Report from the Commission to the Council and to the European Parliament on the borrowing and lending activities of the Community in 2001
Date: 2002-12-03
Institutions: European Commission
Subjects: Community budget, Community loan, EIB loan, EU borrowing, activity report, financial cooperation, third country

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 3.12.2002
COM(2002) 685 final

REPORT FROM THE COMMISSION TO THE COUNCIL AND TO THE
EUROPEAN PARLIAMENT

ON THE BORROWING AND LENDING ACTIVITIES OF THE COMMUNITY
IN 2001

TABLE OF CONTENTS

INTRODUCTION...................................................................................................................... 3

1.

1.1.

1.2.

2.

2.1.

2.2.

2.3.

BORROWING ACTIVITIES IN 2001........................................................................ 4

Community issues ........................................................................................................ 4

Trends in borrowing..................................................................................................... 4

LENDING IN NON-MEMBER COUNTRIES ........................................................... 5

Overview ...................................................................................................................... 5

The Community's macrofinancial assistance ............................................................... 6

EIB lending in 2001 in Central and Eastern Europe, the Mediterranean, Asia & Latin
America, Republic of South Africa, FYROM, Bosnia and Herzegovina in the
framework of Council Decision 97/256/EC, as amended by Council Decisions
98/348/EC and 98/729/EC, Council Decision 99/786/EC, and Council Decision
2000/24/EC, and extended by Council Decision 2001/778/EC to the Federal
Republic of Yugoslavia................................................................................................ 7

2.3.1.

EIB Objectives and Priorities....................................................................................... 7

2.3.2.

Lending Activity ........................................................................................................ 10

2.3.3. Risk-sharing ............................................................................................................... 14

2.3.4. Cooperation with other institutions............................................................................ 16

2.4.

Signatories of the Lomé Convention ......................................................................... 25

2.4.1.

Lending activity ......................................................................................................... 25

3.

3.1.

3.2.

3.3.

4.

BUDGETARY IMPACT OF LENDING .................................................................. 26

Budget guarantees ...................................................................................................... 26

Interest subsidies ........................................................................................................ 27

Venture capital ........................................................................................................... 27

STATISTICAL ANNEX ........................................................................................... 28

2

INTRODUCTION

1.
The  Council  decisions  establishing  the  various  Community  lending  instruments
require the Commission to inform the Council and Parliament each  year of the use made of
these instruments.

However, in view of the moratorium on the construction of nuclear power stations within the
EU,  the  fact  that  the  appropriations  allocated  by  the  Council  to  the  New  Community
Instrument  (NCI)  have  been  used  up  and  the  cessation  of  ECSC  loans  as  the  expiry  of  the
ECSC  Treaty  in  2002  approaches,  the  Commission  considers  that  there  is  no  longer  any
reason  to  inform  the  Council  and  Parliament  of  Community  lending  activities  under  the
instruments  applicable  within  the  Community.  This  report  contains  only  information
concerning the repayment of loans (see the section on borrowings).

As  for  lending  activities  outside  the  Community,  the  decisions  adopted  in  1997  and
2.
20001 require the Commission to inform the Council and Parliament on an annual basis of the
situation  regarding  EIB  loans  guaranteed  by  the  Community  budget  in  Central  and  Eastern
Europe, in the Mediterranean countries, in Latin America and Asia and in South Africa. These
same obligations were extended in 1998 to the EIB’s loans to the former Yugoslav Republic
of  Macedonia  (Decision  98/348/EC)  and  Bosnia  and  Herzegovina  (Decision  98/729/EC),  in
2000 to the  loans to Croatia (Decision  2000/688/EC)  and  in  2001  to  the  loans  to  the  Baltic
regions  of  Russia  (Decision  2001/777/EC)  and  to  the  Federal  Republic  of  Yugoslavia
(Decision 2001/778/EC).

In order to meet this requirement, this report describes these operations for each of the areas
concerned. To complete the picture of lending activities, it also gives a brief summary of the
macrofinancial assistance provided by the Community to the countries of Central and Eastern
Europe and of the interest subsidies and guarantees associated with Community loans.

1

Decision 97/256/EC for the first global mandate and 2000/24/EC for the second mandate.

3

                                                
1. 

BORROWING ACTIVITIES IN 2001

1.1. 

Community issues

In  order  to  finance  the  lending  activities  decided  on  by  the  Council,  the  Commission  is
empowered to borrow funds on the capital market. However, given that the NCI ceilings have
been fully used up, and in view of the moratorium on Euratom activities within the EU and
the  approaching  expiry  in  2002  of  the  ECSC  Treaty,  no  funds  were  raised  on  the  basis  of
these instruments in 2001. The only borrowings last year were for macrofinancial assistance
to the western Balkan countries, loans to the African, Caribbean and Pacific (ACP) countries,
measures adopted pursuant to the Mediterranean protocols (MEDA), and the EIB’s activities
inside and outside the Union in the areas mentioned above.

1.2. 

Trends in borrowing

Despite  the  above-mentioned  factors,  borrowings  by  the  European  institutions  increased  in
2001  by  11.3%  to  €32.5  billion,  against  €29.2  billion  the  previous  year  (see  Table  4-1  in
annex).

Taking  into  account  repayments,  cancellations  and  exchange-rate  fluctuations,  the  total
amount of net borrowings outstanding as at 31 December 2001 was €179.1 billion,  9.5% up
on 2000 (see Table 4-2 in annex).

Following the adoption of the single currency on 1 January 1999, euro borrowings continued
to  increase  in  2001,  accounting  for  67.3%  of  all  issues,  while  issues  in  other  Community
currencies fell from 39% to 21.7%. Taking all Community currencies as a whole, there was a
rapid  rise  in  issues  to  the  detriment  of  non-Community  currencies,  which  fell  from  18%  to
11% of the total. Issues in US dollars were down by 36.2%.

Low  interest  rates  and  economic  and  financial  uncertainties  led  borrowers  to  continue  to
favour  variable-rate  loans.  Nonetheless,  such  loans  accounted  for  just  under  80%  in  2001
against 82% in 2000.

With  regard  to  the  special  case  of  the  NCI,  almost  all  loans  have  now  been  repaid;  the
corresponding situation for outstanding borrowings is set out by currency in Table 4-4 in the
statistical annex.

4

2. 

LENDING IN NON-MEMBER COUNTRIES

2.1. 

