ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(82)466
Vol.1982/0154

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(82)466 final
Brussels.29July1982
REPORTONTHEBORROWING ANDLENDINGACTIVITIES
OFTHECOMMUNITY
Financialyear1981
Communication fromtheCommission totheCouncilandtoParliament
COM(82)466final

SUMMARY
This isthesecond comprehensive report drawn upbythe
Commission toprovide the Council and Parliament with information
I
ontheCommunity 'sborrowing and lending activities .Itcovers
theyear 1981 .
Like itspredecessor ,itwasdrawn uptomeet thewishes
expressed byParliament onvarious occasions ,particularly when
granting thedischarge totheCommission onthe implementation
ofthegeneral budget oftheEuropean Communities for1978and1979
andinitsResolution onimproving political control overthe
Communities' borrowing andlending activities .^
Therep|pt reviews alltheborrowing andlending activities
oftheCommunityTinstitutions ,including those oftheECSC andthe
ττ
EIB,thereby fulfilling theCommission 'sobligation toinform the
Council andParliament each year about :
-theactivities ofEuratom ,inaccordance with Article 4of
the Council Decision of29March 1977 ;
-theactivities oftheNCI,inaccordance with Article 6of
the Council Decision of16October 1978 ;
Doc .PE67134 of5March 1981 .

-2-
I
I
i
-the EMS interest subsidy instrument ,inaccordance with
Article 10oftheCouncil Regulation of3August 1979 ;
-theCommunity aidgranted byway ofexception for the
reconstruction ofthe regions affected bytheItalian
earthquake inNovember 1980 ,inaccordance with Article 7
oftheCouncil Decision of20January 1981 ;
-theCommunity aidgranted bywayofexception for the
reconstruction ofthe regions affected bytheGreek
earthquakes inFebruary /March 1981 ,inaccordance with
Article 7ofthe Council Decision of14December 1981 .
Unlike thereport covering the1980 financial year ,this
report also includes lending outside theCommunity .
Finally ,itattempts toprovide anoverall picture ofthe
various interest subsidy systems forpromoting investment ,forwhich
these loans intheCommunity may beeligible .

• - ■-11/141 /82
CONTENTS
FOREWORD
I. THE ECONOMIC SITUATION INTHE COMMUNITY
H. MEASURES TAKEN ORPROPOSED INRESPECT OFCOMMUNITY BORROWING
AND LENDING
III.COMMUNITY BORROWING AND LENDING CONTRACTED IN1981 - 12
TRENDS COMPARED WITH PREVIOUS YEARS
A. Investment situation in1981 12
B.Lending 12
1.Annual trend oflending operations intheCommunity 12
2.Annual trend oflending contracted outside theCommunity 17
C.Borrowing 19
D.Balance between borrowing and lending 20
IV.LENDING INTHECOMMUNITY 23
A.NewCommunity Instrument (NCI) 23
/
B.Subsidized loans for thereconstruction ofdisaster areas 26
inItaly
C.European Investment Bank (EIB) 27
D.Euratom 28
E.European Coal andSteel Community (ECSC ) 29
V.LENDING ACTIVITIES OUTSIDE THECOMMUNITY 34
A.Mediterranean countries 35
B.ACPStates 35
VI.BORROWING 37
A.Thesituation onthecapital markets in1981 37
B.Community borrowing in1981 38-EN
Page
1

Page
VII .COMMUNITY INTEREST SUBSIDIES FOR LOANS CONTRACTED WITHIN 41
THE COMMUNITY i
A. Interest subsidy mechanisms 41
B. EMS interest subsidies 41
C. ECSC interest subsidies 45
♦ -
!}.
+ +
LIST OFTABLES INTHE TEXT
Trend oflendipg contracted intheCommunity ,byinstrument 14
i
Lending contracted intheCommunity in1981 ,bysector 14
Geographical breakdown oflending contracted intheCommunity 15
in1981
Loans from EIBown resources contracted outside the Community 18
A
Trend ofborrowing contracted bythe European Communities 20
Comparison ofborrowing andlending contracted outof 22
resources borrowed
ECSC loans approved bytheCommission andcontracted 29
ECSC loans paid outbysector 30
Breakdown ofborrowings contracted in1981 ,bycurrency 40
Subsidized loans andEMSsubsidies paid out 41
EMSinterest subsidies paid from 1981 appropriations 42
ECSC interest subsidies granted in1981 46
+
♦ +

Page
LIST OFTABLES INTHE ANNEX 47
Table 1
Table 2
Table 3
Table 4Borrowings bytheEuropean Communities (amounts
outstanding )
•it
Commission borrowings contracted in1981
Trepji inlending operations intheCommunity ,
byfijgctor
S*
ιν :Γι.^Brewcdown ofloans intheCommunity in1981 by
ins|fument ,sector andcountry
Table 5 NCI loans contracted ,1979-81
Table 6 Euratom loans contracted ,1977-81
Table 7 ECSC loans paid out,1970-81
Table 8 Loans from EIB own resources contracted inthe
Community ,1970-81
Table 9 List ofNCI loans contracted in1981
Table 10 List ofEuratom loans contracted in1981
Table 11 Breakdown bysector ofECSC loans paid out in1981
Table 12 Loans outside theCommunity from borrowings ,
1977-81
Table 13 Interest subsidies granted intheCommunity bythe
various Community mechanisms (1970-81 )
Table 14 EMS interest subsidies ,financial year 1981 :Italy
Table 15 EMS interest subsidies ,financial year 1981 :Ireland

Α
FOREWORD
1. This isthe second comprehensive report drawn upbythe
Commission toprovide the Council and Parliament with information
ontheCommunity 'sborrowing and lending activities .Itcovers ,
theyear 1981 .
Like itspredecessor ,itwasdrawn uptomeet thewishes
•expressed byParliament onvarious occasions ,particularly when
granting thedischarge tothe Commission onthe implementation of
the general budget oftheEuropean Communities for1978 and1979
and initsResolution onimproving political control over the <
1Communities' borrowing and lending activities .
2. Thereport reviews alltheborrowing andlending activities
oftheCommunity institutions ,including those oftheECSC andthe
EIB,thereby fulfilling theCommission 'sobligation toinform the
Council andParliament each year about : j
-theactivities ofEuratom ,inaccordance with Article 4
ofthe Council Decision of29March 1977 ;
-theactivities oftheNCI,inaccordance with Article 6>
oftheCouncil Decision of16October 1978 ;
Doc .PE67134 of5March 1981 .V

-2-
I
-the EMS interest subsidy instrument ,inaccordance with
Article 10oftheCouncil Regulation fo3August 1979 ;
-theCommunity aidgranted byway ofexception for the
reconstruction ofthe regions affected bythe Italian
earthquake inNovember 1980 ,inaccordance with Article 7
oftheCouncil Decision of20January 1981 ;
-theCommunity aidgranted bywayofexception for the
reconstruction ofthe regions affected bythe Greek
earthquakes inFebruary /March 1981 ,inaccordance with
Article 7ofthe Council Decision of14December 1981 .
! •
• 'ι
3. The Commission 'sfirts comprehensive report ,which covered the
1980 financial year ,hadprovided acomplete picture oftheborrowing
and lending activities oftheCommunity instruments within theCommunity .
j
Ithad reviewed notonly theactivities ofEuratom ,the NCI and the EMS
interest subsidy instrument ,mentioned inthepreceding paragraph ,but
also those ofthe ECSC and,inamore general way,those ofthe EIB .
The ECSC 'sfinancial report and theEIB'sannual report will , ,
ofcourse ,besent toParliament andtheCouncil asbefore .
I
f »
i \
A. Thepresent report also includes loans granted byth^Community
inthird countries from theproceeds ofborrowing oncapital markets .
1 ... -• 2These loans concern theACPstates ,andtheOCT andthecountries linked
totheCommunity through agreements establishing different forms of
economic and/orfinancial cooperation (Maghreb andMashreq countries ,Israel ,
Cyprus ,Malta ,Spain ,Portugal ,Turkey andYugoslavia ).The loans tothese
countries from theCommunity 'sbudgetary resources or\from those ofth»EOF
and EDFaid ingrant form arenottaken into account *
1ACP =African ,Caribbean andPacific States .
^OCT-Overseas Countries andTerritories .
EDF »European Development Fund .

I. THE ECONOMIC SITUATION INTHE COMMUNITY
5. In1981 ,operations under theborrowing and Lending instruments
took place against agenerally unfavourable economic background .The
recession that ha<jtaken hold in1980continued in1981 .Taking the
average fortheyeir,theCommunity 'sGOP fell by0.3% inreal terms .
Bycontrast ,theother leading industrialized countries belonging
"tothe0EC0agairj^ecorded positive year-on-yeargrowth rates (2.1%for
theOECD asawhoji'k ,excluding theCommunity ),although growth generally
lost some momentug inthecourse oftheyear andtheUnited States entered
aperiod ofrecession .Activity intheCommunity picked upsomewhat in
thesecond halfo|theyear.
TheCommunity 'scurrent account deficit ,while remaining
substantial <14000million ECU),showed adistinct improvement between
1980 and 1981 .Thesituation inJapan and intheUnited States likewise
improved .The counterpart ofthese trends was theextensive mopping up
oftheOPEC countries' surplus .
TheCommunity had tocontend with noticeable deterioration in
itsterms oftrade although this wasoffset almost entirely byanimprovement
initstrade balance inreal terms ,.Intheface ofapersistently large
current account deficit ,itwasobliged toencourage net inflows of "long-term
capital ,inparticular byissuing public loans and bypermitting some rundown
inreserves .
6. Inflation continued torun atahigh level intheCommunity in
1981 .Itwill probably slow down in1982 although itseems tobemore
obstinate nowthan inthewake ofthefirst oilshock .^
I'nlike during theperiod -after thefirst oil
shock ,thehigher energy prices were rapidly passed onincosts ,speeding
uptheprocess ofadapting theproductive apparatus todearer energy and
thedismantling ofartificial pricing conditions forthedifferent sources
1
ofenergy . j

•7. Ontheexchange front ,theCommunity hadtocope with a
period ofmarked turbulence in1981 .Thesignificant rise inthe
dollar and intheyenandtheensuing depreciation oftheCommunity
currencies were accompanied bystrains within theEuropean Monetary
System (EMS).Nevertheless ,with theplentiful resources available
under the EMSexchange-rate mechanism ,the 1fall intheEuropean
currencies wasmanaged inorderly fashion .
Theupward movement ofinterest rates ,although partly in
response totheclimb inUSrates ,hasalso tobeseen inthe light
oftheprospects fortackling inflation .Yet,theslowdown inmonetary
expansion intheCommunity ,first discernible in1979 ,did not continue
into 1981 .
8. Thepublic finance deficit intheCommunity widened in1981 .
The slacker rate ofactivity and the resulting contraction intax '
receipts ,the f5cale oftransfers tohouseholds andthegrowing burden
ofpublic debt ,which isparticularly onerous insome Member States ,
were factors making for anincreased budget deficit .Thus ,expressed
asaproportion ofCommunity 6DP,government revenue ,which hadgrown
steadily since 1972 ,again rose in1981 ,with the result that the
redistributive function ofthe budget isbecoming increasingly' important .
Governments were able tofinance their deficits inanon-monetary way
bydrawing extensively onthesavings ofdomestic capital markets ,
taking advantage ofthedepressed state ofprivate-sector demand for
long-term capital ,andbymaking calls oninternational capital markets
tocover aproportion oftheir needs that varied from oneMember State
toanother .Nonetheless ,most Member States increased their reliance on
monetary financing tomeet thegeneral government borrowing requirement .
While stemming inpart from theescalation inshort-term rates ,the rise
inlong-term interest rates in1981 also reflected continuing inflationary
expectations onanumber ofscores andgrowing public-sector demand for
long-term financing instruments . :
EMS -European Monetary System .

