Proposal for a COUNCIL DECISION amending Decision 77/270/Euratom, to authorize the Commission to contract Euratom borrowings in order to contribute to the financing required for improving the degree of efficiency and safety of nuclear power stations in certain non-Member countries
Date: 1992-12-09
Institutions: European Commission
Subjects: Central and Eastern Europe, Euratom loan, decommissioning of power stations, energy production, nuclear safety, third country

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

C0M(92) 467 final 

Brussels, 9  December  1992 

Proposal  for a 

ÇpUNCIL DECISION 

amending Decision 77/270/Euratorn, to authorize 
the Commission  to contract  Euratom  borrowings 
in order  to contribute to the financing required  for  Improving 
the degree of efficiency and 
safety of nuclear power stations  In certain non-Wember  countries 

(presented by the Commission) 

<mmt 

- 2 

EXPLANATORY  MEMORANDUM 

The  Community  and  the Member  States  have  decided  to make  a  concerted 
effort  at  G-24  level  to  support  the  process  of  economic  and  social 
reform undertaken by the countries of Central  and Eastern Europe and by 
the CIS countries. 

Both  the PHARE  (Council  Regulations  3906/89  and  2698/90,  in favour  of 
the  countries  of  Central  and  Eastern  Europe)  and  TAC IS  (technical 
assistance  to the CIS, European Council  Decision of  14 and  15 December 
1990, Council  Regulation  2157/91) programmes  rate energy  as one of the 
key  sectors  in  the  restructuring  and  regenerating  process  to  improve 
the  organization  and  operation  of  the  economy  whilst  respecting  the 
principles  of  a market  economy.  The  stated  positions  of  the Council 
have  acknowledged  that  nuclear  safety  should  be  one  of  the  priority 
areas for technical  assistance. 

In those  countries of Central  and  Eastern  Europe  and of  the CIS which 
use  nuclear  energy,  it  is Soviet-designed  nuclear  power  stations  that 
are  in service  and/or  under  construction.  In those countries, nuclear 
energy  meets  the  following  proportions of electricity  requirements: in 
the  former  USSR,  12%;  in Hungary, 50%;  in Bulgaria  nearly  40%; and  in 
Czechoslovakia, 28%. 

The European Council  held  in Lisbon on  26 and 27 June  1992  invited the 
Council  to consider  granting  Euratom  loans  to contribute  to  improving 
the  degree  of  efficiency  and  safety  of  the  nuclear  power  stations  in 
the countries of Central  and Eastern Europe and of the CIS. 

The  nuclear  power  stations  in service  and/or  under  construction  fall 
into two quite separate families: 

RBMKs (graphite-moderated pressure-tube  type boiling-water  reactor) and 
W E Rs  (pressurized-water  reactors). 

- 3 -

RBMKs are  located  in CIS republics  (15 stations, each of  1 000 MW) and 
in Lithuania  (2 stations, each of  1 500 MW).  These reactors are of the 
"Chernobyl"  type.  An  extensive  debate  at  international  level  is 
currently  under  way  to  examine  whether  investments  could  be  made  to 
make them  safer  and  therefore keep  them  in service, for  the time being 
at  least, or whether  they should be closed down and decommissioned. 

There are three generations of  W E R s: 

*  440/230-type W E Rs  of 440 MW:  ten units are still  in service, four 
in the CIS  (Kola  and  Novovorone),  four  in Bulgaria  (Kozloduy) and 
two  In Czechoslovakia  (Bohunice).  Moreover,  in Armenia  there  are 
two  units  which  have  been  shut  down  for  four  years  and  which  the 
government  wants to bring back  into service. 

is  much  criticized,  but  its 
This  generation  of  reactor 
decommissioning  would  present  such  serious problems  for  the energy 
sector and the economy  as a whole  in the countries concerned  (as is 
also  the  case  for  the  RMBKs)  that,  subject  to  carrying  out  the 
changes agreed at  international  level, their continued operation  is 
indispensable. 

They  will  probably  remain  in  service  for  a  few  more  years, 
supported  by  additional  investment  tranches  of  several  tens  of 
mill ions of ecus. 

*  440/213-type W E Rs  of  440 MW:  fourteen  units  are  in service  (four 
in the CIS, four  in Hungary  and six Czechoslovakia) and 4 are under 
construction  (Czechoslovakia). 