Overview

Financial support for non-member countries that have concluded cooperation agreements with
the Community takes a variety of forms depending on the geographical areas concerned and
the objectives pursued.  It generally takes the form of bilateral loans (macrofinancial support
or  balance-of-payments  support),  where  the  Union  helps  to  re-establish  a  country's
macroeconomic balance. In other cases it may be ordinary loans in the form either of direct
financing  for  individual  projects  or  of  global  loans  to  banks,  which  then  allocate  funds  to
smaller-scale local projects.

In  the  first  case,  the  Commission  administers  the  financial  operations  under  the  Council
decisions. In the second case, it is chiefly the EIB which manages the loans on its usual terms,
mostly  with  the  guarantee  of  the  EU  budget.  The  areas  for  which  the  Community  conducts
these activities are listed in Table 2-1.

Table 2-1

Lending outside the Community in 2001 - Overview

EC

EIB (2)

(€ million)

 Macro-
financial
assistance
(1)

60

245

Euratom

40

40

305

 Budget and
EDF resources
(3)

Own
resources

TOTAL

319

374

1 395

543

150

188
2 969

6

332
338

60

564

40

374

1 401

543

150

520
3 652

Tajikistan

Balkans

Bulgaria

NIS

Mediterranean basin

Latin America and Asia

South Africa

ACP-OCT countries
Total
(1) Disbursements

(2)

Signatures

(3) Granted and administered by the EIB out of the budgetary resources of the EC or the European

Development Fund (EDF).

5

2.2. 

The Community's macrofinancial assistance

Macrofinancial  assistance  in  the  form  of  loans  is,  by  its  very  nature,  exceptional  and  forms
part of the efforts of the international community to provide, in conjunction with the Bretton
Woods  institutions,  balance-of-payments  support  to  certain  countries  grappling  with
transitional  difficulties.  The  Community’s  assistance  focuses  on  neighbouring  regions,  such
as Central and Eastern Europe, the western Balkans, the NISs of Europe, Central Asia and the
Caucasus  and  the  countries  of  the  southern  Mediterranean.  Disbursements  are  themselves
linked  to  the  beneficiary  countries’  meeting  objectives  in  terms  of  macroeconomic
stabilisation and structural reforms. In these circumstances, the number of operations effected
each year is limited, and it is difficult to make valid comparisons for the assistance given from
one  year to the next.  However,  as  the  candidate  countries  make  significant  progress  toward
macroeconomic adjustment, there is less  need  for  macrofinancial  assistance.  In  contrast,  the
Balkan  region  is  currently  in  receipt  of  considerable  Community  macrofinancial  assistance,
which also includes a significant grant component.

Table 2-2

Loan  disbursements  for  macrofinancial  assistance  to  non-member  countries  -
1996-2001

(€ million)

Total by region and by country

"Enlargement" countries
of which:
Bulgaria
Romania

Other CEECs - Western Balkans
of which: (1)
Bosnia-Herzegovina (2)
FYROM (3)
Federal Republic of Yugoslavia (4)

NIS
of which:
Armenia (5)
Georgia (5)
Moldova
Tajikistan (6)
Ukraine

Grand Total

1996

1997

1998

1999

2000

2001

Total

160

60
100

40

40

10

10

58

0

40

40

70

70

25

25

115

100

15

250

250

15

15

138

28
110

100

100

58

0

245

10
10
225

60

60

560

390
170

295

20
50
225

471

28
110
15
60
258

155

195

403

108

160

305

1326

(1) A grant of €20 million was disbursed to Albania in 1996. Grants of €35 million and €7 million

 were disbursed to Kosovo and Montenegro respectively in 2000.

(2) Disbursement of the loan was accompanied by disbursements of grants of €15 million in 1999 and €10 million in 2000. 

A further grant of €15 million was paid in 2001.

(3) Grants totalling €20 million were disbursed in 2000 under a new operation, followed by a 

further grant of €10 million in 2001.

(4) Disbursement accompanied by grants totalling €35 million in addition to the €35 million for Kosovo and the €3 million 

for Montenegro granted in 2000 in the form of budgetary support. A further grant of €5 million was disbursed in 2001 for Kosovo.

(5) Exceptional financial assistance. These loan disbursements to Armenia and Georgia were supplemented by the disbursement 

of grants totalling, respectively, €8 million and €10 million in 1998 and €4 million and €9 million in 1999. A further grant 
of €6 million was made to Georgia in 2001.

(6) This loan was accompanied by the disbursement of grants totalling €14 million.

In 2001 the Council approved macro-financial assistance in the form of a loan totalling €225
million  to  the  Federal  Republic  of  Yugoslavia,  accompanied  by  a  grant  of  €120  million.
Furthermore,  the  macro-financial  assistance  in  the  form  of  grants  to  the  former  Yugoslav

6

Republic  of  Macedonia  was  increased  by  €18  million,  and  for  Kosovo  macro-financial
assistance of up to €30 million was approved in the form of budget support.

With regard  to disbursements,  macro-financial  assistance  in  the  form  of  loans  totalled  €305
million  in  2001.  It  breaks  down  as  follows  for  the  Balkan  countries:  €225  million  for  the
Federal  Republic  of  Yugoslavia,  €10  million  for  the  FYROM  and  €10  million  for  Bosnia-
Herzegovina.  As  for  the  Newly  Independent  States,  a  loan  of  €60  million  was  disbursed  to
Tajikistan.

2.3. 

EIB lending in 2001 in Central and Eastern Europe, the Mediterranean, Asia &
Latin America, Republic of South Africa, FYROM, Bosnia and Herzegovina in
the framework of Council Decision 97/256/EC, as amended by Council Decisions
98/348/EC  and  98/729/EC,  Council  Decision  99/786/EC,  and  Council  Decision
2000/24/EC,  and  extended  by  Council  Decision  2001/778/EC  to  the  Federal
Republic of Yugoslavia

Section 2.3 constitutes the annual report for 2001 to be submitted to the European Parliament
and the Council in accordance with Article 2 of Council Decision 2000/24/EC.

2.3.1.  EIB Objectives and Priorities

In  Central  and  Eastern  Europe,  the  Bank  assists  the  countries  that  have  applied  for  EU
membership by helping them to create the economic framework necessary for accession (the
Bank  assists  Cyprus,  Malta  and  Turkey).2  In  addition,  the  Bank  provides  assistance  to
Albania, Croatia, the Federal Republic of Yugoslavia and Bosnia-Herzegovina.

The  EIB  gives  priority  to  upgrading,  modernising  and  developing  the  communications  and
energy sectors, with particular emphasis on Trans-European Networks (TENs) on the basis of
the road and rail corridors defined by the Pan-European Conference of Transport Ministers as
development priorities for the medium term.

