ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)524
Vol.1979/0180

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COMMISSION OFTHEEUROPEAN COMMUNITIES
Λ
COM (79)524 final
Brussels -3rd October 1979
DRAFT
INTERNAL AGREEMENT OMTHE FINANCING
AND ADMINISTRATION OFCOMMUNITY AID
COM (79)524 final

CommumcatiorroftheCommissiontotheCouncil
Subject;draftInternalFinancialAgreement
Followingtheinvitation whichitissuedtotheCommissionatthe
18September1979session,theCouncilisinvitedtofindherewith
thedraftInternalAgreementontheFinancingandAdministration of
CommunityaidunderthefutureEEC/ACPConvention .

Draft
INTERNAL AGREEMENT ONTHEFINANCING
ANDADMINISTRATION OFCOMMUNITY AID

THEREPRESENTATIVES OFTHEGOVERNMENTS OFTHEMEMBERSTATES,MEETING
WITHINTHECOUNCIL.
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity
(hereinaftercalledthe"Treaty"),
I
WhereastheACP-EECConventionof ,(hereinaftercalled
the"Convention")settheaggregateamountofCommunityaidtothe
ACPStatesat5227millionunitsofaccount;
Whereastherepresentatives oftheGovernments oftheMemberStates,
meetingwithintheCouncil,agreedon tosetat
110millionunitsofaccounttheamountofaidtobeborrebythe
EuropeanDevelopment Fundforthebenefitoftheoverseascountriesarid
territories havingspecialrelationswithFrance,theNetherlands andthe
UnitedKingdom(hereinaftercalledthe"countriesandterritories");
whereasprovisionisalsomadeforloanstotheamountof15millionunits
ofaccounttobegrantedbytheEuropeanInvestment Bank(hereinafter
calledthe"Bank")fromitsownresourcesinthecountriesandterritories ;
Whereastheunitofaccountusedinapplication ofthisAgreementis
thatlaiddownintheCouncilDecisionof21April1975onthe
definitionandconversionoftheEuropeanunitofaccountusedfor
expressingtheamountsofaidmentionedinArticle42oftheACP-EEC
ConventionofLome;whereasstepsshouldbetakentoallowforthe
possibility,byCouncildecision,ofreplacingthesaidunitofaccount
bytheECU;
Whereas,inordertoimplementtheConventionandtheDecisionconcerning
thecountriesandterritories (hereinaftercalledthe"Decision"),afifth
EuropeanDevelopmentFundshouldbeestablishedandthedetailsofthe
Fund'sappropriation shouldbedeterminedtogetherwiththeMemberStates
contributions toit;

-2-
Whereastherulesforthemanagementoffinancialcooperation shouldbe
determined /,theprocedureforprogramming/examiningandapprovingaid
shouldbedecidedandthedetailedrulesforsupervisingtheuseoftheaid
shouldbedefined;
WhereasaCommitteeofRepresentatives oftheGovernments oftheMember
StatesshouldbesetupundertheauspicesoftheCommission anda
similarcommitteeshouldbesetupundertheauspicesoftheBank;
WhereastheworkdonebytheCommission andtheBanktoapplythe
Convention andthecorresponding provisionsoftheDecisionshouldbe
harmonized;whereasitisthereforedesirablethat,asfaraspossible/
thecomposition oftheCommitteessetupundertheauspicesofthe
CommissionandoftheBankshouldbeidentical;
WhereastheCounciladoptedon16July1974aResolution onthe
harmonization andcoordination ofMemberStates'cooperationpolicies;
AfterconsultingtheCommissionoftheEuropeanCommunities/
HAVEAGREEDASFOLLOWS:

CHAPTER 1
Article 1
1.TheMemberStatesherebysetupaEuropeanDevelopment Fund(1980)
hereinafter calledthe"Fund").
2.(a)TheFundshallconsistof4652millionEuropeanunitsofaccount,
(hereinaftercalled"EUA"),tobefinancedbytheMemberStates
asfollows:
Belgium 274.468miIlionEUA
Denmark 116.30millionEUA
Germany 1316.516rmllionEUA
France 1190.912millionEUA
Ireland 27.912millionEUA
Italy 534.98millionEUA
Luxembourg 9.304rmllionEUA
Netherlands 344.248millionEUA
UnitedKingdom 837.36millionEUA.
(b)ThisschedulemaybeamendedbyCouncilDecisionreachedunanimously
intheeventoftheaccessionofanewMemberStatetotheCommunity.
3.Theamountstatedinparagraph 2shallbeallocatedasfollows:
(a)4542millionEUAfortheACPStates,comprising :
2928millionEUAintheformofgrants
504millionEUAintheformofspecialloans
280millionEUAintheformofriskcapital
550millionEUAintheformoftransferspursuanttoTitleII,
ChapterIoftheConvention;
280millionEUAintheformofthespecialfinancingfacilitypursuant
toTitleIII-ChapterIoftheConvention;

