Information from the Commission - ECSC financial statements at 31 December 1997
Date: 1998-08-13
Institutions: European Commission
Subjects: ECSC, auditing, balance sheet, financial control, multiannual financial framework, operational expenditure (EU)

13.8.98

EN

Official  Journal  of  the  European  Communities

C  255/3

ECSC  FINANCIAL  STATEMENTS  AT  31  DECEMBER  1997

(98/C  255/03)

Balance  sheets  at  31  December  1997

(amounts  in  ecus)

-  before  allocation  of  surplus  -

ASSETS

31  December  1997

31  December  1996

Balances  with  central  banks  (Note  3)

555(cid:216)027

602(cid:216)921

Loans  and  advances:

-(cid:217)repayable  on  demand

-(cid:217)with  agreed  maturity  dates  or

periods  of  notice  (Note  4.1)

-(cid:217)loans  (Note  4.2)

6(cid:216)355(cid:216)643

367(cid:216)368(cid:216)554

1(cid:216)746(cid:216)786(cid:216)240

15(cid:216)711(cid:216)356

662(cid:216)066(cid:216)466

2(cid:216)239(cid:216)862(cid:216)130

Total

2(cid:216)120(cid:217)510(cid:216)437

2(cid:216)917(cid:216)639(cid:216)952

Loans  and  advances  to  customers
(Note  5):

-(cid:217)loans

-(cid:217)levy

-(cid:217)fines

-(cid:217)credits

1(cid:216)836(cid:216)139(cid:216)393

2(cid:216)141(cid:216)909

72(cid:216)785(cid:216)575

14(cid:216)927(cid:216)351

2(cid:216)342(cid:216)728(cid:216)278

1(cid:216)316(cid:216)270

68(cid:216)565(cid:216)376

9(cid:216)910(cid:216)423

Total

1(cid:216)925(cid:216)994(cid:216)228

2(cid:216)422(cid:216)520(cid:216)347

Bonds  and  other  fixed(cid:220)income  securities
(Note  6):

-(cid:217)issued  by  public  bodies

-(cid:217)issued  by  other  borrowers

1(cid:216)302(cid:216)095(cid:216)776

321(cid:216)410(cid:216)542

1(cid:216)254(cid:216)055(cid:216)367

193(cid:216)334(cid:216)405

Total

1(cid:216)623(cid:216)506(cid:216)318

1(cid:216)447(cid:216)389(cid:216)772

Tangible  and  intangible  assets
(Note  7)

Other  assets  (Note  8)

Prepayments  and  accrued  income
(Note  9)

2(cid:216)623(cid:216)844

87(cid:216)399(cid:216)574

3(cid:216)412(cid:216)827

20(cid:216)146(cid:216)111

169(cid:216)427(cid:216)311

198(cid:216)377(cid:216)594

TOTAL  ASSETS

5(cid:216)930(cid:216)016(cid:216)739

7(cid:216)010(cid:216)089(cid:216)524

Off(cid:220)balance(cid:220)sheet  commitments
(Note  26)

590(cid:216)786(cid:216)635

1(cid:216)684(cid:216)494(cid:216)717

C  255/4

EN

Official  Journal  of  the  European  Communities

13.8.98

-  before  allocation  of  surplus  -

31  December  1997

31  December  1996

LIABILITIES

LIABILITIES  VIS(cid:220)[(cid:220)VIS  THIRD
PARTIES

Amounts  owed  to  credit  institutions:

-(cid:217)with  agreed  maturity  dates  or

periods  of  notice

-(cid:217)borrowings  (Note  10)

45(cid:216)239

2(cid:216)277(cid:216)664(cid:216)834

-

2(cid:216)542(cid:216)395(cid:216)630

Total

2(cid:216)277(cid:216)710(cid:216)073

2(cid:216)542(cid:216)395(cid:216)630

Debts  evidenced  by  certificates
(Note  11)

Other  liabilities  (Note  12)

Accruals  and  deferred  income
(Note  13)

Provisions  for  liabilities  and  charges
(Note  14)

Commitments  for  the  ECSC  operating
budget  (Note  15)

TOTAL  LIABILITIES  VIS(cid:220)[(cid:220)VIS
THIRD  PARTIES

NET  POSITION

Provisions 
for 
operating  budget  (Note  16)

financing 

the  ECSC

Provisions  for  large  exposures
(Note  17)

1(cid:216)359(cid:216)610(cid:216)749

12(cid:216)788(cid:216)060

121(cid:216)190(cid:216)289

87(cid:216)376(cid:216)377

853(cid:216)779(cid:216)193

4(cid:216)712(cid:216)454(cid:216)741

441(cid:216)712(cid:216)926

27(cid:216)000(cid:216)000

2(cid:216)134(cid:216)840(cid:216)697

78(cid:216)273(cid:216)662

159(cid:216)831(cid:216)193

75(cid:216)213(cid:216)372

1(cid:216)059(cid:216)928(cid:216)511

6(cid:216)050(cid:216)483(cid:216)065

207(cid:216)586(cid:216)988

36(cid:216)000(cid:216)000

500(cid:216)000(cid:216)000

176(cid:216)055(cid:216)284

69(cid:216)622(cid:216)926

468(cid:216)743(cid:216)644

176(cid:216)055(cid:216)284

67(cid:216)917(cid:216)524

Total

745(cid:216)678(cid:216)210

712(cid:216)716(cid:216)452

Reserves  (Note  18):

-(cid:217)guarantee  fund

-(cid:217)special  reserve

-(cid:217)former  pension  fund

Value  adjustment  reserve

Surplus  brought  forward

Surplus  for  the  financial  year  (Note  19)

NET  TOTAL

TOTAL  LIABILITIES

Off(cid:220)balance(cid:220)sheet  commitments
(Note  26)

313(cid:216)119

537(cid:216)606

2(cid:216)320(cid:216)137

1(cid:216)217(cid:216)561(cid:216)998

5(cid:216)930(cid:216)016(cid:216)739

1(cid:216)060(cid:216)011

132(cid:216)487

2(cid:216)110(cid:216)521

959(cid:216)606(cid:216)459

7(cid:216)010(cid:216)089(cid:216)524

712(cid:216)444(cid:216)915

3(cid:216)578(cid:216)156(cid:216)001

13.8.98

EN

Official  Journal  of  the  European  Communities

C  255/5

Profit(cid:220)and(cid:220)loss  accounts  for  the  year  ending  31  December  1997

(amounts  in  ecus)

CHARGES

Interest  payable  and  similar  charges
(Note  20)

Commissions  payable

Net  losses  on  financial  operations:

-(cid:217)foreign(cid:220)exchange  losses

-(cid:217)losses  on  bonds  and  other  fixed(cid:220)

income  securities

-(cid:217)value  adjustments 

in 

bonds 
securities  (Note  6)

and 

other 

respect  of
fixed(cid:220)income

Total

Administrative  expenditure  (Note  21)

Value  adjustments  in  respect  of  tangible
assets  (Note  7)

Other  operating  charges  (Note  22)

Value  adjustments: 
provisions

loans,  advances,

-(cid:217)value  adjustment  in  respect  of  loans

and  advances

-(cid:217)allocation 

the  provision 
liabilities  and  charges  (Note  14)

to 

for

Total

TOTAL  OPERATING  CHARGES

Extraordinary  charges

Conversion  difference

Allocation 
reserve  (Note  19.1)

to 

the  value  adjustment

Legal  commitments 
year  (Note  15)

for 

the 

financial

Allocation  to  the  provision  for  financing
the  ECSC  operating  budget  (Note  16)

Allocation  to  the  guarantee  fund
(Note  18)

TOTAL  CHARGES

Surplus  for  the  financial  year  (Note  19)