Environmental  issues  related  to  EIB  projects  are  given  priority  in  the  framework  of  the
gradual adaptation of the legislation of the countries concerned to that of the EU.

The  EIB  also  supports  SMEs  and  other  industrial  initiatives,  either  directly  or  through  its
global loan instrument,  in  particular when  EU partners  are  involved.  In  the  Mediterranean
region,  the  Bank’s  lending  under  mandate  takes  place  mainly  within  the  framework  of  the
Euro-Mediterranean  Partnership,  in  support  of  the  economic  development  of  the  countries
concerned. EIB lending supports individual investment projects and, through the global loan
mechanism,  smaller  projects  and  SMEs,  while  at  the  same  time  strengthening  the  financial
sector in the various countries. The  Bank  also lends  under the  TERRA  Programme (Turkey
Earthquake Reconstruction and Rehabilitation Action).

Under  the  terms  of  the  Euro-Mediterranean  Partnership,  EIB  own  resources  lending  is
complemented by interest subsidies (for loans in the environmental sector) and by risk capital
from EU budgetary sources, managed by the Bank.

2

In  addition  to  its  activities  under  mandate  in  the  framework  of  the  Council  Decisions,  the  Bank  has
renewed  its  substantial  Pre-Accession  Facility  for  lending  from  its  own  resources  without  budgetary
guarantee, to help the countries that have applied for EU membership.

7

                                                
In  addition  to  its  lending  under  mandate  and  at  the  request  of  the  Council,  the  Bank  has
launched a programme of lending from its own resources, without budgetary guarantee, under
its Mediterranean Partnership Facility.

In  Asia  and  Latin  America,  the  Bank  finances  projects  that  are  of  mutual  interest  to  the
countries  concerned  and  the  European  Union  –  cofinancing  with  EU  promoters,  transfer  of
technology,  cooperation in the  fields  of energy and  environmental protection. Details of  the
mutual interest of the projects concerned are included in Table 2-11.

In  the  Republic  of  South  Africa,  the  Bank’s  objective  is  to  contribute  to  the  successful
implementation of the country’s reconstruction and development programme.

In this framework, the summary of the activity developed by the EIB from 1997 is as follows:

8

Table 2-3

Signatures on  Own Resources  in  non  EU  countries  (excluding  any  signatures
from Pre-accession facilities)

Signatures
in 1997

Signatures
in 1998

Signatures
in 1999

Signatures
in 2000

Signatures
in 1st
half-year
2001

Signatures
in 2nd
half-year
2001

Total 1997-
2001

CEEC (1994-1996)

CEEC (1997-2000)

CEEC (2000-2007)

FYROM

Bosnia-
Herzegovina

MED (Partenariat
1997-2000)

MED (Partenariat
2000-2007)

MED (protocols 3-
4)

Turkey - TERRA

ALA (1993-1996)

ALA (1996-1997)

ALA (1997-2000)

ALA (2000-2007)

RSA (1995-1997)

RSA (1997-2000)

RSA (2000-2007)

ACP (1990-1995)

ACP (1996-2000)

OCT (1990-1995)

OCT (1996-2000)

20

1 466

0

0

0

934

0

152

0

10

205

163

0

199

0

0

37

0

4

0

0

997

0

70

0

677

0

153

0

0

70

292

0

0

135

0

44

245

0

0

0

906

0

60

0

719

0

26

0

0

0

310

0

0

150

0

0

183

0

14

0

154

1 347

0

120

0

858

165

600

0

0

272

467

0

180

50

0

218

0

9

0

0

124

20

40

0

160

115

0

0

0

0

348

0

0

40

0

35

0

0

0

0

509

0

0

0

20

3 523

1 980

150

160

2 330

1 045

2 063

0

75

0

0

0

194

0

0

110

0

153

0

0

611

675

10

275

1 037

1 009

199

465

200

81

834

4

23

TOTAL

3 190

2 683

2 368

4 440

882

2 086

15 649

9

2.3.2.  Lending Activity

In 2001, the Bank signed 21 loan contracts in Central and Eastern Europe in the framework
of the Council Decisions for  an aggregate  amount of €693  million in 10 countries.  Lending
was  reasonably  spread  throughout  the  region,  with  approximately  40%  being  taken  up  by
Croatia and Bulgaria.

(cid:1)  Bank activity continues to support the economic development of the countries concerned,
principally  by  financing  strategic  infrastructure.  Out  of  a  total  of  €693  million,  76%  or
€527 million, was directed towards the communications sector, including construction of
a motorway section in  Lithuania on Pan-European Transport Corridors, construction of a
road bridge over the Danube in Slovakia, modernisation of the road and railway networks
in Bosnia-Herzegovina, Bulgaria, Croatia, Hungary,  the Slovak Republic  and the  Federal
Republic  of  Yugoslavia,  modernisation  of  port  infrastructure  in  Albania  and  the  Federal
Republic of Yugoslavia, and extension and modernisation of the fixed telecommunications
network in Slovenia.

(cid:1)  In  the  energy  sector,  €30m  (4%  of  total  financing)  was  allocated  to  the  upgrading  of

power transmission and distribution networks in Albania.

(cid:1)  Finally, global loans totalling €136 million (20% of total financing) were made in support

of SMEs in Bulgaria, Croatia, Romania and the Federal Republic of Yugoslavia.

10

Table 2-4

Breakdown  by  country  and  sector  of  EIB  lending  in  2001  in  the  Central  and
Eastern European Countries

Number
of loans

Total  loan signatures
(€ million)

Energy Communications Global loans

Country

Croatia

Bulgaria

Yugoslavia (+FYROM*)

Slovak Republic

Lithuania

Albania

Bosnia Herzegovina*

Hungary

Romania

Slovenia

5

4

2

2

1

2

1

1

2

1

146

100%

130

100%

86

100%

79

100%

50

100%

47

30

100%

64%

40

100%

40

100%

40

100%

35

100%

693

100%

30

4%

100

68%

100

77%

66

77%

79

100%

50

100%

17

36%

40

100%

40

100%

35

100%

527

76%

46

32%

30

23%

20

23%

40

100%

136

20%

Overall

21

*The  last  remaining  amounts  on  the  allocations  of  €100m  and  150m  respectively  for  Bosnia  Herzegovina  and  FYROM  were  utilised  in
2001. Henceforth loans to these countries will be sourced from the global mandate covering the Balkans and candidate countries.

11

In  the  Mediterranean  region,  the  Bank  signed  15  loans  in  6  countries  in  2001  and,  in
addition, one loan for region-wide lending.

