Communication from the Commission - Financial information on the European Development Funds
Date: 2000-07-19
Institutions: European Commission
Subjects: European Development Fund, Member States' contribution, Stabex, financial year

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 19.7.2000
COM(2000) 470 final

COMMUNICATION FROM THE COMMISSION

Financial Information on the European Development Funds

COMMUNICATION FROM THE COMMISSION

Financial Information on the European Development Funds

Contents

Preliminary remarks............................................................................................... 3

Summary ............................................................................................................... 4

I.

Status of European Development Funds at 31.12.1999 ............................... 5

1. General table ......................................................................................... 5

2. Implementation of the Funds at 31 December 1999 ................................ 6

II.

Financial implementation forecasts for 2000 .............................................. 7

III.

Financial implementation forecasts for 2001 .............................................. 9

ANNEXES ............................................................................................................ 11

2

Preliminary remarks

This document is submitted as an annex to the draft budget for 2001, in accordance with the
1979 agreements on budgetary procedure.

To make the budgetary authority's task as easy as possible, the information given in this
document is restricted to the key data. However, as in previous years, it shows:

-

-

-

EDF implementation at 31.12.1999;

financial implementation forecasts for the current year;

expenditure forecasts for 2001.

Further details on EDF implementation at 31 December 1999 are given in the Commission
communication to the Court of Auditors, Parliament and the Council containing the balance
sheets and accounts of the 6th, 7th and 8th EDFs for 1999.

3

1.

2.

3.

SUMMARY

€
With payments standing at
1 275.38 million, implementation of the EDF in 1999 will be
€
1 955 million presented to the Member States in November 1998, i.e. a
below the forecast of
rate of 70% excluding Stabex (65.22% including Stabex). However, the size of this gap was
corrected in the "Financial Information on the EDF" report presented to the Council in July
€
1 460 million, giving an implementation rate of
1999 when the forecast was revised down to
87.35% of the forecast.

1999 was a record year for decisions, however, compared with the recent average. Current
€
75.01 million, a total of 120% of
expenditure totalled
the November 1998 forecast of

€
2 617.81 million, while Stabex reached

€
2 245 million for all instruments.

To put the size of the gap between decisions and payments in perspective, account should first
be taken of the late entry into force of the 8th EDF in July 1998 and the reasonable time-lag
between the decision on a project and its actual implementation.

In a political and economic climate that continues to fluctuate sharply and is sensitive to
changes in the world economy, official development aid granted by the European Union to the
ACP States and OCTs constantly reflects these external factors.

As in 1998, the domestic situation in a number of recipient countries continued to fluctuate
throughout the year - deterioration of the situation in Rwanda, Equatorial Guinea, Democratic
Republic of Congo, Sierra Leone, etc. - -and this affected the pace and estimated amount of
disbursements.

€
2 635 million for 2000, the upswing
With decisions forecast at
in EDF activity should pick up pace appreciably following the entry into force of the 8th EDF
and the decisions taken on the debt-relief initiative for heavily indebted poor countries and the
increase in the structural adjustment facility.

€
4 250 million and payments at

€
1 600 million was agreed in
To finance this expenditure, a call for contributions totalling
€
360 million for Stabex expenditure as laid
December 1999 to cover current payments plus
down in the Financial Regulation for the 8th EDF. The level of contributions takes account only
of decisions actually taken to date.
€
2 553 million for current operations and 0 million for Stabex.

Forecast expenditure in 2001 is

4

Implementation
at 31/12/99 (%)

Entry into
force of the
EDF

Recipients

Type of aid

I.

1.