-4-
(b)98millionEUAforthecountriesandterritories,comprising :
59millionEUAintheformofgrants
31millionEUAintheformofspecialloans
8millionEUAintheformofriskcapital;
(c)12millionEUAintheformoftransfersforthecountriesand
territories,pursuanttothoseprovisionsoftheDecisionwhich
concerntheexportearningsstabilization system.
4.Whereacountryorterritorywhichhasbecomeindependent accedestothe
Convention,theamountsindicatedinparagraph3(b)shallbereducedand
thoseindicatedinparagraph3(a)correspondingly increasedbyadecision
oftheCouncilactingunanimously onaproposalfromtheCommission.
5.Inthiscase,thecountryconcernedwillcontinuetobeeligibleforthe
fundsprovidedforinparagraph3(c),subjecttothemanagementruleslaid
downinTitleIIoftheConvention .
Article2
TotheamountlaiddowninArticle1(2)shallbeaddedupto700millionEUA
intheformofloansgrantedbytheBankfromitsownresourcesunderthe
conditionslaiddownbyitinaccordancewithitsstatute.

-5-
TheseLoansshallbeallocated asfollows:
(a)uptotheamountof685millionEUA,forfinancingoperations to
becarriedoutintheACPStates;
1(b)uptotheamountof15millionEUA,forfinancingoperationsto
becarriedoutinthecountries andterritories .
Article3
TheEUAusedforapplyingthisAgreementshallbethatdefinedinthe
CouncilDecisionof21April1975onthedefinition andconversionofthe
Europeanunitofaccountusedforexpressing theamountsofaidmentioned
inArticle42oftheACP-EECConventionofLome.Thisdefinition maybe
amendedbyCouncilDecision.
Article4
Anamountofupto175millionEUAshallbesetasidefromthegrantaid
specifiedinArticle1(3)(a)and(b)forfinancingtheinterestrate
subsidiesreferredtoinArticle104oftheConvention andinthe
corresponding provisions oftheDecision.Anypartofthisamountnot
committedbytheendoftheperiodduringwhichloansaregrantedbythe
Bankshallagainbecomeavailable asgrantaid.
TheCouncilmaydecide,onaproposalfromtheCommission drawnupin
agreementwiththeBank,toraisethisceiling.
1Figuretobeconfirmed.

-6-
Article 5
WiththeexceptionofloansgrantedbytheBankfromitsownresources,
allfinancialoperations undertaken forthebenefitoftheACPStates
orthecountries andterritories shallbecarriedoutinaccordance
withtheconditionslaiddowninthisAgreement andshallbechargedto
theFund.
Article6
1.WithinonemonthoftheentryintoforceoftheConvention,and
subsequently before1Septemberofeachyear,theCommissionshalldraw
upestimatesofthecommitments tobeenteredintoduringthebudgetyear,
takingintoaccounttheBank'sforecastsinrespectoftheoperations which
itmanages,andshallcommunicate theseestimatestotheCouncil.
2.Inthesamemanner,theCommissionshallestablish andcommunicate to
theCouncilthetotalamountofthepaymentstobemadeinthebudget
yearinquestion.Onthebasisofthisamountandtakingintoaccount
cashrequirements ,includingthosearisingfromexpenditure incurredin
implementing TitleI,ChapterIoftheConvention andthecorresponding
provisionsoftheDecisionandexpenditure incurredinimplementing
TitleIII,ChapterIoftheConvention,theCommissionshalldrawupa
scheduleofcallsforcontributions determining thedatesonwhichpayment
isdue;thedetailedrulesforpaymentofsuchcontributions bythe
MemberStatesshallbedetermined bytheFinancialRegulationreferredto
inArticle28.Thisscheduleshallbesubmitted bytheCommissiontothe
Council,whichshalldecidethereonbythequalifiedmajoritylaiddown
inArtiele17(4).

