REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT ON THE RATE OF UTILIZATION OF THE NEW COMMUNITY INSTRUMENT (NCI) - (half-year from 1/01/96 to 30/06/1996)
Date: 1996-12-09
Institutions: European Commission
Subjects: Community loan, EU borrowing, New Community Instrument, activity report

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels, 09.12.1996 
COM(96) 644  final 

REPORT FROM THE COMMISSION TO THE COUNCIL 
AND THE EUROPEAN PARLIAMENT 

ON THE RATE OF UTILIZATION 

OF THE NEW COMMUNITY INSTRUMENT (NCI) 

(half-year from  1/01/96 to 30/06/1996) 

REPORT FROM THE  COMMISSION TO THE  COUNCIL 
AW  THE E U R O P E^  FIRMAMENT 

on the rate of utilization of the 
New Community Instrument (NCI) 
(half-year from 1.01.1996 to 30.06.1996) 

1. 

Introduction 

Council  Decisions  83/200/EEC  (Article  6)  and  87/182/EEC  (Article  8)  on  the 
financing  of the  NCI require the  Commission to  draw up  a  six-monthly  report  on 
the rate of utilization of the tranches of NCI HI and IV. 

The present report covers the period from 1.01.1996 to 30.06.1996. 

Overall situation at 30.06.1996 

The  different  legal bases  determine  the  method  of  assessing  the  amount  of  loans 
signed in relation to the maximum authorized borrowing: 

(i) 

for NCI IE, the volume of loans is lower than that of borrowings in order 
to take account  of the  currencies borrowed  and the  associated  costs and 
expenses; 

(ii) 

for NCI IV, the ceiling applies to the loans signed minus loans cancelled. 

At the end of the first half of  1996 the situation regarding the use of the tranches 
for which a six-monthly report has to be drawn up was as follows: 

Use of NCI:  situation at 30.06.1996 

(ECU million) 

Ceiling 

Amounts used 

Balance 

Nam 
NCI IV 

3,000 

750 

2,862 

669 

138  n 

81 

(*) The special borrowing of ECU lOOmillion for European innovation 

projects has notyetbeen authorized by the  Council. 

The borrowing  operations  carried out in the six months under review with  a view 
to financing NCI activities are shown in  Annex 2(B). 

3. 

Breakdown of loans by country and sector 

The  table  below  provides  an  overall  view  of  loans  signed,  converted  into 
"borrowing  equivalents"  at  30.06.1996.  The  loans  in  the  various  currencies  have 
been converted  into  ecus at the exchange rate in force  on the last working  day  of 
the quarter preceding the signing of the contract. 

% 

0.4 

8.6 

4.9 

3.0 

19.5 

6.8 

49.5 

0.1 

0.6 

6.6 

Distribution  of loans signed  by country at 30.06.1996 

1 

(ECU million) 

Country 

NCI  1 

Nan 

Nam 

NO  IV 

NCI 
Reconstr. 

Total 

Belgium 

Denmark 

Greece 

Spain 

France 

Ireland 

Italy 

Netherlands 

Portugal 

UK 

Total 

66.8 

70.0 

239.0 

479.9 

134.9 

990.5 

23.6 

63.2 

1 i a2 

72.3 

303.0 

111.2 

69.2 

938.7 

68.4 

80.0 

23.6 

533.5 

306.1 

187.4 

1,206.0 

424.0 

1,228.5 

285.7 

598.7 

3,066.3 

100.6 

114.9 

125.0 

116.6 

473.4 

3.2 

29.9 

67.1 

109.3 

9.9 

95.8 

3.2 

39.8 

407.1 

997.5 

2,861.6 

668.8 

678.7 

6,197.1 

100.0 

SECTOR 

Productive  sector 

Infrastructure 

NCI III 
NCI IV 

52.8  % 
100.0% 

26.5% 

Energy 

20.7  % 

100.0% 
100.0% 

NIC  IV  is  of  interest  because  of  its  special  features,  such  as  the  options  of 
converting loans into risk capital, using loans to finance the purchase of intangible 
assets and deferring interest payments. 