Status of European Development Funds at 31.12.1999

General table

Fund1

6th EDF
Allocations (a)
Decisions (b)
Contracts (c)
Payments (d)

Implement-
ation at
31/12/99
(EUR
million)

7 882.6 2
7 466.3
7 227.9
7 035.3

7th EDF
Allocations
Decisions
Contracts
Payments

(a)
(b)
(c)
(d)

11 606.73
10 640.6
9 068.4
8 021.2

01.05.1986

01.09.1991

94.72% (b/a)
89.25% (d/a)
94.22% (d/b)
97.34% (d/c)

91.67% (b/a)
69.11% (d/a)
75.38% (d/b)
88.45% (d/c)

8th EDF
Allocations (a)
Decisions (b)
Contracts (c)
Payments (d)

13 151.1
4 734.3
1 825.5
1 011.2

36.00% (b/a)
7.69% (d/a)
21.36% (d/b)
55.39% (d/c)

17.06.1998

ACP-OCT
“
“
“
“
“
“

ACP-OCT
“
“
“
“
“
“
“
“

ACP-OCT
“
“
“
“
“
“

Programmable aid
Interest-rate subsidies
Venture capital
Stabex
Sysmin
Emergency aid
Aid for refugees

adjustment

Programmable aid
Structural
facility
Interest-rate subsidies
Venture capital
Stabex
Sysmin
Emergency aid
Aid for refugees

adjustment

Programmable aid
Structural
facility
Interest-rate subsidies
Venture capital
Stabex
Sysmin
Emergency aid
Aid for refugees

ECU 1 120 million from the 6th EDF, ECU 1 225 million from the 7th EDF and ECU 1 693 million
from the 8th EDF should be added to the above allocations (from EIB own resources).

1

2

3

The allocation figures do not include interest.
€
Replenishment of the Somalia NIP with
39 million transferred to the 8th EDF in
35.7million less
accordance with Article 1(ii) of the 8th EDF Internal Agreement (remaining balance of the 4th and 6th
EDFs).
Transfer of
Internal Agreement

253 million from the 7th EDF to the 8th EDF in accordance with Article 1(ii) of the 8th EDF

€

€

5

2.

Implementation of the Funds at 31 December 1999

(a) EDF expenditure in 1999:

€
1 275.38 million.

TRENDS IN PAYMENTS (EUR million)

Current payments

Stabex

TOTAL

1991
1992
1993
1994
1995
1996
1997
1998
1999

1102
1298
1339
1430
1260
1152
1194
1351
1255

189
612
33
351
303
165
19
89
20

1291
1910
1372
1781
1563
1317
1213
1440
1275

COMPARISON DECISIONS/PAYMENTS (7th & 8th EDFs - EUR million)

Instruments

Decisions

PROGRAMMABLE AID:
– National and regional

indicative programmes

– Structural adjustment facility
STABEX
SYSMIN
VENTURE CAPITAL
INTEREST-RATE SUBSIDIES
EMERGENCY AID
AID FOR REFUGEES
HIPC INITIATIVE
TOTAL

1998
1784.81
1198.25

586.56
151.69
0.51
297.05
24.54
36.73
0.94
-
2296.28

1999
2297.69
1984.22

313.47
75.01
27.71
199.25
4.94
82.68
-0.90
6.44
2692.82

Payments
1998
1091.94
812.41

1999
994.34
732.74

279.53
89.31
41.83
171.33
27.05
12.65
5.52
-
1439.64

261.60
20.15
53.70
131.47
25.37
48.81
1.54
0
1275.38

For the second year running, the level of decisions showed a definite upturn with the start-up of
implementation of the 8th EDF and although this has not yet been reflected in the level of payments, it
is inevitable in due course. Despite a low level of decisions in 1999, Sysmin managed to keep up a
steady rate of payments.

6

(b) EDF operations were financed normally in 1999

CURRENT
OPERATIONS
1998

330.56
1300.00

1999
306.57
1100.00

STABEX

TOTAL

1998

91.00
397.54(1)

1999
407.53
461.93(1)

1998
421.56
1697.54

1999
714.10
1561.93

26.34

-10.50

8.30

32.69

34.64

22.19

In EUR million

Resources
Carry-over to 01.01
Call for
contributions
Interest entered in
the accounts/
amounts to be
regularised
TOTAL
Expenditure
Balance at 31.12

1656.90
-1350.33
306.57

1396.07
-1255.23
140.84

496.84
-89.31
407.53

902.15
-20.15
882.00

2153.74
-1439.64
714.10

2298.22
-1275.38
1022.84
€
€
140.84
1 022.84 million,
€
882.00 million, at
€
563.76

The amount of cash available for all accounts at the end of the year was
€
million for current expenditure and
882.00 million for Stabex. In addition to the
the 1999 year end, the Commission also had a credit with some Member States totalling
million for Stabex.