-7-
Ifthecontributions areinsufficient tomeettheactualrequirements of
theFundinthebudgetyearinquestion,theCommissionshallsubmit
proposalsforsupplementary paymentstotheCouncil,whichshalldecide
thereonassoonaspossiblebythequalifiedmajoritylaiddownin
Article17(4).
3.UntilusedbytheCommissionforfinancingprojects,programmesor
transfersadoptedundertheconditionslaiddowninArticles10to21,26
and27,thefundsobtainedfromthecallsforcontributions referredto
inparagraph 2shallremaindepositedinspecialaccountsopenedbyeach
MemberStatewithitsTreasuryorwithsuchbodiesasitmaydesignate,
inaccordancewiththedetailedruleslaiddownbytheFinancialRegulation
referredtoinArticle28.
Article7
1.AnyremainingbalanceoftheFundshallbeusedupinaccordancewith
thesamerulesasthoselaiddownintheConvention,theDecisionandthis
Agreement.
2.UponexpiryofthisAgreement,MemberStatesshallstillbeobligedto
pay,asprovidedinArticle6,thatportion<^ftheircontributions notyet
calledfor.
Article8
1.TheMemberStatesundertaketoactasguarantorfortheBank,waiving
anyrighttoobjectandinproportiontotheircontributions toitscapital,
inrespectofallfinancialcommitmentsarisingforitsborrowersoutof
theloancontractsconcludedbytheBankwithitsownresourcesin
implementation bothofArticle95oftheConvention andthecorresponding
provisionsoftheDecision,andwhereappropriate.Article59ofthe
Convention .

-8-
2.Thisguaranteeshallberestricted to75%ofthetotalamountofthe
creditsopenedbytheBankunderalltheloancontracts.Itshallbe
appliedtocoverallrisks.
(3.Notwithstanding theaboveparagraphs theCommunity
may,withregardtofinancial commitments underArticle59ofthe
Convention,actasguarantorfortheBank,inspecificcasesandatthe
latter'srequest,inrespectofthetotalamountofthecreditsopened
1
bytheBankunderthecorresponding loancontracts.)
4.Theundertakings arisingfromparagraphs 1and2shallbethesubject
ofguaranteecontracts betweeneachMemberStateandtheBank.
(5.Theundertakings oftheCommunityarisingfromparagraph 3shallbe
thesubjectofguaranteecontracts betweentheCommunity,represented
1
bytheCommission,andtheBank.)
Article9
1.Payments madetotheBankinrespectofspecialloansgrantedtothe
ACPStatesandthecountries andterritories since1June1964,aswell
astheproceedsandincomefromriskcapitaloperations undertaken since
1February1971forthebenefitofthoseStates,countries andterritories ,
shallbecreditedtotheMemberStatesinproportion totheircontributions
totheFundfromwhichthesumsarederived,unlesstheCouncildecides
unanimously,onaproposalfromtheCommission,toplacetheminreserve
orallocatethemtootheroperations .
Anycommission duetotheBankformanagingtheloansandoperations referred
tointhefirstsubparagraph shallbedeductedinadvancefromthesesums.
1ProposaloftheBank;theCommissionconsidersthatthesetwoparagraphs
shouldbetakenupinaCouncildeclaration .

;
-9-
2.TheamountofthegrantsfromtheFund,asfixedinArticle1(3)(a)
and(b),shallbesupplemented byanyotherRevenueaccruingtotheFund.
CHAPTERII -
Article10
1.SubjecttoArticles17to21andwithoutprejudicetotheBank's
responsibilities fortheadministration ofcertainformsofaid,theFund
shallbeadminitered bytheCommissioninaccordance withtheruleslaid
downbytheFinancialRegulationreferredtoinArticle28.
2.SubjecttoArticles22to24,riskcapitalandinterestratesubsidies
financedfromtheFund'sresourcesshallbeadministered bytheBankon
behalfoftheCommunityinaccordancewithitsstatuteandtheruleslaid
downbytheFinancialRegulationreferredtoinArticle28.
Article11
TheCommissionshallberesponsible forimplementing theaidpolicy
definedbytheCouncilandthegeneralguidelinesforfinancialand
technicalcooperation definedbytheACP-EECCouncilofMinisters
pursuanttoArticle119oftheConvention.
Article12
1.TheCommission andtheBankshallperiodically provideeachotherwith
appropriate information ontherequestsmadetothemforfinanceandon
preliminary contractsmadewiththembytherelevantbodiesoftheACP
States,thecountriesandterritories,orotherrecipientsofaidas
providedforinArticle94oftheConventionandinthecorresponding
provisionsoftheDecision,beforetheirrequestsweresubmitted.