-5-
)
t
9. Together witf|inflation ,theproblems ofemployment and
unemployment arenowadays themain preoccupation ofeconomic policy­
makers .Thevigorous Vise inunemployment since thebeginning of1930 derives from
number ofyoung peopl# seeking jobs for the first time and the small
a
number ofpeople reaching retirement age,ontheonehand,andthe
sluggish rise injob|acancies ,ontheother .This situation is
having significant repercussions onthestructure andnature of
unemployment .The fact that fewer jobs areavailable isone result
oftheeconomic rece^|ion butithasother ,deeper-rooted causes
tiedupamong other t|ings withtheCommunity 'scompetitiveness ,
wi$htechnological developments inequipment andwiththecompetition
between industrialized anddeveloping countries intraditional
■» F
i^ustries .Thispersistent andgrowing imbalance onthelabour
rocket isbecoming extremely burdensome forMember States .
<
V
II.MEASURES TAKEN ORPROPOSED INRESPECT OFCOMMUNITY BORROWING AND
LENDING
10. This unfavourable economic situation has not ledtoany
easing upontheCommunity 'spart indeveloping itsborrowing and
lending instruments .Indeed ,theCommission proposed and the Council
adopted in1981 astring ofproposals fordeveloping theexisting
•H
instruments orfor setting upnew instruments *This reflected the
determination shown bytheCommunity institutions onmore than one
occasion ,andnotably attheEuropean Council meeting inLondon on
26and 27November 1981 ,that theCommunity should facilitate the
general investment effort bygiving itsborrowing and lending instruments
more flexibility andbyexpanding thefinancial resources available
under them .Hence theaction taken bytheCommission andthe Council .
/
HI

11.FollowingtheCommission'sproposaltoth<?Councilof
29October1980extendingthetermofvalidityofthuCacisronof
16October1978establishingtheNCI/2theCounciI,on1C)r.-ober1981/
endorseda"jointposition"onthepursuitofactivities uncirthe
NCI(NCIII). \
Thepurposeofthedraftdecisioninquestion,whichu.£{
thesubjectofaconciliation procedure betweentheCounciI
Parliament,wastoempowertheCommissiontocontractarv*series
ofloansforpromotinglong-terminvestment asaproritymeasure
inordertocontribute towardsth«growingconverts ,seeanategr^ti
ofMemberStates'economicpolicies.Theconciliatior^joar!j^e+vok
placeatthemeetingoftheCouncil(EconomicandFina!)ci>'Affair)
on15March1982,atwhichtheCouncildecidedtotransformits"joint
position"intoadecisionempoweringtheCommissiontocontractloans
uptotheequivalentof1000millionECUinprincipal.3
12.Withoutawaitingtheoutcomeoftheconciliation p'icedure,
theCommission senttotheCouncilon9December19J1aproposalfor
aDecisionempowering theCommission tocontractloanstotalling
1000millionECUunderNCIII.4
TheproposalwasmadebytheCommission asamattero1urgency,
sincetheloanssignedorapprovedbytheCommission andtheEuropean
Investment Bank(EIB)bytheendof1981wouldhavevirtual?/exhausted
theborrowingcallingof1Q00millionECUauthorized bytheDecisionof
16October1978.
0JN°C341of31December19S0. v
20JN°L298of25October1?7U.
3CounciIDecision62/169/EEC,OJN®t78of24fiarh1982;';:.'
*Doc«C0NCS1)790finalof9December.1981•:

-7-
i
1
Likethepreviousones,thenewtranchewillgotofinancing
investmentprojectswhicharecarriedoutonCommunityterritoryandare
inlinewithjjheCommunity'spriorityobjectives.TheCommissionproposed
threemainariasinwhichfinancingcouldbemadeavailable:pr6jects
promotingthe*fficientuseofenergyandthereplacement ofoilbyother
sourcesofenergy,infrastructure projectscontributing toregionaldevel­
opmentand/orjjpfCommunityinterest,andproductive investmentprojects
carriedoutbjj»smallandmedium-sizedenterprises.Thisdecisionto
grantSMEs^|esstofundingwillbethefirsttimetheNCIhasbeen
deployedin'kjupportofindustrial,commercial andserviceactivities.
FollowingthefavourableresolutionadoptedbyParliament on
23April198f,theCouncilapprovedtheCommission'sproposalconcerningr 1thisnew,singletranchetwodayslater.
13.-On15June1981,theBoardofGovernorsoftheEIBdecidedona
two-f6ldincreaseintheBank'ssubscribedcapital,to14400millionECU.
Since,undertheEIB'sstatute,theamountofloansandguarantees outstanding
maynotexceed250%ofsubscribedcapital,thisincreaseraisestheceiling
foramountsoutstanding to36000millionECU.
OnitsaccessiontotheCommunity on1January1981,Greece
becametheEIB'stenthmember;ithasa1.56%shareofBankcapitaland
iseligibleforloansinaccordancewiththerulesgoverningfinancing
inMemberStates.
14.On20January1981,theCounciladoptedtheDecisiononComirvr.itv -
aidgrantedbywayofexceptionforthereconstruction oftheregionsaffected
bytheItalianearthquakeinNovember1980^(Italian"earthquake"loans).
Underthetevmsofthisdecision,theproceedsofNCIborrowingscontracted
bytheCommissiononbehalfoftheCommunitymayalsobeusedintheform
ofloanstofinanceinvestments forreconstructing themeansofproduction
andtheeconomicandsocialinfrastructure inthestrickenregions,withthe
loanstotallingnotmorethan1000millionECU,lesstheamountofassistance
grantedinthisconnection bytheEIBfromitsownresources.Theloans
carrya3%interestsubsidyforamaximumperiodoftwelveyears,chargeable
totheGeneralBudgetoftheCommunities .
N°L116of30April1982.
0JN°L311of30October1981.ThisOfficialJournalalsocontainsthe
textoftheDecisionoftheBoardofGovernorsonadoptionoftheEBUas
theBank'sunitofaccount.
^Between1964and1980,theEIB9rantedassistancetoGreeceunderfinancial
protocols.
*0JN°L37of10February1982.

-8-
115.ActingonaproposalfromtheCommission,theCouncil,
applyingthesameprinciples asinthecaseofItaly,decidedon
14December1981tograntCommunityaidbywayofexceptionforthe
reconstruction oftheregionsaffectedbytheGreekearthquakes in
FebruaryandMarch1981(Greek"earthquake"loans).
*
Theaid.consistsofloanstotallingnotmorethan80millionECU
forthestrickenspctorsandmadeeitherundertheNCIorfromtheEIB's
ownresources,an^;a3%interestsubsidyforamaximumperiodof12
yearschargeabletotheGeneralBudgetoftheCommunities .
I
f
16.On16Mjsirch1981,theCouncilformally,adoptedtheRegulation
adjustingtheCommunityloanmechanismdesignedtosupportthebalanceofpaymentsofMemberStates.^
ThenewRegulationdiffersfromthe1975Regulation^inthree
majorrespects:first,itistheMemberStateseekingth£loanthatis
responsible fordrawinguparecoveryprogrammefortransmission tothe
Councilinsupportofitsloanapplication ;second,thereisnowgreater
flexibility ofchoiceasregardsborrowingequalto6000miI,lionECU
inprincipal,comparedwith%3000million,includinginterest,in1975.
Themechanism wasnotactivatedduringtheyear*
Doc.C0M(81)451finalof25July1981
0JN°L73of19March1981.
0JN°L46of20February1975.and0JN°L367of23December 1981.

-9-
17. ^January 1982 ,theCommission sent theCouncil aproposal
for adecision raising theceiling onEuratom borrowings from 1000million ECU
!1to2000million EClL Theproposal was intheform ofastraightforward
amendment tobasic Decision 77/271/Euratom of29March 1977 andwasadopted
bytheCouncil (Economic andFinancial Affairs )on15March 1982 .
18. On26October 1981 ,theCommission laid before theCouncil a
proposal for aRegulation amending theRegulation establishing aEuropean
Regional Development Fund (ERDF).2Under theproposal ,Fundassistance
could ,atthe request ofMember States ,take theform ofinterest subsidies
either onEIBloans^' ;afacility available under theprevious Regulation ,
oronloans made undfr theother borrowing andlending instruments .
!
19. Itwasin|981thattheSecond Lom£Convention ,signed pn
31October 1979between theEuropean Economic Community andthe^CP
(African ,Caribbean £ndPacific )States ,whonumbered 61attheendof
* ' ,
1981 ,entered into fbrce .The same year ,thefinancial protocols concluded
with anumber ofMediterranean countries (theMaghreb countries ,theMashreq
1
countries and Israel )expired ,andnewprotocols have been negotiated that
A
should beready forsigning in1982 .Negotiations also continued with
Turkey ontheimplementation ofthefourth financial protocol . (
20. In1981 ,theEIB,after receiving authorization from itsBoard
ofGovernors and inaccordance with theagreement concluded on3December 1980
between Portugal and theCommunity ,began implementing the arrangements
forgranting additional aid tothat <country before itjoins theCpmmunity
(pre-accession aid).Forthefirst time ,italso made loans to^pain ,
complying with adecision byitsBoard ofGovernors empowering it,atthe
ι
Council 'srequest ,togrant loans from itsown resources intheperiod prior
toSpain 'saccession forinvestment projects that should ,attheappropriate
time ,facilitate integration oftheSpanish economy with theCommunity
economy .
Doc .C0M(81 )721final of7January 1982 .
2Doc.C0M(81 )589final of26October 1981 .
I
ι· '
'-I

io.-ì:
!
*
\
21. Under these various agreements ,Loans -generally carrying
t
interest subsidies Tmay bemade from the EIB'sown resources ,while
loans onspecial conditions ,assistance intheform ofrisk capital ,
andgrants may bemade from the EDF'sresources orfrom theGeneral
Budget oftheCommunities .Only loans from the EIB'sown resources will
bediscussed here ...
¥
22. Relations' between theCommission and the EIBdid notundergo any
particular change ip1981 .Aswesawabove ,theBank notonly lends from
itsown resources but also manages various financial instruments onbehalf
I
jfttheCommunity ,represented bytheCommission .When acting asanagent j
* i
|ftheCommunity ,itsrelations withtheCommission aregoverned by j
Cooperation agreements specifying their particular role andresponsibilities . j
These arrangements ,which differ according tothepeculiarities
ofeach instrument ,are alldesigned toensure that theCommission and the
EIBcarry outtheir responsibilities inthemost effective manner ;,possible
anddeploy tothe full thefacilities available .Cooperation ofthis sort
between theauthorities and specialized financial institutions isalso
common intheindividual Member States .Apoint tobenoted istjhat the
EIBhaswidely experienced project appraisal andfinancial management teams j
made upoffinancial experts ,engineers andeconomists . '
i
TheEIBthus acts ananagent forEuratom andoperates under a ]
mandate where theNCI,theEMSandthe"earthquake "interest subsidies , |
advances ofrisk capital provided for intheLome Convention and loans made
onspecial conditions from budgetary resources ..under theMediterranean !
i ifinancial protocols are concerned . ; !
1
Article 21ofthe EIB'sStatute stipulates that applications for loans or
guarantees aretobesubmitted foranopinion totheCommission andtothe
Member State concerned .Where theCommission delivers enunfavourable opinion ,
theEIB'sBoard ofDirectors maynotgrant the loan orguarantee concerned
unless itsdecision isunanimous ,thedirector nominated bytheCommission
abstaining . i

-12-
I11•COMMUNITY BORROWINGANDLENDINGCONTRACTED IN1981-TRENDSCOMPARED
WITHPREVIOUS :Y£A~R'S
A.Investment situationin1981
23.Therelativepick-upininvestmentintheCommunitybetween1978and1980,
asaresultofwhichinvestment,expressed asaproportionofCommunity GDP,
climbedfrom20.7%to21.3%,wasnotrepeatedin1981,theshareaccountedfor
byinvestmentfallingbackto20.8%.ThevolumeofinvestmentintheCommunity,
whichhadgrownby1.8%between1979and1980,thuscontractedby3.7%between
1980and1981.
24.Communityborrowing andlending,albeitexpressedatcurrentprices,
movedinlinewiththisgeneraldownwardtrend.
Loanscontracted in1981bothinsideandoutsidetheCommunitytotalled
4593.3millionECUcomparedwith4710.4millionECUin;1980,anoverall
declineof2.1%. |
Thecomponents ofthistrendwereasfollows:loanscontracted inside
theCommunityfellby0.9%,from4162.8millionECUin1980to4>'106.5million
ECUin1981,whileloanscontractedoutsidetheCommunityfellby'11.2%,from
547.7millionECUto486.8millionECU.^^ 1
Borrowingtoowasdown15.5%on1980,from3874millionECUto3280
million ECU.
B.Lending
1.Annualtrendoflendingoperations intheCommunity
25.Thetablebelowgivestheannualtrendinaggregateborrowingunderthe
Community'sfinancialinstruments since1971.Thesubstantial contraction
inECSCloanspaidoutunderArticles54and56oftheECSCTreatycanbeput
downinparticular tothespecialdifficulties encountered inthesteelin­
dustryandtothegenerallyunfavourable conditions oncapitalmarkets.
Itdoes,however,maskasignificant increaseintheamountofconversion
loansmadebytheCommission duringtheperiodinquestion.
(1)ThefiguresforlendingoutsidetheCommunityincludebothloansfrom
theproceedsofCommunityborrowing andloansfromtheresourcesofthe
GeneralBudgetoftheCommunities orfromEDFresources.

