WRITTEN QUESTION No. 3493/98 by Nikitas KAKLAMANIS to the Commission. Capitalization of interest and the failure to transpose Community directives
Date: 1998-11-12
Institutions: European Parliament, KAKLAMANIS
Subjects: EC Directive, Greece, application of EU law, approximation of laws, consumer credit, consumer information, cost of borrowing, interest, loan, national implementing measure

15.10.1999

EN

Official Journal of the European Communities

C 297/77

1998 leaves some doubt as to the founders’ intentions of seeking political solutions, given the call to ‘struggle
against the dictatorship in power in Rwanda’. The Commission is aware of the need for further progress
towards democracy in Rwanda, but this must take place through dialogue. Incitement to armed struggle can
only exacerbate conflict and ethnic and political polarisation and lead to further humanitarian disasters.

The Commission must unfortunately confirm the situation described by the Honourable Member and shares
his concern about the worrying developments in the situation in Kivu. While the Commission is aware that the
keys to solving the conflict are in the hands of the African people themselves, it is contributing to efforts to
create the conditions for a negotiation and dialogue ( both within and outside the country ( that could lead
to lasting peace in the Great Lakes/Central African region.

The Commission remains willing to support the rehabilitation and reconstruction of Kivu and assist in setting
up the structures necessary for establishing the rule of law as soon as the situation in the country permits it.
Initiatives are also under way to study the possibility of bringing humanitarian aid to the sections of the
population seriously affected by this conflict, one which looks set to continue.

(1999/C 297/102)

WRITTEN QUESTION P-3493/98

by Nikitas Kaklamanis (UPE) to the Commission

(12 November 1998)

Subject: Capitalization of interest and the failure to transpose Community directives

Thousands of Greek citizens are in an impossible situation owing to the implementation of Law 2601/98 on
the rules governing bank interest on loans. Greek farmers recently alleged that this Law is unconstitutional,
and it is contrary to the provisions of Community Directives 87/102/EEC (1) and 90/88/EEC (2) which do not
allow the capitalization of interest in any Member State of the EU.

Will the Commission say what action it intends to take to ensure that the above directives are transposed into
Greek law and that their provisions are properly implemented in Greece?

(1) OJ L 42, 12.2.1987, p. 48.
(2) OJ L 61, 10.3.1990, p. 14.

Answer given by Ms Bonino on behalf of the Commission

(3 December 1998)

The Commission is not aware of Law 2601/98 as a national measure for the transposition of Council Directive
90/88/EEC of 22 February 1990 amending Directive 87/102/EEC for the approximation of the laws,
regulations and administrative provisions of the Member States concerning consumer credit.

It is not for the Commission to express an opinion on the conformity of a national law with the Constitution of
a Member State.

It should be stated that Directives 87/102/EEC and 90/88/EEC do not prohibit the capitalisation of interest.
Their aim is to provide consumers with more information so that they are better able to compare the cost of
credit being offered by various lenders. This aim is achieved through the uniform application of the method for
calculating the annual percentage rate of charge as referred to in Article 1(2)(e) of Directive 87/102/EEC.
However, this provision is not intended to rule out the capitalisation of interest.

It should also be mentioned that Directives 87/102/EEC and 90/88/EEC apply only to consumer credit as
defined in Article 1(2)(c) of Directive 87/102/EEC. Loans to farmers are therefore not covered.