TOTAL

1997  financial  year

1996  financial  year

331(cid:216)419(cid:216)509

844(cid:216)743

580(cid:216)314(cid:216)585

1(cid:216)264(cid:216)272

31(cid:216)292

1(cid:216)622(cid:216)062

14(cid:216)278(cid:216)026

372(cid:216)189

8(cid:216)818(cid:216)500

3(cid:216)033

5(cid:216)402(cid:216)521

2(cid:216)533(cid:216)922

27(cid:216)670(cid:216)405

34(cid:216)228(cid:216)973

15(cid:216)931(cid:216)380

5(cid:216)000(cid:216)000

573(cid:216)251

382(cid:216)650

9(cid:216)190(cid:216)689

363(cid:216)342(cid:216)222

580(cid:216)380

746(cid:216)892

0

180(cid:216)869(cid:216)553

274(cid:216)000(cid:216)000

31(cid:216)256(cid:216)356

850(cid:216)795(cid:216)403

2(cid:216)320(cid:216)137

853(cid:216)115(cid:216)540

7(cid:216)939(cid:216)476

5(cid:216)000(cid:216)000

777(cid:216)962

382(cid:216)568

61(cid:216)899(cid:216)378

657(cid:216)578(cid:216)241

4(cid:216)593(cid:216)762

0

1(cid:216)060(cid:216)011

201(cid:216)176(cid:216)900

73(cid:216)131(cid:216)189

19(cid:216)000(cid:216)000

956(cid:216)540(cid:216)103

2(cid:216)110(cid:216)521

958(cid:216)650(cid:216)624

C  255/6

EN

Official  Journal  of  the  European  Communities

13.8.98

INCOME

1997  financial  year

1996  financial  year

Interest  receivable  and  similar 
(Note  23)

income

interest  on 

(including 
securities:  84(cid:216)157(cid:216)839 
91(cid:216)253(cid:216)453  in  1996)

fixed(cid:220)income
in  1997  and

Net  profit  on  financial  operations:

-(cid:217)foreign(cid:220)exchange  profits

-(cid:217)profits  on  bonds  and  other  fixed(cid:220)

income  securities

-(cid:217)withdrawal  of  value  adjustments  in
respect  of  bonds  and  other  fixed(cid:220)
income  securities  (Note  6)

Value  adjustment 
and  advances  and  provisions:

in  respect  of 

Total

loans

36(cid:216)600

10(cid:216)665(cid:216)375

2(cid:216)533(cid:216)921

420(cid:216)240(cid:216)962

699(cid:216)872(cid:216)042

15(cid:216)240

26(cid:216)276(cid:216)516

2(cid:216)739(cid:216)881

13(cid:216)235(cid:216)896

29(cid:216)031(cid:216)637

-(cid:217)withdrawal  of  value  adjustments  in

respect  of  loans  and  advances

-(cid:217)transfer  from  the  provision  for  large

exposures  (Note  17)

37(cid:216)198(cid:216)844

9(cid:216)000(cid:216)000

3(cid:216)092(cid:216)016

19(cid:216)000(cid:216)000

Other  operating  income  (Note  24)

Total

TOTAL  OPERATING  INCOME

Conversion  difference

Withdrawal  from  the  value  adjustment
reserve  (Note  19.1)

Income  relating  to  the  ECSC  operating
budget  (Note  25)

from 

Transfer 
for
the 
financing  the  ECSC  operating  budget
(Note  16)

provision 

TOTAL  INCOME

46(cid:216)198(cid:216)844

22(cid:216)507(cid:216)685

502(cid:216)183(cid:216)387

0

746(cid:216)892

301(cid:216)054(cid:216)072

49(cid:216)131(cid:216)189

853(cid:216)115(cid:216)540

22(cid:216)092(cid:216)016

1(cid:216)544(cid:216)770

752(cid:216)540(cid:216)465

1(cid:216)060(cid:216)011

0

190(cid:216)427(cid:216)105

14(cid:216)623(cid:216)043

958(cid:216)650(cid:216)624

13.8.98

EN

Official  Journal  of  the  European  Communities

C  255/7

Allocation  of  the  surplus  for  the  year  ending  31  December  1997

(amounts  in  ecus)

1997  financial  year

1996  financial  year

Surplus  not  allocated  at  1  January

Surplus  for  the  year  to  be  allocated

Allocation  to  the  former  pension  fund  (note  18)

Surplus  not  allocated  at  31  December

Total

537(cid:216)606

2(cid:216)320(cid:216)137

2(cid:216)857(cid:216)743

1(cid:216)662(cid:216)513

1(cid:216)195(cid:216)230

132(cid:216)487

2(cid:216)110(cid:216)521

2(cid:216)243(cid:216)008

1(cid:216)705(cid:216)402

537(cid:216)606

C  255/8

EN

Official  Journal  of  the  European  Communities

13.8.98

NOTES  RELATING  TO  THE  FINANCIAL  STATEMENTS  AT  31  DECEMBER  1997

(amounts  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. The  ECSC’s  financial  statements  at  31  December  1997  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  L  222,  14.8.1978  and
OJ  L  372,  31.12.1986).

1.3. 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(cid:220)end  balance(cid:220)sheet  amounts
expressed  in  national  currency  into  ecus:

Belgian  and  Luxembourg  francs

Danish  krone

German  mark

Greek  drachma

Portuguese  escudo

French  franc

Finnish  markka

Dutch  guilder

Irish  pound

Italian  lira

Austrian  schilling

Spanish  peseta

Swedish  krona

Pound  sterling

Canadian  dollar

Swiss  franc

United  States  dollar

Japanese  yen

31.12.1997

31.12.1996

40,7675

7,52797

1,97632

312,039

202,137

6,61214

5,98726

2,22742

40,10210

7,44655

1,94653

309,50200

195,96800

6,56193

5,81640

2,18472

0,771961

0,745342

1(cid:216)942,03

1(cid:216)913,72000

13,9020

167,388

8,73234

0,666755

1,58256

1,60553

1,10421

143,680

13,69650

164,16700

8,62800

0,737273

1,71660

1,69129

1,25299

145,84900

13.8.98

EN

Official  Journal  of  the  European  Communities

C  255/9

1.4. At  31  December  1997  the  various  currencies  listed  in  1.3,  together  with  the  ecu,  made  up

the  ECSC’s  balance  sheet  as  follows:

Currency

Assets

Liabilities

(ECU)

ECU

Belgian  franc

Danish  krone

German  mark

Greek  drachma

Portuguese  escudo

French  franc

Finnish  markka

Dutch  guilder

Irish  pound

Luxembourg  franc

Italian  lira

Austrian  schilling

Spanish  peseta

Swedish  krona

Pound  sterling

Swiss  franc

United  States  dollar

Japanese  yen

NOTES:

1(cid:216)181(cid:216)727(cid:216)815

1(cid:216)890(cid:216)577(cid:216)369

138(cid:216)080(cid:216)244

88(cid:216)537(cid:216)405

669(cid:216)480

0

1(cid:216)421(cid:216)513(cid:216)893

1(cid:216)202(cid:216)400(cid:216)271

2(cid:216)117(cid:216)650

142(cid:216)791(cid:216)176

822(cid:216)030(cid:216)596

112(cid:216)496

36(cid:216)515(cid:216)123

956(cid:216)864

133(cid:216)205(cid:216)287

366(cid:216)998(cid:216)357

4(cid:216)571(cid:216)323

104(cid:216)385(cid:216)745

269(cid:216)831

971(cid:216)902(cid:216)678

32(cid:216)923(cid:216)774

455(cid:216)253(cid:216)179

113(cid:216)991(cid:216)228

2(cid:216)115

141(cid:216)712(cid:216)138

606(cid:216)772(cid:216)399

0

14(cid:216)870(cid:216)747

0

119(cid:216)032(cid:216)991

326(cid:216)183(cid:216)302

3(cid:216)665(cid:216)239

81(cid:216)488(cid:216)050

0

867(cid:216)278(cid:216)955

32(cid:216)317(cid:216)804

441(cid:216)409(cid:216)957

113(cid:216)767(cid:216)997

Total

5(cid:216)930(cid:216)016(cid:216)739

5(cid:216)930(cid:216)016(cid:216)739

The  ecu  has  a  much  larger  place  in  the  ECSC’s  accounts  than  suggested  by  the  above
table.