* 

1000-type  W E Rs  of  1  000  MW:  eighteen  units  are  in  service 
(sixteen  in  the CIS, and  two  in Bulgaria).  There  are  twenty-five 
units  under  construction  (twenty-one  in  the  CIS,  two  in Bulgaria 
and  two  in  Czechoslovakia).  This  generation  of  reactor  is  more 
advanced  than  the  others  in  that  it  uses  a  leakproof  pressure 
containment  shell  to  surround  the  nuclear  island;  in  other 
respects,  however,  it  is still  inadequate. 

The general  level of efficiency  and  safety  in all  these power  stations 
is  inadequate.  They  must  be  brought  up  to  standard  (in  full  or  in 
part, according  to circumstances)  in order  to avoid  an accident, which 
would  have  serious  consequences  for  the  entire  continent.  If  the 
countries of Central  and Eastern Europe and of  the CIS are to carry out 
the  reforms  entailed  by  the  process  of  economic  restructuring,  then 
they  must  at  the  moment  retain  the  electricity  production  of  their 
existing nuclear  power stations, as other  sources of energy  fall well 

- 4 -

short  of  meeting  their  energy  requirements.  These  countries  are 
therefore generally committed  to the continued operation of  these power 
stations. 

The  power  stations  in  question  are  currently  being  studied  under 
programmes  which  are  being  run  by  the  International  Atomic  Energy 
Agency  (IAEA),  Vienna  and  the  World  Association  of  Nuclear  Operators 
(WANO);  the Community  is also  conducting  studies  under  the  PHARE  and 
TAC IS programmes. 

The  international  community  is asked  to direct  all  its expertise  at an 
exhaustive  analysis  to  identify  the  design  and  operational  weaknesses 
of  these  reactors.  In addition  to  the  emergency  projects  which  have 
already  been  undertaken,  such  as  staff  training,  housekeeping  and 
assistance  to  the  safety  authorities,  the  programmes  currently  under 
way  will  result  in proposals  for  modifying  and/or  replacing  equipment 
essential  for  improving  the  efficiency  and  safety  of  these  power 
stations,  thus  enabling  their  continued  operation  at  an  acceptable 
level of safety. 

Following  the  launch  of  the PHARE  and  TACIS programmes  of  assistance, 
the Community  allocated  ECU 72.7 million  to assistance  for  the nuclear 
energy  sector  in 1990 and  1991.  This amount  breaks down  by country as 
fol lows: 

Bulgaria  ECU  12.7 million;  Czechoslovakia,  ECU  7  million;  Lithuania, 
ECU 0.5 million; Poland, 0.3 million; and the CIS, ECU 53 million. 

The  amounts  relate  only  to  the  study  phase,  i.e.  software,  improving 
operational  safety and support  for the safety authorities. 

The G-7 meeting  in Munich, on 6-8  July  1992, reiterated  the  importance 
of  Improving  nuclear  safety  in  the  countries  of  central  and  eastern 
Europe and of the CIS. 

As part of the TACIS assistance programme, the Commission will propose, 
by the end of 1992, an ECU 100 000 000 programme  and a programme  for at 
least  the  equivalent  sum  in  1993. The  1992  regional  programme  should 
cover  the  drawing-up  of  a  five-year  steering  plan  to  determine 

-  5 

modifications  to  and  close-downs  of  nuclear  power  stations,  and 
coordinate  the  work  of  the  G-24  and  the  multilateral  organizations, 
permanent  assistance  on-site  to  improve  the  running  and  maintenance  of 
the  units,  financing  projects  of  the  International  Science  and 
Technology  Centre  in  Moscow,  and  pursuing  activities  of  a  generally 
similar  nature  already  in hand. 

As  regards  PHARE,  the  actions  started  in  1991  will  continue,  in 
conjunction with  TACIS, under  an  ECU  20 000 000  regional  programme. 

Bringing  the  power  stations  of  these  countries  up  to  standard  will 
ultimately  depend  on  carrying  out  the  changes  recommended  by  the 
projects  and  studies  currently  under  way.  Work  to  modify  or  replace 
existing  equipment  or  introduce  very  costly  new  sophisticated  equipment 
must  therefore  be  carried  out  as  it  is  essential  if  these  power 
stations  are  to  continue  to operate.  The  investment  required  would  be 
at  least  ECU  10 000 million, staggered  over  a period  of  approximately  8 
years. 

Moreover,  if  conversion  work  on  any  of  the  nuclear  plant  is  not 
considered  feasible  in  technical  or  economic  terms,  that  plant  will  be 
closed  down  and  decommissioned. 