-13-
Thedecline inthetotal volume ofECSC activities in1981 primarily
reflects thefact that ,partly asaresult ofthetight financial position
ofcoal and steel undertakings andpartly because ofthehighly selective
nature ofthe lending policy pursued bytheCommission which ,inthesteel
industry especially ,ensures that projects financed arestrictly inaccordance
with itsrestructuring policy ,theshare ofinvestment financing accounted
forbynational subsidies rose .Bycontrast ,much greater recourse washad
toEuratom andNCI loans ,which amounted to357.6 million ECU (upby100% )
and539.8 million ECU (upby173% )respectively .
The increase inlending under allthese instruments ,which took place
under difficult circumstances ,wasconsistent with thepolicy unremittingly
advocated bytheCommission ,notably inthefifth medium-term economic
policy programme ,ofstepping upitsfinancing activities aimed atboosting
investment ,stimulating jobcreation andnarrowing economic disparities
between member countries .
TheEuropean Council of29/30March 1982 also confirmed theimportance
which isattached tothestrengthening ofCommunity credit mechanisms in
favour ofinvestment projects .
The support given -inspite ofthedifficulties stemming from the
economic situation -under the lending instruments totheCommunity 'smajor
policy objectives canbegauged particularly from thebreakdown oflending
(1)bysector andbycountry andfrom itsemployment effects , i
(1)Except where otherwise stated ,theoverall figures orthose broken down
bysector andbycountry which arecontained inthis report correspond
totheamounts ofloans andborrowings signed during theyear under
consideration .Forthis reason ,theword "contracted "hasbeen used
inthetext .Theonly exceptions ,concerning ECSC loans ,have been
clearly indicated .
Except where otherwise stated ,operations accepted ordecided' bythe
competent body (Commission orEIBBoard ofDirectors )butnotyetsigned
are,generally speaking ,notcovered bythis report .
/

-14-
(1)Trend oflending contracted intheCommunity -b>*instrument
(inmillion ECU )
Year ECSC EIB EURATOM NCI Total
1971 112.2 469.0 581.2
1972 188.5 505.9 694.4
1973 286.4 696.8 -
¡(""983.2
1974 377.9 849.7 1,227.6
1975 804.9 917.5 1,722.4
1976 1,063.8 1,086,0 2,149.8
1977 741.5 1,401.3 96.9 2,239.7
1978 797.7 1,966.5 70.3 2,834.5
1979 675.8? 2,281.2 152.5 277.0 3,386.5
1980 1,030.7 2,753.2 181.3 197.6 4,162.8
1981 387.6 2,821.5(2 ) 357.6 539.8(3 ) 4,106.5
(1)Balance ofpayments loans arenot shown inthis table since their
purpose isnot topromote investment .
(2)Thefigures fortheEIB include loan guarantees (282.1 million ECU
in1981 ).
(3)Including anamount of328.2 million ECU for loans forthereconstruction
oftheareas affected bytheNovember 1980 earthquake inItaly .
26.Thesectoral breakdown oflending contracted within theCommunity in1981
under the four instruments was asfollows :
Lending contracted inthe Community in1981 ,bysector
! (inmillion ECU )
Sector Total ECSC EIB EURATOM NCI «
Productive sector 788.0 315.7 472.3(1 )- - 19.2
Infrastructure 1,390.2 14.7 929.4(2 ).- 446.1 33.8
Energy 1,928.3 57.2 1,419.8 357.6 93.7 47.0
Total 4,106.5 387.6 2,821.5 357.6 539.8 100.0
(1)Including anamount of318.4 million ECUforglobal loans tofinance
small andmedium-scale projects .
(2)Including anamount of83.1 million ECUforimprovements inagriculture
(irrigation anddrainage ).

27.Thepercentagesharesaccountedforbythethreesectorsinquestion
wereasfollows:19.2%fortheproductivesector,33.8%forinfrastructures
and47%forenergy.Comparedwiththepreviousyear,thereweresignificant
increasesinthesharesaccountedforbyinfrastructures <5points)andby
energy(7points),whereastheproductivesectorrecordedafallof12points,
from31%in1980to19.2%in1981.Thesedevelopmentsreflectthegeneral
investmentsituationintheCommunity,wheretheparticularly disturbing
declineinproductiveinvestment wasoffsetinpartbyanunchangedorhigher
levelofinvestmentIntheothersectors.Astrikingfeature,however,was
thesharpgrowthinallocations outofEIBgloballoansforsmallandmedium-
scaleprojects;theCommission'sproposaltoincludeSMEsandenergy-
efficiencyprojectsinanewtrancheoflendingunderNCIIIisdesignedto
promoteinvestmentintheseareas,whichareespeciallyimportantforthe
development oftheCommunity.
t
28.Takingitsregionalbreakdown,lendingcontinuestobeconcentrated in
thoseCommunitycountrieshavingtocontendwithmajorregionalproblems.
Italy,IrelandandtheUnitedKingdom,whichtogetherreceived69%of
lendingin1980,accountedfor61.1%in1981,with44.6%goingtoItaly,
8.6%toIrelandand7.9%totheUnitedKingdom.Theothermajorbeneficiaries
'I1I
wereFrancewith11.7%,Belgiumwith10%,Greecewith3.9%(EIBloansonly)
andDenmarkwith3.5%.
Geographical breakdownoflendingcontracted intheCommunityin1981
ΒOK DGR FIRLILNLUKOut­
side
EEC(1)Total
"iIlion
ECU408.2142.9384.3159.2477.2353.61834.70.10.5323.022.84106.5
% 10.03.59.33.911.78.644.6007.90.5100
(1>Thisrepresents lendingtoTunisia,whichisamajorsupplier .ofenergy
totheCommunity;specialauthorization grantedbytheEIB'sBoardof
Governorsinaccordance withArticle18oftheEIB'sStatute.

29.Theestimates made bytheCommission andbytheEIBoftheemployment
effects ofCommunity lending cover both thetemporary andthepermanent
effects .
Theprojects intheCommunity part-financed bythe NCIandthe EIBwill
help create some 20600permanent jobs ,ofwhich 16500are inindustry ,
andtosafeguard 10600other jobs ,ofwhich 10500arealso inindustry .
Some 86%ofthenew jobs created inindustry owetheir existence to
small andmedium-scale projects financed out ofglobal loan allocations and
which have amuch lower investment cost pernew jobthan larger-scale
industrial projects financed byindividual loans <49400 ECU asagainst
148600ECU).Thelower labour content ofsuch larger-scale projects in
1981 isduetothehigh proportion pfassistance going tomodernisation
and conversion projects (41% ofall individual loans made ).
All theorders and work generated bytheprojects financed are also
temporarily providing employment for atarge number ofworkers ipthe
different sectors forconstruction periods generally ranging from 2.to10
years depending ontheproject .
< · 4ο
These temporary employment effects ofprojects forwhich EIB -andNCI
contracts were signed in1981 areputatsome 450000man-years ,^equiva lent
toamaximum of105000jobs ineach ofthefirst twoyears <1981 ,..and1982 ).

These effects areattributable primarily toenergy and infrastructure
«.(1)investments .
While ,asisonly tobeexpected given thekind ofwork involved ,
projects financed byEuratom create fewnew jobs directly ,ECSC conversion
loans (Article 56)provided jobs for 13640workers in1981 ,ofwhom
12254hadbeen formerly employed inthe coal andsteel industries ,and
industrial loans (Article 54)created orpreserved some 10000 jobs .
2.Annual trend oflending contracted outside the Community
30.Since 1963 ,loans have been contracted outside theCommunity ,viz .
inGreece andTurkey ,inassociated countries ,intheAfrican ,Caribbean
-andPacific (ACP)countries covered initially bytheYaounde Conventions
andthen bytheLom£ Conventions and,more recently ,inPortugal and in
most ofthecountries bordering theMediterranean :Yugoslavia ,Malta ,
Algeria ,Morocco ,Tunisia ,Egypt ,Jordan ,Syria ,Israel ,Cyprus ,and,
-II
since May 1981 ,Spain .
(1)Permanent employment effects arecalculated onthebasis ofinformation
supplied inconnection with the investment *appraisal procedure .
Temporary effects arecalculated with thehelp ofaninput-output
model .Itisimportant tostress thehighly approximate nature of
these estimated ,which ,inview ofthemargins oferror attaching to
calculations ofthis sort ,simply give anorder ofmagnitude .!
(2)Prior toitsaccession ,i.e. uptoandincluding 1980 ,under financial
protocols .

-18-
Loans from EIBown resources contracted outside the Community
(inmillion ECU )
Year Amount
Annual average
(1963 -72)15.6
1973 10.9
\1974 61.0
1975 48.9
1976 142.4
1977 152.0
1978 173.9
1979 420.9 ,,
1980 371.4 '
1981 396.4
Total
(1963 -81)1,933.6r.r
Theabove table summarizes EIB lending outside the Community that is
financed out ofown resources under theconventions ,financial protocols
andother acts involving theaforementioned countries .This report does not,
however ,discuss operations financed outofbudgetary resources ,which in­
clude (a)operations mounted intheACPcountries within theframpwork of
thesuccessive European Development Funds (loans .onfavourable terms under
the First ;.ndSecond Yaounde ^Conventions and risk capital operations under
*
the First and Second Lom£ Conventions )and (b)incertain Mediterranean
countries ,,loans onfavourable terms jfrom Member States' orCommunity
budgetary resources .These various lending operations ,which arenotincluded
inthetables ,totalled 90,4 million ECU in1981 ,Inhelping finance pro­
jects Vif-iWtVAg tothsip andsaeial development :,theEIBis
p-irt^cn'Ti .tointheCommunity aidprogramme forthecountries inquestion .
; Il
1r
1

19-
C. Borrowing
I
31.Borrowing also contracted ,with calls oncapital markets down by
^5.5% ,from 3874million ECU in1980 to3280million ECU in1981 .
Since theCommunity first raised funds oncapital markets ,this is
thesecond time that borrowing hasfallen innominal terms ,thefirst being
between 1976 and1977 inresponse tothecyclical downturn consequent upon
the first oil price shock in1974 and asaresult ofreduced "balance of
payments "lending .Likewise ,thesecond contraction inborrowing ,recorded
between 1980 and 1981 ,ispartly tied upwith thesecond oilprice shock
in1979 .
Aswith lending ,itwasprimarily calls oncapital markets bythe ECSC
that showed adecline ,from 1004million ECU in1980 to325million ECU
in1981 .While remaining substantial ,EIBborrowing dipped slightly ,from
2384million ECU to2243million ECU .Itwasonly borrowings oncapital
markets byEuratom andunder the NCI that rose ,to373million ECUand
339million ECUrespectively . ,
The share offunds raised bythe Community institutions intotal operations
(1)oninternational capital markets shrank from 2.9% in1980 to1.2% in1981 .
Asaresult ,thesituation in1980 ,when theCommunity borrowed more than
theother international organizations puttogether ,wasnotrepeated in1981 ,
when themarket share ofinternational organizations other than theCommunity
fell to2.6% from 3.72% in1980 .Asinprevious years ,virtually allthe
Community 'sborrowings were made upofconventional issues -including
private placings -offoreign bonds orofEurobonds ,with only insignificant
amounts being raised through international syndicated bank loans .Theshare
ofthese bond markets accounted forbytheCommunity institutions wasjust
over 8%in1981 ,compared with 14% in1980 ,whereas thecorresponding share
ofother international organizations increased slightly (from 10.1% in1980
to10.5% in1981 ). i
(1)0ECD estimate

-20
Trend ofborrowing contracted bythe European Communities
(inmillion ECU )
Year ECSC EIB(1) Euratom EEC<2) .;NCI Tota I
1971 102 413 515
1972 230 462 !· 692
1973 263 608 871
1974 528 826'1,354
1975 731 814 1,545
1976 956 732 1,249 2,937
1977 729 1,030 99 571 2,429
-J978981 1,863 72 2,916
1979 837 2,437 153 178 3,605
1980 1,004 2,384 181 305 3,874
1981 325 2,243 373 339 3,280
(1)The EIBalso raises funds byselling participations inEIB loans tothird
parties ;the limited amounts involved (469.5 million ECUbetween 1972
and1981 ,ofwhich 83.3 million ECU in1980 and67.0 millipn ECU in1981 )
are not included inthe figures given .
(2)Borrowing tofinance balance -of-payments deficits .
ι
D. Balance between borrowing and lending
32.This report isnot anaccounting document concerned with depicting the
financial balance over time between borrowing and lending for all the instru­
ments examined .This purpose isserved byspecific documents such asthe EIB
Annual Report ,the ECSC Financial Report and,where theNCIandEuratom are
concerned ,Part IIofthe .General Budget oftheEuropean Communities .
Generally speaking ,theimbalance between lending andborrowing isdue
tothefollowing main factors :
J/.
(i)loans contracted ^during aparticular year maygive rise topayments ,
andthus entail borrowing ,only insubsequent years ;
I

21-
(ii)conversely ,fiends mayneed tobeborrowed inaparticular year in
order topayout loans contracted inprevious years ;
(iii)movements inthecash position mayproduce atemporary increase or
reduction inthefunds available outofborrowings ;
Jt
à
Civ)lending andborrowing operations give rise tocosts ,premiums and
discounts before settlement ;
(v)theEI8andtjjeECSChavesources ofrevenue which gointotheir
cash holdings *!
?
Inaddition ,sdme ofthediscrepancies between thefigures given inthe
different accounting documents areduetothespecial methodological features
ofcertain instruments ,including :
(i>thedates onwhich operations arerecorded ;
(ii)theperiods forwhich interim sub-totals arecalculated ;
(iii)thedates onwhich conversion into ECUs takes place andthe'
conversion rates applied .
i i
Thefollowing table reveals that thediscrepancy inthe case ofthe NCI
isduetooperations straddling theyear-end andcorresponding to"earth­
quake "loans contracted in1981 but tobepaid out in1982 .
TheTreaty ofParis provides that ECSC borrowing istobeused to
finance lending operations .
Inaddition ,theECSC levy wasused tofinance avery small proportion
ofloans for low-cost housing .

-22-
The EIB,which has resources ofitsown (paid-up capital and reserves
built upmainly out ofinterest received onpaid-up capital )aswell as
cash holdings ,isable flexibly tostagger itsborrowing operations to
match loan payments .In1981 ,total net lending bythe EIBamounted to
'2696million ECU (excluding loans from Community resources ),orover
385million ECU inexcess ofthetotal proceeds ofitsborrowing operations
and sales tothird parties ofparticipations inEIS loans . ..
••f
Comparison ofborrowing and lending contracted out of
resources borrowed
(inmillion ECU )
1981 BorrowingLending 11
EEC non–EEC Total
NCI 338.7 539.8;
539.8
Euratom 373.5 357.6 357.6
ECSC 325.4 387.6 387.6
EIB (1) 2242.7 2821.5 396.4 3217.9
Total 3280.3 ""4 106.5 396.4 4502.9
'I1
(1)Excluding operations carried out under mandate and onbehalf ,for the
account and atthe risk oftheCommunity ,which areaccounted for
offbalance sheet inthe EIB'sSpecial Section (Euratom /NCI plus
financing outside theCommunity totalling 90.4 million ECUfrom the
resources oftheGeneral Budget oftheCommunities andfrom EDF
resources ).
Byadding this figure of90.4 million ECUtothe 4502.9 million ECU
inrespect oflending operations financed outofproceeds from
borrowing ,weobtain thefigure of4593.3 million ECUgiven for
Community loans inparagraph 24ofthis report .