This  is  explained  by  certain  accounting  operations,  mainly  the  offsetting  of  accounts
receivable  and  payable  relating  to  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 
268(cid:216)027(cid:216)585  in  1997.

is  carried  out 

in  ecus  and 

involved  a  total  of  ECU

The  real  weight  of  the  ecu  in  the  ECSC’s  accounts  can  therefore  be  assessed  more
accurately  if  this  amount  is  added  both  to  the  assets  and  to  the  liabilities  sides  of  the
balance  sheet.

2.

ACCOUNTING  PRINCIPLES  AND  METHODS

2.1. The  financial  statements  are  drawn  up 

in  accordance  with  generally  recognised

accounting  principles.

2.2. Charges  and  income  for  the  financial  year  are  converted  to  ecus  at  the  monthly

accounting  rate  in  force  on  the  day  of  the  transaction.

C  255/10

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Official  Journal  of  the  European  Communities

13.8.98

3.

BALANCES  WITH  CENTRAL  BANKS

This  item  represents  the  ECSC’s  balances  with  the  central  banks  of  certain  Member
States.

4.

LOANS  AND  ADVANCES  TO  CREDIT  INSTITUTIONS

4.1. With  agreed  maturity  dates  or  periods  of  notice

The  breakdown  of  the  remaining  time  to  maturity  of  these  operations  is  as  follows:

Up  to  three  months

Three  months  to  one  year

Over  one  year

(ECU)

31.12.1997

31.12.1996

361(cid:216)076(cid:216)698

6(cid:216)291(cid:216)856

-

636(cid:216)956(cid:216)250

15(cid:216)598(cid:216)022

9(cid:216)512(cid:216)194

Total

367(cid:216)368(cid:216)554

662(cid:216)066(cid:216)466

4.2. Loans

The  breakdown  of  the  time  to  maturity  of  these  loans  is  as  follows:

Up  to  three  months

Three  months  to  one  year

One  to  five  years

Over  five  years

31.12.1997

31.12.1996

(ECU)

172(cid:216)233(cid:216)077

324(cid:216)131(cid:216)965

151(cid:216)481(cid:216)547

525(cid:216)525(cid:216)670

1(cid:216)149(cid:216)308(cid:216)488

1(cid:216)466(cid:216)966(cid:216)464

101(cid:216)112(cid:216)710

95(cid:216)888(cid:216)449

Total

1(cid:216)746(cid:216)786(cid:216)240

2(cid:216)239(cid:216)862(cid:216)130

13.8.98

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C  255/11

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:

1.(cid:217)Loans  disbursed  from  borrowed  funds(cid:216)(˛)

-(cid:217)amounts  outstanding
-(cid:217)value  adjustments

31.12.1997

31.12.1996

(ECU)

1(cid:216)943(cid:216)860(cid:216)811
(cid:134)(cid:217)170(cid:216)220(cid:216)655

2(cid:216)395(cid:216)599(cid:216)317
(cid:134)(cid:217)115(cid:216)731(cid:216)446

Subtotal

1(cid:216)773(cid:216)640(cid:216)156

2(cid:216)279(cid:216)867(cid:216)871

2.(cid:217)Loans  from  the  special  reserve  and  other  own  funds  for  financing  subsidised  housing

20(cid:216)235(cid:216)203

20(cid:216)355(cid:216)307

Interim  total

1(cid:216)793(cid:216)875(cid:216)359

2(cid:216)300(cid:216)223(cid:216)178

The  breakdown  of  these  loans  by  time  remaining  to  maturity  is  as  follows  at  31
December:

-(cid:217)up  to  three  months
-(cid:217)three  months  to  one  year
-(cid:217)one  to  five  years
-(cid:217)over  five  years

1997

1996

84(cid:216)129(cid:216)143
55(cid:216)848(cid:216)217
1(cid:216)007(cid:216)507(cid:216)068
816(cid:216)611(cid:216)585

114(cid:216)196(cid:216)449
767(cid:216)048(cid:216)080
907(cid:216)432(cid:216)527
627(cid:216)277(cid:216)568

3.(cid:217)Loans  paid  from  the  former  pension  fund  to  officials  of  the  European  Communities  for

housing  construction

4.(cid:217)Loans  repayments  overdue  and  interest  on  arrears

-(cid:217)amounts  outstanding
-(cid:217)value  adjustments

41(cid:216)539(cid:216)969

42(cid:216)163(cid:216)173

724(cid:216)065
-

18(cid:216)428(cid:216)850
(cid:134)(cid:217)18(cid:216)086(cid:216)923

Grand  total

1(cid:216)836(cid:216)139(cid:216)393

2(cid:216)342(cid:216)728(cid:216)278

(˛)(cid:217)At  31  December  1997,  claims  on  defaulting  borrowers  are  included  (see  Note  8).
NB: These  loans  are  generally  guaranteed  by  Member  States,  banks  or  companies  or  by  mortgages.

5.2. Levy

Before  value  adjustment,  this  item  amounts  to  ECU  9(cid:216)165(cid:216)606  at  31  December  1997
(ECU  8(cid:216)171(cid:216)552  at  31  December  1996).  It  comprises  in  particular  ECU  6(cid:216)342(cid:216)867  subject
to  legal  proceedings  (ECU  6(cid:216)042(cid:216)902  at  31  December  1996)  and  ECU  282(cid:216)491  relating
to  temporary  deferment  in  respect  of  coal  in  stock  (ECU  414(cid:216)223  at  31  December  1996).

Payment  of  the  levy  in  respect  of  coal  in  stock  is  temporarily  deferred  under  a  general
decision  taken  in  1972.

5.3.

Fines

This  item  contains  the  Commission’s  claims  on  companies  fined  in  accordance  with  the
rules  set  out  in  the  Treaty.

After  value  adjustment  it  amounts  to  ECU  72(cid:216)785(cid:216)575  (ECU  68(cid:216)565(cid:216)376  at  31  December
1996).

in  this 

is  fines  totalling  ECU  104(cid:216)364(cid:216)350  that  the
The  main  component 
Commission  imposed  on  steel  companies  for  infringing  the  rules  on  competition  in  the
marketing  of  steel  beams  (Decision  94/215/ECSC(cid:216)(˛)).  ECU  32(cid:216)151(cid:216)350  has  been  paid  in
fines  under  this  Decision,  against  which  appeals  have  been  lodged  with  the  Court  of  First
Instance  by  virtually  all  the  companies  concerned.

item 

(˛)(cid:217)OJ  L  116,  6.5.1994.

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5.4.

Interest  subsidies  to  be  recovered

This  item  comprises  claims  on  companies  in  receipt  of  a  subsidised  loan  which  the
Commission  has  been  obliged  to  ask  to  reimburse  all  or  part  of  the  interest  subsidy
already  paid.

6.

BONDS  AND  OTHER  FIXED(cid:220)INCOME  SECURITIES

6.1. Valuation

Bonds  and  other  fixed(cid:220)income  securities  are  valued  at  average  purchase  price  or  market
value  at  31  December  1997,  whichever  is  the  lower.

This  principle  is  not  applied  in  the  case  of  securities  considered  as  financial  fixed  assets
(see  note  6.5).

