2008/580/EC: Council Decision of 23 June 2008 granting a Community guarantee to the European Investment Bank against losses under loans for projects outside the Community (South-eastern neighbours, Mediterranean countries, Latin America and Asia and the Republic of South Africa) (Codified version)
Date: 2008-06-23
Institutions: Council of the European Union
Subjects: EIB loan, EU relations, cooperation policy, financial aid, foreign policy, third country

L 186/30

EN

Official Journal of the European Union

15.7.2008

COUNCIL DECISION

of 23 June 2008

granting a Community guarantee to the European Investment Bank against losses under loans for
projects outside the Community (South-eastern neighbours, Mediterranean countries, Latin America
and Asia and the Republic of South Africa)

(Codified version)

(2008/580/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty
Community, and in particular Article 181a thereof,

establishing the European

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament (1),

Whereas:

(1)

(2)

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) (2) has been substantially
amended several times (3). In the interests of clarity and
rationality the said Decision should be codified.

The European Council meeting in Madrid on 15 and
16 December 1995 confirmed the importance of the
European Investment Bank, hereinafter referred to as
‘the EIB’, as an instrument of cooperation between the
Community and Latin America and called on the EIB to
intensify its activities in the region. These projects should
be of interest to both the Community and the countries
concerned.

(3)

The European Council meeting in Florence on 21 and
22 June 1996 welcomed the results of the Asia-Europe
summit, which marked a turning-point
in relations
between the two continents.

(1) Opinion of 19 June 2007 (not yet published in the Official Journal).
(2) OJ L 9, 13.1.2000, p. 24. Decision as last amended by Decision

2006/174/EC (OJ L 62, 3.3.2006, p. 26).

(3) See Annex I.

(4)

(5)

(6)

(7)

(8)

The European Council meeting in Amsterdam on 16 and
17 June 1997 welcomed the conclusions adopted at the
Second Euro-Mediterranean Conference, which was held
at Valletta, Malta, on 15 and 16 April 1997 and reaf­
firmed the principles and objectives agreed at Barcelona
in 1995.

The European Council meeting in Luxembourg on 12
and 13 December 1997 launched the enlargement
process with
Eastern European
countries and Cyprus.

the Central

and

The European Council meeting in Cardiff on 15 and
16 June 1998 welcomed the efforts which the Republic
of South Africa was making to modernise its economy
and integrate it into the world trading system.

The EIB is completing the current loan programmes for
Central and Eastern Europe, the Mediterranean region,
Asia and Latin America and the Republic of South
Africa pursuant to Decision 97/256/EC (4), as well as
is governed by the Protocol on
the lending that
former Yugoslav
Financial Cooperation with
Republic
to Decision
98/348/EC (5).

the
according

of Macedonia,

The Council has invited the EIB to start operations in
Bosnia
have
continued, following the positive report (6) drawn up as
stipulated in Council Decision 98/729/EC (7).

and Herzegovina.

operations

These

(4) Council Decision 97/256/EC of 14 April 1997 granting a
Community guarantee to the European Investment Bank against
losses under loans for projects outside the Community (Central
and Eastern Europe
countries, Mediterranean countries, Latin
American and Asian countries, South Africa, the former Yugoslav
Republic of Macedonia and Bosnia and Herzegovina)
(OJ L 102,
19.4.1997, p. 33). Decision as last amended by Regulation (EC)
No 2666/2000 (OJ L 306, 7.12.2000, p. 1).

(5) Council Decision 98/348/EC of 19 May 1998 granting a
Community guarantee to the European Investment Bank against
losses under loans for projects in the former Yugoslav Republic of
Macedonia (OJ L 155, 29.5.1998, p. 53).

(6) COM(2000)115 final (Report from the Commission to the Council
and the European Parliament relative to the implementation of
Council Decision 98/729/EC of 14 December 1998 amending
Decision 97/256/EC so as to extend the Community guarantee
granted to the European Investment Bank to cover
loans for
projects in Bosnia and Herzegovina).

(7) OJ L 346, 22.12.1998, p. 54.

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Official Journal of the European Union

L 186/31

(9)

(10)

(11)

(12)

(13)

Although Bosnia and Herzegovina and the former
Yugoslav Republic of Macedonia have been included in
the Central and Eastern Europe region since the adoption
of Decision 97/256/EC, the EIB’s total lending effort to
applicant countries within this region should increase
given the importance of the pre-accession facility the
EIB plans to create for EIB lending for projects in these
countries without a guarantee from the Community
budget or Member States.

