Decision of the Board of Governors - Enlargement of the European Union: EIB pre-accession facility
Date: 1998-01-28
Institutions: Board of Governors of the European Investment Bank
Subjects: EIB loan, European Investment Bank, accession to the European Union, enlargement of the Union, power of attorney, support mechanism

C  116/10

EN

Official  Journal  of  the  European  Communities

16.4.98

EUROPEAN  INVESTMENT  BANK

BOARD  OF  GOVERNORS

Enlargement  of  the  European  Union:  EIB  preaccession  facility

(98/C  116/09)

its  January  ECOFIN  meeting 

1.(cid:218)(cid:217)At 
the  Council
decided  on  the  amounts  to  be  proposed  for  EIB  external
lending  mandates.  With  regard  to  the  Bank’s  activity  in
Central  and  Eastern  Europe,  the  Council  proposed  a
three(cid:220)year  envelope  of  ECU  3(cid:216)520  million  and, 
in
addition,  it  invited  the  Bank  to  propose  a  substantial
preaccession  support  facility,  to  be  presented  to  the
Bank’s  Governors  later  this  year.  In  the  conclusions  of
the  Council,  taken  up  in  the  preamble  of  the  Council
Decision  of  14  April  1997  on  the  Community  guarantee
arrangements(cid:216)(˛)  (as  being  at  the  basis  of  the  regional
ceilings  agreed  for  the  lending  mandates),  it  is  stipulated
that  "Member  States  and  the  Commission  unanimously
declare  that  they  agree  to  the  creation  of  a  substantial
preaccession  support  facility.  They  invite  the  EIB  to
propose  such  a  facility  to  the  Board  of  Governors  later
this  year.  The  facility  will  enter  into  force  as  soon  as
possible  in  the  light  of  future  accession.  The  facility  will
be  approved  under  Article  18  of  the  EIB  statute  and  will
carry  no  guarantee  from  the  Community  budget  or  from
the  Member  States’.

2.(cid:218)(cid:217)The  above  proposal  was  communicated  to  the  Bank
by  a  letter  dated  15  April  1997  from  the  Council  to  the
President  of  the  Bank  forming  the  basis  of  the  Board  of
Governors  subsequent  unanimous  decision,  acting  on  a
proposal  by  the  Board  of  Directors  and  in  conformity
with  the  second  paragraph  of  Article  18(1)  of  the
Statute,  to  authorise  lending  by  the  Bank  to  the  Central
and  East  European  countries,  Mediterranean  countries,
Latin  American  and  Asian  countries  and  South  Africa.

3.(cid:218)(cid:217)Following  the  conclusion  of  the  IGC  and  in  line
with 
the
the  above  Council  decision  as  well  as 
conclusions  of  the  European  Council  in  Amsterdam,  the
Board  of  Directors  proposes  to  the  Board  of  Governors
that  it  authorise  the  Bank,  in  conformity  with  the  second
paragraph  of  Article  18(1)  of  the  Statute,  to  establish  a

(˛)(cid:217)Council  Decision  97/256/EC  of  14  April  1997  granting  a
Community  guarantee  to  the  European  Investment  Bank
the
against 
Community  (Central  and  East  European  countries,  Mediter(cid:220)
ranean  countries,  Latin  American  and  Asian  countries  and
South  Africa)  (OJ  L  102,  19.4.1997,  p.  33).

for  projects  outside 

losses  under 

loans 

preaccession  facility,  as  requested  by  the  Council,  so  that
the  Bank  contributes  appropriately  to  the  economic  inte(cid:220)
gration  of  the  countries  of  Central  and  Eastern  Europe
which  have  applied  for  EU  membership  and  of  Cyprus.

4.(cid:218)(cid:217)An  amount  of  up  to  ECU  3,5  billion  has  been  set  to
cover  the  period  until  31  January  2000.  This  amount  will
double  the  existing  mandate  running  over  the  same
period  and  should  be  sufficient  to  cover  the  Bank’s  rein(cid:220)
forced  preaccession  action 
in  favour  of  all  applicant
countries  during  the  said  period.  It  should  be  noted  that
this  overall  amount  reflects  the  needs  and  absorptive
capacity  of  the  countries  concerned  as  well  as  the
capacity  of  the  Bank.

5.(cid:218)(cid:217)The  facility  shall  be  used  only  for  financing  projects
which  meet  the  Bank’s  normal  banking  requirements,
notably  those  concerning  security  arrangements.  The
Bank  will  ensure  that,  by  managing  the  facility  together
with  the  existing  CEEC  mandate,  there  will  be  no
discrimination 
countries.
Non(cid:220)government  lending  will  be  based  on  the  quality  of
the  underlying  operation  and 
security
arrangements.

applicant 

between 

related 

the 

the 

to 

6.(cid:218)(cid:217)The  facility,  as  well  as  the  lending  mandate,  shall
be  used  in  order  to  facilitate  and  accelerate  progress  in
all  sectors  normally  eligible  for  EIB  financing,  notably  in
areas  of  key  European  Union  policy  objectives.  Emphasis
shall  be  given  to  integration  projects  and  those  facili(cid:220)
tating  the  adoption  of  the  acquis  communautaire,  (with
particular  priority 
environmental
to  be  given 
protection),  in  areas  like  the  development  of  transport,
telecommunication  and  energy  links  (particularly  TENs),
the  development  of  industrial  competitiveness  and  the
regional  development.  The  Bank  shall  continue  to  apply
its  normal  project(cid:220)based  approach  and  will  take  fully
into  account  the  priorities  adopted  by  the  European
Council  in  the  Accession  Partnership  Agreements  being
finalised  with  each  applicant  country.  The  Bank  shall
ensure  close  cooperation  with 
to
develop  the  maximum  possible  synergies  between  the
Communities’  main  financial  instruments  for  the  region,

the  Commission 

16.4.98

EN

Official  Journal  of  the  European  Communities

C  116/11

namely 
loans.
the  PHARE  programme  and  EIB 
Whenever  appropriate,  the  Bank  shall  also  continue  to
cooperate  closely  with  other  IFIs,  bilateral  as  well  as
domestic  and  international  banking  institutions,  taking
appropriate  account  also  of  the  availability  of  private
capital  and  other  sources  of  funding.

technical  and  financial  aspects  and  shall  provide  for
appropriate  terms  and  conditions  (e.g.  in  relation  to  tariff
structures,  financial  and  general  management,  moni(cid:220)
toring,  etc.)  in  order  to  enhance  performance  and  ensure
viability  of  investments.

