Financial statements of the European Coal and Steel Community at 31 December 1990 and 31 December 1989
Date: 1991-08-28
Institutions: European Commission
Subjects: ECSC, ECSC operating budget, balance sheet, balance-sheet analysis, financial management













EUR-Lex - 31991Y0828(02) - EN






Avis juridique important




|



31991Y0828(02)

Financial statements of the European Coal and Steel Community at 31 December 1990 and 31 December 1989  


Official Journal C 223 , 28/08/1991 P. 0003 - 0028 





FINANCIAL STATEMENTS OF THE EUROPEAN COAL AND STEEL COMMUNITY AT 31 DECEMBER 1990 AND 31 DECEMBER 1989  (91/C 223/03)In accordance with undertakings given by the Commission on behalf of the ECSC with regard to its borrowing activities,  the following financial statements, drawn up in conformity with Article 78 of the Treaty establishing the ECSC, are published:  - Balance sheets of the European Coal and Steel Community at 31 December 1990 and 31 December 1989,  -Profit-and-loss accounts for the years ending 31 December 1990 and 31 December 1989,  -Allocation of profit for the years ending 31 December 1990 and 31 December 1989.   These financial statements are accompanied by the report of the Court of Auditors provided for pursuant to Article 78 (f) (5) of the ECSC Treaty, dealing with the financial operations of the ECSC for 1990 with the exception of those relating to revenue  and expenditure of an administrative nature.   Balance sheets at 31 December 1990 and 31 December 1989  (amounts expressed in ecus)  - Before allocation of profit - ASSETS    31 December 1990  31 December 1989   Balances with central banks (note 3)     2 455 381    85 900  Loans and advances to credit institutions (note 4):   - repayable on demand  -with agreed maturity dates or periods of notice  -loans  36 330 473   968 451 679 2 694 352 165  25 083 527   880 755 585 2 353 347 922   Total    3 699 134 317    3 259 187 034  Loans and advances to customers (note 5):   - loans  - levy  - fines  4 212 720 400 1 818 180 1 702 087  4 567 903 983 5 630 108 18 745 917   Total    4 216 240 667    4 592 280 008  Debt securities including fixed-income securities (note 6):   - issued by public bodies  -issued by other borowers  (including own-debt securities: 104 283 876 in 1990 and 97 100 176 in 1989)    1 007 034 384 237 273 716       796 981 581 302 137 505   Total    1 244 308 100    1 099 119 086  Tangible and intangible assets (note 7)     5 991 681    6 452 622  Other assets (note 8)     6 660 664    52 291 315  Prepayments and accrued income (note 9)     294 513 076    270 025 870            TOTAL ASSETS    9 469 303 886    9 279 441 835   Off-balance-sheets commitments (note 24, p. 1)  2 475 819 034 1 173 114 513   - Before allocation of profit - LIABILITIES     31 December 1990  31 December 1989   LIABILITIES VIS-A-VIS THIRD PARTIES   Amounts owed to credit institutions (note 10):   - repayable on demand  -with agreed maturity dates or periods of notice  -borrowings  1 946 183  90 177 871 3 210 329 694  0  64 750 534 3 639 907 617   Total    3 302 453 748    3 704 658 151  Debts evidenced by certificates (note 11)     3 462 281 500    3 023 747 481  Other liabilities (note 12)     145 747 865    85 289 620  Accruals and deferred income (note 13)     257 939 731    275 459 841  Provisions for liabilities and charges (note 14)     5 437 682    4 741 757  Commitments for the ECSC Operating Budget (note 15)     1 176 182 496    1 120 320 224  TOTAL LIABILITIES VIS-A-VIS THIRD PARTIES     8 350 043 022    8 214 217 074  NET ASSETS   Provisions for financing the ECSC Operating Budget (note 16)     383 939 347    325 187 850  RESERVES (note 17):   - Guarantee fund  -Special reserve  -Former pension fund  482 885 000 188 980 000 54 887 556  482 885 000 188 980 000 53 698 379   Total    726 752 556    725 563 379  Revaluation reserve     7 139 997    12 799 169  Profit brought forward     485 186    893 213  Profit for the financial year     943 778    781 150  NET TOTAL    1 119 260 864    1 065 224 761  TOTAL LIABILITIES    9 469 303 886    9 279 441 835    Off-balance-sheet commitments (note 24, p. 2)  4 773 918 416 3 291 770 209   Profit-and-loss accounts for the years ending 31 December 1990 and 31 December 1989  (amounts expressed in ecus) EXPENDITURE    31 December 1990  31 December 1989   Interest payable and similar charges:   - interest  -issuing costs and redemption premiums  706 897 548   14 853 731   660 357 516   12 194 039    Total    721 751 279    672 551 555  Commissions payable     2 817 495    2 871 075  Net losses on financial operations:   - Foreign-exchange