In these circumstances, the EIB should ensure that its
guaranteed lending within the Central and Eastern
Europe mandate will
finance particularly projects in
those countries which have fewer projects suitable for
financing from the pre-accession facility or projects in
non-applicant countries.

the

between

and Nepal,

The Cooperation Agreements between the European
European
Community
Community and the Lao People’s Democratic Republic
and between the European Community and Yemen
entered into force on 1 June 1996, 1 December 1997
and on 1 July 1998 respectively. The Cooperation
Agreement between the European Community and
South Korea was signed on 28 October 1996. Nepal,
Yemen, Laos and South Korea should become benefi­
ciaries of EIB funding under the EIB’s mandate for Asia
and Latin America.

It is appropriate to make certain improvements in the
programmes of operations in respect of duration and
country coverage. It is appropriate to adjust the blanket
guarantee rate and the portion of lending for which the
EIB is invited to cover the commercial risk from non-
sovereign guarantees.

The Council
operations in support of
out
provided for in this Decision.

is calling on the EIB to continue its
investment projects carried
the guarantee

in those countries by offering it

(14)

In June 1996, the Commission,
EIB, presented to the Council a proposal
guarantee system for EIB lending to third countries.

in agreement with the
for a new

(15) On 2 December 1996 the Council approved conclusions
on new guarantee arrangements for EIB lending to third
countries, according to which the approach of a global
guarantee, without distinguishing between the regions
is approved and a risk-sharing scheme
and projects,
risk-sharing scheme the
accepted. Under

the current

budgetary guarantee should cover political risks arising
from currency non transfer, expropriation, war or civil
disturbance and denial of justice upon breach of certain
contracts by the third-country government or other auth­
orities.

(16) Under the risk-sharing scheme, the EIB should secure
commercial risks by means of non-sovereign third-party
guarantees or by means of any other security or collateral
as well as relying on the financial strength of the debtor,
in accordance with its usual criteria.

(17)

(18)

(19)

(20)

The guarantee
excellent credit standing of the EIB.

arrangements

should not

affect

the

Council Regulation (EC, Euratom) No 1149/1999 (1)
revised the target amount and the provisioning rate for
the Loan Guarantee Fund established by Council Regu­
lation (EC, Euratom) No 2728/94 (2).

The financial perspective for the period 2000 to 2006
according to the Interinstitutional Agreement of 6 May
1999 between the European Parliament, the Council and
the
and
improvement of the budgetary procedure (3) envisages a
ceiling for the loan guarantee reserve in the Community
budget of EUR 200 million (at 1999 prices) per annum.

Commission

budgetary

discipline

on

EIB financing in eligible third countries
should be
in accordance with the EIB’s usual criteria
managed,
and procedures, including appropriate control measures,
as well as with the relevant
rules and procedures
concerning the Court of Auditors and OLAF, in such a
way as to support Community policies and to enhance
coordination with the Community’s other
financial
instruments. There is regular consultation between the
EIB and the Commission to ensure coordination of prio­
rities and activities in these countries and to measure
the Community’s
progress towards the fulfilment of
relevant policy objectives. The setting and periodic
review of the operation objectives and the measurement
the EIB’s
of
In particular, EIB financing in the
Board of Directors.
the priorities estab­
candidate countries should reflect
lished in the
accession partnerships between the
Community and those countries. Thus the transparency
of the EIB lending under this Decision should be substan­
tially enhanced. Hence, the Commission has reported on
the application of Decision 2000/24/EC (4).

their fulfilment are the responsibility of

(1) OJ L 139, 2.6.1999, p. 1.
(2) OJ L 293, 12.11.1994, p. 1. Regulation as last amended by Regu­
lation (EC, Euratom) No 89/2007 (OJ L 22, 31.1.2007, p. 1).

(3) OJ C 172, 18.6.1999, p. 1.
(4) COM(2006) 323 final

(Report

from the Commission to the
European Parliament and the Council on operations conducted
under
the EIB and future
outlook, with Annex 1: SEC(2006) 789, and Annex 2: SEC(2006)
790).

the External Lending Mandates of

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Official Journal of the European Union

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(21)

(22)

consistency

Close cooperation between the EIB and the Commission
should ensure
and synergy with the
European Union’s geographical cooperation programmes
and ensure that the EIB loan operations complement and
strengthen the European Union’s policies
those
regions.

for

guarantee

special
The Community
earthquake facility for Turkey under Council Decision
1999/786/EC (1) continues
to take the form of an
extension of the global guarantee under this Decision.

covering

the

(23)

The EIB and the Commission should adopt
procedures for granting the guarantee,

the

HAS DECIDED AS FOLLOWS:

Article 1

The Community shall grant

1.
the European Investment
Bank (EIB) a global guarantee in respect of all payments not
received by it but due in respect of credits opened,
in
the
accordance with its usual criteria, and in support of
Community’s relevant external policy objectives, for investment
projects carried out in the South-eastern neighbours, the Medi­
terranean countries, Latin America and Asia and the Republic of
South Africa.