■s
>
IV.LENDING INTHE COMMUNITY
(1)A. New Community Instrument (NCI )hb i
tv
'l
33.Loans from NCIresources contracted in1981 totalled 539.8 million ECU
T
(see Table 9inthe Ânnex ),
M
(a)TheCommi ssiorj -|decided that 13projects (corresponding to14loan
contracts )wer*ij' eligible ,onthecriteria laid down inCouncil Decisions
379/486/EEC ancjj ,80/279/EECauthorizing tranches ofborrowing ,for
ordinary NCIijSans totalling 243.4 million ECUbecause oftheir con­
tribution tosolving the structural problems oftheCommunity .Nine
ofthese projects ,which received loans totalling 178.7 million ECU,
aredesigned toreduce regional disparities .Thebulk (78% )went to
theCommunity 'speripheral regions ,where the rate ofunemployment is
40%higher than theCommunity average .Thenine pr9jects help to
alleviate thedisadvantages ofremoteness byimproving road ,andtele­
communications networks andbycorrecting the lack ofbasic infra­
structures ,inparticular energy infrastructure andindustrial estates ,
which wasseriously hampering economic development .Afurther 73.7
(2)million ECU wasgranted fopseven projects toimprove energy
supplies inthe Community :these projects ,which should reduce the
Community 'sdependence onoilbyanestimated 2.5million tonnes of
oilequivalent ,concern awide ,.flange ofinvestments intheproduction
andtransmission ofenergy ,ma (inly power stations andinfrastructures
forthetransport ofgas from Algeria .
(1)The EIBmakes these loans onbehalf of,fortheaccount of,and attherisk
oftheCommunity .Itreceives the loan applications andfollowing a
decision bytheCommission that theprojects concerned areeligible ,
appraises theapplications ,decides onthegranting ofloans and
administers them ,all inaccordance with theprocedures laid down in
itsStatute and itsusual criteria .
(2)Including three loans with aregional purpose ,foratotal of29million
ECU. ., I .

24-
TheseprojectsalsoreceivedloansfromtheEIB'sownresourcesboth
beforeandduring1981:thecombination ofthesetwotypesofloan
makesiteasierandinsomecasesquickertocarryoutpriority
projectsbycoveringanadditional proportion oftheinvestment costs.
Altogether,theseprojectsshouldleadtothedirectcreationof
about2200jobs.
}
S
Inviewoftheamortization periodfortheprojects,theloansare
fortentotwentyyears.Thetotalcostofthe13investment pro­
jectsforwhichfinancewasprovidedis2534millionECU,including
931millionECUforenergy 1.,.TheloansgrantedfromNCIresources
(1)financeonaverageaproportion of11%ofthecost-whilethose
•' .......(2)fromtheEIB'sownresourcesfinanceanaverageof22%.
:;I
(b)Extraordinary Loanstotalling296.4millionECUweregrantedfrom
theNCI,pursuanttotheCouncilDecisionof20January1981,'for
projectsinvolvingtherebuildingofeconomicandsocialinfrastructures ,
roads,schoolsandbasicinfrastructures inthedisasterareashitby
theearthquakeofNovember1980inItaly.
i'ii
(1)Therangeisfrom6%to47%,depending ontheproject
(2)Forinvestmentprojectsfinancedfrombothsources.

-25-
34.InItaly ,almost .two-thi rds ofthe volume ofNCI lending wasaccounted
forbyfive "earthquake "loans ;the remainder involved nine loans tofinance
investments contributing tothedevelopment ofthe southern region and to
improved energy supplies .
The improvement ofthe telephone networks inCampania and Sardinia
(190000 lines being added )will encourage the installation ofnew ,firms
and thedevelopment ofexisting economic activities .
Theconstruction ofroad andrail links ,water supplies ,sewerage and
gassupply lines inthe industrial estates ofChieti (Abruzzi ),Frosinone
(Latium ),Catane (Sicily ),Naples andSalerno (Campania )should contribute
tothe industrialization ofthe regions concerned . A
The loans intheenergy sector concern projects such asthe conversion
tocoal oftheBrindisi power station inApulia and the Sulcis power station
inSardinia ,andtheconstruction ofagaspipeline between theAlgerian /
Tunisian frontier andNorthern Italy (thesection financed in1981grosses
Calabria ).
Other gas infrastructures ,partly linked tothegaspipeline project ,
have been financed inNorthern Italy ;theconversion oftwonatural gas
deposits into underground storage reservoirs inMinerbio (Emilia-Romagna )
andRipalta (Lombardy ),theconstruction ofcompressor stations andgas
pipelines tolink Minerbio toZimella (Venezia )andRipalta toCortemaggiore
(Emilia-Romagna ).
InLombardy a1000Mwpumped storage station atEdolo will make it
possible tomeet peak demand and will produce theequivalent of70000 toe
ayear ,using traditional water power .AtBrescia theconstruction ofa
district heating network relying onheat generating stations should save
about 50000toe ayear .
ι
•ι
π

-26-
35.InFrance ,the Tirst NCI loans were for thePoitiers-Bordeaux section
,(290km)oftheParispBordeaux A10motorway (part ofthe E3European road
j,ink from Lisbon toStockholm ),which isanessential line ofcommunication
fprSouth-West France ^
36.IntheUnited Kipgdom ,the loan granted towards thebuilding ofa
200-mi Ilion-cubi c-metre dam atKielder ,North Tyne ,and the channelling of
water totheWear and'theTees will contribute toimproving water supply
inthenorth ofEngland .
I
37.Thetwoloans g^nted inIreland were ,like those granted in1980,
forkeyprojects of^J)eregional development programme . ,Peatproduction
tpsupply power stations will reduce thecountry 'sdependence onimported
o^I,andfurther work onmodernizing andextending thetelecommunications
£ 'network will add90pOOnewtelephone subscribers andprovide numerous telex
lines ,thereby improving conditions forestablishing andrunning firms .
B. Subsidized loans for the reconstruction ofdisaster areas inItaly
38.Loans from NCI and EIB resources contracted in1981 and intended for
the reconstruction ofthedisaster areas ofCampania andBasilicata totalled
328.2 million ECU,athird ofthetotal amount authorized forthisjpurpose
bythe Counci I. ,
V
Loans from NCIresources ,totalling 296.4 million ECU,helped ,to
finance repairs to1137kmoftherailway network ,almost 900kmofroads
andmotorways and 1179state schools ,,aswell astheprovision ofbasic
facilities ,inparticular thesupply ofdrinking water andtheremoval of
waste water ,fortheprefabricated villages andaccommodation centres to
house almost 120000persons . t
rI
Ί

27
i
i
;
Loans totalling -31.8million ECUwere granted from theEIB'sown
resources forurgent repairs totelephone andelectricity networks .
I
»
Ci European Investment Bank (EIB )
39.In1981 theEIBcontracted financings totalling 3217.9 million ECU
from itsownresources ,including financings forprojects located outside
the Community .
*
Lending from own resources andguarantees for investments inthe
member countries amounted to2821.5 million ECU (ofwhich 282.1 million
ECU intheform ofguarantees ),or87.7% oftotal financing from theBank 's
owp resources .*
40.Almost two-thirds offinancing from the Bank 'sown resources went to
regional investment projects ;energy ,telecommunications andmeans of
transport ;irrigation andwater supply ;treatment ofwaste water ,various
infrastructures ,andtoinvestment projects intheindustrial ,agricultural
andservices sectors ,mainly intheform ofglobal loans tosmall £ndmedium -
sized ventures .
The loans were concentrated inregions given priority under Community
regional policy :theMezzogiorno ,Ireland ,Greece ,Northern Ireland and
Greenland ,orinregions where unemployment ishighest andpercapita out­
put lowest .
(1)Seealso theAnnual Report oftheBank .This report andseveral other
publications are sent toalltheCommunity institutions ,and indivi­
dually tomembers oftheEuropean Parliament and theEconomic and
Social Committee .

-28
Financing forprojects to ..help toachieve theCommunity 'senergy
(1)objectives totalled 1346million ECU; 63%ofthis sumwasforprojects
todevelop indigenous resources ,mainly inthenuclear sector <700.6 million
ECU),and toexploit hydrocarbon deposits (179million ECU).Loans for
thediversification ofenergy imports and fortheefficient useofenergy
amounted respectively to344.7 million ECU and to88.2 million ECU .
Other loans forprojects inthe common European interest (improvement
ofcommunications between Member countries ,environmental protection ,
industrial cooperation )amounted to104.5 million ECU .
41.Over two-thirds ofthefinancing granted in1981 was concentrated in
Italy ,Ireland ,theUnited Kingdom andGreece ,thecountries with themost
acute structural problems ;significant amounts were also granted inGeJ-many ,
France ,Belgium and Denmark ;one investment project wasfinanced inTunisia
because ofitsimportance forCommunity energy supplies ,pursuant to
Article 18ofthe EIBStatute under which theBank may grant loans for
investment projects tobecarried outoutside theEuropean territories of
theMember States with the special authorization oftheBoard ofGovernors .
Theproject ,inquestion was theTunisian section ofthe gaspipeline between
Algeria andItaly .
D. Euratom
42.In1981 ,Euratom contracted togrant 17loans for atotal of357.6 mil­
lion ECUfortheconstruction offour nuclear power stations (seeTable 10
.Ν
inthe Annex ):
<i)fast-breeder nuclear' power station atCreys-Malvi lie (Nersa ,France );
i ." ■
(ii)nuclear power station atAlto Lazio (Enel ,Italy );
(i.ii)nuclear power station atDoeI(Ebes ,Belgium ); ,,
(iv)nuclear power station atTihange (Intercom ,Belgium ).
(1)Thedifference between this figure andthe "energy "column inTable 8
isdue tothefact that some industrial projects contribute toCommunity
energy objectives ,while other projects intheenergy sector arefinanced
topromote regional development .
ι ·?(ii)
(i.ii)
(iv)

--29-
Apart from direct loans totheowner companies ,thepower stations of
Doel andTihange inBelgium were also aided byloans through Belgelectric
Finance B.V.
Thetransactions carried out in1981 raised thetotal amount pfloan
financing contracted ^ince Euratom began itsfinancing activities to
861million ECU,very !close totheinitial ceiling of1000million ECU
authorized bytheCouncil ;consequently ,theCouncil raised theceiling
from 1000million t&K2 000million ECUon15March 1982 .
(1)
jp.7European Coala^SteelCommunity (ECSC)
45*Thetotal amount ofloans paid outbytheECSC in1981 (seeTable 11
?.9'
i|jthe Annex )cameto387.6 million ECU,considerably lessthanthe1980
figure (1030.7 million ECU);thesizeable fall wasdue toamarked slow­
down inthesigning ofcontracts for loans already approved bytheCommission ,
asaresult ofthedifficult (conditions onthecapital markets and <,inthe
case ofloans tothesteel industry ,asaresult ofamore selective policy
ofaidtorestructuring projects . >u
ECSC loans approved bytheCommission andcontracted
(million ECU )
YearAmount inloans
approved but not
yet paid out at
thebeginning of
the yearAmount innew
loans^app roved
during tthe yearLoans
paid outAmount inloans
approved but not
yetpaid out at
thebeginning of
the year
1980
19812523
27151223
1098-1031
3882715
3'425
,1
:11
(1)SeetheFinancial Report oftheECSC for 1981 .ECSC lending ..accounts
aredrawn upinterms ofloans "paid out".TheCommission takes a
decision inprinciple tolend acertain amount toa ■Mrm tofinance
aninvestment .Itthen raises the resources ,within the limits defined
byitsdecision ,ontheterms requested bythefirm .Itsigns contracts
forallorpart ofthe loan with thefirm oneach disbursement .

-30
With theexception ofloans paid out fortheconstruction ofworkers'
housing ,which increased from 9.6million ECU in1980 to14.7 million ECU
in1981 ,payments toallthesectors financed bytheECSC declined sharply
during theyear .
ECSC loans paid out bysector
(million ECU )
Total
ECSC
loansCoal
industry
(first
para ,of
Art .54)Steel
industry
(first
para ,of
Art.54)Thermal
power
stations
(first
para ,of
Art .54)Con­
version
(Art .56)Workers'
housing
(Art .54)Iron ore
mines
(first
para ,of
Art .54)Other
(second
para ,of
Art .54)
1980 1030.7 233.2 424.0 90.0 266.1 9.6- 7.9
1981 387.6 30.1 223.6 26.6 86.0 14.7 - 6.1
1981 „
1980-62X -87% -47% -64% -68% ♦152%- -22%
»
44.Inthecase ofconversion loans ,thecontinuing high cost offinancing
during thefirst nine months of1981 seems tohave hampered theimplementation
ofmajor investment plans innewindustries ,buttheshare ofglobal loans
(intended toencourage jobcreation insmall andmediums-sized firms )increased
from about 3%ofloans granted in1977 to42% in1981 .