losses  -Losses on securities  -Value adjustments in respect of securities  81 272 4 236 067  0  0 0  21 657 319   Total    4 317 339    21 657 319  Administrative expenses (note 19)  5 000 000    5 000 000  Value adjustments in respect of tangible assets (note 7)  9 007 495    345 996  Other operating charges (note 20)  601 021    574 360  Value adjustments in respect of losses and advances and provisions for contingent liabilities and for commitments:   - Value adjustment in respect of loans and advances  -Allocation to the provision for risks and charges  2 742 950  730 885  1 223 795   Total    18 082 351    7 144 151  TOTAL OPERATING CHARGES     746 968 464    704 224 100  Extraordinary charges     32 272    683 369  Conversion difference     5 659 172    481 029  Legal commitments for the financial year (note 15)     445 277 280    407 310 119  Allocation to reserves for financing the ECSC Operating Budget     311 851 569    286 887 850 TOTAL CHARGES    1 509 788 757    1 399 586 467  Profit for the financial year     943 778    781 150 TOTAL    1 510 732 535    1 400 367 617    REVENUE     31 December 1990  31 December 1989   Interest receivable and similar income (note 21):   - interest  (including interest on fixed-income securities: 106 346 129 in 1990 and 87 772 094 in 1989)  -issuing and redemption premiums  927 491 072     10 944 940  847 242 396     8 027 159    Total    938 436 012    855 269 555  Net profit on financial operations:   - foreign-exchange profits  -profits on securities  -value adjustments in respect of securities   0 0  2 770 868      0 927 327   Total    2 770 868    927 327  Value adjustments in respect of loans and advances and provisions:   - value adjustments in respect of loans and advances  -transfer from the provision for risks and charges  10 772 378  0  96 664 866      Total    10 772 378    96 664 866  Other operating income (note 22)     1 785 786    1 055 435  Extraordinary income (note 7)     9 640 148    0 TOTAL OPERATING INCOME    963 405 192    953 917 183  Conversion difference     0    460 741  Transfer from the value adjustment reserve     5 659 172    481 029  Income linked to the Operating Budget (note 23)     291 280 321    242 127 214  Transfer from the provision for financing the ECSC Operating Budget     250 387 850     203 381 450  TOTAL INCOME    1 510 732 535    1 400 367 617     Allocation of profit for the years ending 31 December 1990 and 31 December 1989  (amounts expressed in ecus)   1990  1989   Profit not allocated at 1 January   485 186  893 213  Profit for the year to be allocated   943 778  781 150        1 428 964  1 674 363  Allocation to the former pension fund   1 262 879  1 189 177  Profit not allocated at 31 December   166 085  485 186    NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 1989 AND 31 DECEMBER 1990  (amounts expressed in ecus)  1.  PRESENTATION OF THE FINANCIAL STATEMENTS 1.1.The European Coal and Steel Community (ECSC) was established by the Treaty of 18 April 1951. According to the Treaty, the task of the ECSC is to contribute to the economic expansion of the Member States through the establishment of a common market  for coal and steel. Most of the ECSC's funds come from the levy, the net profit from its financial activity, borrowings raised on the financial markets and direct bank loans.  1.2.A change in the accounting methods has been made in the financial statements at 31 December 1990 (see explanation in note 2).  1.3.The ECSC's financial statements for 1990 and the notes thereto are presented in accordance with Council Directives 78/660/EEC and 86/635/EEC on the annual accounts and consolidated accounts of banks and other financial institutions (OJ No L 222, 14.  8. 1978 and OJ No L 372, 31. 12. 1986).  1.4. ECSC accounts are kept in the various currencies used for its financial activity. The financial statements are expressed in ecus.  The following rates have been used for converting year-end balance-sheet amounts expressed in currency into ecus:    31 December  1990  1989     Belgian and Luxembourg franc German mark Dutch guilder Pound sterling Danish krone French franc Italian lira Irish pound Spanish peseta Portuguese escudo Greek drachma United States dollar Swiss franc Canadian dollar Japanese yen      42,1839       2,04195      2,30384      0,707840     7,88260      6,95010  1 540,26         0,767840   130,604      182,818      214,065        1,36330      1,741620     1,581430   184,932         42,592        2,02412      2,28602      0,742783     7,88161      6,92042  1 517,55         0,769128   131,059      179,03       188,287        1,19699      