Council Regulation (EC, Euratom) No 1149/1999 of 25 May 1999 amending Regulation (EC, Euratom) No 2728/94 establishing a Guarantee Fund for external actions
Date: 1999-05-25
Institutions: Council of the European Union
Subjects: Community loan, budgetary reserve (EU), credit guarantee, fund (EU), investment protection, third country

2. 6. 1999

EN

Official Journal of the European Communities

L 139/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC, EURATOM) No 1149/1999

of 25 May 1999

amending Regulation (EC, Euratom) No 2728/94 establishing a Guarantee Fund
for external actions

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 308 thereof,

Having regard to the Treaty establishing the European
Atomic Energy Community, and in particular Article 203
thereof,

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the European Parlia-
ment (2),

Having regard to the opinion of the Court of Auditors (3),

Whereas:

(1)

(2)

(3)

(4)

(5)

the Guarantee Fund is endowed by payments from
the general budget of the European Communities,
by the interest on its invested resources and by the
amounts recovered from defaulting debtors where
the Fund has already honoured the guarantee;

experience of
the Guarantee
the functioning of
Fund indicates that a ratio of 9 % between the
Fund’s resources and guaranteed liabilities in prin-
cipal, increased by unpaid interest due, would be
adequate;

payments to the Guarantee Fund equal to 9 % of
the amount of each operation would seem suffi-
cient to attain the target amount;

the Guarantee Fund attained its target amount on
31 December 1997 and therefore the provisioning
rate should be reviewed;

if the Guarantee Fund exceeds the target amount
the surplus is paid back to the general budget of
the European Communities;

(1) OJ C 32, 6.2.1999, p. 11.
(2) OJ C 379, 7.12.1998, p. 155.
(3) Opinion delivered on 30 October 1998.

(6)

(7)

(8)

the Commission should report to the European
Parliament and the Council on the functioning of
the Fund and take into account possible changes of
risks to which the Guarantee Fund is exposed
following enlargement of the Community;

Regulation (EC, Euratom) No 2728/94 (4) should be
amended accordingly;

the Treaties do not provide any powers other than
those pursuant to Article 308 of the EC Treaty and
Article 203 of the Euratom Treaty for the adoption
of this Regulation,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC, Euratom) No 2728/94 is hereby amended
as follows:

1. in Article 3 the second paragraph shall be replaced by

the following:

‘The target amount shall be 9 % of the Community
total outstanding capital liabilities arising from each
operation, increased by unpaid interest due.';

2. Article 4(1) shall be replaced by the following:

‘The payments provided for under the first indent of
Article 2 shall be equivalent to 9 % of the capital value
of the operations.';

3. in Article 5 the first paragraph shall be replaced by the

following:

‘If, as a result of the activation of guarantees following
default, resources in the Fund stand below 75 % of the
target amount, the rate of provisioning on new opera-
tions shall be raised to 10 % until the target amount
has once more been reached.';

(4) OJ L 293, 12.11.1994, p. 1.

L 139/2

EN

Official Journal of the European Communities

2. 6. 1999

4. Article 9 shall be replaced by the following:

‘The Commission shall submit to the European Parlia-
ment and the Council comprehensive reports on the
functioning of
the
the Fund, both at
conclusion of the first accession agreement with the
applicant States, and before 31 December 2006. The

the time of

Commission shall, if necessary, submit to the Council
appropriate proposals for modification of
the para-
meters of the Fund.'

Article 2

This Regulation shall enter into force on 1 January 2000.

This Regulation shall be binding in its entirety and directly applicable in all Member
States.

Done at Brussels, 25 May 1999.

For the Council

The President

H. EICHEL