Loans  for  projects  in  Turkey  accounted  for  some  26%  of  overall  lending,  while  Algeria,
Morocco and Tunisia together absorbed a further 52%.

(cid:1)  Some 41% of total financing (€580 million) was allocated to the Water Management and
Miscellaneous  sector.  Projects  covered  water  management  in  Algeria,  Morocco,  Tunisia
and Turkey as well as rehabilitation of hydro-agricultural equipment in Morocco.

(cid:1)  In the Energy sector, €355 million, or 25% of total financing, went towards upgrading the

power transmission and supply networks in Egypt, Morocco and Syria.

(cid:1)  Road  projects 

in  Morocco  and  Tunisia  were  financed  under 
Communications and accounted for 9% of total financing in the region (€130 million).

the  heading  of

(cid:1)  Rehabilitation and reconstruction of earthquake-damaged industrial installations in Turkey

represented 6% of total financing (€75 million) in the Industry and Services sector.

(cid:1)  Global loans in Egypt, Tunisia and Turkey and for the Mediterranean region accounted for

19% of overall financing (€261 million).

12

Table 2-5

Breakdown by country and sector of EIB lending in 2001 in the Mediterranean
countries

Number
of loans

Total  loan
signatures
(€ million)

Energy Communi-

cations

Water
Management  &
Miscellaneous

Industry
&
Services

Global  and
Investment
loans

Country

Turkey

Morocco

Algeria

Tunisia

Egypt

Syria

Mediterranean Region

4

4

1

3

2

1

1

370

100%

280

90

100%

32%

100

36%

30

13%

225

100%

225

100%

180

150

100%

83%

115

115

100% 100%

6

100%

170

75*

46%

20%

125

34%

90

32%

225

100%

95

42%

100

45%

30

17%

6

100%

261

19%

Overall

16

1 401

355

100%

25%

130

9%

580

41%

75

6%

*Under TERRA for industry rehabilitation in earthquake area

The Bank signed 11 loans for an overall amount of €542 million in 7 countries of Asia and
Latin America.

(cid:1)  Loans in favour of the Industry and Services sector in Argentina, Brazil, the Philippines

and Mexico accounted for 46% of total financing (€246 million).

(cid:1)  In  the  Energy  sector,  gas  pipeline  and  power  station  projects  in  Argentina  and  Brazil

absorbed 29% of total financing (€158 million).

(cid:1)  Communications projects, including telecommunications in Panama and a road project in

China, accounted for €110 million, or 20% of lending in the region.

(cid:1)  The remaining 5% of lending in the region went towards a global loan in Indonesia.

13

Table 2-6

Breakdown  by  country  and  sector  of  EIB  lending  in  2001  in  the  Asian  and
Latin American countries

Country Number of

loans

Total loan
signatures
(€ million)

Energy Communi-

cations

Water
Management

Industry &
Services

Global loans

Brazil

Argentina

Philippines

China

Panama

Indonesia

Mexico

4

2

1

1

1

1

1

171

81

100%

47%

124

77

100%

62%

93

100%

56

100%

54

100%

28

100%

16

100%

56

100%

54

100%

Overall

11

542

158

100%

29%

110

20%

0

0%

90

53%

47

38%

93

100%

16

100%

246

46%

28

100%

28

5%

In  2001,  the  Bank  signed  three  loan  contracts  in  the  Republic  of  South  Africa  for  an
aggregate amount of €150 million. €50 million (33%) went to a telecommunications project;
and €100 million (67%) to global loans for infrastructure projects.

2.3.3.  Risk-sharing3

The Council Decisions provide Community guarantee global coverage for 65% of the overall
amount of loans signed. Under the risk-sharing arrangements, EIB loans with non-sovereign

3

Council  Decision  2000/24/EC  invites  the  Bank  “to  aim  to  cover  the  commercial  risk  on  30%  of  its
lending under this decision from non-sovereign guarantees as far as possible on an individual regional
mandate  basis.  This  percentage  shall  be  expanded  upon  whenever  possible  insofar  as  the  market
permits.”

14

                                                
project  guarantees  are  covered by  the  Community guarantee  only  for  political  risk,  whereas
loans  with  sovereign  project  guarantees  are  covered  for  all  risks.  The  Bank  would  call  the
Community guarantee for an individual loan only if the project guarantee for that loan failed
to reimburse the Bank, in the case of a non-sovereign project guarantee for political reasons
only, but for any reason in the case of a sovereign project guarantee. Such a call would be for
the full loan amount outstanding.

During 2001, the Bank continued to work towards the risk-sharing objective with, however,
the target increased to 30% instead of 25% under the first mandate.

1st Mandate: (amendments covering Bosnia-Herzegovina and FYROM)

The  only  loans  signed  under  the  1st  Mandates  in  2001  were  the  last  remaining  amounts  for
Bosnia-Herzegovina and FYROM. As the mandate for Bosnia-Herzegovina did not envisage
risk-sharing  and  as  the  particular  loan  signed  for  FYROM  did  not  involve  risk-sharing,  the
levels achieved under the 1st Mandate have not changed. In terms of lending compared to the
total ceiling, these levels were 81% for ALA, 26% for CEEC and 3% for the Mediterranean.

2nd Mandate and extentions: (Council Decisions covering the period 1.02.2000 to 31.01.2007)

The  cumulative  total  for  risk-sharing  projects  since  the  start  of  lending  activity  in  the
framework  of  the  Council  Decisions  relative  to  the  period  starting  1.02.2000  was  €1 188
million at the end of 2001, i.e. 6% of the overall lending ceiling and 24% of lending to date.

(cid:1)  In  Central  and  Eastern  Europe  and  the  Balkans,  EIB  lending  based  on  risk  sharing
reached a total of €371 million, or 4% of the lending ceiling for those countries and 19% of
lending in the region to date.

(cid:1)  In  the  Mediterranean  region,  no  loan  was  signed  under  the  risk-sharing  arrangement  in
2001,  with  the  result  that  risk-sharing  now  represents  only  about  1%  of  total  amounts
signed. However, as already  explained, it has  to  be  remembered  that, in accordance  with
the programming  procedures  inherent in  the Euro-Mediterranean  Partnership,  projects
are often signed with governments or public bodies. It is thus expected that the risk-sharing
total for the Mediterranean countries will remain relatively low.

(cid:1)  In Asia and Latin America (ALA), risk sharing in respect of EIB lending reached a total
of €787 million representing 32% of the mandate ceiling and 84% of lending in the region
to date.