1,84277      1,38684    171,888     1.5.At 31 December 1990 the various currencies listed in 1.4, together with the ecu, made up the ECSC's balance sheet as follows:   (in ECU 1 000)  Currency  Assets  Liabilities    Belgian franc Luxembourg franc German mark Dutch guilder Pound sterling Danish krone French franc Italian lira Irish pound Spanish peseta Portuguese escudo Greek drachma United States dollar Swiss franc Canadian dollar Japanese yen ECU   197 992184 2963 858 692316 111624 2672 306899 997785 1881 342186 41829 1953 3041 174 473314 73852 484274 641563 860  127 508169 2873 642 249267 005555 989-768 043720 511  -152 31227 6616851 122 736303 76354 263272 9931 284 299      Total   9 469 304   9 469 304   NB: The ecu has a much larger place in the ECSC's accounts than suggested by the above table.  The apparently small share in ecus is explained by certain accounting operations, mainly the offsetting of currency swaps.  The offsetting of these items on the assets and liabilities sides is designed to prevent artificial inflation of the balance sheet.  This accounting operation is carried out in ecus and covered an amount of ECU 1 946 000 000 in 1990.  The real weight of the ecu in the ECSC's accounts can therefore be assessed more correctly if this amount is added both to the assets and to the liabilities sides, as well as to the balance sheet total.   2.ACCOUNTING POLICIES AND METHODS  The financial statements are drawn up in accordance with generally recognized accounting principles. During the financial year the ECSC changed its accounting method as described in 2.2.  2.1.General accounting methods 2.1.1.Non-specific value adjustment on loans  In addition to the value adjustments in respect of potential risks of non-recovery, a non-specific value adjustment has been made to cover the general risk of non-recovery of loans amounting to 0,8 % of the total loans not covered by Member States' or  bank guarantees;   2.1.2.Conversion to ecus of charges and income accounts  Charges and income for the financial year are entered in currency and converted to ecus at the monthly accounting rate in force on the day of the transaction.   2.2.Change of accounting method 2.2.1.Fines The method of entering fines in the accounts was changed from 1 January 1990.  From the date, only fines actually collected were considered as ECSC income. Fines imposed have been entered under loans and advances to customers, the counter-entry being the provision for fines to be collected. This approach makes it possible to bring  the method of accounting for fines in the balance sheet into line with that used in the Operating Budget, where a fine is only recognized as a receipt when it has actually been paid. This change has no effect on the ECSC result.  2.2.2.Sale and repurchase transactions  From the 1990 financial year, the ECSC's annual accounts will be presented in accordance with Council Directive 86/635/EEC.  These new accounting regulations require a change in the method for dealing with sale and repurchase transactions.  The ECSC has hitherto limited its sale and repurchase transactions to those covered by a firm repurchase agreement.  Under the old method, such transactions were in two quite distinct parts: sales and forward purchases. The securities sold did not therefore appear in the balance sheet and the repurchase agreement appeared in an off-balance-sheet item. A risk provision  was created when the market price was below the price agreed for the future repurchase.  Henceforth, beginning in the 1990 financial year, sale and repurchase transactions will be entered in the accounts in accordance with Article 12, paragraph 4, of Council Directive 86/635/EEC. The securities transferred will continue to appear in the  balance sheet and the sale price will be entered on the liabilities side of the balance sheet as an amount owed to the transferee.  This change in accounting method has resulted in a profit of ECU 479 000 for the 1990 financial year.   3.BALANCES WITH CENTRAL BANKS  This item represents the ECSC's balances with the central banks of the 12 Member States.  4. LOANS AND ADVANCES TO CREDIT INSTITUTIONS  4.1.Repayable on demand This item comprises loans and advances to CEDEL repayable on demand.   