Mezzogiorno18,9
31,5
36,418,8
30.2
2.5 
1,8
21,6
4.6 
5,2
23,9
40.3
Special aid for November 1980 earthquake 
damage (Basilicata and Campania) :
13. Railways
14. Industrial estates
15. Public buildings
16. University buildings
17. Operating base - Persano15,0
65.7 
74,9
19.7
32.8
TOTAL INFRASTRUCTURE 50,3 36,4 18,8 338,2 - 443,7 36,6
B. Energy
18. Treatment and transportation of natural 
gas (South Jutland)
19. Oil pipeline North Sea-Frederica
20. Power station Amynteon 
(Western Macedonia)
21. Lignite mine Amynteon 
(Western Macedonia)
22. Lignite mine and power station 
Gardanne (Provence - Alpes - C8te d'Azur)43,3
39,9
11,0
24,0
29,7
Links between high-voltage grids
23. France - United Kingdom
24. United Kingdom - France14,6
32,0
Power station - Moneypoint (Mid-West)
25. I A
26. I B
27. Storage of natural gas at Minerbio (Emilia 
Romagna) and Ripalta (Lombardy)
28. Six gas pipelines connected to the 
Algerian pipeline (Sicily)26,1
20,7
22,6
15,1
TOTAL ENERGY 83,2 35,0 44,3 46,8 37,7 32,0 279,0 23,0

Vable 10 (cont’d)
C. Industry
29. Global loan s productive investm. by SMEs
30. Global loan : productive investm. by SMEs
31 Global loan : productive investm. by SMEs
32. Global loan : productive investm. by SMEs
in manufacturing
33. Global loan : productive investm.
productive investm. 
productive investm. 
productive Investm.by SMEs 
by SMEs 
by SMEs 
by SMEs34. Global loan :
(Normandy)
35. Global loan :
(Centre-East)
36. Global loan :
(South-East)
37. Advance factories Ireland
38. Advance factories Ireland
39. Global loan : productive investm. by SMEs 
(Centre-North, non-assisted areas)
AO. Global loan : productive investm. by SMEs 
(Centre-North, non-assisted areas)
A1. Global loan i productive investm. by SMEs 
(Centre-North, non-assisted areas)
A2. Global loan : productive investm. by SMEs 
(Centre-North, non-assisted areas)
A3. Global loan : productive investm. by SMEs 
(Centre-North, non-assisted areas)
AA. Global loan : productive investm. by SMEs 
(Cehtre-North, non-assisted areas)
A5. Global loan ! ventures in hotel trade and 
tourism (Centre-North)
46. Global loan : productive investm. by SMEs 
(non-assisted areas)
A7. Global loan : productive investm. by SMEs 
(non-assisted areas)
A8. Global loan : productive Investm. by SMEs 
(non-assisted areas)
A9. Global loan : ventures in manufacturing, 
tourism and services (non-assisted areas)
50. Global loan : ventures in manufacturing, 
tourism and services (non-assisted areas)
TOTAL INDUSTRY3,1
6,7
12,3
2 2 ,250,9
36,4
3.6
8.7
5.8
105,51,0
2,8
3,894.9
94.9 
36,5
15.0 
11,3
21.9
15.1
289,516,7
17,4 
17,A
8.3
8.3
68,1 489,1 40,A
TOTAL NCI LOANS105,4 853186,2 69,4 665,4 100,1 1211,8 100
of which : NCI I 
%- - 29,7
2,546,8
3,999,9
8.2— 176,4
14,6 -
: NCI II 
Z53,1
4,435
20
987,4
7,23,8
0,3109,3
9,0'82,7
6,8371,3
30,6-
: NCI III 
Z52,2
4,350
44
169,0
5,718,8
1,6248,2
20,517,4
1,4456,0
37,6 -
! "Reconstruction" NCI 
Z- - - - 208,1
17,2— 208,1
17,2
'

Table 11
LIST OF EURAXOM LOANS IN 1983
Date Recipient Country Million ECU
08.04.1983 Eurodif S.A., Bagneux France 5,0
08.04.1983 EDF, Paris (Belleville) France 45,0
25.05.1983 Eurodif S.A., Bagneux France 61,5
07.06.1983 NERSA, Paris France 35,4
15.11.1983 EDF, Paris (Flamanville France 29,6
I and II)
15.11.1983 EDF, Paris (Flamanville France 22,1
I and II)
11.04.1983 ENEL,  Rome Italy 64,3
27.07.1983 ENEL, Rome Italy 24,7
22.02.1983 Belgelectric Finance B.V., Belgium 10,8
(Intercom-Tihange III)
12.10.1983 Belgelectric Finance B.V., Belgium 21,7
Amsterdam
05.08.1983 South of Scotland Electri- United 22,1
city Board, Glasgow Kingdom 24,2
TOTAL 366,4