6.2. Composition

Bonds  and  other  fixed(cid:220)income  securities  break  down  as  follows:

(ECU)

31.12.1997

31.12.1996

Value  adjustments
on  bonds
and  other
fixed(cid:220)income
securities
(withdrawal)

1(cid:216)306(cid:216)255(cid:216)040

1(cid:216)256(cid:216)416(cid:216)093

1(cid:216)798(cid:216)538

(cid:134)(cid:217)4(cid:216)159(cid:216)264

(cid:134)(cid:217)2(cid:216)360(cid:216)726

1(cid:216)302(cid:216)095(cid:216)776

1(cid:216)254(cid:216)055(cid:216)367

89(cid:216)033(cid:216)938

40(cid:216)206(cid:216)650

9(cid:216)691(cid:216)158

(cid:134)(cid:217)9(cid:216)785(cid:216)153

(cid:134)(cid:217)93(cid:216)995

79(cid:216)248(cid:216)785

40(cid:216)112(cid:216)655

242(cid:216)495(cid:216)366

153(cid:216)300(cid:216)950

254(cid:216)409

(cid:134)(cid:217)333(cid:216)609

(cid:134)(cid:217)79(cid:216)200

242(cid:216)161(cid:216)757

153(cid:216)221(cid:216)750

1(cid:216)637(cid:216)784(cid:216)344

1(cid:216)449(cid:216)923(cid:216)693

11(cid:216)744(cid:216)105

(cid:134)(cid:217)14(cid:216)278(cid:216)026

(cid:134)(cid:217)2(cid:216)533(cid:216)921

1(cid:216)623(cid:216)506(cid:216)318

1(cid:216)447(cid:216)389(cid:216)772

ISSUED  BY  PUBLIC  BODIES

-(cid:217)gross  value

-(cid:217)value  adjustment

-(cid:217)net  value

OWN(cid:220)DEBT  SECURITIES

-(cid:217)gross  value

-(cid:217)value  adjustment

-(cid:217)net  value

ISSUED  BY  OTHER  BORROWERS

-(cid:217)gross  value

-(cid:217)value  adjustment

-(cid:217)net  value

TOTAL

-(cid:217)gross  value

-(cid:217)value  adjustment

-(cid:217)net  value

6.3. Maturities  in  1998

Securities  in  the  portfolio  reaching  final  maturity  during  1998  represent  the  following
amounts  (ECU):

-(cid:217)issued  by  public  bodies:
-(cid:217)own(cid:220)debt  securities:
-(cid:217)issued  by  other  borrowers:

487(cid:216)441(cid:216)866
-
23(cid:216)072(cid:216)663

Total

510(cid:216)514(cid:216)529

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6.4. Listed/unlisted  securities

The  securities  portfolio  comprises  ECU  1(cid:216)543(cid:216)830(cid:216)768  of  securities  with  a  stock(cid:220)
exchange  listing,  the  balance  of  ECU  79(cid:216)675(cid:216)550  being  unlisted  securities.

6.5.

Financial  fixed  assets

6.5.1. Financial  fixed  assets  are  defined  as  securities  that  will  remain  in  the  portfolio  until  their

final  maturity.

They  comprise  mainly  short(cid:220)term  paper  and  own(cid:220)debt  securities  repurchased  for
servicing  ECSC  borrowings.

6.5.2. Financial  fixed  assets  are  valued  at  average  purchase  price  or  redemption  value,

whichever  is  the  lower.

The  redemption  value  of  these  securities  is  less  than  the  average  purchase  price  by  a  total
of  ECU  8(cid:216)645(cid:216)845.

6.5.3. Financial  fixed  assets  are  made  up  as  follows  (ECU):

-(cid:217)issued  by  public  bodies:
-(cid:217)own(cid:220)debt  securities:
-(cid:217)other  issuers:

40(cid:216)333(cid:216)549
89(cid:216)033(cid:216)938
0

Total

129(cid:216)367(cid:216)487

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7.

TANGIBLE  AND  INTANGIBLE  ASSETS

Year  of
acquisition

Acquisition
price

31.12.1996
Net  value

Operations  during  the  year

Acquisitions

Net  book  value
of  disposals

Amortisation

(ECU)

31.12.1997
Net  value

Tangible  assets:

-(cid:217)Washington
-(cid:217)Lisbon
-(cid:217)Canberra
-(cid:217)Windhoek

Intangible  assets:

1971
1986(cid:220)1993
1987
1992

882(cid:216)654
2(cid:216)670(cid:216)796
2(cid:216)511(cid:216)059
802(cid:216)172

235(cid:216)344
1(cid:216)264(cid:216)962
1(cid:216)165(cid:216)122
447(cid:216)434

3(cid:216)112(cid:216)862

-(cid:217)Lease  on  Milan  building

1986

879(cid:216)882

299(cid:216)965

Total  tangible
and  intangible  assets

3(cid:216)412(cid:216)827

-
-
-
-

-

-

-

215(cid:216)732
-
-
-

19(cid:216)612
224(cid:216)887
194(cid:216)187
74(cid:216)572

0
1(cid:216)040(cid:216)075
970(cid:216)935
372(cid:216)862

215(cid:216)732

513(cid:216)258

2(cid:216)383(cid:216)872

-

59(cid:216)993

239(cid:216)972

215(cid:216)732

573(cid:216)251

2(cid:216)623(cid:216)844

The  various  buildings  owned  by  the  ECSC  were  originally  leased  to  the  European
Community.  The  rent  paid  on  such  leases  provided  a  return  on  the  funds  invested  by  the
ECSC.

Under  the  terms  of  the  leases,  in  1994  and  1995,  the  Commission  repaid  the  outstanding
principal  due  to  the  ECSC  with  a  view  to  transferring  ownership  officially  from  the
ECSC  to  the  European  Community.

The  transfer  of  ownership  of  the  building  in  Washington  was  completed  in  1997.

For  the  ECSC,  this  transaction  generated  a  capital  gain  of  ECU  156(cid:216)982,  this  being  the
difference  between  the  transfer  price  (ECU  372(cid:216)714)  and  the  net  book  value  (ECU
215(cid:216)732)  at  the  date  of  the  transfer.

As  regards  the  other  buildings,  pending  the  completion  of  legal  formalities  for  the
transfer  of  ownership  that  are  currently  being  conducted  with  the  competent  authorities,
the  advances  received  from  the  European  Community  feature  on  the  liabilities  side  of  the
balance  sheet  for  a  total  of  ECU  5(cid:216)067(cid:216)579  (Note  12).

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8.

OTHER  ASSETS

Exchange  value 
currency 
exchange  operations  (swaps)(cid:216)(˛)

in  ecus  of  the  difference  between
receivable  and  payable  under  currency

-(cid:217)loans,  payments  due  and  not 

received  and

rescheduled  payments(cid:216)(ˇ)

-(cid:217)portfolio  taxes  and  VAT  to  be  reclaimed

-(cid:217)loans  to  officials  -  miscellaneous

-(cid:217)miscellaneous

Cumulative  value  adjustments

31.12.1997

31.12.1996

(ECU)

79(cid:216)710(cid:216)355

-

-

2(cid:216)890(cid:216)676

4(cid:216)777(cid:216)265

21(cid:216)278

58(cid:216)384(cid:216)142

3(cid:216)590(cid:216)273

5(cid:216)051(cid:216)395

55(cid:216)174

87(cid:216)399(cid:216)574

67(cid:216)080(cid:216)984

-

(cid:134)(cid:217)46(cid:216)934(cid:216)873

(˛)(cid:217)See  Note  12.
(ˇ)(cid:217)At  31  December  1997,  the  amounts  due  are  included  in  loans  and  advances  to  customers  (Note  5.1).

Total

87(cid:216)399(cid:216)574

20(cid:216)146(cid:216)111

9.