The  scale  of  the  problems  involved  in  the  process  of  economic  and 
social  reform  is such  that  the  countries of  Central  and  Eastern  Europe 
and  of  the  CIS  are  unable  to  find  the  necessary  financial  resources  to 
begin  the  industrial  phase  of  improving  the  efficiency  and  safety  of 
their  nuclear  power  stations. 

It  is therefore  necessary  to call  on  finance  from  other  sources. 

The  Commission  should  consider  financing  via  Euratom  loans. 

Decision  90/212/Euratom  fixed  the  ceiling  for  Euratom  borrowings  at 
ECU  4 000  million.  At  31.12.991,  ECU  2 876  million  of  this  limit  had 
been  taken  up. 

In  view  of  the  slowdown  in  the  nuclear  energy  sector,  it  is  unlikely 
that  there will  be  strong  demand  for  the  remaining  finance  from  nuclear 
energy  projects  in the Community  in the  immediate  future. 

- 6 -

The community could therefore use a  large part of  the Euratom  borrowing 
facilities  currently  available  to  help  to  improve  the  efficiency  and 
safety  of  nuclear  power  stations  In  the  countries  of  Central  and 
Eastern Europe and of  the CIS. 

It  Is  planned  to  create  a  guarantee  fund  to  cover  the  financial 
commitments of  the  budget  to non-member  countries. This  fund  would  be 
financed  by  the  payment  of  14  %  of  the  capital  amount  of  each  new 
transaction.  Loans  granted  to  non-member  countries  under  the  Euratom 
Decision  will  be  subject  to  this mechanism  as  soon  as  it  comes  into 
force. 

Since  the EIB  is already  responsible  for managing  Euratom  loans within 
the Community,  the Commission  and  the EIB will  Jointly  examine ways 
in 
which  this  remit  could  be  extended  to  the  countries  of  Central  and 
Eastern Europe and the CIS. 

The  application  of  this  Decision  to  financing  improvements  in  the 
degree  of  efficiency  and  safety  of  nuclear  power  stations  In  the 
countries of Central  and Eastern Europe and  in the CIS will  comply with 
the attached guidelines* 

Euratom  funding  for Member  States w in  continue  to  be governed  by  the 
guidelines  set  out  in  the  Council  minutes  with  regard  to  the  basic 
Decision  77/270/Euratom. 

- 7 -

Proposal  for a 

COUNCIL DECISION 

amending Decision 77/270/Euratom, to authorize 
the Commission to contract Euratom borrowings 
in order  to contribute to the financing required for  improving 
the degree of efficiency and 
safety of nuclear power stations  in certain non Member countries 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

HAVING  REGARD  to  the  Treaty  establishing  the  European  Atomic  Energy 
Community, and  in particular Articles 1, 2, 172 and 203 thereof, 

HAVING REGARD to the proposal  from the Commission, 

HAVING REGARD to the Opinion of the European Parliament, 

WHEREAS  the European Atomic  Energy  Community  was created  to establish  the 
conditions of safety necessary  to eliminate hazards to the  life and health 
of  the public; and whereas  the Member  States have expressed  the desire  to 
associate  other  countries  with  their  work  and  to  cooperate  with  the 
international  organizations  concerned  with  the  peaceful  development  of 
atomic energy, 

WHEREAS  the  Community  and  the  Member  States  have  decided  to  make  a 
concerted  effort  at  G-24  level  to  support  the  process  of  economic  and 
social  reform undertaken by the countries of Central  and Eastern Europe and 
of  the  CIS, and  have  decided  on  measures  to  give  economic  aid  to  these 
countries; 

WHEREAS these countries have nuclear  installations whose  level of safety  is 
inadequate and whose malfunctioning could have repercussions on  the entire 
continent; and whereas  these countries are committed  to  the continued use 
of nuclear energy; 

-  8  -

WHEREAS  the  Community  16 duty  bound  to  commit  the  requisite  resources  to 
enable  It  to meet  the  expectations of  the  public  in  the  Member  States  in 
terms  of  the  safety  and  quality  of  the  environment;  and  whereas,  in 
particular,  action  must  be  taken  in  the  countries  of  Central  and  Eastern 
Europe and of  the CIS to modify certain existing nuclear  installations  or, 
If  need  be,  to  dismantle  others  which  it  would  not  be  feasible  in 
technical or economic terms to bring up to standard, 