-31-
45.Thefall inloans paid outtothesteel industry in1981 ,inspite
ofanincrease ininvestment expenditure ,*^ ismainly aresult ofthe
Commission 'sextremely selective policy inappraising newapplications
forloans inthe .industry .TheCommission considers 'applications forloans
f
onlywhentheycorrespond totheguidelines intheCouncil Resolution on
steel recovery policy of26March 1981 .
v|
Theaimsof^|heseguidelines are:
(i)principally therestoration inthemedium term ofnormal market
conditions fnwhich undertakings areprofitable ;
(ii)tothis end,anoverall reduction insteel producing capacity in
theCommunity ,andthegradual phasing out ofassistance tosteel
firms .
' ·. >'! 'Λ
I 1
;
Toachieve anoverall reduction insteel-producing capacity ,the Com­
<mission hastried tolimit itsaidsolely toprojects that are part of
restructuring programmes involving both asignificant reduction ofthe
total capacity ofanundertaking orgroup ofundertakings and concentration
ofproduction onthemost competitive plants .Thegradual phasing out of
assistance requires strict contrpl ofallsources ofinvestment finance
available toanundertaking orgroup ofundertakings , jInaccordance with
this comprehensive approach ,theCommission hascarefully examined not
only newdecisions togrant ECSC^loans ,butalso decisions topayout loans
already granted . 3
<1)Se£ "Investment intheCommunity coal-mining andiron andsteel
industries :Report onthe1981 survey ",November 1981 ,Commission .

Twenty-eight leans were contracted with steel firms during 198V for
atotal of223.6 million ECU .Loans were paid out tofirms infour Member
States in1981 :Italy ,France ,theFederal Republic of.Germany andIreland
V
However ,thecontribution ofECSC loans tofinancing steel investment
remained small ,except inFrance (18%)and Italy (12%).
Decisions togrant new loans inthe steel industry were limited to
thepart-financing offour projects .' !
»
i
i
46.Asregards ECSC financing inthecoal industry ,theCommission mainly
supported investment projects formodernization andrationalization in­
tended topreserve orraise the level ofoutput inthe most productive
mines . .i
• ' •!'
Thenumber ofloans for investment incoal-mining (under the first
paragraph ofArticle 54)remained small :only two loans were paid out
during theyear ,both tothesame Gierman firm ,totalling 30million ECU .
Five newdecisions togrant loans during theyear tomajor projects ,
including there-opening ofamine intheUnited Kingdom ,indicate that
more loans should besigned in1982 .However ,thetrend ,Combined with
amore selective lending policy onthepart oftheCommission andincreasing
lydifficult conditions onthecapital markets ,has ledtoasignificant
decline intheshare ofECSC financing 1ntotal investment financing
inthe ECSC industries .

-33-
47.Three projects for thermal power stations received ECSC loans in1981
under thefirst paragraph ofArticle 54oftheECSC Treaty ,for atotal of
26.6 million ECU .
I
TheCommission approved only onenew loan during theyear ,tocontri­
bute tobuilding anew thermal power station onthe west coast ofIreland .
48.Outside thearea ofcoal use,theCommission contracted only one loan
under thesecond paragraph ofArticle 54in1981 ,forthemodernization
ofshipyards inItaly .
Five new loans were approved under the second paragraph ofArticle 54
in1981 :twoconcerned theapplication ofindustrial processes tocoal ,
and twoconcerned rawmaterial supplies forthe European steel industry .
Thefifth istofinance raiIway wagons specially designed forthetrans­
port ofcoal ,coke and steel products .
49.Loans forworkers' housing ,which were theonly loans intheECSC
sector toincrease involume in1981 ,expanded rapidly during theyear ,
probably because theninth ECSC housing programme began inseveral Member
States .

-34-
\ K
e
S
Thetotalamountinloanscontracted fromownresourcesin1981,
withinterestatwas9.4millionECU,plusanamountof5.4million
ECUfromborrowings.Thesesumsmadeitpossibletofinanceabout3000
newworkers*homes.Sinceitbeganitsfinancialactivities,theECSC
hascontributed totheconstruction of170000suchhomes.
I
k ''!
V.LENDINGACTIVITIES OUTSIDETHECOMMUNITY-m– –■.•V
50.PursuanttoConventionsandagreementscoveringeconomicorfinancial
cooperation,inkvarietyoflegalframeworks,someCommunityfinancing
wasprovidedintheformofloanstoprojectscontributing totheeconomic
andsocialdevelopment ofrecipientcountriesoutsidetheCommunity.
.»
•" · >Μ

-35-
i
f»
EIBloansfromownresourcestoprojectsoutsidetheCommunity (see
Table12intheAnnyx)amountedto396.AmillionECU,with238million
ECUgoingtotheMediterranean countriesincludingPortugal,and158.4
millionECUtothe|\frican,CaribbeanandPacificStatespursuanttothe
secondLom£Convention .Lendingfromthebudgetaryresourcesofthe
%
Community,whichisnotcoveredinthisreport,totalled90.4millionECU.
\ '1''
A.Mediterranean'4:ountries
1
51.HalfofthefinancingfromtheEIB'sownresourcesintheMediterranean
regionwenttothetwoapplicantcountries :Portugal(79millionECU)and,
|orthefirsttime,Spain(40millionECU);almost30%wenttotheMaghreb
Countries (Algeria,Morocco,Tjunisia:52millionECU)andtheMashreq
countries (Jordan,Lebanon:^5millionECU);afifthoftheamountwas
sharedbetweenIsrael,CyprusandTurkey(52millionECU).Overhalfof
thesefinancings concernedsmallandmedium-sized industrial investments,
underthegloballoanscheme,andagriculture$nd"/forestryprojects.The
restconcernedroadandharbourinfrastructures andpnergyinstallations .
LoansfromtheEIB'sownresourcesai»ouhting/.td121miIlionECU
carriedinterestsubsidiesoftwoorthreepoints •fromtheGeneralBudget
oftheCommunities,whichalsoguarantees 75%ofEIBlendingtothese
countries,and100%ofemergencyaidtoPortugal.•
B.ACPStates ■■■... ■'
.-ïV'•'>Y !|
52.TheEIBgranted13loansfromitsown-r^sourceisintheAfricanStates
(106.4millionECU)andthePacific'States'XSZ'talt^l^ftidU )^Includinga
loanof40millionECUinPapua-NewGuinea:this'wasthefirstloanto
» .• »

-36-
mining andenergy projects ofmutual interest totheACP State concerned
and theCommunity ,made under Article 59oftheSecond Lome Convention
andwith thespecial authorization oftheBoard ofGovernors ofthe EIB,
pursuant toArticle 18oftheBank 'sStatute .Over 40%ofthetotal
amount went tomining ,which isgiven special importance inthe Second
Lom6 Convention .Amajor aspect ofthis isthe launching ofthe "sysmin "
system ,topreserve and revive themining industry through grants from
the EOF .Energy came second ,accounting foralmost 33% ofthetotal ,
inparticular forhydroelectric orcoal-fired power stations ;other
industries accounted for18% (for cement works ,and small andmedium -
sized ventures inindustry ,agriculture ,energy ,mining and*tourism ),
while transport infrastructures accounted for 9%.
"
Allthese loans ,except the40million ECU loan for amining ,project
inPapua-New Guinea ,were granted atarate of8%,which includes .an
interest subsidy from the resources oftheEuropean Development Fund .

VI.BORROWING '
A. The situation onthe capital markets in1981
53.Interest rates were still extremely high onall capital markets in
1981 .
Inseveral countries ,for thefirst time formany years ,real rates
werepositive .Th^ir level mainly reflects theinflationary pressures
that persist inall£ thewestern countries ,inspite ofthegeneral decline
ineconomic activity .They were held atanunprecedented level bythe
pursuit ,intheUnited States andelsewhere ,ofvery restrictive monetary
andbudgetary policies intended tocombat inflation .
T
Some markets ,inparticular thedollar market ,also displayed extreme
volatility ,aggravated by'thepragmatic policy ofborrowers ,whousually
tried tolaunch their operations during theshort periods when ^interest
rates eased temporarily forpurely technical reasons .
Inspite ofthese strains ,thevolume ofactivity ontheinternational
markets forfixed-rate bonds expanded strongly (from t42000million in
1980 tot53000million in1981 ,Recording torecent estimates );however ,
the largest expansion was infloating-rate andzero-coupon issues ,because
ofhigh interest rates andother factors ofinstability .Several borrowers
with ahigh credit rating whohadto ,goonissuing large fixed-rate bond
loans were able todosobut had tooffer sufficiently high coupons to
offset uncertainty about market trends .
V
Against this difficult background ,firms and long-term credit institu­
tions that could not slow down orhalt current investment programmes tried
tofind better protected methods offinancing than public issues ,i.e.
private placings ,bank loans andgovernment loans andgrants . ,,

-38-
Themost unstable financial market outside the Community was thedollar
market ,while anincreasing number ofEuropean borrowers made calls onthe
yenmarket .Within theCommunity ,the level ofactivity even onthetra­
ditionally more stable markets like those fortheGerman mark andthe
Dutch guilder remained fairly moderate until the last weeks oftheyear ,
when there was some revival .
B. Community borrowing in1981
54.During 1981 ,theCommunity contracted newborrowings totalling 3280
million ECU,about 15.5% down onthe1980 figure .
Theoperations carried out in1981 showed three main features (see
(1)table onpage 40):
! •t
V
(i)Forthe first time ,theCommission ,borrowing onbehalf ofEuratom ,
andtheEIBdenominated issues inECU .TheECU issues ,which
totalled 127.0 million ECU,represent slightly less than 4%ofall
theborrowings made bytheCommunity in1981 ;they were well re­
ceived bythemarkets .
(ii)There was ashift inthecurrencies borrowed towards non-Community
currencies ,which represented' 46.6% ofallborrowing (maiMy the
USdollar ,followed bytheSwiss franc andtheyen),compared with
39.3% in1980 .Among theCommunity currencies ,theshare ofthe
German mark declined considerably ,from 33.2% in1980 tounder 19%
in1981 ,tothebenefit ofalltheother currencies ,especially
the Dutch guilder .Thebreakdown partly -reflects thepreferences
ofloan recipients for aparticular currency ,and itisalso influ -
1»!
enced byinterest rates andthevarying extent towhich currencies
were available .
(1)Seefootnote (1)onpage 39. /
! i i

-39
(iii)Asin1980,therewereaLargenumberofprivateplacings.The
usemadeofthisborrowingtechnique wasdueusuallytothesmall
amountperloanapplication ortotheimpossibility offloating
apublicloaninthedesiredcurrencyattheparticular moment.
Onamoretechnicallevel,theuseofthistechnique makesit
possibletospreadborrowingoveraperiodoftimeandtotake
betteradvantageofmarketfluctuations (seeTable2inthe
Annex). ^
(1)EuratomandNCIborrowings areaccompanied byanundertaking onthe
partoftheCommunitytothelenderstoreimburse,fromtheGeneral
Budget,anybalanceunpaidbyadefaulting borrower.
Infact,theprobability ofsuchintervention beingnecessaryisvery
low,fortheoperations guaranteed bytheCommunityareeitherloans
tomajorpublicpromotersor,inthecaseofotherrecipients inthe
privatesector,loansaccompanied bytheusualbankingguarantees
(surety,fixedcharge,etc.).Thebudgetaryguaranteeistherefore
onlylikelytobedrawnuponinafewrarecasesofdelayinreim­
bursingtheannualsliceofadebtorLoan.
ThebudgetguaranteetakestheformofatokenentryintheGeneral
Budgetagainsttheheadingsforguaranteed borrowing andlending
operations .Thistokenentryinthebudgetmakesittechnically
possibletoapplytheguaranteethroughatemporarycallonCommunity
cashresourcestocoverthedebt.
Thisguaranteeiswelcomedbyleaders;ithelpstoreinforcethe
Community'sexcellentreputation onthefinancialmarkets,andto
improvethetermsonwhichitcanborrow.
Moreover,thecapitaloftheEIQincludessubscribedcapitalnotpaid
up,whichitmaycalltosuchextentasmayberequiredtomeetits
obligations towardslendersinrespectofborrowings (seeAnnexAto
theBalanceSheetat31December1981,EIBAnnualReport1981,page71).

BREAKDOWN OFBORROWINGS CONTRACTED IN1981 ,BYCURRENCY
(inmillion ECU atthe rate on31.12.1981 )
Member country currenciesNon-member country
currenciesTotal
DM HFL UKL FF LFR BFR– LIT .-£CU USD SFR Yen
..
EIB 358.3 319.2 106.9 128.6 14.5 51.7 85.0 615.1 300.0 263.4(1)2,242.7
Euratom 36.8 98.8- - 56.3 24.0- 42.0 73.7- 41.9 373.5
ECSC 109.0 57.8 16.8 4.8 33.5- a» - 36.9 66.6- 335.4
NCI 101.2 98.8 9.7- - ■- - 129.0
: .- 338.7
Total 605.3 574.6 133.4 133.4 104.3 75.7- 127.0 854.7 366.6 305.3 3,281.3
X 18.46 17 ,.53 4.07 4.02 3.18 2.31- 3.87 26.07 11.18 9.31 100.00
(1)Taking into account third-party participations inEIBloans (67million ECU),thetotal funds^raised in
1981 amount to2,309.7 million ECU (seefootnote 1tothetable onpage 20).