PREPAYMENTS  AND  ACCRUED  INCOME

31.12.1997

31.12.1996

(ECU)

-(cid:217)Interest  on  loans  and  swaps

-(cid:217)Interest  on  deposits  and  securities  portfolio

-(cid:217)Levy  declared  for  current  and  previous  years  but

payable  after  31  December

-(cid:217)Issuing  costs  and  redemption  premiums

88(cid:216)543(cid:216)207

45(cid:216)429(cid:216)135

26(cid:216)209(cid:216)470

9(cid:216)245(cid:216)499

132(cid:216)745(cid:216)798

53(cid:216)004(cid:216)743

24(cid:216)303(cid:216)131

646(cid:216)113

Cumulative  value  adjustments

169(cid:216)427(cid:216)311

210(cid:216)699(cid:216)785

-

(cid:134)(cid:217)12(cid:216)322(cid:216)191

Total

169(cid:216)427(cid:216)311

198(cid:216)377(cid:216)594

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10.

AMOUNTS  OWED  TO  CREDIT  INSTITUTIONS

The  remaining  time  to  maturity  on  these  operations  is  as  follows:

Repayable  on  demand

Up  to  three  months

Three  months  to  one  year

One  to  five  years

Over  five  years

31.12.1997

31.12.1996

(ECU)

-

-

147(cid:216)072(cid:216)173

68(cid:216)199(cid:216)122

246(cid:216)407(cid:216)737

608(cid:216)666(cid:216)894

1(cid:216)831(cid:216)349(cid:216)202

1(cid:216)653(cid:216)514(cid:216)445

52(cid:216)880(cid:216)961

212(cid:216)015(cid:216)169

Total

2(cid:216)277(cid:216)710(cid:216)073

2(cid:216)542(cid:216)395(cid:216)630

11.

DEBTS  EVIDENCED  BY  CERTIFICATES

Part  of  the  borrowings  outstanding  at  31  December  1997  will  reach  maturity  during  the
1998  financial  year.  These  borrowings  total  ECU  320(cid:216)146(cid:216)925.

12. OTHER  LIABILITIES

31.12.1997

31.12.1996

(ECU)

Exchange  value 
currency 
exchange  operations  (swaps)(cid:216)(˛)

in  ecus  of  the  difference  between
receivable  and  payable  under  currency

Current  account,  ECSC  operating  budget

Advance  payments  for  transfer  of  buildings(cid:216)(ˇ)

Other

-

3(cid:216)572(cid:216)400

5(cid:216)067(cid:216)579

4(cid:216)148(cid:216)081

61(cid:216)402(cid:216)589

11(cid:216)092(cid:216)742

5(cid:216)440(cid:216)293

338(cid:216)038

Total

12(cid:216)788(cid:216)060

78(cid:216)273(cid:216)662

(˛)(cid:217)See  Note  8.
(ˇ)(cid:217)In  accordance  with  the  opportunity  offered  under  the  Decision  of  11  June  1992,  in  the  course  of  1994  and
1995  the  Commission  made  advance  payments  in  respect  of  the  transfer  of  the  buildings  leased  to  it  by  the
ECSC  (Note  7).

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13.

ACCRUALS  AND  DEFERRED  INCOME

31.12.1997

31.12.1996

(ECU)

Interest  on  borrowings  and  credit  lines

111(cid:216)943(cid:216)954

159(cid:216)589(cid:216)145

Commission  on  loans

Issuing  premiums

233(cid:216)001

9(cid:216)013(cid:216)334

242(cid:216)048

-

Total

121(cid:216)190(cid:216)289

159(cid:216)831(cid:216)193

14.

PROVISION  FOR  LIABILITIES  AND  CHARGES

31.12.1996

Allocation

Withdrawal

Exchange(cid:220)rate
movement

Operations  in  1997

(ECU)

31.12.1997

Provision  for  withholding  tax  to  be  paid(cid:216)(˛)

Provision  for  interest(cid:220)rate  risk(cid:216)(ˇ)

5(cid:216)950(cid:216)545

32(cid:216)552(cid:216)393

273(cid:216)462

7(cid:216)259(cid:216)038

Provision 
activities(cid:216)(—)

for 

special  costs  relating 

to  banking

200(cid:216)000

-

Provision  for  appeal  against  Decision
94/215/ECSC(cid:216)((cid:209))

36(cid:216)510(cid:216)434

1(cid:216)286(cid:216)000

Total

75(cid:216)213(cid:216)372

8(cid:216)818(cid:216)500

-

-

-

-

-

(cid:134)(cid:217)98(cid:216)333

3(cid:216)442(cid:216)838

6(cid:216)125(cid:216)674

43(cid:216)254(cid:216)269

-

-

200(cid:216)000

37(cid:216)796(cid:216)434

3(cid:216)344(cid:216)505

87(cid:216)376(cid:216)377

(˛)(cid:217)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  interpre(cid:220)

tation  regarding  the  applicability  of  withholding  tax.

(ˇ)(cid:217)Following  the  default  of  one  borrower,  long(cid:220)term  securities  issued  by  the  ECSC  (i.e.  with  a  maturity  date  after  2002)  are  no  longer  paired  with  asset
items  bearing  an  equivalent  interest  rate.  Under  the  principle  of  caution  and  in  view  of  the  expiry  of  the  ECSC  Treaty  in  2002,  a  provision  has  been
constituted  to  fully  cover  interest(cid:220)rate  risks.

(—)(cid:217)This  provision  was  created  to  cover  any  legal  costs  and  other  unforeseen  expenditure.  The  risk  in  question  is  primarily  in  the  legal  field  because  the

ECSC  has  less  recourse,  for  its  operations,  to  national  agents  who  bear  all  expenditure  relating  to  loan  operations.

((cid:209))(cid:217)This  provision  was  created  from  the  fines  paid  under  Decision  94/215/ECSC  of  16  February  1994  to  cover  the  possible  reimbursement  of  the  amounts

received  should  the  Court  of  First  Instance  rule  in  favour  of  the  companies  which  have  appealed  against  this  Decision  (Note  5.3).

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15.

COMMITMENTS  FOR  THE  ECSC  OPERATING  BUDGET

In  1997,  commitments  for  the  ECSC  operating  budget  were  as  follows:

Commitments  at
31.12.1996

New  legal
commitments

Payments

Cancellations

Commitments  at
31.12.1997

(ECU)

Redeployment

Research

Interest  subsidies
(Article  54)

Interest  subsidies
(Article  56)

Social  measures,  steel
industry

Social  measures,  coal
industry  (Rechar)

302(cid:216)944(cid:216)688

183(cid:216)426(cid:216)384

65(cid:216)974(cid:216)553

84(cid:216)000(cid:216)000

81(cid:216)080(cid:216)040

71(cid:216)750(cid:216)672

24(cid:216)766(cid:216)541

9(cid:216)129(cid:216)829

263(cid:216)072(cid:216)660

186(cid:216)545(cid:216)883

4(cid:216)400(cid:216)769

-

879(cid:216)370

-

3(cid:216)521(cid:216)399

330(cid:216)905(cid:216)781

1(cid:216)841(cid:216)000

18(cid:216)491(cid:216)916

104(cid:216)127(cid:216)711

210(cid:216)127(cid:216)154

147(cid:216)817(cid:216)759

-

(cid:134)(cid:217)4(cid:216)295(cid:216)291

40(cid:216)982(cid:216)806

11(cid:216)130(cid:216)244

90(cid:216)433(cid:216)130

29(cid:216)054(cid:216)000

23(cid:216)876(cid:216)769

16(cid:216)228(cid:216)508

79(cid:216)381(cid:216)853

Total

1(cid:216)059(cid:216)928(cid:216)511

180(cid:216)869(cid:216)553

191(cid:216)783(cid:216)476

195(cid:216)235(cid:216)395

853(cid:216)779(cid:216)193

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16.