(cid:1)  No risk-sharing loans have been signed in the Republic of South Africa (RSA).

Risk-sharing  at  31.12.2001  is  shown  below  -  separately  for  each  mandate  (risk-sharing
component unchanged from end-2000 for the 1st Mandate):

15

Table 2-7

Risk-sharing at 31.12.2001 - 1st Mandate

Mandate Ceilings 1st
Mandate

Total amounts of
loans signed at
31.12.2001

Number of loans
signed with risk-
sharing

Amount of loans
signed with risk-
sharing

CEEC

Mediterranean

ALA

RSA

FYROM

TOTAL

3 520

2 310

900

375

150

7 255

3445.5

2 310

900

374.6

150

7 180

21

5

17

0

0

43

896

71

730

0

0

1 697

Table 2-8

Risk-sharing at 31.12.2001 – 2nd Mandate

Mandate Ceilings 2nd
Mandate

Total amounts of
loans signed at
31.12.2001

Number of loans
signed with risk-
sharing

Amount of loans
signed with risk-
sharing

€ million

Percentage of risk-
sharing achieved
(relative to mandate
ceiling)

26%

3%

81%

0%

0%

24%

(€ million)

Percentage of risk-
sharing achieved to
date (relative to
mandate ceiling)

CEEC &
Balkans

Mediterranean

ALA

RSA

TOTAL

8 930

6 425

2 480

825

18 660

1 980

1 906

939

202

5 027

10

1

17

0

90

371

30

787

0

1 188

4%

1%

32%

0%

6%

The regional tables at the end of section 2.3 (Tables 2-13 to 2-17) identify the loans which are
risk-sharing ones.

2.3.4.  Cooperation with other institutions

In the countries that are candidates for EU membership, the Bank’s activities are conducted
within  the  framework  of  the  EU  programme  to  help  the  candidate  countries  to  prepare  for
accession, in particular by financing investment aimed at integrating their infrastructure with
that of the EU and by assisting SMEs. Whenever possible, projects are cofinanced with other
institutions. The Bank’s activities thus form part of a concerted approach that is being pursued
in close cooperation with the Commission and, as appropriate, with the international financial
institutions working in the countries concerned.

The Bank cooperates closely with the PHARE/ISPA Programme, with which it has developed
a  productive  relationship,  much  appreciated  by  the  beneficiary  countries.  In  addition  to
frequent  PHARE  assistance  during  the  pre-investment  phase  to  ensure  that  the  necessary

16

studies  and  technical  assistance  are  implemented  in  support  of  EIB  projects,  the  Bank  also
cooperates with PHARE in cofinancing infrastructure projects.

The contributions of PHARE/ISPA and the IFIs to projects financed by the EIB in 2001 are
shown  in  the  table  below.  Additional  projects  were  cofinanced  in  the  framework  of  the
Bank’s Pre-Accession Facility, which is outside the scope of this report.

For  South-Eastern  Europe,  the  Bank  has  established  a  special  Balkans  Task  Force  to
identify  infrastructure  projects  which  should  be  financed  as  a  priority,  in  cooperation  with
other IFIs in the framework of the Stability Pact for the region.

Table 2-9

Cofinancing in 2001 in Central and Eastern Europe and the Balkans

Project

Cost

EIB

PHARE/
ISPA

Multilateral
institutions

Bilateral
institutions

Other4

(€ million)

Country

Albania

Albania

Upgrading of power
transmission and distribution
networks

Rehabilitation of basic
infrastructure of port of
Durrës and reconstruction of
breakwater

Bosnia Herzegovina

Railway reconstruction

Lithuania

Slovenia

Construction and upgrading
of road sections of Pan-
European Corridors

Expansion and modernisation
of fixed telecommunications
network

Federal  Republic  of
Yugoslavia

Rehabilitation of transport
infrastructure

191

4

35

17

1

112

153

75

132

40

50

35

66

17

65

25

45

13

21

40

96

46

2

3

2

31

38

41

Total

698

212

108

119

101

158

In the Mediterranean region, the Bank’s operations are conducted within the framework of
EU policy and form part of a concerted approach that is being pursued in close cooperation
with  the  Commission  and,  as  appropriate,  with  other  IFIs,  including  through  cofinancing
operations. The contributions of these  institutions  to  projects  financed  by  EIB  are  shown  in
the table below.

4

Including funds of states, promoters and commercial banks.

17

                                                
Table 2-10

Cofinancing in 2001 in the Mediterranean countries

Country

Project

Cost

EIB

Algeria

Egypt

Completion  of  drinking-water  supply  network
between Taksebt dam and Algiers

Construction of natural gas-fired combined-cycle
power plant in Cairo

Morocco

Construction  of  pumped-storage  power  plant,
south-east of Casablanca

Morocco

Construction  of  two  motorways  between  Sidi  El
Yamani  and  Tangier  and  between  Casablanca
and El Jadida

Morocco

Improvement  of  drinking-water  supply  in  a
number of Moroccan towns

Tunisia

Upgrading  of  drinking-water  supply  to  eastern
coastal regions of Sahel and Sfax

Turkey

Urban development in Eskisehir

Upgrading 
transmission facilities

of 

medium-voltage 

power

Syria

Total

540

426

230

320

139

199

232

166

2 252

225

150

90

100

50

95

110

115

935

(€ million)

Multilateral
institutions

Bilateral
institutions

Other5

285

130

56

100

31

45

46

30

40

58

25

48

29

146

84

80

34

28

22

394

230

693

5

Including funds of states, promoters and commercial banks.

18

                                                
In Asia and Latin America, the Bank continues to finance projects that are of mutual interest
to the  country  concerned  and  to  the  EU.  The  mutual  interest  of  the  loans  signed  in  2001  is
described in the table below.

Table 2-11 Mutual interest of projects in the countries of Asia and Latin America

Country

Project

Mutual interest

Brazil

Expansion 
and
modernisation  of  natural
gas distribution network  in
State of São Paulo

The project is implemented by Comgás, which is owned and operated by EU companies  (BG
and Shell). The project will contribute to the competitiveness of these companies. In addition, it
will  contribute  to  the  improvement  of  the  environment  and  to  regional  integration  in  the
Southern Cone of Latin America.