WHEREAS  projects  undertaken  by  the  Community  under  the  PHARE  and  TACIS 
programmes  to  improve  the  level  of  safety  of  the  nuclear  Installations 
comprise  inter  alia  studies  to  identify  areas  of  weakness  and  to  put 
forward  appropriate  corrective  measures;  and  whereas  the  technical 
assistance  will  result  In  proposals  to  modify  some  of  the  nuclear 
installations  in  service  or  under  construction  and  to  shut  down  end 
decommission  others;  and  whereas  it  is  in  ths  Community's  Interest  that 
this work be carried out; 

WHEREAS  the  Community  must  encourage  these  projects  to  be  carried  out 
whilst promoting cooperation with  Industry  in the Member  States; 

WHEREAS  the  investment  required  to  bring  up  to  standard  the  nuclear 
installations  in ths countries of Centrai  and Eastern Europe and of  the CIS 
is on such a scale that  these countries are unable to undertake  it although 
the problems require urgent  solutions; 

WHEREAS  there  Is  good  reason  for  calling  on  all  available  financial 
resources;  whereas  to  this end  there  is good  reason  for  amending  Decision 
77/270/Euratom,  authorizing  the  Commission  to  contract  Euratom  borrowings 
to finance  investment  in the nuclear  energy sector,  In order  to extend  the 
scope  of  the  Decision  to  cover  countries  Involved  in  the  PHARE  programme 
and  those of  the Commonwealth  of  Independent  States so  that  the  efficiency 
and safety of  their nuclear power stations can be  Improved; 

WHEREAS Decision 90/212/Euratorn fixed  the ceiling for Euratom borrowings at 
ECU  4  000 million»  and  at  31.12.1991  ECU  2 876 million  of  this  limit  had 
been  taken  up.  and  whereas  following  the  slowdown  In  the  nuclear  energy 
sector  and  the  changes  In  nuclear  energy  policy  by  some  Member  States, 
there  wl 11  not  be  a  strong  demand  for  the  remaining  finance  from  nuclear 
energy projects  in the Community over  the next  few years; 

WHEREAS the recipient  countries will  act  as guarantors to the  loans granted 
by  virtue  of  this  Decision,  and/or  other  first-class  securities  w in  be 
obtained, 

HAS  DECIDED  AS  FOLLOWS 

-  9  -

Soie  Article 

The  first  Article  of  Decision  77/270/Euratom  is replaced  by  the  following: 

"First  Article 

The  Commission  is  authorized  to  contract,  in  the  name  of  the  European 
Atomic  Energy  Community  (Euratom),  and  within  the  limits  fixed  by  the 
Council,  borrowings  whose  proceeds  will  be  allocated  in  the  form  of  loans 
to  finance,  within  the  Community,  investment  projects  relating  to  the 
industrial  production  of  electricity  in  nuclear  power  stations  and  to 
industrial  installations  in the  nuclear  fuel  cycle. 

The  Commission  is  also  authorized  to  contract,  within  the  same  limits  , 
borrowings  whose  proceeds will  be  allocated  in the  form  of  loans  to  finance 
conversion  work  on  the  nuclear  power  stations  of  non-Member  countries 
involved  in  the  PHARE  programme  and  those  of  the  Commonwealth  of 
Independent  States  (CIS),  in order  to  improve  the  efficiency  and  safety  of 
these  installations.  For  these  projects  to be eligible  they  must: 

relate  to  nuclear  power  stations  or  installations  in  the  nuclear  fuel 
cycle  which  are  in  service  or  under  construction,  or  to  the 
decommissioning  of  nuclear  installations  where  modification  is  not 
feasible  in technical  or  economic  terms; 

have  received  all  the  necessary  authorization  at  national  level  and  in 
particular  the  agreement  of  the  safety  authorities-, 

have  received  a  favourable  opinion  from  the Commission  in  technical  and 
economic  terms-, 

-  10 -

involve  close  industrial  or  commercial  cooperation  with  at  least  one 
Community enterprise. 

The Commission may borrow only within the  limits of  loans requested of  it. 

The borrowing and corresponding  lending operations are to be denominated  in 
the same monetary unit  and are to be carried out under  the same conditions 
as repayment  of  the principal  and  interest  payments. Costs  incurred  by the 
Community  in concluding and executing each operation are to be borne by the 
recipient undertakings." 

Done at Brussels, (date) 

-  11  -

FINANCIAL  IMPLICATIONS 

The  draft  Decision  concerns  extending  the  scope  of  an  existing  Decision 
(77/270/Euratom):  the  granting  of  Euratom  loans  is extended  to  investments 
to  improve  the degree of efficiency  and  safety  of  nuclear  power  stations  in 
certain  non-Member  countries,  under  the  ultimate  guarantee  of  the  General 
Budget  of  the European  Communities. 