In  accordance  with  its  general  policy,  projects  to  be
financed  by  the  Bank  shall  satisfy  its  normal  criteria
those  concerning  economic,
of 

intervention  notably 

7.(cid:218)(cid:217)Lending  under  the  facility  shall  be  at  the  Bank’s
own  risk  and  off  the  10(cid:216)%  guideline  for  lending  to  third
countries.  The  decision  to  this  effect  is  annexed.

ANNEX

DECISION  OF  THE  BOARD  OF  GOVERNORS

Enlargement  of  the  European  Union:  EIB  preaccession  facility

(Decision  of  28  January  1998)

THE  BOARD  OF  GOVERNORS:

WHEREAS  the  Council  of  the  European  Union,  by  the  letter  of  its  President  dated  15  April  1997  invited
the  Bank  to  propose  a  substantial  preaccession  support  facility;

WHEREAS,  by  Council  Decision  97/256/CE  of  14  April  1997,  the  Member  States  and  the  Commission
unanimously  declared  that  they  agree  to  the  creation  of  a  substantial  preaccession  support  facility,  which
would  enter  into  force  as  soon  as  possible  in  the  light  of  future  accession;

WHEREAS,  such  facility  shall  aim  at  enabling  the  Bank  to  continue  and  strengthen  its  support  for  the
efforts  of  the  applicant  countries  towards  achieving  EU  membership;

WHEREAS,  such  a  task  is  in  line  with  EIB’s  mission  as  a  house  bank  of  the  European  Union  and  has  been
successfully  performed  during  previous  enlargements;

HEREBY  UNANIMOUSLY  DECIDES,  on  a  proposal  from  the  Board  of  Directors  in  accordance  with
the  second  paragraph  of  Article  18(1)  of  the  Statute:

1.(cid:217)The  Bank  shall  be  authorised  to  grant  loans  from  its  own  resources  to  Cyprus  and  to  the  countries  of
Central  and  Eastern  Europe  which  have  applied  to  the  European  Union  with  a  view  to  adhering  to  it.

Such  loans  shall  be  used  in  order  to  facilitate  and  accelerate  progress  in  all  sectors  normally  eligible  for
EIB  financing,  notably  in  areas  of  key  European  Union  policy  objectives.  Emphasis  shall  be  given  to
integration  projects  and  those  facilitating  the  adoption  of  the  acquis  communautaire  (with  particular
priority  to  be  given  to  environmental  protection),  in  areas  like  the  development  of  transport,  telecom(cid:220)
munication  and  energy  links  (particularly  TENs),  the  development  of  industrial  competitiveness  and
regional  development.

The  Bank  shall  continue  to  apply  its  normal  project(cid:220)based  approach  and  will  take  fully  into  account  the
priorities  adopted  by  the  European  Council  in  the  Accession  Partnership  Agreements  being  finalised

C  116/12

EN

Official  Journal  of  the  European  Communities

16.4.98

with  each  applicant  country.  The  Bank  shall  ensure  close  cooperation  with  the  Commission  to  develop
the  maximum  possible  synergies  between  the  Communities’  main  financial  instruments  for  the  region,
namely  the  PHARE  programme  and  EIB  loans.  Whenever  appropriate,  the  Bank  shall  also  continue  to
cooperate  closely  with  other  IFIs,  bilateral  as  well  as  domestic  and  international  banking  institutions,
taking  appropriate  account  also  of  the  availability  of  private  capital  and  other  sources  of  funding.

In  accordance  with  its  general  policy,  projects  to  be  financed  by  the  Bank  shall  satisfy  its  normal  criteria
of  intervention  notably  those  concerning  economic,  technical  and  financial  aspects  and  shall  provide  for
appropriate  terms  and  conditions  (e.g.  in  relation  to  tariff  structures,  financial  and  general  management,
monitoring,  etc.)  in  order  to  enhance  performance  and  ensure  viability  of  investments.

An  amount  of  up  to  ECU  3,5  billion  is  set  for  a  period  concurrent  with  the  present  mandate,  i.e.  until
31  January  2000;  together  with  the  existing  EU  mandate,  the  facility  will  enable  the  Bank  to  support
priority  investments  in  all  applicant  countries  of  Central  and  Eastern  Europe  and  in  Cyprus  as  long  as
the  Bank’s  requirements,  as  foreseen  under  Article  18  of  the  Bank’s  statutes,  notably  security
arrangements,  are  met.

2.(cid:217)Lending  under  the  facility  shall  be  at  the  Bank’s  own  risk  and  off  the  10(cid:216)%  guideline  for  lending  to

third  countries.

3.(cid:217)Individual  projects  under  present  authorisation  will  be  decided  by  the  Board  of  Directors.

4.(cid:217)The  text  of  the  decision  shall  be  communicated  by  the  President  of  the  Bank  to  the  Council  of  the
European  Union,  in  reply  to  the  letter  of  15  April  1997,  and  to  the  President  of  the  European
Commission.