Expansion 
and
modernisation  of  power
and
transmission 
distribution  networks 
in
State of Rio de Janeiro

The  project  is  implemented  by  a  joint  venture  with  strong  European  participation  and
management  control.  There  will  also  be  a  transfer  of  know-how  from  Europe.  The  financial
intermediary,  Banco  BBA  Creditanstalt,  S.A.  has  a  European  shareholder,  the  Bank  Austria
Group, holding 48% of capital.

of 

cold-
Construction 
rolling 
hot-dip
and 
galvanising  plant  in  State
of Santa Catarina

The  project  is  promoted  and  partially  owned  and  operated  by  Arcelor,  a  leading  European
company in its sector. Also, it will support the international growth strategies of Arcelor’s main
customers and result in significant transfers of technology from Europe. The contractor selected
to build the core facilities is European, as also the majority of the equipment suppliers.

Planting of eucalyptus
forests in State of Bahia for
producing pulpwood

Implemented by a company owned and managed by Finland’s Stora-Enso, in joint venture with
two Brazilian companies, the project will help this EU company to consolidate its presence in
Latin America and provide a source of cheaper and high-quality raw material, contributing
thereby to the improvement of its international competitiveness. Also, the project will have a
globally positive impact on the environment and is in line with the recommendations of the
Kyoto protocol, as well as with the EU policy on climate change.

Argentina

Construction of gas-fired
power plant in Buenos
Aires metropolitan area

The project has a strong mutual interest through the involvement of two European shareholders,
ENDESA and REPSOL. It will enhance the competitiveness of a European service business
beyond its home market in the EU.

Production of gearboxes
for passenger cars in the
Córdoba province

The project is implemented by the subsidiary of a leading European company, the Volkswagen
group, which has established a prominent position in Latin America in general. The project will
result in transfers of technology from Europe, create jobs and help develop the country’s
exports of automotive parts.

Upgrading and extension
of telecommunications
installations

This is a joint venture with a strong European participation and management control through
the Cable and Wireless Group. The project will involve the transfer of technology and know-
how and help the presence in the Panamanian market of one of the most important European
firms in the sector.

Construction of glass fibre
production plant near
Puebla, eastern Mexico

Construction of second
integrated-circuits
assembly and test facility
in Calamba, near Manila

Vetrotex America S.A. belongs to the Saint-Gobain group. The project will contribute to
increasing the competitiveness of a European group in North America and to its overall growth.

The project concerns a significant investment of a major EU–based industrial group in the
Philippines. It will help a European company which is operating at a global level to optimise its
production cycle for semiconductors and therefore to improve its international competitiveness.

Construction of toll
expressway and ancillary
roads between Nanning
and Vietnamese border

The project facilitates regional cooperation between China, Vietnam and other countries of the
Greater Mekong Subregion, as well as internal communication. A European consultancy
company has been involved in the project preparation and, during implementation, an
international consultant will strengthen the project supervision unit.

Panama

Mexico

Philippines

China

Indonesia

Financing for small and
medium-scale ventures

The project is of mutual interest in that (i) the borrower is a majority-owned subsidiary of a
European Bank and (ii) the allocations will be targeted to investments undertaken by EU
companies or including other forms of EU interest.

19

The Bank cooperates with other IFIs in Asia and Latin America whenever possible. The table
below gives details of cofinancing.

Table 2-12

Cofinancing in 2001 in Asia and Latin America

Country

Project

Cost

EIB

(€ million)

Multilateral
institutions

Bilateral
institutions

Other6

Argentina

Production of gearboxes for passenger cars

Brazil

China

Construction  of 
galvanising plant.

cold-rolling 

and  hot-dip

Construction  of  toll  expressway  and  ancillary
roads.

167

500

521

47

58

56

Philippines

Construction  of 
assembly and test facility

second 

integrated  circuits

967

177

Total

2 155

338

113

100

7

342

295

620

213

1 264

170

170

340

In  the  RSA,  there  were  several  cases  of  cooperation  with  IFIs  and  regular  contact  is
maintained  with  the  EU  DFIs  such  as  DEG,  who  have  recently  opened  an  office  in
Johannesburg  as  well  as  Proparco  and  CDC  Capital  Partners.  Considerable  effort  in  2001
went into working with the EU Commission on the establishment of a €50m venture-capital
fund  designed  to  support  black  economic  empowerment  in  South  Africa  as  well  as  skills
transfer and employment generation.

6

Including funds of states, promoters and commercial banks.

20

                                                
Table 2-13

Loans signed in 2001 in Central and Eastern Europe

Country

Description

Bulgaria

Rehabilitation of priority national roads

Upgrading of Plovdiv-Dimitrovgrad-Svilengrad railway line

Financing for small and medium-scale ventures (2 loans)

Total

Slovak Rep.

Total

Lithuania

Total

Construction of road bridge over Danube and several  sections  of  urban  access  roads  in
Bratislava

Realignment and technical upgrading of  Hronsky  Benadik-Nova  Bana  and  Nova  Bana-
Rudno and Hronom sections of I/65

Construction  and  upgrading  of  road  sections  of  Pan-European  Corridors  (Via  Baltica,
Via Hanseatica and Vilnius-Klaïpeda motorway)

Hungary

Rehabilitation and upgrading of railway network

Total

Romania

Financing for small and medium-scale ventures (2 loans)

Total

Slovenia

Expansion and modernisation of fixed telecommunications network

Total

Grand Total

(€ million)

Loan

Risk-sharing

No

No

Yes

No

No

No

No

Yes

Yes

30.0

70.0

30.0

130.0

45.0

34.0

79.0

50.0

50.0

40.0

40.0

40.0

40.0

35.0

35.0

374.0

21

Table 2-14

Loans signed in 2001 in the Balkans

Country

Description

Croatia

Rehabilitation and modernisation of Croatian railway section of Pan-European Corridor Vc

Technical upgrading of priority sections of national road network

(€ million)

Loan

Risk-sharing

40.0

60.0

No

No

Financing for small and medium-scale ventures (3 loans)

46.0

Yes (on 36m)

Total

Federal
Republic 
Yugoslavia

of

Rehabilitation of transport infrastructure in Serbia and Montenegro; road repair,
reconstruction of breakwater at port of Bar and infrastructure works at Belgrade
International Airport.

Total

Albania

Upgrading of power transmission and distribution networks

Rehabilitation of basic infrastructure of port of Durrës and reconstruction of breakwater.