PROVISION  FOR  FINANCING  THE  ECSC  OPERATING  BUDGET

Provisions  at
31.12.1996

Operations  during  the  year

Withdrawal

Allocation

(ECU)

Provisions  at
31.12.1997

Budgetary  contingency  reserve(cid:216)(˛)

80(cid:216)000(cid:216)000

-

Surplus  from  the  out(cid:220)turn  of  the  operating  budget:

-(cid:217)1996  financial  year

49(cid:216)131(cid:216)189

49(cid:216)131(cid:216)189

-

-

80(cid:216)000(cid:216)000

-

Provision  for  financing  future  operating  budgets(cid:216)(ˇ)

274(cid:216)000(cid:216)000

274(cid:216)000(cid:216)000

Impact  on  the  result

49(cid:216)131(cid:216)189

274(cid:216)000(cid:216)000

Provision  for  late(cid:220)payment  fines  and  surcharges  to  be
paid  subsequently(cid:216)(—)

Provision  for  subsidies  to  be  recovered(cid:216)(—)

68(cid:216)565(cid:216)376

9(cid:216)890(cid:216)423

-

-

4(cid:216)220(cid:216)199

5(cid:216)036(cid:216)928

72(cid:216)785(cid:216)575

14(cid:216)927(cid:216)351

Total

207(cid:216)586(cid:216)988

441(cid:216)712(cid:216)926

(˛)(cid:217)This  reserve  is  intended  to  cover  any  differences  between  expenditure  committed  and  income  generated  by  activities  during  the  budget  period.  The

provision  has  been  increased  in  view  of  the  abolition  of  the  levy  and  the  expiry  of  the  ECSC  Treaty  in  2002.

(ˇ)(cid:217)This  provision  was  foreseen  by  the  budgetary  authority  when  it  approved  the  1997  ECSC  operating  budget.  It  was  prompted  by  the  reduction  of  the

levy  to  0(cid:216)%  from  1998  and  the  need  to  plan  for  the  regular  financing  of  future  operational  budgets  until  2002.

(—)(cid:217)Fines  and  interest  subsidies  whose  repayment  has  been  requested  are  considered  as  ECSC  resources  only  when  they  have  actually  been  paid.  Fines

imposed  but  not  yet  paid  and  interest  subsidies  whose  repayment  has  been  requested  are  therefore  allocated  to  provisions.

17.

PROVISION  FOR  LARGE  EXPOSURES

Against  the  background  of  the  expiry  of  the  ECSC  Treaty  in  2002  and  the  gradual
reduction  in  outstanding  loans,  exposure  is  becoming  increasingly  concentrated  on  a
limited  number  of  large  loans  (these  large  exposures  are  defined  in  accordance  with
Directive  92/121/EEC  of  21  December  1992  on  the  monitoring  and  control  of  large
exposures).

The  provision  for  large  exposures  concerns  loans  exceeding  25(cid:216)%  of  the  ECSC’s  own
funds  which  are  not  covered  by  first(cid:220)rate  guarantees.

It  is  intended  to  provide  cover  specifically  for  this  concentration  of  risk  and  enable  the
ECSC  to  weather  any  major  default.

The  provision,  calculated  on  the  basis  of  outstanding  large  exposures  at  31  December
1997  and  according  to  a  procedure  recommended  by  a  firm  of  international  experts,
totals  ECU  27  million.

C  255/20

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18.

RESERVES

Reserves  at
31.12.1996
after  allocation

Transfer
(withdrawal)

Reserves  at
31.12.1997
before  allocation

Allocations  at
31.12.1997

Reserves  at
31.12.1997
after  allocation

(ECU)

Guarantee  fund

Special  reserve

Former  pension  fund

31(cid:216)256(cid:216)356

468(cid:216)743(cid:216)644

176(cid:216)055(cid:216)284

69(cid:216)622(cid:216)926

500(cid:216)000(cid:216)000

176(cid:216)055(cid:216)284

69(cid:216)622(cid:216)926

-

-

1(cid:216)662(cid:216)513

500(cid:216)000(cid:216)000

176(cid:216)055(cid:216)284

71(cid:216)285(cid:216)439

Total

714(cid:216)421(cid:216)854

31(cid:216)256(cid:216)356

745(cid:216)678(cid:216)210

1(cid:216)662(cid:216)513

747(cid:216)340(cid:216)723

The  guarantee  fund  is  intended  to  cover  lending  and  borrowing  operations.  After
allocation  of  ECU  31,26  million,  the  guarantee  fund  totalled  ECU  500  million  at
31  December  1997.  This  reinforcing  of  the  guarantee  fund  is  connected  with  the
forthcoming  expiry  of  the  ECSC  Treaty.

On  11  September  1996  the  Commission  confirmed  its  intention  of  maintaining  reserves
to  cover  100(cid:216)%  of  those  loans  outstanding  after  23  July  2002  which  are  not  guaranteed
by  the  government  of  a  Member  State.  This  means  that  the  guarantee  fund  must  be
gradually  increased  to  approximately  ECU  720  million  (including  any  specific  value
adjustments).

In  view  of  (a)  the  regular  decrease  in  the  amounts  outstanding  up  to  and  after  23  July
2002  and  (b)  the  increase  in  the  guarantee  fund,  the  solvency  ratio  can  be  expected  to
depart  from  the  14  to  16(cid:216)%  range  laid  down  during  the  period  of  continuous  operation
and  move  towards  100(cid:216)%.

The  ECSC’s  solvency  ratio  thus  increased  from  21(cid:216)%  at  31  December  1996  to  28(cid:216)%  at
31  December  1997.

The  special  reserve  is  used  to  grant  loans  from  ECSC  own  funds  to  finance  subsidised
housing.

The  former  pension  fund  originally  represented  the  ECSC’s  total  pension  obligations
prior  to  5  March  1968.  Since  that  date,  the  Member  States  have  assumed  responsibility,
via  the  general  budget,  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.

13.8.98

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19.

ANALYSIS  OF  THE  RESULT  FOR  THE  FINANCIAL  YEAR

Overall  ECSC  performance  is  influenced  by  both  the  result  of  non(cid:220)budgetary  operations
(lending/borrowing,  investment,  exchange(cid:220)rate  variations)  and  the  out(cid:220)turn  of  the  ECSC
operating  budget.

19.1. Non(cid:220)budgetary  operations

Result

31.12.1997

31.12.1996

(ECU)

GROSS  OPERATING  MARGIN  BEFORE
CHANGES  IN  PROVISIONS:

-(cid:217)lending/borrowing  operations

(cid:134)(cid:217)3(cid:216)029(cid:216)327

(cid:134)(cid:217)9(cid:216)120(cid:216)323

-(cid:217)interest  on  bank  accounts

28(cid:216)622(cid:216)820

35(cid:216)777(cid:216)487

-(cid:217)transactions  concerning  portfolio  securities

81(cid:216)422(cid:216)198

112(cid:216)333(cid:216)406

-(cid:217)miscellaneous

(cid:134)(cid:217)1(cid:216)499(cid:216)987

(cid:134)(cid:217)2(cid:216)512(cid:216)676

Total

105(cid:216)515(cid:216)704

136(cid:216)477(cid:216)894

NET  CHANGES  IN  PROVISIONS:

-(cid:217)provision  for  liabilities  and  charges(cid:216)(˛)

(cid:134)(cid:217)8(cid:216)818(cid:216)500

(cid:134)(cid:217)34(cid:216)228(cid:216)973

-(cid:217)provision  for  large  exposures(cid:216)(ˇ)

9(cid:216)000(cid:216)000

19(cid:216)000(cid:216)000

-(cid:217)reserve  for  exchange  differences(cid:216)(—)

746(cid:216)892

(cid:134)(cid:217)1(cid:216)060(cid:216)011

-(cid:217)value  adjustments  in  respect  of  loans  and  advances

36(cid:216)826(cid:216)654

(cid:134)(cid:217)24(cid:216)578(cid:216)389

Result  of  non(cid:220)budgetary  operations

143(cid:216)270(cid:216)750

95(cid:216)610(cid:216)521

Amount  allocated  to  financing  the  operating  budget(cid:216)((cid:209))

(cid:134)(cid:216)109(cid:216)694(cid:216)257

(cid:134)(cid:216)50(cid:216)500(cid:216)000

Result  after  deducting  the  net  balance  allocated  to  the
operating  budget

33(cid:216)576(cid:216)493

45(cid:216)110(cid:216)521

(˛)(cid:217)Note  14.
(ˇ)(cid:217)Note  17.
(—)(cid:217)During  1997,  changes  in  exchange  rates  led  to  an  exchange  loss  of  ECU  746(cid:216)892,  which  was  offset  by  a

withdrawal  from  the  value  adjustment  reserve.

