Proposal for a Council Decision amending Decision 2000/24/EC so as to extend the Community guarantee granted to the European Investment Bank to cover loans for projects in the Federal Republic of Yugoslavia
Date: 2001-06-27
Institutions: European Commission
Subjects: EIB loan, European Investment Bank, Serbia and Montenegro, credit guarantee, financial loss, investment abroad

C 304 E/176

EN

Official Journal of the European Communities

30.10.2001

Proposal for a Council Decision amending Decision 2000/24/EC so as to extend the Community
guarantee granted to the European Investment Bank to cover loans for projects in the Federal
Republic of Yugoslavia

(2001/C 304 E/04)

COM(2001) 356 final (cid:151) 2001/0143(CNS)

(Submitted by the Commission on 27 June 2001)

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 proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas:

(1) Recent political developments in the Federal Republic of
Yugoslavia have led to the establishment of democratic
governments and the FRY has undertaken commitments
to political and economic reform programmes in line with
the conditions of the European Union’s Stabilisation and
Association process for the countries of south-eastern
Europe.

(2) On 9 October 2000, the General Affairs Council agreed to
lift the sanctions applied to Serbia and to integrate the
FRY fully in the Stabilisation and Association process.

(3) The FRY is currently facing severe economic and financial
challenges, with difficulties common to the transition
economies being compounded by the aftermath of
armed conflicts and sanctions.

(4) It

is important

to demonstrate the European Union’s
to the Federal Republic of Yugoslavia at
this
support
in implementing its political and economic
moment
Federation’s
supporting
reform programme, by
investment activities in infrastructure and private sector
development.

the

(5) It is therefore appropriate to provide a guarantee mandate
to the EIB to allow it to sign loan operations in the
Federal Republic of Yugoslavia.

(6) The EIB has indicated its ability and willingness to extend
loans from its own resources in the Federal Republic of
Yugoslavia, in accordance with its Statute.

(7) EIB lending should be conditional upon clearance in full
of all outstanding due financial obligations of all public
entities of the Federal Republic of Yugoslavia towards the
European Communities and the European Investment
Bank and upon the acceptance by the Federal Republic
of Yugoslavia of responsibility by way of guarantee of
those obligations that are not yet due.

external actions (1), amended by Regulation (EC, Euratom)
No 1149/1999 (2).

(9) The global guarantee covering the general EIB external
lending mandate laid down in Decision 2000/24/EC
should be extended to the Federal Republic of Yugoslavia.
The loan ceilings should be increased in order to allow for
the extension of corresponding loan facilities
to the
Federation. Decision 2000/24/EC should therefore be
amended accordingly.

(10) The Treaty does not provide, for the adoption of this
Decision, powers other than those under Article 308,

HAS DECIDED AS FOLLOWS:

Article 1

Article 1 of Decision 2000/24/EC is hereby amended as
follows:

1. The second sentence of

the second subparagraph of

paragraph 1 shall be amended as follows:

(a)

in the introductory part (cid:145)EUR 19 110 million(cid:146) shall be
replaced by (cid:145)EUR 19 460 million(cid:146);

(b) in the first indent (cid:145)EUR 8 930 million(cid:146) shall be replaced

by (cid:145)EUR 9 280 million(cid:146).

2. In the first

indent of paragraph 2,

(cid:145)Federal Republic of

Yugoslavia(cid:146) shall be inserted after Estonia.

3. The following Article shall be inserted:

(cid:145)Article 1a

This Article shall apply to EIB lending in the Federal

1.
Republic of Yugoslavia.

2.
The Community guarantee shall be conditional upon
clearance in full by the Federal Republic of Yugoslavia of the
outstanding due financial obligations of all public entities
towards the Communities and the European Investment
Bank and upon acceptance by the Federal Republic of
Yugoslavia of responsibility by way of guarantee of those
obligations that are not yet due.(cid:146)

Article 2

(8) On 31 October 1994 the Council adopted Regulation (EC,
Euratom) No 2728/94 establishing a Guarantee Fund for

This Decision shall take effect on the day of its publication in
the Official Journal of the European Communities.

(1) OJ L 139, 2.6.1999, p. 1.
(2) OJ L 9, 13.1.2000, p. 24.