However,  as  resource  depletion  now  allows  only  limited  operations,  which  are 
difficult  to finance on the international market under the strained conditions already 
described, no loan transaction has been carried out during this half year period. 

NCI  IV  LOANS 

C E I U N G:  ECU  750  M I L U ON  (1)  -  (Situation  at  30.06.1996) 

Breakdown by country (2) 

Annex 1 

UK 

Ref. 

Project  description 

I. LOANS SIGNED 

Date of 
contract 

ECU 
million (2) 

FIH(SmallBushess)PO-VI/A 
FIH(SmaHBusiness)PG-VI/B 
BNL-PMIV/A 
BNL-PMIV/B 
I M I - P M I V /A 
I M I - P M I V /B 

64/87 
64/87 
68/87 
68/87 
69/87 
69/87 
70/87  MEDIOCR  CBNTR - PMIIV/A 
70/87  MEDIOCR  CBNTR - PMI  I V/B 
70/87  MBDIOCR  CBNTR - PMI  IV/C 
70/87  MBDIOCR  CENTO. - PMI  IV/D 
70/87  MEDIOCR  CBNTR - PMI  I V/B 
7 V87 
7 V87 
73/87 
105/87 
105/87 
106/87 
107/87 
107/87 
108/87 
108/87 
110/87 
BV87 
148/87 
M8/87 
M8/87 
M8/87 
206/87 
206/87 
207/87 
207/87 
23V87 
64/8 8 

INTBRBANCA - PMI I V/A 
INTBRBANCA - PMI I V/B 
B P I - P OV 
CBNTROBANCA  - PMI  I V/A 
CBNTROBANCA  - PMI  I V/B 
SAN PAOLO Agrohdustria  II 
CREDI OP - PMI  I/A 
CRBDIOP - PMI  I/B 
BANCO DI NAPOLI  - PMI  A 
BANCO DI NAPOLI  - PMI B 
B'DBSANTANDBR-PYMB 
B°DE BILBAO-PYMB 
BFIBANCA  - PMI  I V/A 
BFIBANCA  - PMI  I V/B 
BFIBANCA  - PMI  I V/C 
BFIBANCA  • PMI  IV/D 
B°DBVIZCAYA-PYMBA 
B'DBVIZCAYA-PYMBB 
B'BSPÀNOLDBCRBDITO-PYMB 
B°BSPANOLDE CRBDITO-PYMB 
CREDITNATIONAL-PMIIII 
INVBSTORS IN INDUSTRY -
GROUPED LOAN V 
BFIBANCA-PMI  V/A 
10V88 
BFIBANCA  - PMI  V/B 
10 V88 
BFIBANCA  - PMI  V/C 
BV88 
10 V88 
BFIBANCA  - PMI  V/D 
B3/88  MBDI OCR LOMB ARDO - PMI  A 
103/88  MEDI OCR LOMB ARDO - PMI  B 
103/88  MBDIOCR LOMB ARDO -PMI C 
103/88  MBDIOCR  LOMBARDO - PMI  D 
109/88 
128/88 
128/88 
135/88 
135/88 
185/88 
185/88 
199/88 
237/88 
237/88 
237/88 
237/88 
175/89 
119/90 
119/90 
48/91 

BARCLAYSBANKIIOL 
CBNTROBANCA  - PMI  V/A 
CBNTROBANCA  - PMI  V/B 
CRBDIOP -PMI  II/A 
CRBDIOP-PMI  II/B 
BANCO DI SI CILIA  -PMI  II/A 
BANCO DISICILIA-PMI  II/B 
CREDIT INDUSTRIEL ET COMML 
I M I - P M I V I /A 
I M I - P M I V I /B 
I M I - P M I V I /C 
I M I - P M I V I /D 
BARCLAYSBANKIII/A 
KREDIETBANKN.V.-GL 
KRBDIETBANKN.V.-GL 
B'BSPANOLDB CRBDITO PGPY 