-10-
2.TheCommission andtheBankshallkeepeachotherinformedofthe
progressmadeinappraisingrequestsforfinance.
Article13
1.TheCommissionshallappraiseprojectswhich,pursuanttoArticle101
oftheConventionandthecorresponding provisionsoftheDecision,could
befinancedbygrantsorspecialloansfromtheFund'sresources.
TheCommissionshallalsoappraiserequestsfortransferssubmittedpursuant
toTitleII,ChapterIoftheConvention andthecorresponding provisions
oftheDecision,togetherwithprojectsandprogrammeseligibleforthe
specialfinancingfacilitypursuanttoTitleIII,ChapterIoftheConvention.
Tothisend,itshallsatisfyitselfthattheconditionsforbringinginto
.operationtheexportearningsstabilization systemandthespecialfinancing
facilityformineralshavebeenmet.
2.TheBankshallappraiseprojectswhich,pursuanttoitsstatute,
Article101oftheConvention andthecorresponding provisionsoftheDecision,
couldbefinancedbyloansfromitsownresources,withorwithoutinterest
ratesubsidies,orbyriskcapital.
3.Projectswhichcomeundertheindustrial,agri-industrial ,miningor
tourismsectors,andenergyproduction schemeslinkedtoaprojectinthose
sectors,shallbesubmittedtotheBank,whichshallexaminewhetherthey
areeligibleforoneoftheformsofaiditadministers .
4.Where,inthecourseofappraisalofaprojectorprogrammebythe
CommissionorbytheBank,itis.foundthatsuchprojectorprogrammecould
notbefinancedbyoneoftheformsofaidadministered bytheinstitution
inquestion,thelatterwill,havinginformedthepotentialrecipient,
transmittherequesttotheotherinstitution .
1Seedeclaration annexed.

-11-
Article14
»
1.Withoutprejudicetospecialinstructions whichtheBankreceives
fromtheCommunityinrespectoftherecoveryofprincipalandinterest
relatingtospecialloans,theCommissionshallundertake,onbehalfof
theCommunity,thefinancialexecutionofoperationscarriedoutwith
theFund'sresourcesintheformofgrants,specialloans,transfersor
specialfinancingfacility;itshallmakepaymentsinaccordancewith
theFinancialRegulationreferredtoinArticle28.
2.TheBankshallundertake,onbehalfoftheCommunity,thefinancial
•executionofoperationscarriedoutwiththeFund'sresourcesintheform
ofriskcapital.Insuchcases,theBankshallactonbehalfandatthe
riskoftheCommunity.Anyresultingrights,particularly rightsas
creditororowner,shallbevestedintheCommunity.
3.TheBankshallundertakethefinancialexecutionofoperations
carriedoutintheformofloansfromitsownresources combinedwith
interestratesubsidies fromtheFund'sresources.
Article15
1.Bywayofapplication ofArticle109oftheConvention,programming
missionsshallbeundertakenunderthegeneralresponsibility ofthe
Commissionwiththeparticipation oftheBank.
2.Forthepurposeoftheirpreparation,andatthesametimetoachieve,
ontheoccasionofthemissions,coherencebetweentheCommunityaidand
theaidgivenbyeachMemberStatetotheACPStates,
(a)theCommissionshallprovidetheMemberStateswithinformationobtainedfrom
theACPStatesasregardsthecontentandprospectsoftheirdevelopment plans
theobjectivestheyhavesetthemselvesandprojectsalreadyidentifiedwhich
arelikelytoattainthoseobjectives.TheCommissionshallpreparesuch
information inliaisonwiththeBank,asregardsthematterswhichconcern
thelatter.
(b)TheMemberStatesshallinformtheCommissionconcerningthedirectiontobe
takenfortheirfutureandforanygrantedorintendedprojectorprogramme
financing.

-12-
(c)EachMemberStateandtheCommissionshallperidocially bringsuch
*information uptodate.
3.Thisarticleshallalsoapplyasregardsthecountriesandterritories .
Article16
1.Beforeprogramming missionsaresentout,andonthebasisofinformation
providedbytheCommissionandtheMemberStates,anexchangeofviews
betweentherepresentatives oftheMemberStates,theCommissionandthe
BankshalltakeplacetoascertainthegeneralframeworkfortheCommunity's
financialandtechnicalcooperation witheachACPState!
■
2.Followingtheprogramming missionsundertakenintheACPStatesbythe
Commission andtheBank,theindicative programmeofCommunityaidforeach
ACPStateshallbeforwardedtotheMemberStates.
ShouldmorethanoneMemberStatesorequest,theprogrammesshallbe
thesubjectofanexchangeofviewsbetweentherepresentatives ofthe
MemberStates,theCommission andtheBank.
3.Ifneedbe,andatleastonceduringtheperiodcoveredbythe
Cprwention,therepresentatives oftheMemberStates,theCommissionand
theBankshalljointlyexaminetherateofimplementation ofthe
indicative programmes andanyamendmentstobemadetothesameatthe
requestoftheACPStateinquestion.