4.2.With agreed maturity dates or periods of notice The breakdown of the time to completion of these transactions is as follows:     31 December  1990  1989     up to three months661 447 294  528 515 564   three months to one year   307 004 385  339 975 875   over one year  -  12 264 146     Total  968 451 679  880 755 585 4.3.Loans  The breakdown of the time to completion of these transactions is as follows:     31 December  1990  1989     up to three months       7 569 415      15 235 035   three months to one year     261 163 095     271 576 441   over one year  1 663 077 026  1 352 781 701   over five years     762 542 629     713 754 745     Total  2 694 352 165   2 353 347 922 5. LOANS AND ADVANCES TO CUSTOMERS  5.1.Loans The loans granted to credit institutions are shown under 'Loans and advances to credit institutions' (see note 4).  The other loans break down as follows:     31 December  1990  1989     1. Loans paid from borrowed funds   Amounts outstanding, excluding redemption premiums   4 117 953 733   4 476 574 330   Redemption premiums      45 000 000      45 000 000  Value adjustments      (13 167 776)      (15 018 627)     Sub-total  4 149 785 957   4 506 555 703   2.Loans from the special reserve and other own funds for financing subsidized housing     28 863 631     28 433 484     Total I  4 178 649 588   4 534 989 187   The breakdown of the time to completion of these transactions is as follows at 31 December:     1990  1989       up to three months      77 230 278     100 944 378     three months to one year    503 933 279    559 344 689     one year to five years   2 603 351 537   2 758 393 068     over five years   1 007 302 270   1 131 325 679   3.Loans paid from the former pension fund to officials of the European Communities for housing construction      32 529 377     30 773 117   4.Loan repayments overdue and interest on arrears        1 541 435       2 141 679     Grand total  4 212 720 400   4 567 903 983  These loans are usually secured by guarantees from the Member States, banks or companies, or by mortgages.   5.2.Levy Before value adjustment, this item amounts to ECU 6 669 660 (ECU 10 489 538 at 31 December 1989). It comprises mainly ECU 3 954 650 subject to legal proceedings (ECU 2 671 100 at 31 December 1989) and ECU 1 498 891 relating to temporary deferment in  respect of coal in stock (ECU 1 353 663 at 31 December 1989).  Payment of the levy in respect of coal in stock is temporarily deferred under a general decision taken in 1972.   5.3.Fines After value adjustment the item 'Fines receivable' amounts to ECU 1 702 087 (ECU 18 745 917 at 31 December 1989).  6. DEBT SECURITIES INCLUDING FIXED-INCOME SECURITIES  6.1.Valuation Debt securities including fixed-income securities are valued at average purchase price or market value at 31 December 1990, whichever is the lower.  This principle is not applied in the case of securities considered as financial fixed assets (see 6.6).   6.2.Composition Debt securities including fixed-income securities are divided as follows:    Value adjustments on securities (withdrawal)  31 December  1990  1989   ISSUED BY PUBLIC BODIES  - gross value  - value adjustment  (1 766 873) 1 032 162 619 (25 128 235) 823 876 689 (26 895 108)        - net value     1 007 034 384  796 981 581  OWN-DEBT SECURITIES  - gross-value  - value adjustment  (128 485) 107 293 671 (3 009 795) 100 238 456 (3 138 280)        - net value     104 283 876 97 100 176  ISSUED BY OTHER BORROWERS  - gross value  - value adjustment  (875 510) 134 182 311 (1 192 471) 207 105 310 (2 067 981)        - net value     132 989 840  205 037 329  TOTAL  - gross value  - value adjustment  (2 770 868) 1 273 638 601 (29 330 501) 1 131 220 455 (32 101 369)        - net value     1 244 308 100  1 099 119 086  6.3.Maturities in 1991 The following securities in the portfolio reach final maturity during 1991 (in ecus):   - issued by public bodies:278 176 057 - own-debt securities:10 538 466 - issued by other borrowers:    66 222 908 Total 354 937 431 6.4.Quoted/unquoted securities The securities portfolio comprises ECU 1 050 397 521 of securities quoted on a stock exchange, the balance of ECU 193 910 579 being unquoted securities.   6.5.Sale and repurchase transactions The sub-item 'issued by public bodies' in 6.2 (ECU 1 007 034 384) contains ECU 85 791 566 in respect of sale and repurchase transactions.   6.6.Financial fixed assets 6.6.1.Financial fixed assets are defined as securities that will remain in the portfolio until their final maturity.  They comprise mainly short-term paper and own-debt securities repurchased for servicing ECSC borrowings.   6.6.2.Financial fixed assets are valued at average purchase price or redemption value, whichever is the lower.  The redemption value of the securities exceeds the average purchase price by a total of ECU 5 032 297.   