Total

Bosnia-

Rehabilitation of several railway sections of Pan-European Transport Corridors

Herzegovina

Total

FYROM

Financing for small and medium-scale ventures

Total

Grand Total

No

No

No

No

No

146.0

66.0

66.0

30.0

17.0

47.0

40.0

40.0

20.0

20.0

319.0

22

Table 2-15

Loans signed in 2001 in the Mediterranean countries

Country

Description

Tunisia

Upgrading and construction of road network around lake of Bizerte, north of Tunis

Upgrading of drinking-water supply to eastern coastal regions of Sahel and Sfax

Financing for small and medium-scale ventures mounted by Tunisian enterprises

Total

Algeria

Completion of drinking-water supply network between Taksebt dam and Algiers

Total

Morocco

Construction of pumped storage power plant, south-east of Casablanca

Construction  of  two  motorways  between  Sidi  El  Yamani  and  Tangier  and  between
Casablanca and El Jadida

Improvement of drinking-water supply in a number of Moroccan towns

Rehabilitation  of  hydro-agricultural  equipment  belonging  to  Regional  Agricultural
Development Agencies

Total

Egypt

Total

Syria

Total

Construction of natural gas-fired combined-cycle power plant in Cairo

Financing for small and medium-scale ventures

Upgrading of medium-voltage power transmission facilities

Turkey

Wastewater treatment and sewerage networks in city of Mersin on Mediterranean coast

Urban development in Eskisehir

Rehabilitation  and  reconstruction  of  industrial  installations  in  earthquake-damaged
regions

Financing for small and medium-scale ventures

Financing for participations in investment funds

Total

Mediterranean
Group

Total

Grand Total

(€ million)

Loan

Risk-sharing

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

30.0

95.0

100.0

225.0

225.0

225.0

90.0

100.0

50.0

40.0

280.0

150.0

30.0

180.0

115.0

115.0

60.0

110.0

75.0

125.0

370.0

6.0

6.0

1 401.0

23

Table 2-16

Loans signed in 2001 in Asia and Latin America

Country

Description

Brazil

Expansion and modernisation of natural gas distribution network in State of São Paulo

Expansion and modernisation of power transmission and distribution networks in State of
Rio de Janeiro

Construction of cold-rolling and hot-dip galvanising plant in State of Santa Catarina

Planting of eucalyptus forests in State of Bahia for producing pulpwood

Total

Argentina

Construction of gas-fired power plant in Buenos Aires metropolitan area

Production of gearboxes for passenger cars in Córdoba

Total

Panama

Upgrading and extension of telecommunications installations

Total

Mexico

Construction of glass-fibre production plant near Puebla, eastern Mexico

Total

Philippines

Total

China

Total

Construction  of  second  integrated-circuits  assembly  and  test  plant  in  Calamba  near
Manila

Construction  of  toll  expressway  and  ancillary  roads  between  Nanning  and  Vietnamese
border

Indonesia

Financing for small and medium-scale ventures

Total

Grand Total

(€ million)

Loan

Risk-sharing

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

46.8

33.6

58.0

32.7

171.1

77.3

46.6

123.9

54.2

54.2

15.9

15.9

93.2

93.2

56.2

56.2

28.1

28.1

542.6

24

Table 2-17

Loans signed in 2001 in the Republic of South Africa

Country

Description

RSA

Financing for small and medium-scale infrastructure

Modernisation  and  technical  upgrading  of  N1  linking  Pretoria  and  Warmbaths  to  the
north and N4 linking Pretoria and Botswana border to the west

Financing for small and medium-scale ventures

Total

(€ million)

Loan

Risk-sharing

No

No

No

40.0

50.0

60.0

150.0

2.4. 

Signatories of the Lomé Convention

2.4.1.  Lending activity

Total EIB lending in the ACP/OCT amounted to €520 million, of which €188  million from
the  Bank’s  own  resources  and  €332  million  from  risk  capital.  The  regional  and  sectoral
breakdown of this lending is as follows:

Table 2-18

Breakdown by region and sector of EIB lending in 2001 in the ACP/OCT

Total

Own
resources *

Risk
capital

Energy

Communi-
cations

(€ million)

Water
Management
& 
laneous

Miscel-

Industry &
Services

Global
Loans

ACP/OCT

Africa

Southern

West

Central &
Equatorial

East

Caribbean

Regional

OCT

*

520

434

139

66

144

85

68

15

3

188

158

70

0

88

0

30

0

332

276

69

66

56

85

38

15

3

Of which 100 million subsidised

65

65

35

30

45

45

31

11

4

16

1

1

15

133

85

32

25

25

33

15

3

260

240

41

144

55

20

25

3. 

BUDGETARY IMPACT OF LENDING

Lending activities have an impact on the Community budget when they are accompanied by
Community  guarantees,  interest  subsidies  or  special  conditions  comparable  to  risk-bearing
operations for the lender.

3.1. 

Budget guarantees

On 22 December 1999 the Council decided on a general renewal of the Community guarantee
for EIB loans outside the EU for a period of seven years (Council Decision 2000/24/EC). This
decision was amended twice in 2000 (2000/688/EC and 2000/788/EC).

On 6 November 2001 the Council decided to extend this scheme to EIB loans concluded in
Yugoslavia by including this country in the group of central and eastern European countries
(Council Decision 2001/778/EC).

The new ceilings for each area are as follows:

*

*

*

*

*

Turkey:

Central and Eastern Europe:

Mediterranean countries:

Latin America and Asia:

Republic of South Africa:

€

€

€

€

€

450 million

9 280 million

6 425 million

2 480 million

825 million

The overall ceiling for the guarantee is therefore €19 460 million, and the Commission budget
covers  65%  of  that  amount  (compared  with  70%  under  the  previous  mandate).  The  new
decision calls on the EIB to seek other sources of (commercial) guarantee  from its financial
intermediaries where possible and sets a target rate of 30% of the ceiling (as opposed to 25%
under the previous mandate).

This guarantee programme will expire on 31 January 2007; it may automatically be extended
by six months if the loan ceiling has not been reached.

During  the  second  year  of  the  new  mandate  the  EIB  signed  loan  agreements  for  a  total  of
€2 486 million, bringing the total amount in the new mandate to €5 027 million corresponding
to 25.8% of the ceiling, with risk-sharing already equivalent to 39.7% of the loans signed.

On  November  6,  2001  the  Council  decided  to  grant  a  100%  Community  guarantee  to  the
European Investment Bank against losses under lending operations for environmental projects
in  the  Baltic  regions  of  Russia  for  a  total  amount  of  €100  million  (Council  Decision
2001/777/EC).

The  detailed  situation  relating  to  guarantees  is  set  out  in  the  six-monthly  report  by  the
Commission on guarantees covered by the general budget.

26

3.2. 

Interest subsidies

Interest subsidies  were  granted under  a  number of Community programmes both inside and
outside the Union. At the Council's request, the Commission drew up an overall assessment
report on this subject (see COM(2000) 524 of 6 September 2000). Most of these programmes
have  been  completed  and  no  longer  have  any  impact  on  budgetary  expenditure.  The  table
below  lists  the  programmes  which  are  still  under  way  and  the  amount  of  interest  subsidies
paid during the year under review.