-13-
Article17
1.ACommittee(hereinaftercalledthe"EDFCommittee"),consistingof
representatives oftheGovernmentsoftheMemberStates,shallbesetup
undertheauspicesoftheCommission.
TheEDFCommitteeshallbechairedbyaCommissionrepresentative ,andits
secretariatshallbeprovidedbytheCommission.
Arepresentative oftheBankshalltakepartinitswork.
2.TheCouncil,actingunanimously,shalladopttherulesofprocedureof
theEDFCommittee.
3.WithintheEDFCommittee,thevotesoftheMemberStatesshallbe
weightedasfollows:
Belgium 6
Denmark 3
Germany 27
France 24
Ireland 2
Italy 12
Luxembourg 1
Netherlands 8
UnitedKingdom 17
4.TheEDFCommitteeshallactbyaqualifiedmajorityof69votes.
Article18
1.TheEDFCommitteeshallgiveitsopiniononfinancingproposalsfor
projectsorprogrammesfinancedbygrants,specialloansorspecial
financingfacilityresources,submittedtoitbytheCommission.

-14-
2.Thefinancingproposalsforprojectsshallexplaintherelevanceof
theprojectstothedevelopment prospectsofthecountryorcountries
concerned;whereappropriate,theyshallmentiontheusetowhichsuch
countrieshaveputpreviousCommunityaid.
Theyshallincludeinparticularmeasurespromoting,inaccordancewith
TitleVII,Chapter7oftheConventionandthecorresponding provisions
oftheDecision,participation bynationalfirmsoftheACPStatesandof
thecountriesandterritories incarryingouttheprojects.
3.IftheEDFCommitteerequestssubstantial changesinthefinancing
proposalorintheabsenceofafavourableopiniononthelatter,the
Commissionshallconsulttherepresentatives oftheACPStateorACP
Statesconcerned.Intheabsenceofafavourableopinion,thelatter
shall,attheirrequest,beheardbytherepresentatives oftheCommunity,
inaccordance withArticle113oftheConvention.
4.Inthecasesmentionedinparagraph 3,thefinancingproposal,after
revieworextension,asthecasemaybe,shallbesubmittedafreshto
theEDFCommitteeatoneofitssubsequentmeetings.---~
IftheCommitteestillrefusestodeliverafavourableopinion,the
Commissionshallconsultafreshtherepresentatives oftheACPStateor
ACPStatesconcerned,inaccordancewithArticle113(4)oftheConvention.
Article19
1.Thefinancingproposals,togetherwiththeopinionoftheEDFCommittee,
shallbesubmittedtotheCommission foritsdecision.

-15-
2.IftheCommissiondecidestodifferfromtheopinionexpressedby
theCommittee/oriftheCommitteehasnotdeliveredafavourableopinion,
itshalleitherwithdrawthefinancingproposalor,attheearliest
opportunity,refertheproposaltotheCouncil,whichshalldecideonit
accordingtothesamevotingprocedureastheEDFCommittee.
InthelattercasetheACPStateconcerned may,asprovidedforin
Article113(5)oftheConvention,transmittotheCouncilanyadditional
informationitconsidersnecessarybeforethefinaldecisionistakenand
maybeheardbythePresidentandmembersoftheCouncil.
Article20
TheCommissionshallregularlyinformtheEDFCommitteeofallrequestsfor
financingofficiallysubmittedtoitbyoneormoreACPStatesirrespective
ofwhethertheseareselectedbyitsdepartments .
Article21
TheEDFCommitteeshallbekeptinformedoftheresultsofworkperiodically
donebytheCommission ontheevaluationofprojectsbeingcarriedoutor
completed,particularly inrelationtothedevelopmentobjectivesset.
Article22
1.ACommittee (hereinafter calledtheArticle22Committee),consisting
ofrepresentatives oftheGovernments oftheMemberStates,shallbeset
upundertheauspicesoftheBank.