As there is a special bank account for Stabex operations, the possibilities of reducing these funds are
closely bound up with the level of transfers decided on.

(1) The amounts entered for calls for contributions to Stabex take account only of actual Member State
€
€
461.93 million in
397.54 million in 1998 and
payments, excluding credits. The amount of payments (
€
1999) is higher than calls (
360 million) as a result of some Member States settling previous credits.

II.

Financial implementation forecasts for 2000 (as at 01.2000)

Instruments

Decisions

Payments

In EUR million
PROGRAMMABLE
AID
- National and regional

indicative
programmes
Structural adjustment
facility

-

STABEX
SYSMIN
VENTURE CAPITAL
INTEREST-RATE
SUBSIDIES
EMERGENCY AID
AID FOR REFUGEES
HIPC
Other
TOTAL

EDF6
-150

EDF7
100

EDF8
2 200

Tot. EDF6
100

2 150

EDF7
550

EDF8
800

Tot.
1 450

-150

100

1 750

1 700

100

550

350

1 000

450

400
50
290
90

20
-
1 000
250
4 250

-

-
-
-
-

-
-
-
-
100

-

-
-
85
30

-
-
-
-
665

450

250
30
200
30

60
-
350
150
1 870

450

250
30
285
60

60
-
350
150
2 635

-

-
-
-
-

-
-
-
-
-150

-

-
-
-
-

-
-
-
-
100

450

400
50
290
90

20
-
1 000
250
4 300

7

1. Forecasts for decisions have been revised upwards compared with the forecasts in November 1999.
This has been done to take account of the guidelines laid down at the December 1999 CFD/ACP
meeting in Accra where the following initiatives were agreed:

– debt relief totalling

€
1 000 million for the heavily indebted poor countries;

– an increase of

€
250 million in the structural adjustment facility,

€
100 million of which has been

earmarked for 2000.

€
Forecasts, other than for Stabex, which has gone down from
400 million owing to
the availability of more accurate data, have not changed, thus justifying the Commission's ambitious
programming targets.

€
500 million to

An extra heading, 'Other', has been included to take account of the Commission's intention of
presenting by the end of the year operations involving several ACP countries at once which are
currently being studied and/or finalised (increase in venture capital funding, support for health
initiatives in cooperation with WHO, etc.)

2. EDF expenditure at 31/05/2000 compared with the January 2000 forecasts

Instruments
In EUR million

January 2000
forecasts

Implementation
at
31.05.20004

%
implementation
at
31.05.2000

PROGRAMMABLE AID
- national and regional indicative
programmes
- Structural adjustment facility

SYSMIN
VENTURE CAPITAL
INTEREST-RATE SUBSIDIES
EMERGENCY AID
AID FOR REFUGEES

Subtotal

STABEX
HIPC
Other
TOTAL

1 450
1 000

450

30
285
60
60
-

1 885

250
350
150
2 635

370.17
291.34

78.83

14.28
68.37
4.91
14.68
0.41

472.82

70.51
-
-
543.33

25.53
29.13

17.52

47.60
23.99
8.18
24.47
-

25.08

28.20
0.00
0.00
20.62

As with the decision forecasts, the payments forecasts have also been revised upwards to take account
of the necessary additional disbursements for the HIPC initiative and the increase in the structural
adjustment facility this year.

4

Final and unsettled transactions.

8

Despite an implementation rate of 20.62% at 31 May 2000, below the normal average for that date, the
Commission is keeping to its forecast as the high level of decisions must soon bring about a substantial
increase in disbursements.

III.