6.6.3.Financial fixed assets are made up as follows (in ecus):  - Issued by public bodies:51 535 805 - Own-debt securities:13 875 548 - Issued by other borrowers:    65 225 408 Total 130 636 761 7.TANGIBLE AND INTANGIBLE ASSETS   Year of acquisition  Acquisition price  31 December  1990  1989   Tangible assets  - Paris buildings  - Washington building  - Lisbon building  - New York building  - Canberra building  1990  1971  1986  1987  1987  8 480 684 882 654 1 265 526 2 132 944 2 350 603 1 588 360 927 960 1 645 650 2 169 787 1 647 196 1 012 320 1 789 794 2 284 733                5 331 758  5 734 044  Intangible assets  - Lease on Milan building  1986  879 883 659 923 718 578          Total tangible and intangible assets      5 991 681  6 452 622  The building at 61-63 rue des Belles Feuilles in Paris owned by the ECSC was sold for ECU 9,6 million on 20 December 1990. The proceeds of the sale  were used to purchase two buildings: the first, in avenue Eylau, will house the offices of the Commission's delegation to the OECD from June 1991; the second, in avenue H. Martin, will serve as the residence of the head of the delegation once the  necessary work has been carried out.  The purchase was undertaken for non-speculative reasons, primarily to provide the delegation with more modern offices.  For accounts purposes, ECU 8 480 683 of the proceeds from the sale of the building, which was fully amortized, was used to purchase the new buildings. The surplus from the operation was used to create a provision for liabilities and charges in the sum  of ECU 1 159 465 with a view to the subsequent purchase of parking facilities to replace those previously available in the rue des Belles Feuilles.  The value of the Washington building was estimated at ECU 2,8 million at 31 December 1985.  In 1986 the ECSC purchased a 45 year lease on a building in Milan. At the end of this period, the building will revert to its owner.  These buildings are used by the Commission of the European Communities.   8. OTHER ASSETS    31 December  1990  1989     Loans, payments due and not received    4 161 222  4 310 229  - Current account, ECSC Operating Budget  - 44 171 660  - Portfolio taxes and VAT to be re-claimed  1 540 499 155 223  - Loans to officials - miscellaneous  2 339 605 236 524  - Miscellaneous   2 475 861  7 538 251        10 517 187 56 411 887  Cumulative value adjustments   (3 856 523)  (4 120 572)      Total 6 660 664 52 291 315   9.REPAYMENTS AND ACCRUED INCOME    31 December  1990  1989     Interest on loans   165 685 027  153 283 432  Interest on deposits and securities portfolio  70 579 666 58 504 132  Levy declared for November and December but payable after 31 December  32 415 112 25 840 271  Surcharges on fines  - 76 629  Issuing costs and redemption premiums  25 532 481 32 058 930  Other   300 790  300 790      Total prior to value adjustments  294 513 076 270 064 184  Value adjustments   (-)  (38 314)      Total after value adjustments  294 513 076 270 025 870   10.AMOUNTS OWED TO CREDIT INSTITUTIONS  The time to maturity on these operations is as follows:    31 December  1990  1989     repayable on demand  1 946 183 -  up to three months  99 715 772 210 411 743  three months to one year  550 114 510 561 633 413  one year to five years  1 775 574 039 2 304 106 308  over five years  875 103 244 628 506 687      Total  3 302 453 748  3 704 658 151   11.DEBTS EVIDENCED BY CERTIFICATES  Part of the loans outstanding at 31 December 1990 will reach maturity during the 1991 financial year. Such loans amount to ECU 308 962 623.   12.OTHER LIABILITIES   31 December  1990  1989     Exchange value in ecus of the difference between currency receivable and payable under currency exchange operations (swaps)  109 209 665 79 542 501  Current account, ECSC Operating Budget  32 738 588 -  Other   3 799 612  5 747 119      Total  145 747 865  85 289 620   13.ACCRUALS AND DEFERRED INCOME    31 December  1990  1989     Interest on loans and credit lines  242 088 297 253 686 028  Commission on loans   856 434  1 006 897  Redemption premiums on loans   14 995 000  19 585 000  Other   -  1 181 916      Total  257 939 731  275 459 841    14.PROVISIONS FOR LIABILITIES AND CHARGES    31 December  1990  1989     Provision for withholding tax to be paid (1)   4 078 217 3 778 553  Provision for purchases and sales of securities on the futures market (2)    -   963 204  Provision for the purchase of car-parking facilities in Paris (3)  1 159 465    -  Provision for assistance costs (4)  200 000 -      Total  5 437 682  4 741 757       15. COMMITMENTS FOR THE ECSC OPERATING BUDGET  In 1990, commitments for the ECSC Operating Budget were as follows:     Commitments at 31. 12. 1989  New legal commitments  PaymentsCancellations (2)  Commitments at 31. 