Table 3-1

Interest subsidies paid under the various Community mechanisms from 1995 to
2001

(€ million/ECU million)

Financial
year

1995

1996

1997

1998

1999

2000

2001

Within the Community

Outside the Community

Natural disasters

Trans-European
Networks

EDF

MEDA

FYROM

6. 1

4. 3

4. 0

2. 8

2. 2

1. 7

1. 3

25

18

37

20

71

54

15

28. 1

28. 6

56. 9

24. 5

27. 1

18. 7

14. 5

15. 2

22. 4

48. 2

30. 3

29. 2

17. 4

26. 6

-

-

-

2. 7

4. 0

1. 1

2. 3

3.3. 

Venture capital

Under  the  agreements  with  the  Mediterranean  countries  and  the  Lomé  Convention,
concessionary loans are concluded by the EIB involving special conditions regarding duration
or debt consolidation, which enable them to be treated as capital investments. The operations
carried out in the Mediterranean region are financed by the general budget, and in the ACP by
the EDF budget. A breakdown of the operations is given in Table 2-18.

27

4. 

STATISTICAL ANNEX

Table 4-1

Trends in borrowing and lending in the Community

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

(€ million)

I. Borrowing

ECSC

1 446

1 474

908

Balance of
payments (1)

Euratom

NCI

1 695

1 209

4 969

-

49

-

-

-

-

644

245

49

70

386

410

-

66

298

155

474

195

-

-

-

-

403

108

160

305

-

-

-

-

-

-

-

-

-

-

40

-

Total Commission

3 190

2 683

5 877

1 008

862

453

669

403

108

160

345

EIB (2)

13 672 12 974 14 224 14 148 12 395 17 553 23 026 30 098 28 355 29 038 32 172

Total Community

16 862 15 657 20 101 15 156 13 257 18 006 23 695 30 501 28 463 29 198 32 517

II. Lending

ECSC

1 382

1 486

918

Balance of
payments (1)

Euratom

NCI

1 695

1 209

4 969

-

39

-

9

-

30

674

245

49

-

409

410

280

155

541

195

21

-

-

-

403

108

160

305

-

-

-

-

-

-

-

-

-

-

-

-

40

-

Total Commission

3 116

2 704

5 917

968

813

435

736

424

108

160

345

EIB (3)

14 438 16 066 17 724 17 682 18 604 20 946 22 958 25 116 27 765 30 644 31 184

Total Community

17 554 18 770 23 641 18 650 19 417 21 381 23 694 25 540 27 873 30 804 31 529

Note: The  differences  between  total  borrowing  and  lending  by  the  Commission  are  due  to  borrowing
operations undertaken for refinancing purposes and to changes in the balance of loans not assigned
by the end of the year. The differences between borrowing and lending by the EIB are due to the fact
that EIB lending operations are financed both from borrowings and from the Bank's own resources.

(1)

(2)

(3)

Mechanism for providing financial support for Member States, financial assistance for non-member
countries and other forms of assistance.
Total resources raised.

Loans signed from own resources, no account being taken of the guarantees provided by the EIB to
promoters or operations financed out of NCI resources.

28

Table 4-2

Community borrowings outstanding at the end of each period (1)

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

(1)

(€ million)

Balance of
payments
591

Total
borrowing
26 358

EIB (2)

ECSC

NCI

Euratom

16 570

20 749

25 007

26 736

30 271

31 957

36 928

42 330

48 459

58 893

67 784

78 661

83 673

87 079

96 649

110 394

123 767

146 223

159 860

176 027

6 178

6 539

7 119

7 034

6 761

6 689

6 825

6 738

6 673

7 139

7 327

7 331

6 548

5 966

4 677

3 637

2 806

2 432

2 039

1 386

1 747

3 269

4 432

4 960

5 202

5 229

5 514

5 122

4 542

3 817

3 326

2 202

1 570

1 113

748

218

168

130

90

19

1 272

1 680

1 892

2 013

2 168

2 500

2 164

1 945

1 687

1 563

1 338

1 018

779

720

572

118

28

12

-

40

Sub-
total
25 767

32 237

38 450

40 743

44 402

46 375

51 431

56 135

4 610

4 932

3 236

1 890

2 997

2 459

2 075

61 361

(3) 2 045

71 412

79 775

89 212

92 570

94 878

102 646

114 367

126 769

148 797

161 989

177 472

3 516

4 026

5 204

7 697

8 032

6 666

5 853

4 166

4 074

1 566

1 614

36 847

43 382

43 979

46 292

49 372

53 890

58 210

63 406

74 928

83 801

94 416

100 267

102 910

109 312

120 220

130 935

152 871

163 555

179 086

The conversion rates used are those obtained on 31 December of each year. As the majority
of borrowings are denominated in national currency, the difference between two year-ends
reflects on the one hand changes in the valuation of existing stock and on the other the net
volume of borrowings during the year.

Original  amount  of  borrowings,  plus  or  minus  repayments  of  the  principal,  cancellations,
annulments and exchange-rate adjustments.

(2) As from 1989, including short term.

(3) As from 1990, including financial assistance for non-member countries.

29

Table 4-3

Community borrowings in 2001 by currency

EUR

DKK

GBP

GRD

SEK

Total pre-ins

Total EU

USD

CHF

JPY

SKK

CZK

ZAR

PLN

Sub-total

TOTAL

Fixed-rate

Variable-rate

(1)

(2)

(€ million)

EIB

European
Community (1)

Total
borrowing

2001
%

21 535

(2)

345

21 880

67.3

31

6 971

-

60

7 062

28 597

2 484

204

541

111

23

69

142

3 574

32 171

6 354

25 818

-

-

-

-

-

31

0.1

6 971

21.4

 -

60

0.2

7 062

21.7

345

28 942

89.0

-

-

-

-

-

-

-

-

345

40

305

2 484

204

541

111

23

69

142

7.6

0.6

1.7

0.4

0.1

0.2

0.4

3 574

11.0

32 516 100.0

6 394

26 123

Financial  assistance  to  non-member  countries  and
Euratom.

From 1997 to 1998, issued in euros with payment in
ecus.

30

Table 4-4

NCI borrowings by currency: debt outstanding at 31.12.2001

Currency

(million)

Equivalent in € million
(1)

GBP
Total

11.5

18.9
18.9

(1) Exchange rate as at 31.12.2001

31