Implementation forecasts for 2001

2001 in EUR million

Decisions

Payments

EDF6

EDF7

EDF8

Tot.

EDF6

EDF7

EDF8

Tot.

PROGRAMMABLE AID
– NIP/RIP
– SAF
STABEX
SYSMIN
VENTURE CAPITAL
INTEREST-RATE
SUBSIDIES
EMERGENCY AID
AID FOR REFUGEES
HIPC

400
400
-
-
-
-
-
-
-
-

400
400
-
-
-
-
-
-
-
-

2 110
1 953
157
-
-
240
90

-
60
-

2 910
2 753
157
-
-
240
90

-
60
-

Grand total

400

400

2 500

3 300

8
8
-
-
-
-
-
-
-
-

8

618
618
-
-
-
-
-
-
-
-

1 262
957
305
-
50
140
50

-
50
375

1 888
1 583
305
-
50
140
50

-
50
375

618

1 927

2 553

1. The 2001 forecasts are as submitted to the Member States in the schedule drawn up in the
post-Lomé negotiations at the final talks on the size of the 9th EDF; the main differences
between these figures and the ones sent to the Council in December 1999 are as follows:

–

–

–

the amounts for the 6th EDF have been entered separately since the Fund has not been
closed yet;

the figures have been calculated on the basis of the present programmes in the light of
the more ambitious objectives established internally (these figures will be revised in
further detail in November in the light of implementation);

the HIPC debt-relief initiative has now been quantified and included in the forecasts.

€

3 300 million. This does not include the outstanding
2. Decisions in the pipeline amount to
€
150 million to be allocated to the increase in the structural adjustment facility, on which no
decision has yet been taken. In its dealings with third countries, however, the Commission is
also dependent on a number of external factors which cannot, by their nature, be foreseen
(political instability, armed conflict, natural disasters). These factors can upset a forecast at any
time.

€

2 553 million should see the two billion euro threshold crossed
3. The estimated payments of
again in 2001. This will largely be due to the anticipated high level of HIPC payments (
375
250 million
million). However, the figure does not include the expected disbursement of
under Stabex on which the data is as yet unavailable. Stabex will in fact come to end when the

€

€

9

revised Lomé IV expires as it is not due to be renewed in its present form in the next
partnership agreement.

4. To cover these payments, taking account of obligations under the Convention, the financial
requirements for 2001 to be discussed with the Member States in November 2000 should be
close to
3 050 million for current expenditure. Meanwhile calls in relation to Stabex will be
closed in July 2000, as provided for in the Financial Regulation.

€

The above forecast of financial requirements is based on the following:

€

million

Balance 31/12/1999

Calls for 2000
Forecast expenditure 2000
Additional requirements
2000

Forecast balance at
31/12/2000

Foreseeable expenditure
2001

Forecast requirements 2001
Forecast balance at
31/12/2001

Current operations
140.84

1 600.00
-2 035.00

Stabex
882.00

360.00
-250.00

HIPC

-350.00
350.00

-294.16

992.005

-2 178.00

-250.00

-375.00

2 672.16
200.00

0.00
742.00

375.00
0.00

The forecast current expenditure figure for 2000 includes the increase in the structural
adjustment facility agreed under the HIPC initiative. The expiry of the revised Lomé IV and
the entry into force of the successor convention are currently under discussion, notably
concerning the finalisation of interim measures for the transition between agreements. The
source of the necessary financing to cover the original 2000 and 2001 expenditure as well as
that arising from the new initiatives will depend on decisions taken in that context.

5

Excluding sums owed by Member States and interest generated in managing the bank accounts.