The  draft  Decision  is  considered  to  have  no  direct  affect  on  the  General 
Budget,  except  in  the  event  of  default  by  the  recipients  or  their 
governments, who will  be asked  to act  as guarantors. 

-  12 -

ANNEX TO DRAFT DECISION 92/DEF/EURATOM 

GUIDELINES RELATING TO THE FINANCING REQUIRED FOR 
IMPROVING THE DEGREE OF EFFICIENCY AND SAFETY OF 
NUCLEAR POWER STATIONS  IN CERTAIN NON-MEMBER  COUNTRIES 

(Text  to be  inserted  in the Council  minutes) 

The guidelines contained  in the Council minutes relating to Decision 77/270 
shall  apply  to  Euratom  loans  to  Member  States.  As  regards  operations  to 
contribute to the financing required for  improving  the degree of efficiency 
and  safety  of  nuclear  power  stations  in  the  countries  of  central  and 
eastern Europe and of the CIS, the Council  invites the Commission  to follow 
the guidelines below. 

I BORROWINGS 

a)  The  costs  involved  in  contracting  the  borrowings  must  correspond  to 
those  paid  by  category-one  issuers, and  the Commission  shall  take all 
the necessary  steps  to ensure  that  the Euratom  borrowings  benefit  from 
the  same  favourable  conditions  as  those  enjoyed  by  other  Community 
borrowings. 

b)  Given  the  type  of  investment  to  be  financed,  the  borrowings  must  be 
contracted over as  long a time scale as possible; short- or medium-term 
loans may  also be concluded  should  such  a  requirement  be expressed  by 
the enterprises concerned. 

c)  As  far  as possible,  the  repayment  schedule of  the borrowings  shall  be 

accompanied  by a period of grace. 

I I LOANS 

-  13  -

1. Technical  and  economic  acceptability  of  applications 

1.1 Types of  projects  Involved 

The  projects  must  give  priority  to  improving  the  degree  of 
efficiency  and  safety  of  nuclear  power  stations  and  installations 
in  the  nuclear  fuel  cycle  which  are  in  service  or  under 
construction  (cf. points  1.2  and 1.3). 

Projects  may  also  relate  to  the  decommissioning  of  installations 
for  which  modification  to bring  them  up  to standard  is not  feasible 
in technical  or  economic  terms  and  which  would  pose  a safety  hazard 
if simply  abandoned.  The  financing  granted  may  relate  to  investment 
of 
during 
decommissioning  and  to  the  decommissioning  measures  themselves.  The 
financing  of  decommissioning  measures  will  be  considered  only  where 
no  provision  to  finance  these  measures  has  been  made  during  the 
operating  life of  the  installation. 

shut-down 

between 

period 

start 

and 

the 

the 

1.2 Obtaining  authorization  at  national  level 

Financing  will  be  granted  only  to  projects  which  have  received  the 
approval  of  the  competent  national  authorities,  particularly  the  safety 
author it ies. 

1.3 Obtaining  a  favourable  opinion  from  the  Commission  in  technical  and 

economic  terms 

At  technical  level,  the  Commission  shall  examine  the  extent  to  which 
the project  provides  a solution  to  the  safety  problem  which  exists.  The 
examinâtio  will  also  include  an  assessment  of  the  environmental  impact 
of  the  project. 

The  Commission's  examination  shall  refer  to  the  studies  on  nuclear 
safety  carried  out  by  the  international  bodies,  IAEA  and  WANO,  and 
under  the  Phare  and  Tacis  programmes,  and  shall  assess  the  project  in 
comparison  with  measures  implemented  in  the  Member  States  to  solve 
similar  types  of  problems,  taking  account  of  the  recommendations  made 
by  the  international  bodies. 

-  14 -

Although  the  list  below  is  not  exhaustive,  the  Council  invites  the 

Commission  to  give  particular  consideration  to  the  modification 

measures  below: 

Improving  the  containment  of  the  primary  circuit  (reactor  vessel 

and  primary  piping); 

improving  the  reactor  cooling  system,  particularly  the  emergency 

cool ing  system-, 

fire  detection  and  extinguishing  systems; 

installation of  specific  and  independent  alarm  systems-, 

improving  the  reactor  protection  and  monitoring  system; 

control  room  equipment. 

