PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING REGULATION ( EEC ) NO 599/91 INTRODUCING A CREDIT GUARANTEE FOR EXPORTS OF AGRICULTURAL PRODUCTS AND FOODSTUFFS FROM THE COMMUNITY TO THE SOVIET UNION
Date: 1991-04-19
Institutions: European Commission
Subjects: USSR, agricultural product, credit guarantee, export, foodstuff

COMMISSION OF THE EUROPEAN  COMMUNITIES 

C0M(91) 140 final 

Brussels, 19 April  1991 

Proposal  for a 

COUNCIL REGULATION  (EECÏ 

amending Regulation  (EEC) No 599/91  introducing  a credit  guarantee 
for exports of agricultural  products and foodstuffs  from  the  Community 
to the Soviet  Union 

(presented  by the Commission) 

Explanatory  Memorandum 

Subject  : Amendment  to Council  Regulation  H'  599/91 of Search  1991 

(OJ  1991, L 67). 

Under  Article  2  of  Regulation  599/91,  introducing  a  credit  guarantee  for 
exports  of  agricultural  products  and  foodstuffs  from  the  Community  to  the 
Soviet  Union,  the  Commission  is  charged,  in  consultation  with  a  committee 
composed  of  Member  State  representatives,  with  negotiating  an  agreement 
between  the Community  and  the Soviet  Union.  Article 2 provides also  that  the 
agreement  shall  contain,  inter  alia,  the  provision  governing  the  loans  that 
will  be granted  to the Soviet  Union. 

During  the discussion  that  have  taken place with  the Soviet  delegation on the 
terms of  the agreement,  the Soviet  side  indicated  that  the repayment  schedule 
of  the  loan  envisaged  in Article  3 of  the  Regulation,  is not  acceptable  to 
them  in  view  of  repayment  obligations  on  their  side  from  previous  credit 
guarantee  contracts.  It was  clearly  stated  by  the  delegation  that  they  were 
unable  to start  the  reimbursement  of  the Community  loan before  1993.  Instead 
of  the  6 equal  six-monthly  instalments  as  from  expiry  of  the  drawing  period 
provided  for  by Art. 3 of  the Regulation,  the Soviet  side  therefore  proposed 
to  repay  the  loans by means of  3 equal  payments,  respectively  20,  31  and  42 
months after  the date of signature  of  the agreement. 

The  Commission  believes  that  it  is  in  the  interest  of  all  parties  concerned 
to  modify  the  terms  of  repayment.  Therefore,  the  Commission  proposes  the 
modification  of  Article  3  of  the  Regulation  as  presented  in  the  attached 
proposal.  Adoption  of  this  proposal,  after  consultation  of  the  European 
Parliament,  at  the  earliest  convenience,  is  required  without  delay  to 
conclude  the agreement  with  the Soviet  Union before  the end of May. 

i 

This proposal  has no  impact  on  the budget of  the Community. 

h 

Proposal  for a 

COUNCIL REGULATION (EEC) No 

/ 

of 
amending  Regulation  (EEC) No 599/91  introducing a credit  guarantee 
for exports of agricultural  products and foodstuffs  from  the Community 
to the Soviet Union 

THE COUNCIL OF THE EUROPEAN  COMMUNITIES, 

Having  regard  to the Treaty establishing  the European  Economic Community,  and  in 

particular  Articles 113 and 235-thereof, 

Having  regard  to the proposal  from  the Commission, 

Having  regard  to the opinion of the European Par I lament, 

Whereas Council  Regulation  (EEC) No 599/91 of 5 March  1991(1>  introduces a 

credit  guarantee  for  the Soviet Union to  import  agricultural  products and 

foodstuffs  from  the Community; whereas, at the request  of  the recipient  country, 

the conditions  for  the reimbursement of  the  loans originally  provided  for should 

be altered  in order  to take account of commitments  entered  into previously, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Article 3 of Regulation  (EEC) No 599/91  is hereby  replaced  by  the following: 

"Article 3 

The credit  for which  repayments are covered by  the guarantee may not exceed ECU 

500 million.  Reimbursement  shall  involve three  instalments of  an equal 

amount, paid  20, 31 and  42 months  from  the signing of  the agreement  provided for 

in Art icle 2. 

The credit  shall  be backed by a payment  and  transfer  guarantee of a body 

empowered  to cover  sovereign  risk and  to authorize  foreign currency  transfers. 

(1) 0J  No L 67, 14.3.1991, p. 21. 

-  2 -

The  period  for  drawing  upon  the credit  shall  be  limited  to six  months  as  from  the 

date of  signing  of  the agreement  provided  for  above.  This  loan may  be drawn  upon 

in tranches.  Payment  of  these  tranches  shall  depend  upon  the degree  to which  the 

Soviet  Union  complies  with  the provisions of  the  agreement  referred  to above  and 

with  the conditions  laid down  for granting  the guarantee." 

Article  2 

This Regulation  shall  enter  into force on  the day  following  its publication  in 

the Official  Journal  of  the European  Communities. 

This Regulation  shall  be blndi-ng  in  its entirety  and  directly  applicable  in all 

Member  States. 

Done at Brussels, 

For  the Council 

H 

ISSN 0254-1475 

COM(91) 140 final 

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