15.09.87 
24.05.88 
12.10.87 
12.».87 
3L07.87 
3L07.87 
15.09.87 
10.12.87 
03.02.88 
16.03.88 
23.06.88 
07.10.87 
07.B.87 
22.07.87 
11.12.87 
1112.87 
05.1L87 
18.12.87 
18.12.87 
18.E.87 
18.12.87 
24.07.87 
23.07.87 
17.12.87 
17.12.87 
24.06.88 
24.06.88 
17.12.87 
30.1188 
18.12.87 
18.1188 
05.02.88 
28.12.88 

05.10.88 
05.10.88 
16.01.89 
16.0189 
10.10.88 
10.10.88 
06.02.89 
06.02.89 
21.12.88 
19.12.88 
19.12.88 
09.12.88 
09.12.88 
25.05.89 
25.05.89 
29.1188 
19.12.88 
19.12.88 
06.02.89 
06.02.89 
30.1189 
20.12.90 
20.12.90 
28.05.91 

31.80 
3143 
18.68 
8.01 
37.29 
15.98 
6.19 
5.88 
4.81 
3.27 
18.98 
9.34 
4.00 
9.91 
9.34 
4.00 
13.34 
4.67 
2.00 
4.60 
197 
20.19 
3164 
4.67 
2.00 
4.55 
195 
9.37 
8.60 
12.04 
10.94 
20.00 
20.90 

4.53 
194 
4.57 
196 
6.79 
2.91 
9.14 
3.92 
45.55 
B.23 
5.67 
4.53 
194 
4.58 
196 
52.32 
9.06 
3.88 
B.72 
5.88 
29.38 
18.04 
5.54 
25.44 

DK 

3180 
3143 

20.19 
3164 

9.37 
8.60 
12.04 
10.94 

18.04 
5.54 

25.44 

9.91 

18.68 
8.01 
37.29 
15.98 
6.19 
5.88 
4.81 
3.27 
18.98 
9.34 
4.00 

9.34 
4.00 
13.34 
4.67 
2.00 
4.60 
197 

4.67 
2.00 
4.55 
195 

20.00 

20.90 

4.53 
194 
4.57 
196 
6.79 
2.91 
9.14 
3.92 

13.23 
5.67 
4.53 
194 
4.58 
196 

9.06 
3.88 
13.72 
5.88 

52.32 

45.55 

29.38 

TOTAL I 

II. LOANS APPROVED, 

AWAITING  SIGNATURB 

BALANCE 

CEIUNG 

668.82 

23.58 

63.23 

118.22 

72.32 

285.73 

9.91 

95.83 

6.80 

74.38 

750.00 

(1) JO V. 271 of 14.03.1987 Go an» oeiling). 
(2) Conversion rates are those obtained onthe test working day of the quarter preeeding the signing of eaohloaa 

NCI BORROWING^ BY CURRENCY 

Annex  2 

A.-Debt outstanding at 30.06.1996 (1) 

|| 

Currency 

(million) 

Equivalent  in 
ECU miHion(2) 

ECU 

BFR 
DM 
FF 
HFL 
LFR 
LIT 
PTA 
UKL 
CAD 
SFR 
USD 
YEN 
Total 

900 

404.3 
2,100.0 
328.6 
1000.0 

12.0 

100.0 
50.0 

-_ 

-

90.0 

211.1 
3242 
153.0 
25.4 

14.8 

63.5 
39.8 

921£ 

B.- New operations: 1.01.1996 - 30.06.1996 

| 

Date 
of issue 

-

Duration 
(years) 
-

Coupon 

(%) 
-

Currency 
(million) 

-

Fresh 
capital (1) 

Re 
financings 

-

Equivalent in MECU (3) 

(1) Excluding refinancing opérations,designed to reduced Ihe costofservicing  existing 

debtinilially contracted athigher interest rates. 

(2) Exchange rates as at30.06.1996. 
(3) Exchange rates atsignature. 

ISSN 0254-1475 

COM(96) 644  final 

DOCUMENTS 

EN 

01  09 

Catalogue number  :  CB-CO-96-647-EN-C 

ISBN  92-78-13075-3 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg