NoC68/10 OfficialJournaloftheEuropeanCommunities 11.3.93
Theamountsofthisreserveshallbetheequivalent,in
currentpricesforeachfinancialyear,ofthefollowing
amountsexpressedin1992prices:ECU200millionin
1993and1994andECU300millionforeachofthe
financialyearsbetween1995and1999.
Theseamountsshallbeadjustedtothecorresponding
allocationsinthefinancialperspectivecontainedinthe
Interinstitutional Agreementifthefinancialperspectiveis
revised.Theownresourcesnecessaryshallbemadeavailableas
providedinCouncilRegulation(EEC,Euratom)No
1552/89(»).
III.OTHERPROVISIONS
Article18
Budgetarydisciplineinrespectofallotherexpenditure
shallbeappliedonthebasisofthearrangements
containedintheInterinstitutional Agreement .
Article19
Thefinancialimplementation ofanyCouncilDecisionor
anydecisionbytheEuropeanParliamentandthe
Councilexceedingthebudgetappropriations availablein
thegeneralbudgetortheappropriations providedforin
thefinancialperspectivecontainedintheInter­
institutionalAgreementmaynottakeplaceuntilthe
budgethasbeenamendedand,wherenecessary,the
financialperspectiverevisedaccordingtotheprocedure
laiddownforeachofthesecases.
IV.FINALPROVISION
Article20
Decision88/377/EECisherebyrepealed.3.Commonprovisions
Article16
Thereservesshallbeusedbymeansoftransferstothe
budgetheadingsconcernedinaccordancewiththe
provisionsoftheFinancialRegulation .
Article17
Theownresourcesnecessaryforfinancingthereserves
shallnotbecalledinfromtheMemberStatesuntilthe
reservesareusedinaccordancewithArticle16. (')OJNoL155,7.6.1989,p.1.
ProposalforaCouncilRegulation(EEC,Euratom)establishingaGuaranteeFund
(93/C68/08)
COM(93)20final
(SubmittedbytheCommissionon17February1993)
Whereasmechanismscurrentlyexistforhonouring
guaranteeswhentheyareactivated,inparticularby
drawingprovisionallyoncashresources,asprovidedfor
inArticle12ofCouncilRegulationNo1552/89of29
May1989implementing Decision88/376/EEC,
EuratomonthesystemoftheCommunity'sown
resources('),aslastamendedbyRegulation (EEC,
Euratom)No...;
Whereasitisnecessaryforthesemechanismstoberein­
forcedbymakingprovisionsfortheriskofdefault;
Whereasitispossibletomeetthisneedbytheestab­
lishmentofaGuaranteeFundwhichmaybedrawnon
topaytheCommunity'screditorsdirect;
WhereastheGuaranteeFundshouldbeconstitutedby
thegradualpaymentofresources;whereastheFundwillTHECOUNCILOFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,andinparticularArticle235
thereof,
HavingregardtotheTreatyestablishingtheEuropean
AtomicEnergyCommunity ,andinparticularArticle203
thereof,
HavingregardtotheproposalfromtheCommission ,
HavingregardtotheopinionoftheEuropean
Parliament,
HavingregardtotheopinionoftheCourtofAuditors,
WhereastheEuropeanCouncil,meetinginEdinburgh
on11and12December,agreedthataGuaranteeFund
shouldbeestablishedtocoverloanguaranteesto
non-membercountries;
Whereasthegeneralbudgetisexposedtoincreased
financialriskasaresultoftheguaranteescoveringloans
tonon-membercountries; (')OJNoL155,7.6.1989,p.1.

