Commission Regulation (EC) No 956/2005 of 23 June 2005 amending Regulation (EEC) No 411/88 on the method and the rate of interest to be used for calculating the costs of financing intervention measures comprising buying-in, storage and disposal
Date: 2005-06-23
Institutions: European Commission
Subjects: EAGGF Guarantee Section, EU Member State, EU financing, interest, market support

L 164/8

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Official Journal of the European Union

24.6.2005

COMMISSION REGULATION (EC) No 956/2005

of 23 June 2005

amending Regulation (EEC) No 411/88 on the method and the rate of interest to be used for
calculating the costs of financing intervention measures comprising buying-in, storage and disposal

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

therefore be defined on the same terms as for the
other Member States.

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Regulation (EEC) No 1883/78 of
2 August 1978 laying down general rules for the financing of
interventions by the European Agricultural Guidance and
Guarantee Fund, Guarantee Section (1), and in particular
Article 5 thereof,

(5)

Regulation (EEC) No 411/88 should be
accordingly.

amended

(6)

The measures provided for in this Regulation are in
accordance with the opinion of the Fund Committee,

Whereas:

HAS ADOPTED THIS REGULATION:

(1)

(2)

The third subparagraph of Article 5 of Regulation (EEC)
No 1883/78 provides that, where the average rate of
interest costs borne by a Member State in respect of
intervention measures is more than twice the uniform
interest
the
Commission may finance those interest costs, during
the budget years 2005 and 2006, by applying the
interest plus the difference between
uniform rate of
double that
rate borne by that
Member State.

rate determined for

rate and the actual

the Community,

In order to determine the interest rate to be taken into
the
consideration for
method to be applied during 2005 and 2006 should
be
specified in Commission Regulation (EEC) No
411/88 (2).

the Member States concerned,

(3) Where a Member State fails to communicate to the
it
Commission the average rate of
has borne,
specific
reference rate, determined on the basis of the represen-
tative reference interest rates in the Member States.

the Commission will

interest costs that

apply a

(4)

Latvia,

Following the accession of the Czech Republic, Estonia,
Cyprus,
Poland,
Slovenia and Slovakia on 1 May 2004, this reference
rate should also take account of
the representative
them. Those rates should
reference rates for each of

Lithuania, Hungary, Malta,

(1) OJ L 216, 5.8.1978, p. 1. Regulation as last amended by Regulation

(EC) No 695/2005 (OJ L 114, 4.5.2005, p. 1).

(2) OJ L 40, 13.2.1988, p. 25. Regulation as last amended by Regu-

lation (EC) No 2623/1999 (OJ L 318, 11.12.1999, p. 14).

Article 1

Regulation (EEC) No 411/88 is hereby amended as follows:

1. Article 4 is replaced by the following:

‘Article 4

1.
If the rate of interest costs borne by a Member State is
lower for at least six months than the uniform interest rate
fixed for the Community, a specific interest rate shall be
fixed for that Member State.

2.
The average rate of interest costs borne by a Member
State shall be communicated to the Commission not later
than 20 days before the end of the year. It shall cover the
six-month period preceding communication. However, in the
case of
the Czech Republic, Estonia, Cyprus, Latvia,
Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia it
shall cover, for 2005, the period from 1 May to 31 August
2004.

interest costs is not commu-
Where the average rate of
interest costs to be applied shall be
nicated, the rate of
determined on the basis of
rates
shown in the Annex. If not all of these reference interest
rates are available for the whole of the reference period
referred to in the first subparagraph,
the rates available
during that reference period shall be applied.

the reference interest

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Official Journal of the European Union

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For 2005 and 2006, where the average rate of interest
3.
costs borne by a Member State is more than twice the
uniform interest rate determined for the Community, the
interest rate reimbursed by the Community budget shall be
calculated by applying the following formula:

TR = TIU + [TIC – (2 × TIU)]

where:

TIC = interest rate communicated by the Member State in
accordance with the first subparagraph of paragraph 2, or
the interest rate applicable in the absence of communication
in accordance with the second subparagraph of paragraph 2.’

2. The Annex is replaced by the text set out in the Annex to

this Regulation.

Article 2

TR = interest rate reimbursed to the Member States,

This Regulation shall enter into force on the day following that
of its publication in the Official Journal of the European Union.

TIU = uniform interest rate,

It shall apply to expenditure effected from 1 October 2004.

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

Done at Brussels, 23 June 2005.

For the Commission

Mariann FISCHER BOEL
Member of the Commission

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Official Journal of the European Union

24.6.2005

ANNEX

‘ANNEX

Reference interest rates referred to in the second subparagraph of Article 4(2)

1. Czech Republic

Prague interbank borrowing offered rate three months (PRIBOR)

2. Denmark

Copenhagen interbank borrowing offered rate three months (CIBOR)

3. Estonia

Tallinn interbank borrowing offered rate three months (TALIBOR)

4. Cyprus

Nicosia interbank borrowing offered rate three months (NIBOR)

5. Latvia

Riga interbank borrowing offered rate three months (RIGIBOR)

6. Lithuania

Vilnius interbank borrowing offered rate three months (VILIBOR)

7. Hungary

Budapest interbank borrowing offered rate three months (BUBOR)

8. Malta

Malta interbank borrowing offered rate three months (MIBOR)

9. Poland

Warszawa interbank borrowing offered rate three months (WIBOR)

10. Slovenia

Interbank borrowing offered rate three months (SITIBOR)

11. Slovakia

Bratislava interbank borrowing offered rate three months (BRIBOR)

12. Sweden

Stockholm interbank borrowing offered three months (STIBOR)

13. United Kingdom

London interbank borrowing offered rate three months (LIBOR)

14. For the other Member States

Euro interbank borrowing offered rate three months (EURIBOR)

NB: These rates will be increased by one percentage point, corresponding to the banking margin.’