((cid:209))(cid:217)In  accordance  with  the  change  in  accounting  method  on  31  December  1992,  income  received  during  the  1997

financial  year  has  been  allocated  to  financing  the  1997  operating  budget  (net  balance  as  in  Note  19.2).

C  255/22

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19.2. Out(cid:220)turn  of  the  ECSC  operating  budget

31.12.1997

31.12.1996

(ECU)

OUT(cid:220)TURN  OF  THE  BUDGET

Expenditure:

-(cid:217)administrative  expenditure  (Note  21)

5(cid:216)000(cid:216)000

5(cid:216)000(cid:216)000

-(cid:217)legal  commitments  (Note  15)

180(cid:216)869(cid:216)553

201(cid:216)176(cid:216)900

-(cid:217)financing  of  future  operational  budgets

274(cid:216)000(cid:216)000

0

Total

459(cid:216)869(cid:216)553

206(cid:216)176(cid:216)900

Revenue  (net  amounts):

-(cid:217)levy  (Note  25)

-(cid:217)fines  (Note  25)

101(cid:216)640(cid:216)567

95(cid:216)872(cid:216)589

0

0

-(cid:217)interest  subsidies  (Note  25)

4(cid:216)168(cid:216)145

4(cid:216)336(cid:216)252

-(cid:217)miscellaneous  (Note  25)

0

9(cid:216)397

-(cid:217)cancellations  of  legal  commitments  (Note  25)

195(cid:216)235(cid:216)395

89(cid:216)966(cid:216)808

-(cid:217)surplus  from  the  previous  budget  (Note  16)

49(cid:216)131(cid:216)189

14(cid:216)623(cid:216)043

-(cid:217)net  balance  for  the  year  (Note  19.1)

109(cid:216)694(cid:216)257

50(cid:216)500(cid:216)000

Total

459(cid:216)869(cid:216)553

255(cid:216)308(cid:216)089

BUDGET  OUT(cid:220)TURN

0

49(cid:216)131(cid:216)189

19.3. Result  for  the  financial  year

31.12.1997

31.12.1996

(ECU)

Result  from  non(cid:220)budgetary  operations  after  deducting
the  net  balance  allocated  to  the  operating  budget
(Note  19.1)

33(cid:216)576(cid:216)493

45(cid:216)110(cid:216)521

Out(cid:220)turn  of  the  budget  (Note  19.2)

0

49(cid:216)131(cid:216)189

Total

33(cid:216)576(cid:216)493

94(cid:216)241(cid:216)710

to 
Allocation 
operating  budget  (Note  16)

the  provisions 

for 

financing 

the

0

(cid:134)(cid:217)73(cid:216)131(cid:216)189

Allocation  to  the  guarantee  fund  (Note  18)

(cid:134)(cid:217)31(cid:216)256(cid:216)356

(cid:134)(cid:217)19(cid:216)000(cid:216)000

RESULT  BEFORE  ALLOCATION

2(cid:216)320(cid:216)137

2(cid:216)110(cid:216)521

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20.

INTEREST  AND  OTHER  CHARGES

31.12.1997

31.12.1996

(ECU)

Interest  on  loans  and  swaps

329(cid:216)439(cid:216)704

578(cid:216)089(cid:216)223

Bank  interest

Issuing  costs  and  redemption  premiums

36(cid:216)150

1(cid:216)943(cid:216)655

143(cid:216)213

2(cid:216)082(cid:216)149

Total

331(cid:216)419(cid:216)509

580(cid:216)314(cid:216)585

21.

ADMINISTRATIVE  EXPENDITURE

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  expenditure.

22. OTHER  OPERATING  CHARGES

Borrowing  costs

Swift/Reuters  charges

Other

31.12.1997

31.12.1996

(ECU)

90(cid:216)620

173(cid:216)665

118(cid:216)365

104(cid:216)432

201(cid:216)272

76(cid:216)864

Total

382(cid:216)650

382(cid:216)568

23.

INTEREST  RECEIVED  AND  SIMILAR  INCOME

31.12.1997

31.12.1996

(ECU)

Interest  on  loans  and  swaps

305(cid:216)580(cid:216)385

571(cid:216)400(cid:216)594

Payment  and  redemption  premiums

Bank  interest

1(cid:216)657(cid:216)860

28(cid:216)844(cid:216)878

Interest  on  bonds  and  other  fixed(cid:220)income  securities

84(cid:216)157(cid:216)839

1(cid:216)297(cid:216)295

35(cid:216)920(cid:216)700

91(cid:216)253(cid:216)453

Total

420(cid:216)240(cid:216)962

699(cid:216)872(cid:216)042

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Official  Journal  of  the  European  Communities

13.8.98

24. OTHER  OPERATING  INCOME

Lapsed  coupons  and  bonds

Other  income  from  lending  activities

Miscellaneous

31.12.1997

31.12.1996

(ECU)

36(cid:216)351

22(cid:216)124(cid:216)702

346(cid:216)632

606(cid:216)165

-

938(cid:216)605

Total

22(cid:216)507(cid:216)685

1(cid:216)544(cid:216)770

25.

INCOME  RELATING  TO  THE  OPERATING  BUDGET

Levy(cid:216)(˛)

Fines(cid:216)(ˇ)

Miscellaneous

(ECU)

31.12.1997

31.12.1996

101(cid:216)650(cid:216)532

96(cid:216)114(cid:216)647

0

0

0

9(cid:216)398

Cancellation  of  legal  commitments  (Note  15)

195(cid:216)235(cid:216)395

89(cid:216)966(cid:216)808

Repayment  of  interest  subsidies  (Notes  5.4  and  16)(cid:216)(—)

4(cid:216)168(cid:216)145

4(cid:216)336(cid:216)252

Total

301(cid:216)054(cid:216)072

190(cid:216)427(cid:216)105

(˛)(cid:217)The  ECSC  is  authorised  under  the  Treaty  to  impose  a  levy  on  coal  and  steel  produced  by  undertakings  in  the
Community.  The  levy  is  calculated  on  the  basis  of  the  average  values  in  the  Community  of  the  various
products  concerned.  The  levy  rate  was  0,31(cid:216)%  for  the  years  1980  to  1990,  0,29(cid:216)%  for  1991,  0,27(cid:216)%  for  1992,
0,25(cid:216)%  for  1993,  0,23(cid:216)%  for  1994,  0,21(cid:216)%  for  1995,  0,19(cid:216)%  for  1996  and  0,17(cid:216)%  for  1997.  On  23  December
1997,  the  European  Commission  decided  to  set  the  levy  rate  for  the  1998  financial  year  at  0(cid:216)%.
At  31  December  1997,  levy  income  included  ECU  15(cid:216)213  in  respect  of  surcharges  for  late  payment  (ECU
66(cid:216)022  at  31  December  1996).