10

ANNEXES

11

Annex 1: Contributions to the EDF for 2000

12

CONTRIBUTIONS TO THE EDF FOR 2000

Current expenditure

Country

REF.
EDF7

%

20/01/00

1/04/00

1/07/00

1/11/00

TOTAL 2000

GERMANY

BELGIUM

DENMARK

SPAIN

FRANCE

GREECE

IRELAND

ITALY

LUXEMBOURG

NETHERLANDS

PORTUGAL

UNITED
KINGDOM

25.96

103 840 000.00

103 840 000.00

103 840 000.00

103 840 000.00

415 360 000.00

3.96

2.07

5.90

24.37

1.22

0.55

12.96

0.19

5.57

0.88

15 840 000.00

15 840 000.00

15 840 000.00

15 840 000.00

63 360 000.00

8 280 000.00

8 280 000.00

8 280 000.00

8 280 000.00

33 120 000.00

23 600 000.00

23 600 000.00

23 600 000.00

23 600 000.00

94 400 000.00

97 480 000.00

97 480 000.00

97 480 000.00

97 480 000.00

389 920 000.00

4 880 000.00

4 880 000.00

4 880 000.00

4 880 000.00

19 520 000.00

2 200 000.00

2 200 000.00

2 200 000.00

2 200 000.00

8 800 000.00

51 840 000.00

51 840 000.00

51 840 000.00

51 840 000.00

207 360 000.00

760 000.00

760 000.00

760 000.00

760 000.00

3 040 000.00

22 280 000.00

22 280 000.00

22 280 000.00

22 280 000.00

89 120 000.00

3 520 000.00

3 520 000.00

3 520 000.00

3 520 000.00

14 080 000.00

16.37

65 480 000.00

65 480 000.00

65 480 000.00

65 480 000.00

261 920 000.00

TOTAL

100.00

400 000 000.00

400 000 000.00

400 000 000.00

400 000 000.00

1 600 000 000.00

13

CONTRIBUTIONS TO THE EDF FOR 2000

STABEX

Country

REF.
EDF8

1/04/00

1/07/00

TOTAL

GERMANY

BELGIUM

DENMARK

SPAIN

FRANCE

GREECE

IRELAND

ITALY

LUXEMBOURG

NETHERLANDS

PORTUGAL

UK

AUSTRIA

FINLAND

SWEDEN

23.36

42 048 000.00

42 048 000.00

84 096 000.00

3.92

2.14

5.84

24.30

1.25

0.62

12.54

0.29

5.22

0.97

7 056 000.00

7 056 000.00

14 112 000.00

3 852 000.00

3 852 000.00

7 704 000.00

10 512 000.00

10 512 000.00

21 024 000.00

43 740 000.00

43 740 000.00

87 480 000.00

2 250 000.00

2 250 000.00

4 500 000.00

1 116 000.00

1 116 000.00

2 232 000.00

22 572 000.00

22 572 000.00

45 144 000.00

522 000.00

522 000.00

1 044 000.00

9 396 000.00

9 396 000.00

18 792 000.00

1 746 000.00

1 746 000.00

3 492 000.00

12.69

22 842 000.00

22 842 000.00

45 684 000.00

2.65

1.48

2.73

4 770 000.00

4 770 000.00

9 540 000.00

2 664 000.00

2 664 000.00

5 328 000.00

4 914 000.00

4 914 000.00

9 828 000.00

TOTAL

100.00

180 000 000.00

180 000 000.00

360 000 000.00

14

Annex 2: Sectoral breakdown at 31.12.1999

15

Percentage breakdown of commitments by economic sector
6th, 7th and 8th EDFs combined

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

aid

Food

aid

Programmed

NGO

support
Naturalresource
secto
productive
Other

Economicinfrastructure
Socialinfrastructure
Governmentand

an

civilso

1999
2000
2001

Multisector

Unspecified

16

Annex 3: Summary statements of management accounts at 31.12.1999.