Table 12
ECSC LOAMS BY SECTOR, 1980, 1981, 1982 AND 1983
(million ECU)
YearTotal
ECSC
loansCoal
industry
(art54$l)Steel
industry
(art54§l)Thermal
powerst.
(art54§2)Conver­
sion
(art. 56)Workers'  
housing 
(art. 54)Iron-ore
mines
(art54§2)Other
(art54§2)
19801.030,7 233,2 424,0 90,0 266,1 7,9 - 9,6
1981 387,6 30,6 223,6 26,6 86,0 14,7 - 6,1
1982 740,6 256,3 139,8 40,9 162,8 18,0 71,8 51,0
1983 778,1 257,2 222,2 128,4 139,5 20,2 - 10,6
1983
----%
19
82+ 5 -+ 59 + 214 - 14 + 12 -- 79

Table 13
EIB LOAMS OUTSIDE THE COMMUNITY FROM BORROWINGS, 1976-83
(million ECU)(1)
COUNTRY 19761977197819791980198119821983
ACP States and OCT 52679173124158122 90
Northern 908580186215129252857
Mediterranean
Spain-- - --40105105
Portugal 9060354670798085
Yugoslavia-2525- - -6767
Greece- -20104101 - - -
Turkey— — —364410 — —
Maghreb '  - - -502552 -36
Algeria—  ... '  
' - . —2010
Marocco - - -26 -30 -36
Tunisia— — —24 512 — —
Mashreq- - 3109 2152844
Egypt- - -65 - -2825
Jordan- --11 43-14
Lebanon- -317 312-5
Syria ———16 ————
Other- - - 3 -42 8-
Cyprus— — - - —12 8—
Malta - - -3- - - -  ,
Israel —————30 ——
Total Mediterranean 908583348247238288337
TOTAL 1 4 21 5 21 7 44 2 13 7 13 9 64 1 04 2 7
(1) The conversion rates were those obtaining on the last working day of the  
quarter before the contract was signed.

Table 14
INTEREST SUBSIDIES PAID OUT IN THE COMMUNITY BY THE VARIOUS  
COMMUNITY MECHANISMS, 1973-83
(million ECU)
YEARNon-discounted systems (1) Discounted systems (2)
E C s c
"Earthquake
recon­
struction”E M SE R D F Article 54  
(restruc­
turing)Article 56  
(reconver­
sion)
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 - 200,0. 12,1
1980 25,6 33,3 - 197,0 -
1981 5,2 26,2 - 193,2 -
1982 10,5 19,3 3,0 209,8 -
1983 9,0 44,0 14,4 200,0 -
(1) Interest subsidies spread over time and charged to the budget each
year.
(2) Interest subsidies paid by the Commission as a single capitalized sum  
and charged to the budget as a single sum.

Table 15
BORROWER
NCI Im
SNAM (Società Nazionale Metanodotti)
AGIP (Azienda Generale Industria Petroli) 
mLGAS (Società Italiana per 11 Gas)
CASSA (Cassa per le opere straordinarie di pubblico 
interesse mll'Italia meridionale)
SAN RWLO (Istituto Bancario San Paolo di Torino)
CARIPLO (C a ssa  d i R isp arm io  d e lle  P ro v . L o d a n te )
ENL (Barca Nazionale del Lavoro) 
BKL
Sub-total : N C I
BIB loans
BCL (finte Nazionale per l'Energia elettrica)
EWL
AGIP
ENEL
ENEL
ENEL
ITALGAS
TEALIAN GOVERNCNT
CASSA
CASSA
CASSA
SIP (Società Italiana per l'Esercizio Telef.)
ANAS (Azlente Nazionale AutonotH delle strade)
SAN PAOLO
CARIPIO
BNL
BNL
Sub-total : E I B
TOTAL ITALY■ 6  IM PREST 9UBS1ÜDB,  1983 FINANCIAL TEAR :  HALT
PROJECT
Gas distribution In Sldly 
Storage of naturai gas in Northern Italy 
Distribution of naturai gas in Piedmont/Liguria 
Sewage treatment in the Bay of Naples
Workers' housing "I tala tat/Flat Cooperativo Mezzogiorno"
Workers' housing "Italatat/Flat Cooperativo Mezzogiorno"
Workers' housing "Italatat/Flat Cooperativo Mezzogiorno" 
Workers' housing "Ispredll"
Power stations : - Callista
- Presenzano
Alto Lazio mdear power station
Exploitation of three natural gps fields In the Adriatic 
Brindisi thermal power station 
Electricity Slclly/Calahrla 
North-South Lilies C
Distribution of natural gas in Piednont/Liguria 
Inproving tte supply of driridng water In Apulia 
Sewage treatment in the Bay of Naples 
Irrigation : - Canpobasso (Bifemo)
- Province of Latina (Agro Pontino)
Mustrial dewlopnent estates at Olbia, Brindisi, Bari, Sangro Aventlno and Val
Extension to the telephone network In Sldly
Road inprovements : - Calabria 
- Apulia
Workers' housirg "I tala tat/Flat Cooperativo Mezzogiorno" 
Workers' housing "Italatat/Flat Cooperativo Mezzogiorno" 
Workers' housing "Italstat/Fiat Cooperativo Mezzogiorno"
Workers' housing "Ispredll"15.1 
22,6 
14,9 
56,0
2,5 
1,8 
21,3 
5,2 
23,7 A,5
40.2loan(million BCD)
Int. subs·
2,6
3,9
2,6
8.7
0,5
0,4
4,3
1 ,04.7 
0,9 
8,2
2 0 7 ,8
10,6
45.4
45.3
37.2
23.5
4.1
26.4
14.9
16.1
56.3
1 2 ,0
6,8
18.7
37,0
38.6
40.9
27.2 
2,9
20.3
5.5
20,2
27.8 
2,4
5.6
14.4
565,1
772,937,8
1.7
8,1
8.3
5.7 
3,6
1.4
4.8
2.5
2 .8  
8,8 
2,2
1.5
3.4
7,2
6.9
7.0
5.5
0,6
4.1
1 .1
4.1
5.6 
0,5
1.1
2.9
101,4
139,2

