WRITTEN QUESTION No. 3084/98 by Honório NOVO EIB loan to SONAE Investimentos SGPS SA
Date: 1998-10-16
Institutions: European Parliament, NOVO
Subjects: EIB loan, Portugal, distributive trades, group of companies, interest rate subsidy, job creation, real estate credit, regional development, shopping centre, terms for aid

C 341/2

Official Journal of the European Communities

EN

29.11.1999

The Commission will therefore be raising this matter with the UK authorities and, if appropriate, will not
hesitate to pursue the matter under the procedure provided for in Article 169 of the EC Treaty.

(1) OJ C 310, 15.12.1998.

(1999/C 341/002)

WRITTEN QUESTION E-3084/98

by Honório Novo (GUE/NGL) to the Commission

(16 October 1998)

Subject: EIB loan to SONAE Investimentos SGPS SA

The publication EIB Information (1-1998-No 96, ISSN 0258-2147) contains information concerning the loans
granted by the European Investment Bank to Portugal during 1997.

On the list of the contracts concluded in that year with Portuguese companies and institutions is a loan of
ECU 50,3 million (a little over ESC 10 billion) granted to SONAE Investimentos SGPS SA, one of the
economically and financially most powerful groups based in Portugal. According to the information provided
by the EIB, the loan in question was intended for the construction of a shopping complex in Oporto.

EIB loans are normally granted at subsidised interest rates, the cost of which is borne by the Community
budget (i.e. paid out of the taxpayers’ pocket).

The project for which funding has been received lies within one of the EU economies’ most profitable sectors
and the group to which the loan has been granted is one which cannot by any stretch of the imagination be
described as a ‘small or medium-sized company’. The EIB’s decision was no doubt taken on the grounds that
the SONAE project is being supported by the Portuguese Government.

In the light of the above, would the Commission answer the following questions:

1. How is it possible to justify the granting of an EIB loan to a financial and economic group which is fully

capable of meeting the normal contractual conditions imposed by a commercial bank?

2. Did SONAE’s application for funding in order to build a shopping complex in Oporto receive support of

any kind from the Portuguese Government?

3. Does the Commission consider that the project for which the loan was granted can be included amongst

the EU objectives which it is the EIB’s job to help achieve?

Answer given by Mr de Silguy on behalf of the Commission

(15 January 1999)

The loan was extended according to normal European investment bank (EIB) procedures which include
obtaining the opinion of the Member State in which the project will be carried out, and the lending rate was
based on the funding cost plus a small margin to cover operating costs. It does not benefit from subsidies or
budget resources of the Community.

According to the information made available to the Commission by the EIB, the two shopping centres co-
financed with the EIB loan are located in objective 1 regions. Regional development is one of the top priorities
of EIB activity (Article 198 E point a of the EC Treaty). In addition, the project has positive direct employment
effects (estimated creation of the equivalent of 5 000 full-time jobs in the two shopping centres). The project
will contribute to the modernisation of the retail sector in Portugal, which at present lags behind the more
mature markets. The new infrastructure will meet the demanding standards which specialist retailers require
when entering new markets, thus supporting the policy of the single market. By strengthening competition,
shopping centres will facilitate access to internationally available merchandise at competitive prices, thereby
providing consumer benefits.