12. 1990   Redeployment (1)   593 097 4819 196 618  169 103 57514 896 425  154 662 276  80 650 354  526 888 42624 093 043        602 294 099  184 000 000  154 662 276  80 650 354  550 981 469  Research   160 287 287  93 874 290  61 309 853  7 596 031  185 255 693  Interest subsidies Article 54  29 348 938 13 035 920 5 631 222 3 674 589 33 079 047  Interest subsidies Article 56  231 227 813 69 151 000 40 256 632 13 874 842 246 247 339  Social measures steel industry  95 695 937 45 216 070 20 452 500    120 459 507  Social measures in connection with rationalization of the coal industry  1 466 150 40 000 000 1 306 709    40 159 441      Total   1 120 320 224  445 277 280  283 619 192  105 795 816  1 176 182 496      16.  PROVISIONS FOR FINANCING THE ECSC OPERATING BUDGET     Provisions at 31. 12. 1989  Changes at 31. 12. 1990  Withdrawal  Allocation  Provisions at 31. 12. 1990    Net balance for the financial year (1)   1989  1990  Contingency reserve (2)   206 000 000 - 70 000 000  206 000 000 -   - 220 500 000 -   - 220 500 000 70 000 000  Surplus from the implementation of the Operating Budget:    1989  1990   44 387 850 -  44 387 850 -  - 91 351 569  - 91 351 569  Total allocations withdrawn from provisions to finance the OB      250 387 850 311 851 569  Provision for fines to be paid subsequently (3)  4 800 000 2 712 222    2 087 778 Total   325 187 850      383 939 347     17.  RESERVES Reserves were as follows:     Reserves at 31. 12. 1989 prior to allocation  Allocations at 31. 12. 1989  Reserves at 31. 12. 1990 prior to allocation  Allocations at 31. 12. 1990  Reserves at 31. 12. 1990 after allocation  Guarantee fund   482 885 000    482 885 000    482 885 000  Special reserve   188 980 000    188 980 000    188 980 000  Former pension fund  53 698 379 1 189 177 54 887 556 1 262 879 56 150 435 Total   725 563 379  1 189 177  726 752 556  1 262 879  728 015 435  The guarantee fund is intended to cover lending and borrowing operations.   The special reserve is used to grant loans from ECSC own funds to finance subsidized housing.   The former pension fund originally represented the total pension obligations covered by the ECSC prior to 5 March 1968. Since that date, the Member States have assumed responsibility for the payment of staff pensions. This fund is used to finance  housing loans for officials of the European Communities, and has also been used to grant special loans to the coal and steel industries.   18. ANALYSIS OF PERFORMANCE FOR THE FINANCIAL YEAR ENDING 31 DECEMBER 1990  Overall ECSC performance is effected by both the result of non-budgetary transactions (loans/borrowing - investment - exchange-rate variations) and by budgetary transactions (ECSC Operating Budget).   18.1.Non-budgetary transactions These transactions closed on 31 December 1990 with a net profit in excess of that at 31 December 1989.   (ECU million)  Result  31 December  1990  1989    Gross operating margin before changes in provisions  Loan/borrowing transactions    5,7   10,1   Interest on bank accounts   101,8    82,6   Transactions concerning portfolio securities   104,8    67,0   Miscellaneous   -  4,6   -  2,4       Total  207,7   157,3     Changes in provisions  Change in ecu rates    5,7 (1)    0,5 (1)   Value adjustments in respect of loans and advances     8,0    96,7     Net result on non-budgetary transactions  221,4  254,5  18.2.ECSC Operating Budget transactions  (ECU million)    31 December  1990  1989     Revenue:   - levy  - fines (1)  - deposits  - cancellations of legal  commitments  178,5    6,9    0,1   105,8   165,7    5,3    0,1    71,1        Total revenue  291,3   242,2     Expenditure:   - administrative expenditure  - legal commitments   -   5,0  - 445,3   -   5,0  - 407,3        Total expenditure  - 450,3   - 412,3     Changes in the provisions for financing the ECSC Operating Budget (2)  -  61,5  -  83,5     Result on budgetary transactions  - 220,5  - 253,6  19.ADMINISTRATIVE EXPENSES (FIXED AMOUNT)  The ECSC paid a lump sum of ECU 5 million to the general budget of the Commission of the European Communities to cover its administrative costs.   