11.3.93 OfficialJournaloftheEuropeanCommunities NoC68/11
subsequently alsoreceiveinterestonitsinvested
resourcesandlaterepaymentsbydefaultingdebtorsafter
theFundhaspaidcreditors;
Whereas,byreferencetothepracticeofinternational
financialinstitutions ,aratioof10°/obetweenthe
GuaranteeFund'sresourcesandguaranteedliabilitiesin
principalwouldseemadequate;
WhereasinitialpaymentstotheGuaranteeFundequalto
14%oftheamountofeachoperationwouldseem
appropriatetoattainthistargetamount;
Whereas,oncethisamountisattained,paymentstothe
GuaranteeFundcouldthenbelimitedto10%ofthe
amountofnewoperations;whereasiftheGuarantee
Fundexceedsthisamountthesurpluswillbepaidback
tothebudget;
WhereasmanagementoftheGuaranteeFundbythe
Commissionwillensureeffectiveandrapidimplemen­
tation;
WhereastheTreatiesdonotprovideanypowersother
thanthoseunderArticle235andArticle203,
respectively,fortheadoptionofthisRegulation,
HASADOPTEDTHISREGULATION :
Article1
AGuaranteeFund,hereinafterreferredtoas'theFund',
shallbeestablished,thepurposeofwhichshallbeto
repaytheCommunity'screditorsdirectintheeventof
defaultbythebeneficiaryofalendingoperation
guaranteedbythegeneralbudget.
Theoperationsreferredtointhefirstsubparagraphshall
becoveredbytheFundonlyifthebeneficiariesare
non-membercountriesorapersonnotresidentinthe
Community .
Article2
TheFundshallbeendowedby:
—paymentsfromthegeneralbudgetcorrespondingtoa
setpercentageofeachoperationforanon-member
country,decidedonandcommittedbythe
Communityandguaranteedbythebudget,
—interestonFundresourcesinvested,
—amountsrecoveredfromdefaultingdebtorswherethe
Fundhasalreadyhonouredtheguarantee .
Article3
TheFundshallrisetoanappropriatelevel,knownas
'thetargetamount',determinedbyreferenceto
guaranteedliabilities.
Thetargetamountshallbe10%oftheCommunity's
outstandingliabilitiesinprincipalarisingfromloansand
loanguaranteesgrantedbytheCommunity .If,attheendofayear,theFundexceedsthisamount,
thesurplusshallbepaidbacktoaspecialheadinginthe
statementofrevenueinthebudget.
Article4
Thepaymentsprovidedforunderthefirstindentof
Article2:
—shallbeequivalentto14%ofthevalueofthe
operationuntiltheFundreachesitstargetamount,
—shallbereducedto10%whenthetargetamountis
reached.
Article5
If,asaresultoftheactivationofguarantees,resources
intheFundfallbelow75%ofthetargetamount,the
rateofprovisioningonnewoperationsshallberaisedto
15%untilthetargetamounthasbeenreached.
IfaguaranteeisactivatedbeforetheFundreachesits
targetamountandtheresourcesintheFundfallbelow
75%ofthetargetamountasaresult,therateofprovi­
sioningshallberaisedto15%untiltheamountdrawn
hasbeenfullyrestored.
If,asaresultoftheactivationofguarantees,the
resourcesintheFundfallbelow50%ofthetarget
amount,thebudgetaryauthority,actingonaproposal
fromtheCommission ,shalldecideonmeasuresto
replenishtheFund.
Article6
TheFundshallbemanagedbytheCommission,which
shalladoptrulessatisfyingtheprinciplesofprudenceand
soundfinancialmanagement .
Article7
TheCommissionshall,bynolaterthanthefollowing
31March,sendtotheEuropeanParliament,theCouncil
andtheCourtofAuditorsanannualreportonthe
situationoftheGuaranteeFundandthemanagement
thereofinthepreviousyear.
Article8
Therevenueandexpenditureaccountandthebalance
sheetrelatingtotheFundshallbeattachedtothe
Communities'revenueandexpenditureaccountand
balancesheet.
Article9
ThisRegulationshallenterintoforceontheseventhday
followingitspublicationintheOfficialJournalofthe
EuropeanCommunities .
ThisRegulationshallbebindinginitsentiretyand
directlyapplicableinallMemberStates.