T a b le  16
IMS IM H K S J  SUBSIDIES, 19R 3 FINANCIAL TEAR :  C T L A D
( m i l l i o n  ECU)
BORROWER P R O JE C T L oan I n t .  s u b s .
N C I  lo a n s
ELECTRICITY SUPPLY BOARD A g ia d a  p ow er s t a t i o n 2 4 ,8 5 , 0
M o n ey p o in t c o a l - f i r e d  pow er s t a t i o n  : -  A 2 5 ,8 5 ,9
: -  B 2 0 ,6 3 ,5
IRISH GCWERWENT W ater s u p p ly  and sew a g e d i s p o s a l  sch em es i n  t h e  D u b lin  a r e a 2 4 ,8 5 , 0
IRISH GOVBWENT C o n s t r u c t io n  o f  a d v a n c e  and tu r n k e y  f a c t o r i e s  :
-  U d a r a s n a G a e lt a c h t a  IV 2 , 8 0 , 6
-  S h annon F r e e  A ir p o r t  D e v t.C “ IV 1 ,0 0 ,2
IR ISH  GCVERfMEOT E x t e n s io n  and m o d e r n iz a tio n  o f  t e le c o n r a m lc a t lo n s 1 8 ,9 3 ,4
S u b - t o t a l  : N C I 1 1 8 ,7 2 3 ,6
E  I  B  lo a n s
ELECTRICITY SUPPLY BOARD E x t e n s io n  o f  e l e c t r i c i t y  g r id 1 9 ,2 3 ,7
IRISH GOTERM®rr W a ter s u p p ly  : -  E a s t /S o u t h - E a s t  E 5 ,8 1 ,4
-  l o c a l  a u t h o r i t i e s 1 3 ,8 3 ,2
IR ISH  GWERNENT R oad n e tw o r k  : -  I I I  C 1 0 ,2 2 , 4
-  IV  B 2 2 ,9 4 , 9
-  V 1 6 ,0 3 ,9
IR ISH  m fO T tfJN IC A T rO N S INVESTMENTS U D . E x t e n s io n  and m o d e r n iz a tio n  o f  t e l e c o m m ! c a t i o n s  I n f r a s t r u c t u r e 8 3 ,4 1 7 ,7
S u b - t o t a l  : E * I  B 1 7 1 ,3 3 7 ,2
T O T A L : I R ELAND 2 9 0 ,0 6 0 ,8

Table 17
EMS INTEREST SUBSIDIES PAID FROM 1983 APPROPRIATIONS
(by country, Instrument and sector)
Loanssubsidized Interest subsidies 
paid
Number m ECU m ECU %
By recipient country
- Italy
- Ireland36
14772,9
290,0139,2
60,869,6
30,4
501062,9 200,0 100,0
By origin of resources 
lent
- NCI
- EIB18
32326,5
736,461,4
138,630,7
69,3
501062,9 200,0 100,0
By sector of use
Energy
- Primary energy production
- Transformation of energy
- Transmission of energy4
4
7138,5
94,7
122,223,8
18,0
21,511,9
9,0
10,8
Sub-total :  Energy 15 355,4 63,3 31,7
Other infrastructure
- Water engineering
- Industrial infrastructure
- Transport and communications
- Housing8
3
8
16191,6
22,5
267,9
225,533,6
4,2
53.4
45.516,8
2,1
26.7
22.7
Sub-total :  Other
infrastructure35 707,5 136,7 68,3
TOTAL 5 01062,9 200,0 100,0

