WRITTEN QUESTION E-0428/97 by Gianni Tamino (V) to the Commission (19 February 1997)

Subject: Bank fraud on easy-term loans for glasshouse cultivation in Sardinia (I)

In the Sardinia Region, loans for a maximum period of 15 years are granted to the glasshouse cultivation sector under Regional Law No 44 of 13 December 1988 (LIT 7 billion per year from 1988 to 2002, with a 10% interest rebate). The deadline for submitting applications was initially fixed at 30 March 1989 and subsequently extended to 31 May 1989. Under Protocol No 1455 of 23 January 1989, applications could include: (a) repayments due between 1 January 1988 and 31 December 1989 (emergency loans for damage to glasshouses); (b) debts due but not paid to suppliers of equipment, in respect of purchase of glasshouse structures, coming under projects approved before 31 December 1989; (c) operation loans due in 1987 and not yet paid and those due between 1 January 1988 and 30 April 1989; (d) instalments of agricultural loans in respect of land improvement and reorganization and land purchase and, possibly, pre-amortization interest due between 30 June 1988 and 1 July 1989 or (only in the case of reorganization loans) pre-amortization interest due between 31 December 1988 and 31 December 1989.

On the basis of these provisions, applications were submitted in due time. However, owing to the usual administrative delays, notarial acts were drawn up long after the authorized deadline. As a result, bank interests were calculated from 31 December 1989 until the date on which the notarial acts were issued (9 to 20 months later). All those in receipt of a loan with interest rebate thus also had to pay for the additional guarantees requested and the non-application of the Diana law (to avoid the mortgage risk) on the impact of agricultural exchange rates. There are even extreme cases where the beneficiary has unfortunately been obliged to sell his establishment to reimburse the debt thus contracted and where the spouse's property is also taken into account. Some even have to pay exorbitant real interest rates of 43.22%. When the contracts were signed, the contracting parties had not been informed of all the clauses by which they would subsequently be bound.

Does the Commission not consider that legal provisions - including Community legislation - on transparency of costs, the right to information and consumer protection (bank clients) have been infringed in this case?

Answer given by Mr Santer on behalf of the Commission (4 April 1997)

The Commission has no jurisdiction to deal with this matter, which is within the competence of the Italian authorities.

The loans to which the Honourable Member refers are not, so far as the Commission is aware, in the context of any Community scheme. Accordingly the Commission is not responsible for their conditions or organisation.

Equally the loans to which the Honourable Member refers are made in the context of business (glasshouse cultivation) and so fall outside the scope of Council Directive 87/102/EEC of 22 December 1986 for the approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit ((OJ L 42, 12.2.1987. )).