20.OTHER OPERATING CHARGES    31 December  1990  1989     Borrowing costs   469 157  373 746  Swift/Reuters costs  118 839 112 320  Other  13 025 88 294      Total  601 021  574 360   21.INTEREST RECEIVED    31 December  1990  1989     Interest on loans   718 983 189  676 755 627  Payment and redemption premiums  10 944 939 8 027 159  Bank interest   102 161 755  82 714 675  Interest on fixed-income securities  106 346 129 87 772 094      Total  938 436 012  855 269 555   22.OTHER OPERATING INCOME    31 December  1990  1989     Receipts from coupons and bonds  51 613 277 144  Income from buildings  898 339 607 008  Miscellaneous   835 834  171 283      Total  1 785 786  1 055 435   23.INCOME LINKED TO THE OPERATING BUDGET    31 December  1990  1989     Levy (1)   178 494 591  165 667 139  Fines (2)   6 893 489  5 279 069  Deposits   92 813  64 744  Cancellation of legal commitments  105 795 816 71 116 262  Miscellaneous   3 612  -      Total  291 280 321  242 127 214     24.OFF-BALANCE-SHEET COMMITMENTS  24.1.Commitments received    31 December  1990  1989     (a) Loans signed but not yet paid  - 79 074 695  (b)Commitments arising from swaps  - notional capital commitments from interestrate swaps  -capital commitments from interest-rate and currency swaps  295 757 588  2 172 710 653 238 034 814  1 413 432 588  (c)Commitments on securities  - securities bought forward  - securities sold forward  - 7 350 793 36 373 755 6 198 661      Total  2 475 819 034  1 773 114 513    24.2.Commitments given    31 December  1990  1989     (a)Loans granted  - global loan contracts, lines still to be used  2 164 867 090 1 435 050 376  -loans from borrowed funds signed but not yet paid  - 80 525 397  -loans from own funds  23 973 730 2 582 453  (b)Commitments arising from swaps  -notional capital commitments from interest-rate swaps  295 757 588 238 034 814  -capital commitments from interest-rate and currency swaps  2 281 920 317 1 492 975 089  (c)Commitments on securities  - securities bought forward  - securities sold forward  - 7 350 793 36 373 755 6 198 661  (d)Receipts from coupons and bonds  48 898 29 664      Total  4 773 918 416  3 291 770 209     CHANGES IN THE FINANCIAL SITUATION FOR THE YEARS ENDING 31 DECEMBER 1990 AND 31 DECEMBER 1989  (ECU million)    1990  1989   Origin of funds  Balance of profit-and-loss account   1,-  0,8  Items not involving a movement of funds  - Amortization of issuing costs and redemption premiums   3,5  3,5 -Value adjustments in respect of securities   (2,8)  21,7 -Value adjustments in respect of tangible assets   9,-  0,3 -Value adjustments in respect of loans and advances (net)   (8,-)  (96,7) -Increase (decrease) in item 'Provision for legal commitments'   55,9  111,2 -Increase (decrease) in item 'Provision for the financing of the ECSC Operating Budget'   58,7  83,5 -Increase (decrease) in accruals and deferred income (liabilities)   (13,1)  93,0 -Decrease (increase) in accruals and deferred income (assets) and issuing costs and redemption premiums   (32,4)  (39,2) -Increase (decrease) in item 'Other liabilities'   60,5  (5,0) -Decrease (increase) in items contained in 'Other assets'   73,3  2,0 -Allocation to the provision for risks and charges   0,7  1,2 -Increase (decrease) in the provision for changes in the ecu rate   (5,7)  (0,5) -Contribution not yet received from new Member States   -  (0,6) -Exchange adjustments in respect of borrowings and loans   (37,-)  (122,6)     TOTAL FUNDS   163,6  52,6 Other resources:   - Proceeds of borrowings   1 085,9  913,3 - Loan repayments   935,3  812,1 - Contribution by new Member States (paid up)   -  0,6     TOTAL   2 184,8  1 778,6 Use of funds  - Loan disbursements   995,2  702,4 - Remdemption of borrowings   1 029,5  994,0 - Increase (decrease) in bank balances and portofolio   151,6  80,7   - Acquisition and construction of buildings   8,5  1,5     TOTAL   2 184,8  1 778,6    IMPLEMENTATION OF THE ECSC OPERATING BUDGET FOR 1990  (ECU million)  Requirements  Forecast (1)  Outturn  Resources  Forecast (1)  OutturnOperations to be financed from current resources (not reimbursable)  1. Administrative expenditure   5   5  2.Aid for redeployment (Article 56)  184  184  3.Aid for research (Article 55)   88   93,9  3.1. Steel  41 43,3 3.2.Coal  34 36,3 3.3.Social  13 14,3  4.Interest subsidies   68   82,2  4.1.Investment (Article 54)  10 13   4.2.Conversion (Article 56)  58 69,2  5.Social measures in connection with the restructuring of the steel industry   50   45,2   6.Social measures in connection with the rationalization of the coal industry     40     40     Resources for the financial year   1.Current resources   1.1.Yield from levy at 0,31 %  172  178,5   1.2.Net surplus from the preceeding financial year  139  206     1.3.Fines and surcharges for late payment (2)   14    6,9   1.4.Miscellaneous  t.e.     0,1   2.Cancellation of commitments unlikely to be implemented   60  105,8  (3)    3.Unused resources carried over from 1989  t.e.    44,4   4.Extraordinary receipts   Social measures in connection with the restructuring of the steel industry   50   -     5.Utilization of the contingency reserve  t.e.   t.e.    