T ab le 18
TSKnqostE um E sm uxuir u rn s ghkedg  w isest  sdbshhes , 1983 fmwcial  tear : t ib t
(m illio n  BCD)
Total loans Interest
BORROWER PROJECT contracted subs· paid
end 1983 from 1983
appropr.
N C I  loans
ANAS (Azienda Nazionale Autonoma delle Strade) Road and motorway infrastructure : I 30,8 1,055
FS (Azienda Autonoma delle Ferrovie dello Stato) Railway network : - I A 28,4 0,971
- I B 21,9 0,157
- II A 15,0-
CASSA (Cassa per le opere straordinarie di pubblico Water supply network : I 26,1 0,840
Interesse nell’Italia meridionale)
CASSA Repair of Pugliese aqueduct : I 56,5 0,624
ITALIAN OVERWENT Industrial estates 65,7-
ITALIAN OVERWENT Repair and reconstruction of schools 55,7 1,527
HAUAN OVERWENT Basic Infrastructure for areas to be used for housing 155,2 4,297
ITALIAN OVERWENT Reconstruction of public property 74,9-
ITALIAN OVERWENT Barracks/ald centre, Persano 32,8-
ITALIAN OVERWENT Repair of university buildings 19,7
N C I  TOTAL 582,7 9,471
E I B  loans
SIP (Società Italiana per l'Esercizio Telef.) Telephone network : - A 11,9 0,392
- B 8,0 0,229
- C 7,6 0,186
ENEL (Ente Nazionale per l’Energia elettrica) Electricity grid : - A 11,9 0,392
- B 7,6 0,185
CASSA Water supply network : - H 11,5 0,381
- m 30,4 0,742
-IV 9,8-
CASSA Repair of Pugliese aqueduct : U 56,7 0,555
ANAS Road and motorway infrastructure : - H  A 7,5-
- H  B 29,2
ISVEMR (Istituto per lo sviluppo Economico Reconstitution of the means of production (Industry and hotel trade) 2,6 0,063
dell'Italia Meridionale, Napoli)
ISVEMR Motor vehicle component factory 14,6 —
E I B TOTAL 209,3 3,125
T O T A L  ITALY 792,0 12,596

T a b le  1 9
"EAKmqmtK m o n reD o cm ir u m  carry in g  toœkest  sobsidy , i9B3 ftowcial  year : gtohoî
( m i l l i o n  ECO)
BO.RROWER P R O JE C Tlo a n
s ig n e dI n t e r e s t  
s u b s · p a id  
fr o m  19 8 3  
a p p r o p r .
N C I loan
GREEK OOVEREMØiT 1 9 8 1  r e c o n s t r u c t io n  : -  e c o n o m ic  I n f r a s t r u c t u r e  
-  s o c i a l  I n f r a s t r u c t u r e2 1 ,1
5 8 ,90 ,4 6 3
1 ,2 9 3
T O TA L 8 0 ,0 1 ,7 5 6

Table 20
SUBSIDIZED LOANS FOR RECONSTRUCTION IN EARTHQUAKE-STRICKEN AREAS
w ^ B a m m t m a m ^ m a s ^ m a B m m a m s m m a t m a a m s s a t B B a s a a s a s s a a t s a m m K B a m B B a a m m m s a a a a ^ m a a a a a s a m m a B S S ^ m B s s i ^ a m m t m ^ ^ ^ B X
(by country, instrument and sector)
Loans signed
Interest 
subsidies 
paid in 1983Init.
Sitn
19831983
Ope­
ra­
tionsSituation 
at end of 1983
m ECUm ECUNum­
berm ECU %Million
ECU%
By recipient country :
- Italy
- Greece522,8
80,0269,225
1792,0
80,090,8
9,212,596
1,75687,8
12,2
602,8269,226872,0100,014,352 100,0
By origin of resources 
lent :
- NCI
- EIB454,6
148,2208,1
61,113
13662,7
209,376.0
24.011,227
3,12578,2
21,8
602,8269,226872,0100,014,352 100,0
By sector of use :
- Economic infrastructure
- Social infrastructure
- Reconstitution of means of 
production330,4
269,8
2,6127,2
127,4
14,6457,6
397,2
17,252.5
45.5 
2,07,172
7,117
0,06350,0
49,6
0,4
602,8269,226872,0100,014,352 100,0