VII.COMMUNITY INTEREST SUBSIDIES FORLOANSCONTRACTED WITHINTHECOMMUNITY
A.Interestsubsidymechanisms
55.In1981,theCommunity wasabletograntfourtypesofinterestsubsidy
forloanswithintheCommunity :
fromtheECSCbudget:rn j
-ECSCsubsidies (onECSCloans); '
i
fromthegeneralbudgetoftheEuropeanCommunities :
-EMSsubsidies (onNCIandEIBloansinItalyandIreland);
(1) I-ERDFsubsidies (onEIBloansinERDFregions);and
-subsidiesrelatedtothespecialaidfortheItalianandGreek
areashitbyearthquake inNovember1980andFebruary/March1981
respectively (fromNCIandEIB>resources).
The"earthquake"interestsubsidieswerenotappliedin1981,sincethe
firstsubsidized loanstoItalywerenottobedisburseduntil1982.Each
ofthefourtypesofsubsidyhastheeffectofloweringtheinterestrate
bythreepercentagepoints.However,thetechniqueofgrantingthesubsidies
varies:theEMSandERDFinterestsubsidiesarediscounted andchargedto
theCommuntiybudgetasasinglesum,whereastheECSCsubsidiesarenot
discounted andarechargedannuallytotheECSCbudgetoverthefirstfive
•(
yearsoftheloan.The"earthquake"interestsubsidiesarealsotobe
chargedannually,tothegeneralbudgetoftheCommunities,for„notmore
than12years(seeTable13intheAnnex).
B.EMSinterestsubsidies^
. »
56.SinceCouncilRegulation (EEC)No1736/79of3August1979c^meinto
force,147loanshavebeensubsidized undertheEuropeanMonetarySystem,
58from1981budgetappropriations ., 1
(1)AnERDFinterestsubsidyhasbe?ngrantedonlyonce:MemberStates
prefercapitalgrants,andonlyoneapplicationforasubsidyhasever
beenreceived.
(2)Discountedinterestsubsidies,chargedtothegeneralbudgetasa
singlesumforeachloan.

-42-
Subsidized Loans and EMS subsidies paid out
Subsidized Loans Interest subsidies paid out
Number MiIlion
ECU (1)MiIlion ·
ECU%ofloans
1979 34 885.4 <2> 200.0 22.6
1980 55 1,030.8 (2) 197.0 (3) 19.1
1981 58 1,017.5 193.2 (3) 19.0
Total 147 2,933.7 590.2 20.1
(1)The amounts inECU ofsubsidized Loans referred toinEIB documents
differ sLightLy from those given here owing tothedifferent dates
used forconverting into ECU.Toensure statistical comparability ,
theEIBuses theconversion rate inforce onthe last working day
ofthequarter preceding thesigning ofthecontract notonly for
non-subsidized Loans butalso forsubsidized loans .Forpurposes
ofcalculating theinterest subsidy tobeentered intheaccounts ,
however ,ituses theconversion rates prevailing ontheday ofthe
final calculation .The figures inthis report arebased onthe
rate inforce onthe latter date both for subsidies and for subsidized
loans ,inorder topreserve comparability between theamount ofthe ,,
subsidy and the amount ofthesubsidized loan .
(2)Onesubsidy wasfinanced partly from 1979 appropriations andpartly
from 1980 appropriations .Forstatistical purposes ,theamount of
the loan concerned wasdivided between the twofinancial years in
proportion totheinterest subsidy foreach year ,each part being
counted asaseparate loan .
(3)Theamount available from budget appropriations for1981 was203.0
million ECU,including 3.0million ECUcarried over from t(iepre­
ceding year .After thedisbursement of193.2 million ECU in1981 ,
there remains asumof9.8million ECU,owing tosome delay in
signing loan contracts in19$1 ,,tobecarried over tothe ,1982
budget under asupplementary oramending budget proposed bythe
Commission . '~ri ,,

43
i
The 1981 operations related to48investment projects which were
financed by49loans from theEIB'sown resources (904million ECU)and
V
by9loans from 'NCI resources (114million ECU),giving atotal of
1018million ECu;five projects were financed jointly from the EIB's
own resources anafrom those oftheNCI .Four projects received several
subsidized loansT
t,"f-
Thediscounted amount ofinterest rate subsidies totalled 193million
*
ECU.Theratio ojfthetotal amount ofinterest subsidies tothatof
subsidized loans vtas 19.0% ,asagainst 22.6% in1979 ;this ratio depends
ι
inter alia onthe length ofthe loans ,theinterest rate andtheperiod
ofgrace .
A
I
The amount ofeach interest subsidy and ofeach subsidized loan is
given inTables 14and 15intheAnnex .
»
The interest subsidies break down byrecipient country asfollows ;
two-thirds forItaly ando>ne-third for Ireland ,pursuant toCouncil
Decision 79/691/EECof3August 1979 .
: • r■<-
I'■» c.
Byorigin ofresources lent ,,,they break down into nine Iqans from
NCI resources and 49loans from .the EIB'sown resources (i.e. 9%and 91%
l' i*
respectively ).
57.Ananalysis bysector ofuse shows that 64% ofthe total amount of
interest subsidies went toprojects intheenergy sector :19% forthe
development ofprimary energy sources (hydrocarbons ,peat ,hycfroelectri c
power andnuclear power );15% forthermal power stations andheat pro­
duction ;and29%forenergy transmission (gaspipelines andpower lines ).
Infrastructure projects intheother sectors accounted for the !remaining
36%oftheinterest subsidies ,mainly water supplies andirrigation (17%);
industrial estates andtraining centres (7%);theimprovement oftele­
communications networks ,road networks ,rail andsea links (13%).
I

-Lt _
Almost four-fifths oftheinterest rate subsidies related toprojects
located wholly orpartly inpriority regions .Since theprojects involve
infrastructure ,thenumber ofnewpermanent jobs forrunning thecompleted
projects isnecessarily limited .
Nevertheless ,these projects will eventually contribute ,largely
indirectly ,tothedevelopment ofproductive activities which will create
asubstantial number ofjobs ;moreover ,thework involved andthesupplies
needed forcarrying out theinfrastructure schemes will have direct and
indirect temporary repercussions ontheemployment situation over what
may,insome cases ,berelatively long periods .
EMS interest subsidies paid from 1981 appropriations
Subsidized loans Interest subsidies paid
Number Million ECU Million ECU X
A.Byrecipient country
Italy
Ireland41
17726.3
291.2126.6
66.665.5
34.5
B.Byorigin ofresources lent
NCI
EIB9
49113.5
904.018.1
175.19.4
90.6
C.Bysector ofuse
Primary energy production
Transformation ofenergy
Transmission ofenergy12
6220.3
134.9
312.637.4
29.5
56.419.3
15.3
29.2
Sub-total :energy 31 667.8 123.3 63.8
Water engineering
Industrial infrastructure
Transport andcommunications16
4
7163.4
72.3
114.032.2
12.8
24.916.7
6.6
12.9
Sub-total :
other infrastructure27 349.7 69.9 36.2
TOTAL 58 1,017.5 193.2 100.0

C. ECSC interest subsidies
58.Theinterest subsidies granted bytheCommission onECSC Loans in
1981 were used tofinance thefollowing investments :
<i)conversion projects financed by ^loans under Article 56ofthe
Treaty ;
(1)<ii)restructuring investments inthesteel industry ,financed by
loans under thefirst paragraph ofArticle 54oftheTreaty ;
... ... ... . (2)
(iii)investments tomaintain and/orincrease coal-mining capacity ,
financed from loans under the first paragraph ofArticle 54of
theTreaty .;
In1981 ,asinprevious years ,themajor share ofinterest ^jjbsidies
(both fornewapplications approved and for loans contracted )went to
conversion projects .
Thevery small amount ofbudgetary funds available forfinancing
subsidies (from theECSC levy ,whicfj isdecreasing asaresult ofthesteel
crisis )has ledseveral firms todecide not torely onloans even though
theprojects concerned were eligible .TheCommission hashadtofollow a
restrictive policy ingranting interest subsidies ,and'this hasdissuaded
firms from going ahead with existing applications for loans orfrom making
new applications .
i
(1)SeetheCommission communication of22July 1977 ,(0JC174),and
theCommission communication of22April 1980 (0J'C99).
(2)SeetheCommission communication of29March 1980 (0JC79).

-46-
ECSCinterestsubsidiesgrantedin1981
0ΒFLNLIUKDKIRLTotal
(1)Article54l"1.2 -0.5 - -0.72.8- -5.2
Article56^*4.83.52.5 -0.514.9- 26.2
Total 6.03.53.0 - -1.217.7 - -31.4
(1)Non-discounted interestsubsidies,paidannually,andthusfortheroost
partconcerning loanscontracted before1981■
FullerdetailsonprojectsfinancedbyECSCsubsidized loansaregiven
intheECSCFinancialReportfor1981.

ANNEX
List oftables
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11
Table 12Borrowings bytheEuropean Communities (amounts
outstanding )
Commission borrowings contracted in1981
Trend inlending operations inthe Community
Breakdown ofloans intheCommunity in1981
byinstrument ,sector and country
NCI loans contracted ,1979-81
Euratom loans contracted ,1977-81
ECSC loans paid out,1970-81
Loans from EIB own resources contracted inthe
Community ,1970-81 *
List ofNCI loans contracted in1981
List ofEuratom loans contracted in1981
Breakdown bysector ofECSC loans paid out in1981
Loans outside .theCommunity from borrowings ,1977-81
I

Table 1
Borrowings bytheEuropean Communities (amounts outstanding )
(atendofeach year -inmillion ECU)
Year ECSC EIB .EURATOM EEC <2) NCI TOTAL
1970 741 1.020- - 1.761
1971 802 1.423- - - 2.225
1972 963 1.784- 2.747
1973 1.172 2.287- em - 3.459
1974 1.617 3.124 -- - 4.741
1975 2.393 3.926 17em 6.336
1976 3.477 4.732 14 1.161- 9.384
1977 3.956 5.421 110 1.500- 10.986
1978 '4.416 6.715 182 1.361-.12.674 ,
1979 4.713 8.541 333 965 178 14.730
1980 5.406 10.604 502 1.016 402 17.930
^-1981 5.817 13.482 902 1.062 894 22.157
•»
(1)Theconversion rates used were those obtaining on31December ofeach year ;asthemajority ofborrowings are
denominated innational currencies /thedifference between twoyear-ends reflects /ontheoneand,changes in
thevaluation oftheexisting stock and,ontheother ,thenetvolume ofborrowings during theyear .
(2)"Balance ofpayments "borrowings

Table 2
Commission borrowings contracted in1981
N° Type Life
(years )Coupon
%Currency and
amount (millions )MiIlion
ECU (1)
A)NCI
1 Public issye 10 13 1/4 USD 25 23,04
2 Private placing 10 11 1/2 HFl 40 14,91
3«· Í20 10,85 DM 30 12,27
4II12 10,75 DM 45 18,41
5II
.12 : 12,50 HFl 50 18,64
6Public issile12 14,75 USD 65 59,90
7
8Private placing
«I *12
1210,75
10,85DM
DM20,3
528,30
21,27
9 Public issue 12 17 USD 25 23,04
10 Private placing 15 i16,75 UKL 5/5 9,71
*1II15 13,25 . HFl 75 27,95
12 Public issue 12 15,5 USD 25 23,04
13II12 10 1/8 DM 100 40,91
14II12 12 1/4 HFl 100 37,27
NCI Total 338,66
B)
EURATOM• ,
.
15 Public issue 9 1¿7/7 USD 40 36,83
16 Private placing 7 13,25 LFR 300 7,19
17 II15 8,7 Yen 5000 20,98
18 •115 11,5 HFl 40 14,91
19 •I7 13,625 LFR 600 14,37
20 II7 10,25 DM 40 16,36
21 Public issue 7 11,5 HFl 150 55,90
22 Private placing 7 13,75 LFR •500 11,98
23 Public issue7 12,25 LFR 500 11,98
24 Private placing 7 14 LFR 450 10,78
25 .110 10,75 DM 50 20,46
26 Public issue 10 12,50'HFl 75 27,95
27 •1 10' 14,50 ' USD 40 36,86
28 Private placing 14 9,1 Yen 5000 20,98
2.9 12 15,25 BFR 1000 23.95
30 Public issue 15 14 ECUS 42 42 .-
EyRfffOM Total ?73,S1

N° Type Life Coupon Currency and 1Million
Cyears ) % amount (miIlions)ECU
C)ECSC)- ^T·»- -
j1Public issue 10. 10- ÛM . ,120 . Å9J29 ..
32 Private placing 5 15 *FF 20 3,22
33II7 13 1/2 LFR 300 .7,19
34 Public issue ' 10
I63/4 SFR 80 40,99
35 Private placing 7 13 1/4· LFR 250 5,99
36 Public issue 7 14 USD 40 36,86
37 Private placing 9 14 1/4 UKL 2 3,53
38I·10 115/8 HFl 60 22,36
39ft8 11 1/4 DM 10 4,09
ACIt10 117/8 HFl 50 18,64
41If12 127/8 HFl 45 16,77
42fl5 73/4 SFR 30 15,37
43ft8 11 1/2 DM 26 10,64
44I·5 11 1/2 DM 30 12,27
45 Public issue 10 13 LFR 600 14,37
46 Private placing 6 15 LFR 150 3,59
47It8 10,39 DM 70 28,64
48II8 163/8 UKL 7,5 13,24
49II6 81/2 SFR 20 10,25
50II7 143/4 FF 5 0,81
51«17 143/4 FF 5 0,81
52II7 15 . LFR 100 2,40
53
tIf5 93/4 DM 10,5 .4,30
ECSC Total!
325,42
NCI+EURATOM +ECSC 1
ssssssrs :1037,59
(1)Theconversion rates used were those obtaining on31December 1981

Table3
TrendinlendingoperationsintheCommunity-bysector
(inmillionECU)*
Year Productive sector Infrastructure Energy Total
1971-,340,3;... 192/6 48/3 581/2
Λ97Ζ 328/3 191/2 174/9 694/4
1973 503/8 196/9 282/5 983/2
1974 604/0. I143/4 480/2 1.227,6
1975· 758/7469/9 488/8 1.722/4
1976 1.163/5 *429/9 556/4 ~-2.149/8
1977
•938/8607/7. 693/2 2.239,7
1978745/41.0Q0/Q 1.089/1 2.834,5
1979756/4 1.055/8 1.574/3 3.386/5
1980 1.277/9 1.204,7 1.680/2' 4.1*2,8'
1981 788,0 1.390/2 1.928/5 4.106,5
(t)The"conversionratesusedwerethoseobtainingon31DecemberoftireyearinquestioninthecaseofECSCloansand
thoseobtainingonthelastworkingdayofthequarterbeforethecontractwassignedinthecaseofEIB,NCIand
Euratomloans.