(ˇ)(cid:217)This  item  comprises  the  revenue  from  fines  imposed  by  the  Commission  in  accordance  with  Articles  58  and  65

of  the  ECSC  Treaty,  together  with  surcharges  for  late  payment.

(—)(cid:217)This  item  comprises  the  revenue  from  the  repayments  of  interest  subsidies  which  the  Commission  was  obliged

to  demand.

26. OFF(cid:220)BALANCE(cid:220)SHEET  COMMITMENTS

26.1. Commitments  received

31.12.1997

31.12.1996

(ECU)

(a)(cid:217)Commitments  arising  from  swaps:

-(cid:217)notional 

capital 
interest(cid:220)rate  swaps

commitments 

relating 

to

-(cid:217)capital  commitments  relating  to 

interest(cid:220)rate

and  currency  swaps

243(cid:216)048(cid:216)695

404(cid:216)417(cid:216)158

347(cid:216)737(cid:216)940

1(cid:216)218(cid:216)389(cid:216)909

(b)(cid:217)Commitments  on  securities:

-(cid:217)securities  bought  forward

-

61(cid:216)687(cid:216)650

Total

590(cid:216)786(cid:216)635

1(cid:216)684(cid:216)494(cid:216)717

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26.2. Commitments  given

31.12.1997

31.12.1996

(ECU)

(a)(cid:217)Loans  granted:

-(cid:217)global  loan  contracts,  lines  still  to  be  used

-

1(cid:216)542(cid:216)037(cid:216)656

-(cid:217)loans  from  borrowed  funds  signed  but  not  yet

disbursed

-(cid:217)loans  from  own  funds  signed  but  not  yet

disbursed

(b) Commitments  arising  from  swaps:

-(cid:217)notional 

capital 
interest(cid:220)rate  swaps

commitments 

relating 

to

-(cid:217)capital  commitments  relating  to 

interest(cid:220)rate

and  currency  swaps

(c) Commitments  on  securities:

-(cid:217)securities  bought  forward

(d) Receipts  from  lapsed  coupons  and  bonds

182(cid:216)293(cid:216)126

253(cid:216)115(cid:216)328

19(cid:216)039(cid:216)158

37(cid:216)096(cid:216)332

243(cid:216)048(cid:216)695

404(cid:216)417(cid:216)158

268(cid:216)027(cid:216)585

1(cid:216)279(cid:216)792(cid:216)499

-

36(cid:216)351

61(cid:216)687(cid:216)650

9(cid:216)378

Total

712(cid:216)444(cid:216)915

3(cid:216)578(cid:216)156(cid:216)001

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27.

CHANGES  IN  THE  FINANCIAL  SITUATION  FOR  THE  YEAR  ENDING  31  DECEMBER
1997

(ECU  million)

1997

1996

Origin  of  funds:

Balance  of  profit(cid:220)and(cid:220)loss  account

2,3

2,1

Items  not  involving  a  movement  of  funds:

-(cid:217)amortisation  of  issuing  costs  and  redemption  premiums

-(cid:217)value  adjustments  in  respect  of  securities

-(cid:217)value  adjustments  in  respect  of  tangible  assets

-(cid:217)value  adjustments  in  respect  of  loans  and  advances  (net)

0,4

11,7

0,6

23,4

0,8

(cid:134)(cid:217)0,2

0,8

43,0

-(cid:217)decrease  in  "Provision  for  legal  commitments’

(cid:134)(cid:217)206,1

(cid:134)(cid:217)195,4

-(cid:217)increase 
budget’

in 

"Provision  for  financing  the  ECSC  operating

-(cid:217)decrease  in  accruals  and  deferred  payments

-(cid:217)decrease  in  accruals  and  deferred  income  and  issuing  costs

and  redemption  premiums

-(cid:217)decrease  in  "Other  liabilities’

-(cid:217)increase  in  "Other  assets’

-(cid:217)allocation  to  the  provision  for  risks  and  charges

-(cid:217)withdrawal  from  the  provision  for  large  exposures

-(cid:217)allocation  to  (withdrawal  from)  the  provision  for  changes  in

the  ecu  rate

-(cid:217)exchange(cid:220)rate  adjustments  in  respect  of  borrowings  and  loans

-(cid:217)allocation  to  the  guarantee  fund/special  reserve

234,1

(cid:134)(cid:217)38,6

62,8

(cid:134)(cid:217)47,8

41,5

62,7

(cid:134)(cid:217)65,5

(cid:134)(cid:217)271,6

(cid:134)(cid:217)109,0

(cid:134)(cid:217)11,8

12,2

(cid:134)(cid:217)9,0

(cid:134)(cid:217)0,7

(cid:134)(cid:217)26,9

31,3

34,0

(cid:134)(cid:217)19,0

1,1

88,2

19,0

TOTAL  FUNDS

(cid:134)(cid:217)98,3

(cid:134)(cid:217)231,3

Other  resources:

-(cid:217)proceeds  from  borrowings

-(cid:217)loan  repayments

-(cid:217)disposals  of  buildings

-(cid:217)decrease  in  bank  balances  and  portfolio

473,8

1(cid:216)661,0

0,2

116,3

298,2

1(cid:216)860,0

1,1

40,6

Use  of  funds:

-(cid:217)loan  disbursements

-(cid:217)redemptions  of  borrowings

TOTAL  RESOURCES

2(cid:216)153,0

1(cid:216)968,6

546,9

1(cid:216)606,1

283,7

1(cid:216)684,9

TOTAL  USES

2(cid:216)153,0

1(cid:216)968,6

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OUT(cid:220)TURN  OF  THE  ECSC  OPERATING  BUDGET  FOR  1997

Requirements

Forecast
(draft  1997
operating  budget)

Out(cid:220)turn

Resources

Forecast
(draft  1997
operating  budget)

(ECU  million)

Out(cid:220)turn

Operations  to  be  financed  from
current 
reim(cid:220)
bursable):

resources 

(not 

Resources  for  the  financial  year

1. (cid:217)Current  resources

1. (cid:217)Administrative  expenditure

5,0

5,0

2. Aid  for  redeployment

(Article  56)

3. Aid  for  research  (Article  55)

85,0

84,0

66,0

84,0

3.1.(cid:217)Steel

3.2.(cid:217)Coal

3.3.(cid:217)Social

55,0

29,0

0,0

55,0

29,0

0,0

4. Aid  for  conversion

2,0

1,8

1.1.(cid:217)Yield  from  levy  at  0,17(cid:216)%

100,3

101,6

1.2.(cid:217)Net  balance

96,0

109,7

1.3.(cid:217)Fines  and  surcharges  for

late  payment

1.4.(cid:217)Miscellaneous

p.m.

6,0

p.m.

4,2

2. Cancellation  of 

commit(cid:220)
ments  unlikely  to  be  imple(cid:220)
mented

173,0

195,2

5.

6.

7.

Social  measures  (steel)
(Article  56)

p.m.

p.m.

3. Unused  resources  carried

over  from  1996

49,1

49,1

Social  measures  (coal)
(Article  56)

30,0

29,0

4. Utilisation  of  the  contin(cid:220)

gency  reserve

p.(cid:216)m.

p.(cid:216)m.

Provision  for  financing  the
operating  budget

218,4

274,0

5. Extraordinary  resources

p.m.

p.m.

TOTAL

424,4

459,8

TOTAL

424,4

459,8

Operations 
financed  by 
from  non(cid:220)borrowed  funds

loans

Origin  of  non(cid:220)borrowed  funds

Subsidised  housing

13,0

13,0

Special  Reserve  and 
ECSC  pension  fund

former

13,0

13,0