Surplus      91,4             TOTAL   435   541,7   TOTAL   435   541,7   Operations financed by loans from non-borrowed funds  Subsidized housing   12   12  Origin of non-borrowed funds  Special reserve and former ECSC pension fund   12   12     (1) This provision was created to allow the ECSC to meet its obligations in respect of a securities transaction on which there is a difference of interpretation regarding the applicability of withholding tax.   (2)This provision was created to cover the risk of price movements affecting the futures contracts for the purchase and sale of securities that existed at the end of the financial year.   (3)This provision was created from the profit on the sale of the Paris building with a view to the subsequent purchase of parking facilities (cf. note 7).   (4)This provision was created to cover any unexpected assistance costs and other expenditure that might arise. This risk is found primarily in the legal field because the ECSC now has less recourse, during its operations, to national agents who bear  the cost of all expenditure relating to this type of operation.(1) This item contains the legal commitments which appeared under Social measures - coal industry at 31 December 1989.   (2)Checks in progress at 31 December 1990 show that other cancellations amounting to ECU 116 543 could be made in respect of the interest subsidies pursuant to Article 54, with cancellations of ECU 9 126 100 in respect of interest subsidies pursuant to  Article 56. A final decision regarding such cancellations can only be taken once all the facts have been collected and verified.(1) The net balance of the ECSC's financial activity allocated to provisions at the end of the year adds to the resources of  the ECSC Operating Budget for the next financial year.   (2)This amount includes ECU 20 million in respect of the normal contingency reserve and is designed to cover any shortfall in resources compared with forecasts and any excess over the requirements provided for in the budget. The balance of ECU 50  million is inteded for financing priority measures in the next few years, and in particular to cover the expected increase in certain requirements (for example, connected with the environment).   (3)Fines are considered as ECSC resources only when they have actually been paid (cf. note 2.2 Change of accounting method). Fines imposed but not yet paid are therefore allocated to provisions.  Movements in these provisions are included in receipts of fines, which also include fines imposed and paid during the financial year.  (1) During the 1990 financial year, changes in exchange rates led to a conversion loss of ECU 5,7 million, which was offset by the transfer of the same amount from the revaluation reserve (the loss in 1989 amounted to ECU 0,5 million).(1) In accordance  with the change in the accounting method described in 2.2, it is the fines actually received that appear in this item. At 31 December 1989, this item covered fines imposed during the financial year, including late-payment surcharges due, whereas fines  received during the financial year appeared in the Operating Budget summary table.   (2) See note 16.(1)The ECSC is authorized under the Treaty to impose a levy on coal and steel produced by undertakings in the Community. The calculation is based on the Community average values of the various products concerned. The levy rate has been  0,31 % since 1 January 1980. On 18 December 1990 the Commission decided to set the levy rate for the 1991 financial year at 0,29 %. At 31 December 1990 the surcharges (ECU 410 328  at 31 December 1989).   (2)This item comprises the revenue from fines imposed by the Commission in accordance with Articles 58 and 60 of the ECSC Treaty, together with surcharges for late payment. In 1990, a fine of ECU 94 000 was cancelled by the Commission and several fines  were reduced by ECU 458 065. These amounts are included in the item 'Extraordinary charges'.(1) In the light of the Commission's implementation forecast of 20 December 1989 OJ No L 380, 29. 12. 1989.   (2)The amount of ECU 6,9 million represents the total received in 1990 but does not take into account the ECU 1,7 million due to the ECSC at 31 December 1990.   (3)Including the following amounts re-charged to the original lines:   technical steel research:  ECU 2,3 million  technical coal research:ECU 2,3 million  social research:ECU 1,3 million  interest subsidies on investment loans (Article 54):  ECU  3   million;   interest subsidies on conversion loans (Article 56):ECU 11,2 million.