-16-
TheArticle22Committeeshallbechairedbytherepresentative ofthe
MemberStatecurrentlyoccupyingthePresidencyoftheBoardof
GovernorsoftheBank;itssecretariatshallbeprovidedbytheBank.
Arepresentative oftheCommissionshalltakepartinitswork.
2.TheCouncil,actingunanimously,shalladopttherulesofprocedure
oftheArticle22Committee.
3.WithintheArticle22Committee,thevotesoftheMemberStatesshall
beweightedasprovidedinArticle17(3).
4.TheArticle22Committeeshallactbyaqualifiedmajorityof69votes.
Article23
1.TheArticle22Committeeshalldeliveranopiniononrequestsforloans
withinterestratesubsidiesandonproposalsforfinancingbyriskcapital
whicharesubmittedtoitbytheBank.
TheCommissionrepresentative may,atmeetings,submittheCommission's
assessmentoftheseproposals.Thisassessmentshallstatewhetherthe
projectsconformwithCommunitydevelopment aidpolicy,withtheobjectives
offinancialandtechnicalcooperation laiddownbytheConvention andwith
thegeneralguidelinesadoptedbytheACP-EECCouncilofMinisters.
Inaddition,theBankshallinformthisCommitteeofanyloanswithout
interestratesubsidiesthatitintendstogrant.
2.ThedocumentsubmittedtotheArticle22CommitteebytheBankshall,
inparticular,explaintherelevantoftheprojecttothedevelopment
prospectsofthecountryorcountriesconcernedand,whereappropriate,
indicatethesituationasregardsloansgrantedbytheCommunityandholdings
acquiredbyit.

-17-
3.WheretheArticle22Committeedoesnotdeliverafavourableopinion
onaproposalconcerning anACPStateorgroupofACPStates,theBank
shallconsulttherepresentatives ofthesaidStateorStatesandthe
procedurelaiddowninArticle113(3)and(4)oftheConventionshallapply.
4.WheretheArticle22Committeedeliversafavourableopinioninrespect
ofarequestforaloanwithaninterestratesubsidy,therequest,
togetherwiththereasonedopinionoftheCommitteeand,whereappropriate,
theassessmentoftheCommissionrepresentative ,shallbesubmittedfora
decisiontotheBoardofDirectorsoftheBank,whichshallactin
accordancewiththeprovisionsoftheBank'sstatute.
IntheabsenceofafavourableopinionfromtheArticle22Committee,the
Bankshalleitherwithdrawtherequestordecidetoupholdit.Inthelatter
event,thisrequest,togetherwiththereasonedopinionoftheCommitteeand,
whereappropriate,theassessmentgivenbytheCommissionrepresentative ,shall
besubmittedforadecisiontotheBoardofDirectorsoftheBank,whichshall
actinaccordancewiththeprovisionsoftheBank'sStatute.
5.Where,inrespectofaproposalforfinancingbyriskcapital,the
Article22Committeedeliversafavourableopinion,theproposalshallbe
submittedforadecisiontotheBoardofDirectorsoftheBankwhichshallact
inaccordancewiththeprovisionsoftheBank'sstatute.
IntheabsenceofafavourableopinionfromtheArticle22Committee,theBank
shalleitherwithdrawtheproposalorrequestthattheMemberStatechairing
theArticle22CommitteebringthematterbeforetheCouncilassoonaspossible ,,
Inthelattercase,theproposalshallbesubmittedtotheCounciltogetherwith
thereasonedopinionoftheArticle22Committeeandtheassessment bythe
Commissionrepresentative .

-18-
TheCouncilshallactinaccordancewiththesamevotingprocedureas
theArticle22Committee.
IftheCouncildecidestoconfirmtheArticle22Committee'sposition,the
Bankshallwithdrawitsproposal.
If,however,theCouncilisinagreementwiththeBank'sproposal,theBank
shallimplementtheproceduresunderitsstatute.
Article24
1.Subjecttosuchadjustments asarenecessarytotakeaccountofthe
natureoftheoperationsfinancedandoftheprocedureslaiddowninthe
statuteoftheBank,thelattershallregularlyinformtheArticle22
Committeeofallrequestsforfinancingofficiallysubmittedtoit,
irrespective ofwhethertheseareselectedbyitsdepartments .
2.TheArticle22Committeeshallbekeptinformedoftheresultsofwork
periodically donebytheBankontheassessmentofprojectsbeingcarried
outorcompleted,particularly inrelationtothedevelopmentobjectives
set.
Article25
1.TheCommission andtheBankshallascertain howtheCommunityaid
administered byeachofthemisusedbytheACPStates,thecountries
andterritories oranyotherrecipients.
2.Theyshallalsoascertain,eachfortheirownoperationsandinclose
collaboration withtherelevantauthorities ofthecountryorcountries
concerned,howprojectsfinancedwithCommunityaidareusedbythe
recipients.

