Amended proposal for a COUNCIL DECISION granting a Community guarantee to the European Invesment Bank against losses under loans for projects of mutual interest in Latin American and Asian countries with which the Community has concluded cooperation agreements (Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Salvador, Uruguay and Venezuela; Bangladesh, Brunei, China, India, Indonesia, Macao, Malaysia, Pakistan, Philippines, Singapore, Sri Lanka, Thailand and Vietnam)
Date: 1997-01-16
Institutions: European Commission
Subjects: Asia, EIB loan, South America, cooperation policy, credit guarantee

"^ 

I  COMMISSION OF THE EUROPEAN  COMMUNITIES 

Brussels,  16.01.1997 
COM(96) 704 final 

96/0015  (CNS) 

Amended  proposal  for  a 

COUNCIL  DECISION 

granting a Community  guarantee to the European Investment Bank against losses under 
loans for projects of mutual interest in Latin American and Asian countries 
with which the Community has concluded cooperation agreements 

(Argentina,  Bolivia, Brazil, Chile, Colombia,  Costa Rica, Ecuador,  Guatemala, 
Honduras, Mexico, Nicaragua,  Panama,  Paraguay,  Peru,  Salvador,  Uruguay and 
Venezuela; Bangladesh,  Brunei, China,  India,  Indonesia,  Macao, Malaysia,  Pakistan, 
Philippines, Singapore, Sri Lanka, Thailand and Vietnam) 

(presented  by the Commission  pursuant to Article  189 a (2) 
of the EC-Treaty) 

EXPLANATORY  MEMORANDUM 

1.  On  18 July  1996 the European Parliament adopted an opinion on the proposal for a Council 
Decision  granting a Community  guarantee to the European  Investment Bank against  losses 
under  loans  for  projects  of  mutual  interest  in  Latin  American  and  Asian  countries  with 
which the Community  has concluded  cooperation  agreements  (Argentina,  Bolivia,  Brazil, 
Chile,  Colombia,  Costa  Rica,  Ecuador,  Guatemala,  Honduras,  Mexico,  Nicaragua, 
Panama,  Paraguay,  Peru,  Salvador,  Uruguay  and  Venezuela;  Bangladesh,  Brunei,  China, 
India,  Indonesia,  Macao,  Malaysia,  Pakistan,  Philippines,  Singapore,  Sri Lanka,  Thailand 
and Vietnam). 

2.  Of  the  five  amendments  adopted  by  Parliament,  the  Commission  accepted  two  in  their 
entirety.  The Commission  accepted  all Parliament's amendments which did not alter  the 
intent or structure of the original proposal and which improved upon it.  The amendments 
are  summarized  below,  followed  by  a  summary  of  those  amendments  which  the 
Commission did not accept. 

II 

New Recital 6a (EP Amendment 1) 

The recital emphasizes the commitment of  the  European  Union  to the regions of  Latin 
America and Asia and the role of the EIB in this connection. 

Article 3 (EP Amendment 4) 

The  insertion  specifies  that  the  economic  and  social  impact  of  the  scheme  in  recipient 
countries should be included in the assessment to be submitted to Council and Parliament 
at the end of the loan period. 

Ill 

The amendments which the Commission did not accept were the following: 

Inserting  a  recital  (Amendment  2)  and  a  new  paragraph  in  Article  3  (Amendment  5), 
because the  Union's financial contribution  is  already  given  a high  profile  through  press 
releases  issued  following  the  approval  and  signing  of  loans,  through  EIB  publications 
concerning  the  Bank's  activities  in  the  area  and  through  participation  in  seminars  and 
conferences.  Furthermore,  the Bank,  when operating outside the Community,  works  in 
conjunction with,  and informs,  the Commission's  delegation  of  the  activities  undertaken 
in that particular country.  In turn,  the  delegation  disseminates  the  information  through 
its usual channels; 

Deletion  of  part  of  the  second  paragraph  of  Article  1  (Amendment  3),  because  the 
proposed  six-month  automatic  extension  of  the  loan  period  is  required  in  proposals  of 
this nature to ensure  that the EIB has the necessary  flexibility  to utilize  in  full  the  ioar. 
ceiling approved by Council. 

Amended proposal for a 

COUNCIL  DECISION 

granting a Community  guarantee to the European  Investment Bank against  losses under loans 
for  projects  of  mutual  interest  in  Latin  American  and  Asian  countries  with  which  the 
Community  has  concluded  cooperation  agreements 
(Argentina,  Bolivia,  Brazil,  Chile, 
Colombia,  Costa  Rica,  Ecuador,  Guatemala,  Honduras,  Mexico,  Nicaragua,  Panama, 
Paraguay,  Peru,  Salvador,  Uruguay  and  Venezuela;  Bangladesh,  Brunei,  China,  India, 
Indonesia,  Macao,  Malaysia,  Pakistan,  Philippines,  Singapore,  Sri  Lanka,  Thailand  and 
Vietnam) 

Following  Parliament's  opinion  dated  18 July  1996,  the  following  amendments  are  made  to 
the recitals and Article 3 of the Commission's original proposal (COM(95)742): 

Original proposal 

Amended proposal 

Recital 6a 

Whereas  the  European  Union's  decision 
to  allow  the  EIB  to  operate  in  Latin 
America  and  Asia  has  given  it  a  basic 
financial instrument that  will  enable  it  to 
reaffirm  its  strong  political  commitment 
to both regions and support the efforts  of 
European firms to penetrate the emerging 
markets there; 

Article 3 

Article 3 

loan  period 

At  the  end  of  the 
the 
Commission  shall  inform  the  European 
Parliament  and  the  Council  of  the  loan 
operations  and  shall,  at  the  same  time, 
submit  an  assessment  of  the  operation  of 
the  scheme  and  of  coordination  between 
the financial institutions  operating  in  that 
area. 

At  the  end  of  the  loan  period 
the 
Commission  shall  inform  the  European 
Parliament  and  the  Council  of  the  loan 
operations  and  shall,  at  the  same  time, 
submit  an assessment  of  the  opera ion  of 
the  scheme,  of  its  economic  and  social 
impact  on  the  recipient  countries  and  of 
coordination 
financial 
institutions operating in that area. 

between 

the 

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COM(96) 704  final 

DOCUMENTS 

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01  n  09 

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