2001/778/EC: Council Decision of 6 November 2001 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: 2001-11-06
Institutions: Council of the European Union
Subjects: EIB loan, European Investment Bank, Yugoslavia, credit guarantee, financial loss, investment abroad

9.11.2001

EN

Official Journal of the European Communities

L 292/43

COUNCIL DECISION

of 6 November 2001

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

(2001/778/EC)

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 (1),

Whereas:

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

to political

economic

and

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.

The FRY is currently facing severe economic and finan-
cial challenges, with difficulties common to the transi-
tion economies being compounded by the aftermath of
armed conflicts and sanctions.

It is important to demonstrate the European Union's
support to the FRY at this moment in implementing its
political
by
supporting the FRY's investment activities in infrastruc-
ture and private sector development.

reform programme,

economic

and

The EIB applies in this case as in all other cases best
banking practices to its lending under the Community
guarantee,
including not entering into new commit-
ments involving borrowers or guarantors who fall into
arrears in their obligations for debt to the EIB.

(8)

The FRY has, in October 2001, cleared all its arrears
outstanding as of
the European
Communities and the EIB.

that date towards

(9)

(10)

Furthermore,
in September
the FRY Parliament has,
2001, ratified an agreement with the EIB, whereby the
FRY has assumed responsibility for all financial obliga-
tions of all public entities of the FRY towards the EIB
that are not yet due.

On 31 October 1994 the Council adopted Regulation
(EC, Euratom) No 2728/94 establishing a Guarantee
Fund for external actions (2).

The global guarantee covering the general EIB external
lending mandate laid down in Council Decision 2000/
24/EC of 22 December 1999 granting a Community
guarantee to the European Investment Bank against
losses under loans for projects outside the Community
(Central and Eastern Europe, Mediterranean countries,
Latin America and Asia and the Republic of South
Africa) (3) should be extended to the FRY and the loan
ceilings increased. Decision 2000/24/EC should there-
fore be amended accordingly.

(11)

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

is

It
therefore appropriate to provide a guarantee
mandate to the European Investment Bank (EIB) to allow
it to sign loan operations in the FRY.

HAS DECIDED AS FOLLOWS:

Article 1

The EIB has indicated its ability and willingness to
extend loans from its own resources in the FRY,
in
accordance with its Statute.

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

EIB lending, under the Community guarantee, should be
conditional upon clearance in full of all outstanding due
financial obligations of all public entities of the FRY
towards the European Communities and the EIB and
upon the acceptance by the FRY of responsibility by way
of guarantee of those obligations that are not yet due.

(1) Opinion delivered on 4 October 2001 (not yet published in the

Official Journal).

1. the second sentence of the second subparagraph of para-

graph 1 shall be amended as follows:

(a) in the introductory phrase ‘EUR 19 110 million’ shall

be replaced by ‘EUR 19 460 million’;

(2) OJ L 293, 12.11.1994, p. 1. Regulation as amended by Regulation

(EC, Euratom) No 1149/1999 (OJ L 139, 2.6.1999, p. 1).

(3) OJ L 9, 13.1.2000, p. 24. Decision as last amended by Decision

2000/788/EC (OJ L 314, 14.12.2000, p. 27).

(1)

(2)

(3)

(4)

(5)

(6)

(7)

L 292/44

EN

Official Journal of the European Communities

9.11.2001

(b) in the first indent ‘EUR 8 930 million’ shall be replaced by ‘EUR 9 280 million’;

2.

in the first indent of paragraph 2,

‘Federal Republic of Yugoslavia’ shall be inserted after ‘Estonia’.

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

Article 2

Done at Brussels, 6 November 2001.

For the Council

The President

D. REYNDERS