-19-
3.Whenascertaining howCommunityaidandprojectsareused,asprovided
forinparagraphs 1and2,theCommission andtheBankshallexaminethe
extenttowhichtheobjectives referredtoinArticles 91and92ofthe
Convention andinthecorresponding provisions oftheDecisionhavebeen
attained.
4.TheCommission andtheBankshallinformtheCouncilasandwhenrequired
ofitsfindingspursuanttoparagraphs 1,2and3.
TheCouncil,actingbyaqualifiedmajorityaslaiddowninArticle17(4),
shalltakethenecessary measures.
CHAPTERIII
\
Article26
TheamountsofthetransfersreferredtoinArticles39and40respectively
ofTitleIIoftheConvention andinthecorresponding provisions ofthe
Decision,andthecontributions tothereplenishment ofresourcesmentioned
inArticle42oftheConvention andinthecorresponding provisionsofthe
Decision,shallbeexpressedinunitsofaccountaslaiddowninArticle3.
Paymentsshallbemadeinthe'currencyofoneormoreMemberStateschosenby
theCommission afterconsultation oftheACPStateortherelevant
authorities ofthecountries andterritories .
Article27
EachyeartheCommissionshalldrawupacomprehensive reportfortheMember
StatesontheoperationofthesystemandtheusemadebytheACPStatesof
thefundstransferred .

-20-
Thereportshallindicateinparticulartheeffectofthesystemonthe
economicdevelopment oftherecipientcountriesandonthedevelopment
ofexternaltrade.
Thisarticleshallalsoapplyinrespectofthecountriesandterritories .
CHAPTERIV
Article28
Theprovisionsforimplementing thisAgreementshallbethesubjectofa
FinancialRegulationadopted,upontheentryintoforceoftheConvention,
bytheCouncilactingbythequalifiedmajoritylaiddowninArticle18(4)
onthebasisofaCommissiondraft,afteranopinionhasbeendeliveredby
theBankontheprovisionsconcerningitandbytheCourtofAuditorsprovided
forinArticle206oftheTreaty.
Article29
1.Atthecloseofeachfinancialyear,theCommissionshalladoptthe
revenueandexpenditure accountandthebalancesheetoftheFund.
2.Withoutprejudicetoparagraph4,theCourtofAuditorsprovidedfor
inArticle206oftheTreatyshallexercisealsoitspowersinrespectof
theFund'soperations.TheconditionsunderwhichtheCourtexercisesits
powersshallbelaiddownintheFinancialRegulationsreferredtoin
Article28.
3.ThedischargeforthefinancialmanagementoftheFundshallbegiven
totheCommissionaccordingtotheprocedureprovidedforinthefourth
paragraphofArticle206oftheTreaty.

-21-
4.TheoperationsfinancedfromtheresourcesoftheFundandmanagedby
theBankshallbesubjecttothecontrolanddischargeprocedureslaiddown
bythestatuteoftheBankforallitsoperations.Eachyear,theBank
shallsendtheCommission andtheCouncilareportontheexecutionof
operationsfinancedfromtheresourcesoftheFundandmanagedbytheBank.
Article30
1.TheremainingbalanceoftheDevelopment Fundfortheoverseascountries
andterritories established bytheImplementing Convention annexedtothe
Treatyshallcontinuetobeadministered asprovidedinthatImplementing
Convention andinaccordancewiththerulesandregulations inforceon
31December1962.
TheremainingbalanceoftheFundsetupbytheInternalAgreementonthe
financingandadministration ofCommunityaidsignedatYaoundeon20July1963
shallcontinuetobeadministered asprovidedinthatInternalAgreement
andinaccordancewiththerulesandregulations inforceon31May1969.
TheremainingbalanceoftheFundsetupbytheInternalAgreementonthe
financingandadministration ofCommunityaidsignedatYaoundeon
29duly1969shallcontinuetobeadministered asprovidedinthatInternal
Agreementandinaccordancewiththerulesandregulations inforceon
31January1975.
TheremainingbalanceoftheFundsetupbytheInternalAgreementonthe
financingandadministration ofCommunityaidsignedinBrusselson
11July1975shallcontinuetobeadministered asprovidedinthatInternal
Agreementandinaccordancewiththerulesandregulations inforceon
1March1980.