Other  measures  resulting  from  the  studies  under  way  shall  also  be  taken 

into  consideration. 

At  economic  level,  the  Commission  shall  establish  that  the  projects  are 
the  economic  characteristics  and  the 
justifiable,  by  comparing 
efficiency  of  the  projects  in  question  with  those  of  non-nuclear 
alternatives  which  are  potentially  available.  Investment  must  relate  to 
installations which  are  economically  viable.  The  opinion  shall  refer  to 
the  overall  energy  plan  which  has  been  defined  for  the  beneficiary 
country,  in so  far  as  such  guidelines  exist. 

The  economic  and  efficiency  studies  shall  be  based  on  assumptions  which 
reflect  the  reality  of  a  market  economy  in  terms  of  both  the  positive 
financial  flows  (price  and  quantity  produced)  and  the  negative 
financial  flows  (investment  costs,  cost  of  factors  utilized,  etc.). 

1.4 Necessity  of  close  cooperation  with  at  least  one  Community  enterprise 

This  condition  shall  be  considered  to  have  been  met  if  a  major 
proportion  of  the  capital  goods  item or  service  which  is to  be  financed 
is provided  by  a Community  enterprise. 

- 15 -

The  guarantee  of  the  State on whose  territory  the  project  is situated 
shall  normally  be  required,  but  other  first-class  securities may  also 
be contemplated. 

2.  Limits of  loan amounts 

2.1  The Commission  shaii  grant  only  loans which  supplement  those which  the 

enterprise  has contracted with other parties. 

2.2 The  Commission  shall  limit  its  loans  to 50% of  the  total  cost  of  the 
projects mentioned  in point  1.1  (in one or several  tranches). The total 
Community  financing  for a particular  project  shall  not exceed  50%. 

2.3  in  the  event  of  co-financing  with  the  EBRD,  the  cumulative  total  of 
Community  financing  shall  under  no  circumstances  exceed  70%  of  the 
total  cost of  the project mentioned  in point  1.1. 

3.  Order of granting of  loans 

3.1 Applications  concerning  the  financing  of  expenditure  effected  after 1 

January  1992 shall be acceptable. 

3.2 The Commission  shall  use  the  technical  and economic  studies  to decide, 

if necessary, which projects are to receive priority  treatment. 

4.  other  financing  conditions 

4.1  Currencies 

Loans  shad  be paid out  in several  currencies  (a combination)  or  in a 
single  currency,  according  to  the  recipient's  preferences  and  subject 
to  availability.  The  main  currencies  used  shall  be  those  of  the  EEC. 
Member  States, the ecu, the US dollar, the Swiss franc and  the yen. 

4.2 Duration 

Loans  shall  be  granted  on  a  medium-  and  long-term  basis,  with  the 
particular  duration  depending  on  the  type  of  project  and  life of  the 
assets financed. The maximum duration of  loans shall  be twenty years. 

- 16 -

4.3  Interest  rates 

The  interest  rates shall closely  follow the cost of the borrowings from 
which  the  loans are granted,  and  they  shall  not  vary  according  to the 
nature  or  location  of  the  project,  nor  according  to  the  type  or 
nationality  of  the  recipient.  Rates  shall  be  set  for  each  of  the 
currencies used. 

The  loans  shall  be  at  a  fixed  or  variable  rate,  according  to  the 
recipient's preferences and subject  to availability. 

4.4 Reimbursement 

Reimbursement  of  the  loans  shall  be  carried  out  in  line  with 
reimbursement  of  the borrowings utilized.  Reimbursements  shall  be made 
in the same currencies and  in the same proportions as the  loan payouts. 

B 

ORGANIZATION OF COOPERATION WITH THE EIB 

(Text  to be  inserted  in the Council  minutes) 

The  Council  notes  that  the rules, which  have  already  been  agreed  with  the 
EIB, for Community  participation  in the financing of  investment  referred to 
in Decision  77/270/Euratom  and  listed  in  the  Council  minutes  relating  to 
that  Decision  shall  continue  to apply  in respect  of  investment  carried out 
in the Member States. 

The Commission  shall  define with  the EIB how these rules are to be extended 
to  apply  to  the  financing  of  investment  aimed  at  improving  the  degree of 
efficiency and safety of nuclear power stations  in the countries of central 
and eastern Europe and of  the CIS. 

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ISSN 0254-1475 

COM(92) 467 final 

DOCUMENTS 

EN 

11 12 

Catalogue number : CB-CO-92-489-EN-C 

ISBN 92-77-49046-2 

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