Table4
BreakdownofloansintheCommunityin1981byinstrument,sectorandcountry
(inBillionECU)
–
NCI Euratom EI8 ECSC Total
Inf.EnergyTotalEnergyTotalPr.V?Inf.EnergyTotalD(1)Pr.s.Inf.EnergyTotalPr.sInf.EnergyTotalX
Β
OK
D
GR
F
IRL
I
L
NL
UK
Non-
EEC
(2)40/3
8,1
363,9
33,9
mm
9,2
84,4
a*
m
mm
m
m
40,3
17,3
448,3
■·
33,9
•mf'·«225,2
m
m
98,8
33,6
!225,2
m
m
«·
98,8
33,6
«■w12,3
13,3
61,2
81,9
277,7
m
25,8
''m10.6
m
98,0
67.7
113.7
524.8
m
193,0t
170,2
119,0
292,0
159,0
129.7
448.8
'22>8182,5
142,9
292,<3'
159.2
226.7
325.3
1251,3
m
218.8
22,853,2
··
85.1
11,0
96.2
70,2
---0,5
m
5,9
2,3
5,3
0,1
0,5
0,1
■- .»
33,2
24,00,5"
92,3
111.4
11,0
101.5
0,1
0,s
70,3
m12,3
13,3
53,2
61,2
85,1
92,9
373,9
96,00,5
10,6
5,9
98,0
110,3
121.8
893.9
0^1
0,5
227,0
<»tm395,4
119,0
325,2
281.8
138.9
566,9
22,8408.2
142,9
384.3
159,2
477,2
353,6
1834,7
0,1
0,5
323,0
22,8io,r
3.5
9,3
3,9
11,7
8.6
44,6
0
0
7,9
«
446,293,6539,8'357,6357,6472,21007,81341,52821,5315,714,757,2387,6788,01390,21928,34106,5100
X
VisL 13,2 8,7-68,7 9,4 100
%
sect19,233,847,0100¥
(1)Pr.s.-productivesector
(2)OperationsunderArticle18oftheEIB'sStatute
(3)Ofwhich282.1millionECUintheformofguarantees
(4)Seefootnote 1toTable3
r*

'1 Tabte S
NCI loans contracted ,1979-81
<1>
(inmillion ECU )
1979 I960 1981
Infr as· Energy1.Total
*
S ■.Infras· Energy Total Infras .Energy Total X
Belgium -■'J
- - - - - -
Denmark - - - 18,1 18,1- - -
FRofGermany . - - - - - - - - -
Greece - - - - - - - - -
Prance - - - - - - 40,3- 40,3 7,5
Ireland 62,0 24,7 86J 27,3 14,4 41,7 8,1 9,2 17,3 3,2
Italy (2) 39,6 45,4 85,0 62,3 75,5 137,8 363,9 84,4 448,3 83,0
Luxembourg - - - - - - \>- - -
Netherlands ~ - - - - - - -
United Klngdojn 25,9 79,4 105,3- - - 33,9- 33,9 6,3
TOTAL 127,5 149,5 277,0 89,6 108,0 197,6 446,2 ^93,6 539,8 100
-·–Χ ί82,7 17,3 100
(1)Theconversion rates used were^.those obtaining onthelast working dayofthequarter
before thecontract wassigned
(2)Including "earthquake "operations in1981h

Table 6
Euratom loans contracted .1977-81
(1)
(inmillion ECU)
1977 1978 1979 1980 1981
Energy Total Energy .Total Energy Total Energy TotaL Energy Total X
Belgium- - - 50.54 50.54 82.2 82.2 225*2 225.2 63,0
Denmark- - - - - mm - -
>FRofGermany77.05 77.05 34.37 34.37 - mm - -■-
Greece- - - - - - • -
France:19.85 -!19.85 67.88 67.88 ",'99*1^ ,99.1 98.8 98.8 27.6
•Ireland- - - - - OB - -
Italy- - 35.89 35.89 34.04 34.04 - 33.6 33.6 9.4
Luxembourg- - ■mm - - am mm –
Netherlands- - - - --, -
United Kingdom"" - » «■» - - - -
Total 96.90 96.90 70.26 70.26 152*46 152.46 181.3 181.3 -357.6 357.6· 100
(1)Theconversion rates used were those -obtaining onthelast working dayofthequarter before thecontract wassigned

Table7 tf
ECSCloans,paidout1970-81
Lean*gonMbytheEuropeanCoalandStealCommunity (ECSC)
I970-74 ftnmtfhonEUAf
1970 1971 1972 1973 1974
IIn-Itw-Tout
»*»-7t
ttrt*Ct-Prod.to-EiM>r-ToUt
Mø.fr«.gy
øtfud-
yr«Prod.IrwErxjr-Total
Met.fra-Qy
otrvct*
ur«Prod.*n-Ew-Tout
••ct.fra-9V
•truci-
ur«ProdIn-Ervg/-Total
••et.tr«-Qy
atrucl-
wf«
Btøu*w *.«0--Z.W19.93-–19.9315.331.20–19.53 -0.720.621.3410.29-–10.29
Oenmarii ---- ---- ---- 7.01--7.81-027–0.27
FRetGornviAy 0.691.11-10.0020.040.469.5830<3062.032.»7,8171,90109.172.3754,19tW.73100.480.»41.02150.0*
•ro-tce 6.04-1.047.B033.56-12724579 S3.522647.06032410002079-10670WS?0391969477
fre»o«d –––-■––.–_– -–––-––
Baly eoo--6.00 1.S0-–1.6024291.44~25.73 0.76VOI-Ï.7?<M071.11–65.t0
tuB«<nbourg 2.00--2.00-----0.29–0.59---- -0.41–0.41
NeltWJsM » 3.400.49-2S359500$–Ö.OO10,6»-–10,ΘΙ3.1«0.60-3.961.65-–1,65
lîrw"&tfKingdom 32.701.7230.576505
Outaideeec «–––_– ––––~ –
Tetrf 20.»1.391.343VOS99.900.312V90112.1010S907.95«4.67160.»22594566940128641299.9«4.4673.43377ê7
ïtoøvotry
f/rtm'iuo*ti£UA!
1675 1976 1077 1973 1979
PrndNv-E'Vir-Tol8<P'Odt^-Snof*Tout
'im»ci»*«•gy 9€&t'a-gy
WvCt- Stryct-
UfC u'Opr00iti-To!«t
««ct ©y
•Ifuct-
ur«JProdtn.gnor-Tout
secttra.Qy
struct­
ureprodlo-£n«r.Tou<
noctfra-fly
•t'UCl-
ur*
Belgium 4035t77–4212yt»269–3?2715.01086–1587-199–1993021044-»65
Ο»·>Μίβ'*1 2236041–2?99---- -050–05013070.10 1317-029-026
ÊftC*G^'murry itÇ32790was»208?1667596?10*91669127.905368«7311551*15.03560y?80139031254060617561490«
franco 1121Λ495–1170910!9247827.00 »3330Í25.2708?40375745199.9427734.43127.14 6920297»71'0094
fcrentí 0IT-3170V0'5 069 019··019 -0O7 00?1290003 τ393
Hi)1y 175fi004–1765914603091–147.'417086769–1735512373203–126369425*.33-101.56
lwa«rn&OvKq oas046-1.*3 009–008 -056–036η500.44–73.94 1946031-ï»'7
W«*»*«rtaoda 29.54Q39–30«33616029–36SS-0.51–0.5142.000.82–42.42 -0.55-056
Kingdom 1»121.1313722263473769200«142.365»932170.58–06732«)3228963012«i>52733196353.622290425901
íXrtBid*6€C _–––––––_–––––
Tout 6304510.9410C8700466«657010.2117905106374 5126312.0421665741.524926417.2629756797603780321.012753367578
'fcKKnfry
»L1<30 /<?τΐ/unmiLlionte
Prod.JXnfras.EnergyTotal 'Prod.Infras0Er,er9yTotal
Belgiumsector29,1729,17sector0,5-0,5
–Denmark 4,29 - -4,29-- - - -
FRofGermany96,480,7329,79129,0553,25,933,292,3
Greece - - - – - -
France237,550,5137,41275,4705,1-~2,T~24^0111,4
Ireland 0,970,13 -1,1011,0 - r11,0
Italy 130,631,13-139,7696,25.3 -101,5
Luxembourg 68,62 - 66,62 .-0,1 .0,1
Netherlands 4,590,27 -4,66 -0,5 -0,5
UnitedKingdom .139,371,73226,05367,9570,20,1 70,3
Non-EEC 6,63 - -6,63 - - «· -
Total
K~699,13 •4,55323,221030,70315,714',757,2387,6:u)
Theconversionratesusedwerethoseobtainingon31Decemberofeachyear.

Table 8
Loans from EIBownresources contracted intheCommunity ,1970-81
ftnn*lbon eUAl
1970 7971 1973 1973 1974
Prod .m-tner -Total
00*' *a-gy
atrud'
uroProd Wv-En«f .Total
Md Ira- 0V
•trud -
uraProd . In-Enar -Total Prod .kv Enar -Total Prod In-Enar -Total
aad .fra-9/ aeet .fra- oy aact fra- øv
atroci - atrucl - atruct -
ura vre uro
•aiatwm •0– 100 22.0 – – –– –_ 14.4 14,4 –– _ – –– 10.1 10.1
____–3.3 3.3 6.8
«IOarman * 46.1–– 46.1 297 MO 9.4 01.9 05.0 130.4 79.0 – 125.5 204.5 265–
30.0 18.0 23.4 01.4 54.9 53.6 16.0 124.3 4.5 00.4 00.0 144,9 53.6 65.6 31.2 170.6 46.5 56.8 91.4 193.7
7.3 15.3 – 22.6 21.2 25.2 –
η··ν 157.9 111.7 5.0274.0 113.2 103.0 – 216.2 70.7 66.8 24.4 161.3 136.1 36.5 103.4 2760
2A–– 0.0– – 6.0 – – – –– – – – – 31.9 31.9
Urwtad Kmadom – – – – 67.1 – – 67.1 66.3 13.1 66.1 149.5
43.3*43.3 – 16.4»16.4
175.7 123.3 39.4 336.0 250.4 192.1 26.4460.0 162.3 163.4 160.2 506.9 277.9191.2 227.7 696.6 304.0 139.0 406.7 649.7
« Indottrv .a&tcwnv'O M aarvicoa .
• Austria .
1975 1976 1977 1978 1979
Prodæd 1-In-
fra·
atmcl·
iraEner­
gyTotal Prod ,
•edIn-
fra·
etrwd -
ura6nor· .
.orTotal Prod .
MCtIn-
fra·
•trud -
urefiner -
eyTotal Pfod
•ectIn-
fra·
strutt -
uroEnor .
oyTotal Prod
aedkv
fra-
utrvct -
vroEner -
OVTotal
_ «toa 10.6 17.9 _ - 17.962,2 0.7Ή 49.7 56.4
fcanmertt 11.C – 6.1 17.7 9,1 - - 9.1 12.0 7,1 12.6 32.7 12.4 51.4 42.5 106.3 5.4 3.9 6.3 15.«
ff)ptGermany – – – 9.2 –101.0110.6 - - 20.4 26.4 i.î - 43.2 45.5 4.0 – 43.6 47.0
franca 6.2 126.9 20.9 156.0 -60.1 - 60.1 1&.6 119.5 157.4 296.5 23.6 33T.6 96.1 3S*3 1.7 >22.1 96.9 377 .t
fraiet* 7.7 30.0 - 37.7 29.9 24.2 « 57.4 10.3 61.4 - 79.7 14.6 72.6 30.0 117.4 492124479.3 257.9
Baiy 32.S208.2 97.7353.6 137.S 195.1 50.0 362.6 197.1 109.3 393 425.7 142.2 374.0 3269 645.1 24463563 304.5 905.4
luiambovrg –
Hatneriande 30.4 30.4 - - - - - - - ~ – – –
Ifcviad Kingdom 57.0 64.3 192.4 &e.S 94.1 132.3 191.2 417.6 176.4 216.4 92.6 469.5 G7.3 247.0 116.4 430 7 04.0 29993Γ5.1 7390
OVMQ CEC _ – – - - - - - - - 46.02 46.8 ».4* 39.4
Teun 1362 4SI.4327.901rs 297.6 411.7 376.5 1066.0 426.2 595.7 379.5 1401.3 262.0 962.6 721.3 1966.5 377.6 906.6 99702261.2
1 ιrttfvflor ?.agr<urtufe undaa^vtCA « '< '11
*AvMrt *andNorway ·-··
Prod ,
sectorInfrast ._ipfio
EnergyTotalProd ,
sectorInfrast·1981
Energy
'1±Total
Belgium 6,2– 147 153,2 12,3– no ,2 162,5
Denmark 9,6 25,1 46,4 81,1 13,'3 10,6 119,0 142,9
FRofGermany - 14,2 14,2292,0
980292,0 Ij
159,2Greece
France-
1,7 63,4 213,91Ï «·
279,0-OI
67,7 159,0 ; •226,7
Ireland 177,2 114,0 43,1 334,3 81,9 113,7 129,7 325,3
Italy 223,8 578,5 350,2 1152,5 277,7 524,8 v 448,8 1251,3
Luxembourg- -- – –"
Netherlands- - - - – ··
United Kingdom .166,8 329,6 191,6 688,0 25,8 193,0– 218,8
Non-EECw 50,9 50,9 (zi- - 22,8 22,3 (3)
Total 585,3 1110,6 1057,3 2753,2 472,2
31007,8 1341,5
32821,5
10fwhich 282.1 million ECUintheformofguarantees Austria ftTunisia Tunisia