17

EDF CONSOLIDATED ACCOUNTS AT 31.12.1999

€
ANNUAL FIGURES (

‘000)

APPROPRIATIONS

6th EDF

7th EDF

8th EDF

6th, 7th & 8th

Programmable aid

Structural adjustment (SAF)

Non-programmable aid

Transfers to other Funds

Sundry revenue
TOTAL

5 180 374

6 000

2 586 156

110 084

6 087 071

1 156 000

3 908 462

433 931

21 206

6 427 000

1 650 000

5 074 118

17 694 445

2 812 000

11 568 736

544 015

21 206

7 882 614

11 606 671

13 151 118

32 640 402

EDF

AGGREGATE TOTAL

ANNUAL FIGURES

As at

%  of

Tot. prior

1995

1996

1997

1998

1999

31/12/99

appropria

to 1995

DECISIONS

TOTAL

ASSIGNED FUNDS

TOTAL

PAYMENTS

TOTAL

6

7

8

6

7

8

6

7

8

tion

95

92

36

92

78

14

7 466 272

10 640 624

4 734 345

22 841 241

7 227 869

9 068 387

1 825 514

7 516 826

45 601

(53 008)

7 234 369 1 474 489 1 017 873

24 216

591 769

(44 644)

116 834

(22 719)

205 290

2 224 097

2 510 248

14 751 195 1 520 090

964 865

615 985

2 296 287

2 692 819

6 278 145

89 818

120 457

4 537 045 1 505 878 1 259 557

109 117

852 298

563 443

563 443

893 967

66 889

350 166

931 547

18 121 769

10 815 190 1 595 696 1 380 014

961 415

2 020 853

1 348 602

7 035 285

8 021 186

1 011 161

16 067 632

89

69

8

6 136 471

268 197

199 131

173 843

3 122 373 1 295 514 1 118 250

1 038 852

153 872

819 131

466 621

103 771

627 066

544 540

9 258 844 1 563 711 1 317 381

1 212 695

1 439 624

1 275 377

18

EDF consolidated accounts as at 31.12.1999:         annual 
figures (EUR '000)

3.000.000

2.500.000

2.000.000

1.500.000

1.000.000

500.000

(500.000)

6th EDF

7th EDF

8th EDF

1995 1996 1997 1998 1999

1995 1996 1997 1998 1999

1995 1996 1997 1998 1999

DECISIONS                    ASSIGNED FUNDS                    PAYMENTS 

EDF CONSOLIDATED ACCOUNTS AT 31.12.1999

€
’000)
 7th EDF

Class of aid (
 6th EDF

%

(1)

%

(1)

 8th EDF

 TOTAL

%

(1)

%

(1)

PROGRAMMABLE AID (NIP)

Appropriation

Decisions

Assigned funds

Payments

STRUCTURAL ADJUSTMENT (SAF)

Appropriation

Decisions

Assigned funds

Payments

NON-PROGRAMMABLE AID

Appropriation

Decisions

Assigned funds

Payments

TRANSFERS FROM OTHER FUNDS

Appropriation

Decisions

Assigned funds

Payments

SUNDRY REVENUE

TOTAL

Appropriation

Decisions

Assigned funds

Payments

5 180 374

6 087 071

6 427 000

17 694 445

4 862 968 94

5 438 200 89

2 838 234 44

13 139 403 74

4 655 924 90

4 332 171 71

4 492 969 87

3 581 822 59

362 536 6

189 469 3

9 350 632 53

8 264 261 47

6 000

1 156 000

1 650 000

2 812 000

6 000 100

5 995 100

5 407 90

1 152 902 100

1 147 217 99

1 137 044 98

892 275 54

660 540 40

494 992 30

2 051 177 73

1 813 753 65

1 637 443 58

2 586 156

3 908 462

5 074 118

11 568 736

2 505 446 97

3 680 752 94

1 003 836 20

7 190 034 62

2 480 192 96

3 311 879 85

802 437 16

6 594 507 57

2 454 451 95

3 084 404 79

326 700 6

5 865 555 51

110 084

91 858 83

85 758 78

82 458 75

433 931

368 770 85

277 120 64

217 915 50

21 206

544 015

460 628 85

362 878 67

300 373 55

21 206

7 882 614

11 606 671

13 151 118

32 640 402

7 466 272 95

10 640 624 92

4 734 345 36

22 841 241 70

7 227 869 92

9 068 387 78

1 825 514 14

18 121 769 56

7 035 285 89

8 021 186 69

1 011 161 8

16 067 632 49

19