-22-
2.Intheeventofsuccessfulcompletionofprojectsfinancedfromthe
Fundsreferredtoinparagraph 1beingjeopardized byalackofresources
duetothebalancebeingexhausted,proposalsforadditionalfinancingmay
besubmittedbytheCommissionundertheconditionslaiddowninArticle18.
Article31
ThisAgreementshallbeapprovedbyeachMemberStateinaccordancewithits
ownconstitutional requirements .TheGovernmentofeachMemberStateshall
notifytheSecretariat oftheCounciloftheEuropeanCommunities whenthe
proceduresrequiredforitsentryintoforcehavebeencompleted.
ThisAgreementisconcludedforthesamedurationastheConvention.
However,itshallremaininforceforaslongasisnecessaryforallthe
operationsfinancedundertheConventiontobefullyexecuted.
Article32
ThisAgreement,drawnupinasingleoriginalintheDanish,Dutch,English,
French,GermanandItalianlanguages,eachofthesetextsbeingequally
authentic,shallbedepositedinthearchivesoftheSecretariat ofthe
CounciloftheEuropeanCommunities,whichshalltransmitacertifiedcopy
toeachoftheGovernments oftheSignatoryStates.

DraftDeclaration oftheCommunity
Article13(3)oftheInternalFinancial Agreement
1.Itisunderstood thatthesectorsofBankintervention mentionedin
Article13(3)oftheInternalAgreement arenotlimitative butconstitute
aguide-line whichdoesnotexcludethepossibility oftheBankgivingaid
intheformofloansoutofitsownresourcesforinfrastructure projects
showingacommercialreturnintheACPStateswhenthisformoffinancing
seemsappropriate,byreasonoftheirlevelofdevelopment andeconomic
andfinancialstate.
2.Requestsforfinancing byriskcapitalforprojectsinthetransport
andtelecommunications sectorsmay,inexceptional circumstances ,alsobe
presentedtotheBankinthecaseofindustrial-type firmsunderautonomous
management whichareabletojustifytheuseofthiskindofaid(Article105
oftheConvention).
3.Asregardsaidforsmallandmedium-size firms(Article144ofthe
Convention )responsibility fordrawingupsuchprojectsrestseitherwith
theCommission ortheBankaccordingtotherulesandcriteriasetoutin
theannexedtable.
Annex

POSSIBLEALLOCATION OPRESPONSIBILITIES BETWEENTHE
COMMISSION ANDTHEEIBFORTHEFDTAHCIMJ
OPSMALLAMDMEDIUM-SIZED ENTERPRISES
1
Thitiallocationofresponsibilities shouldbeplacedona,formalbasisii;terts
whichcouldpossiblybenegotiatedinpartwiththeACPStates;itshould,inany
case,appearatleastinaninternalprotocolbetweentheCommissionandthe3ank.
EUROPEAN INVESTMENT BANK COMMISSICST
I.Sectors
Smallandmediun-sieed enterpriseB
inindustry,agricultural industry
andtourism,Smallenterprisesinthecraft,
agricultural andcommercialsectors.
Onlendin/rbodies
Banksanddevelopmentfinancing
institutions workingintheEIB
sectorsspecifiedunderI.above
andemployingbankingandcom­
mercialadministrative methoda.II.Onlendin-?bodiesordirectrccipiartj
Anybody,eitherpublicorinthe
natureofacooperative ormutual
assistancesociety,aimedat
developingthecraft,commercial
andagricultural sectors.
III.Methodsandprocedures
(Tokenentry)Directacquisition' ''EDFgrantorloanonspecialterrasto
ofholdingsbytheCommunityin theonlendingbodywiththecondition
thecapitalofdevelopment banks. whereappropriate ,thatthelatter-Globalloans,withinterest passonthefinancingintheformof
ratesubsidy,fromlheBank's aloan.
ownresources .
–Globalaid,intheformofriskcapital(fcofinanceloansorCOJW
stitutetheownresourcesof
smallandmedium-sized enter­
prises).
TheBartk'susualappraisal,
decision-taking andmonitoring
procedurestobeadaptedtothe
particularcasesandtothe
natureoftheoperations.
Nopriorlimitongloballoans
oraid.IV.Sizeofthelendingoperations
Nopriorlimitongloballoans Nolimitforthedirectrecipientand.
oraid. whereonlenttoagricultural ,craftax.
commeroialsectors,loanmaynot
Minimumlendingof20000SUA(or exceed20OO0EUAfortheindividual
more,ofoourse)forenterprises operation,
intheEIBsectorsspecified
underI.above.