Table9
] • *
ListofNCIloanscontracted In1981
(inmillionECU)
ι
1.TITLEOFPROJECT
i I·.ITALYFRANCEUNITED
KINGDOM IRELANDTOTAL
1.ORDINARYLOANS j
15.8
39.8
11.9
12,0
28,3V
33,9
8,1•fllA.Infrastructure
1.Telephones-Campania
2.Telephones-Sardinia3.Industrialestáte!-;-Mezzogiorno
4.5Paris-Bordeauxmojjjrway
6.Watersuppliesiiiijthenorth
7.Telecommunicatio^-Ireland
^PTAL *f 67,540.3 j33,98,1 .149,861.5
B.ENERGYt
8.Coal-fired powerstations-BrindisiSSulcis
9.Hydro-electric powerstation-Edolo
10.Heatingnetwork-Brescia
11.Gasstorage-Minerbo
12.Algeria-Italygaspipeline
13.Northerngaspipelines
14.Peatproduction11.8
32.9
11,9
4,0.
7,9
15,9ri
:P.
9,2
TOTAL84,4 9,293,638.5'
TOTALA+Β 151,9 40,3 33,917,3243,4100,0
X 62,4 16,6 13,97,1 100,0
2.RECONSTRUCTION LOANS
28.«
30,8
26,1
155,?
55,7/I15.Railwaynetwork
16.Roadnetwork
17.Watersupply
18.Basicinfrastructure
19.Repairofschools
TOTAL 296,4
3· I
TOTALNCI448,3 40,3 33,917,3539,8
X83,0 7,5 6.33,2100,0
Theconversionratesusedwerethoseobtainingonthelastworkingdayofthequarter
beforethecontractwassigned.

Table10
ListofEuratomloanscontractedin1981
Titleofproject CountryAmount
(inniIlionECU)1
19.0l.8l EBESOoelIII(3«!trancha) BELGIUM 28,35
12.02.81 tBfS0ο·1III{4u«tranche) BELGIUM7,26_
2S.07.81 ICRS*XII FRANCE 18,84
2S.02.81 IERSAXIII FRANCE H,33
01.0t.81 INTERCOMTlhangeII(tu>tranche) BELGIUM Η,Ο
K.M.8) IIIERC0HTlhangeII(5u<tranche) BELGIUM 15,77
11.05.81 CBtS0o«lIII(Stktranche)/
INTERCOMIIhangtII(6&tranche) BELGIUM *53,35
22.05.81t
'EBESOoelIII(6utranche)/
INTERCOMIihang«II(7«ktranph«)1>BELGIUM-»2,02
22.05.81 EBESOoelIII(7thtranche) BELGIUM.·ι'
12,02
4«.07.61 CBESOoelIII(Su.tranche) BELGIUM "10,87
27.07.61 INTERCOKIihange{JI(H*tranche)/
■EBESOoelIV(Uttranche) BELGIUMΤ *
'19,80
>1.09.81 INTERCOMΤthangeIII(2bStra«che)/
CBESOoelIV(2*)tranche) BELGIUM 26,71
25.11.81 -IERSAXIV FRANCEh
37,50
11.12.81 'EKSOoelIII(9&tranche)/
OoelIV(Mtranche) BELGIUMΗ
2Μ2
!17.12.81 HERSAXV ..FRANCE 20,16
17.12.81 NERSAXVI FRANCEΝ
.8,00
22.12.81 ENEIMontaltediCastro ITALT 3?,56
!;ί
TOTAL357,59
Theconversion ratesusedwerethoseobtaining onthelastworkingda/ofthequarter
beforethecontractwassigned.
;

Table11
BreakdownbysectorofECSCloanspaidoutin1981
(1nmillionECU)
.Sector o.8fIt.NL UK XSL JUL GR*EEC40
1.-Coalindustry 30,57-
30,57
-Steelindustry 45,65 76,9390,07 10,96 223,61
Thermalpower
stations2,66 23,96 J-.3 ι
3 26,62
-Otherprojects 6,15
:·:-·"6,15
Total 70,80 100,8996,22 10,96 286,95
2.-Industrial
conversion 7,57 8,22 70,20:•''
85,99
3.-Workers'
housing
Overalltotal5,880,402,335,250,110,540,11 14,70
92,330,40111,44101,470,110,5470,3110,96 - 387,64
1 j
-Theconversionratesusedwerethoseobtaining on31December1981. .3
VJ?

Table 12
Loans outside theCommunity from borrowings ,1977-81
(inmiLlion ECU)
Country 1977 1978 1979 1980 1981
ACP 67 91
f*jl73 124 158
Algeri *M -" - 20 10
Morocco- mø 26- 30
Tunisia - - 24 5 12
Egypt- - 65- -
Jordan -- - 11 4 3
Lebanon - 3 17 3 12
Syriamm - 16- -
Israel - - - - 30
Malta- mm 3mm -
Cyprus- mm - mm 12
Portugal 60 35 46 70 79
Turkey .·- - 36 44 10
Yugoslavia . 25 25mm - -
Greece - 20 104 101
«
Spain- - – - 40
Total 152 174 421 371 396
Source :European Investment Bank reports .
1Theconversion rates used were those obtaining onthe last working day of
thequarter before the contract wassigned .

Table13
InterestsubsidiesgrantedintheCommunitybythevariousCommunitymechanisms
(1970-81)
Year•■■ECSC·/1.γ*p"-·..·-EROF2
'·(·RECONSTRUCTIOr
Italianand
Greek
earthquakes.article 154Article5&
*Ί *.·EMS:,'
'*
'1970V"'V ■'·V·.''·
•'Ή1·.-ymΓ'*«·"··<·--■■■'·*''f.·"*(t.··.Ak·t"v'V**V
• .r■<
'.·1971 2,2'ZjZ ■:'·ι'Α*'è* ·''1
«
1972,,4.3'•' ·...'.
1973 0,6:3-··1v···'
1974-<.-6,1ν>■;*.iy-\r*'*"■'.fΛ., '
1975 16,4·'6,6--··· .»'·"■··>*'·'!>'■·V**ν
T976:'3,4' r6,7;■■!«■·... *.*·ν:·.";'·\'·■;·\t
.'"1977-*"'2,5.17,3-" t·■'/■...-
1978 12,2>18,1"- ·■··.■
•1979 21,725,5\·2θ'ο"*12,1
1.·'1980 iJ25,633,3 V'-.V'.'·'·197·- •'*"·£.·r'"■".·~r.
1981.-S,2\*··ΖΖ6,2;· '193,2 .ι5■
•■•••>•*•'.-v.x...•••/.■>:K■? .. ,r.
^Non-discountedinterestsubsidies,paidinannualtranches.
Discountedinterestsubsidies,chargedtothegeneralbudgetasa
singlecapitalized sumwhenpaidout.
^Restructuring.
Conversion.
Interestsubsidiesinrespectofsubsidizedloansgrantedin1981wiltnotbepaidoutuntil1982orlater.

Table 14Cl
Borrower
NCI loansEMSinterest subsidies ,financial year 1981 ;
Italy
Project
Ente Nazionale per Pumped storaga -station
l'Energia Elettrica (ENEL )atEdolo(inMillion ECU)
Loan
33,0Interest subsidy
5,4
ENEL
Hunicipality of
Brescia
AGIP S.p.A
Ente Nazionale
Idrocarburi (ENI)
SNAM S.p.AThermal power stations
atBrindisi and Sulcis
District neating Brescia
Underground reservoirs for
storing natural gas
6aspipeline Algeria /Italy IV
Gaspipeline Minerbio -
'Zimella andRipalta -
''Cortegmaggiore
Cassa per ilMezzogiorno .Industriai estates atChieti ,
Frosmone ,Naples ,Salerno
and Catania "
NCI totaln,7
<.
U.9
4,0
7,8
15,3
12,0
96,21.8
1.9
0,6
1.2
2,5
t•:
1.3 *
15,1
EIB loans
AGIP
ENEL
ENEL
ENELHyrdocarbon :
-Lavinia
-Perla
-Emma
-Cavone ,;
Nuclear power station :
-Alto Lazio » IB
IIA
IIB
Nydro-electric power stations :
-Prèsenzano
*>Calusia
ι
Brindisi theraal power
:station2,8
26,7
3,8
25,2
30,8
43,8
7,7
23,0
4,8
11,50,3
3,7
0,5
2,9
'i,o
9,S
1,5
•4,3
0,5
1,8

Γ
Borrower-2-
ProjectQ\(inmillion ECU)'
Loan...Interestsubsidy
A6IP NaturaigasstorageatMinerbio Π.9 1,7
ENEL North-sotith links:A
"··Β43.6
30.78,2
'5,9
Electricity Sicily/Calabria 31,7 4,9
Electricity Sardinia 4,8 •0,7
SNAMS.p.A GaspipelineAlgeria-Italy :VA79,4 14,5
•VB38,2 7,3
GaspipelineChieti-San Salvo 1,7
GaspipelineRipalta-Cortemaggiore .•8,7 1.5
Cass·per11Mezzogiorno Irrigation :
-Gela
-Campidano :C
D
-Oristano Β «
-Foggia(Ofanto)Β
-AgroPontinoA15,9
8,3
7,6
9,2
U,9
9,52.5
1.6
1,4
1.7
2,1
2,0
CassaperilMezzogiorno Aqueducts:
-BasilicataIΒ
-CalabriaII
-Aurunci
-Latium/Abruzzi
-RuzzoΒ7,9·.
14,3
19,9
21,5
3,e1,2
2,6
3,5
.'4,4
0,6
CassaperilMezzogiorno Industriai estates:
-SyracuseIIIC
*Frosinone.Cassino,Anagni,.
Sangro-Aventino23,1
8,04,1
Ï·2
Cassaper11Mezzogiorno
Transport:\.
A:·»
AziendaNazionale
AutononadellaStrada-Palermomotorwayby-pass
*roadimprovements inLazio
·.·6,4
13,7!1,2
3,5
EIBTotal 630,1 111,5
TOTALITALY 726.3 126.6
Seefootnote 1onpage42.
^Actuallychargedtothebudget.I

Tabte 15
EMSinterest subsidies ,financial year 1981CH
Ireland
Borrower
NCI loans
Bord NaNona
Irish Government
EIB loans
Bord NaMona
Electricity Supply
Board (ESB )
ESB
ESB
Irish Government
Irish Government
Irish Government
Irish Government
British and Irish
Steam Racket Co.
Coras Iompair Eireann
(CIE)Project
Peat production IB
Telephone network VIIB
NCI total
Peat production IIB
Peat power stations :
Shannon bridge and
Lanesborough B
Coal-fired power station
atMoneymoint :B
C
Electricity grid IIA
Water engineering :--South-West B
-Mayo /Sligo C
-East /South-East C
-Midlands /North-East C
Land drainage C
Vocational training centres
forindustry andagriculture
Téléphoné network î
-VII C
-VII 0
Roll -on/roll -off vessel
Dublin surburban railway
network A
EIB total(inmillion ECU )
Loan CDInterest subsidy (2)
9,3
8,1
17,4
4,3
24,6 1
26,4
8.7
5,S
4,4
9.8
4,3
25,4
35,9
11,2
7,2
26,51,6
1,5
3,1
0,6
6,2
10,07,9
5,7
2,3
1.5
1.0
2.6
1.1
5,6
9,0
2,8
1,4
5',6
£73 ,S 63,5
TOTAL IRELAND 291,2 66,6
(1)Seefootnote1onpage 42
(2)Actually charged tothebudget