This guarantee shall be restricted to 65 % of
amount of
overall ceiling of
EUR 19 460 million, broken down as follows:

the aggregate
the credits opened, plus all related sums. The
to

the credits opened shall be equivalent

— south-eastern neighbours:

EUR 9 185 million,

— Mediterranean countries:

EUR 6 520 million,

— Latin America and Asia:

EUR 2 480 million,

— Republic of South Africa:

EUR 825 million,

(1) OJ L 308, 3.12.1999, p. 35.

— special action supporting the consolidation and intensifi­

cation of the EC-Turkey Customs Union:

EUR 450 million;

and may be used by 31 January 2007 at the latest. The credits
already signed shall be taken into account as a deduction from
the regional ceilings.

The Commission shall report on the application of this Decision
at the latest six months before any new accession treaties enter
into force, and make proposals for amendments of this Decision
if appropriate. The Council will discuss and act on any proposal
with effect
from the date of entry into force of any new
accession treaty.

If, on expiry of the guaranteed lending period on 31 January
2007, the loans granted by the EIB have not attained the overall
amounts referred to in the second subparagraph, this period
shall be automatically extended by six months.

2.

The countries covered by paragraph 1 are:

— South-eastern neighbours: Albania, Bosnia and Herzegovina,
former Yugoslav Republic of Macedonia, Serbia,

Croatia,
Montenegro and Turkey,

— Mediterranean countries: Algeria, Egypt,

Israel,

Jordan,

Lebanon, Morocco, Syria, Tunisia and Gaza-West Bank,

— Latin America: Argentina, Bolivia, Brazil, Chile, Colombia,
Costa Rica, Ecuador, El Salvador, Guatemala, Honduras,
Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay and
Venezuela,

— Asia: Bangladesh, Brunei, China,

Indonesia, Laos,
Macao, Malaysia, the Maldives, Mongolia, Nepal, Pakistan,
Philippines, Singapore, South Korea, Sri Lanka, Thailand,
Vietnam and Yemen,

India,

— Republic of South Africa.

3.
The EIB is invited to aim to cover the commercial risk on
30 % of its lending under this Decision from non-sovereign
guarantees
regional
mandate basis. This percentage
expanded upon
whenever possible in so far as the market permits.

far as possible on an individual

shall be

as

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Article 2

Article 4

The Commission shall inform the European Parliament and the
Council each year of the loan operations and progress made on
risk-sharing under Article 1(3) and shall, at the same time,
submit an assessment of the operation of the scheme and of
coordination between the financial institutions operating in that
area. The Commission information submitted to the European
Parliament and the Council shall include an assessment of the
contribution of the lending under this Decision to the fulfilment
of the Community’s relevant external policy objectives, taking
into account
and appropriate
measurements of their fulfilment to be established by the EIB
for lending under this Decision.

the operational objectives

Decision 2000/24/EC, as amended by the Decisions listed in
Annex I, is repealed.

References to the repealed Decision shall be construed as
references to this Decision and shall be read in accordance
with the correlation table in Annex II.

Article 5

This Decision shall take effect on the 20th day following its
publication in the Official Journal of the European Union.

For the purposes referred to in the first paragraph, the EIB shall
transmit to the Commission the appropriate information.

Done at Luxembourg, 23 June 2008.

Article 3

The EIB and the Commission shall fix the terms on which the
guarantee is to be given.

For the Council
The President

I. JARC

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ANNEX I

Repealed Decision with its successive amendments

Council Decision 2000/24/EC

(OJ L 9, 13.1.2000, p. 24)

Council Decision 2000/688/EC

(OJ L 285, 10.11.2000, p. 20)

Council Decision 2000/788/EC

(OJ L 314, 14.12.2000, p. 27)

Council Decision 2001/778/EC

(OJ L 292, 9.11.2001, p. 43)

Council Decision 2005/47/EC

(OJ L 21, 25.1.2005, p. 9)

Council Decision 2006/174/EC

(OJ L 62, 3.3.2006, p. 26)

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ANNEX II

Correlation table

Decision 2000/24/EC

This Decision

Article 1

Article 1

Article 2, first and second paragraphs

Article 2, first and second paragraphs

Article 2, third paragraph

Article 3

—

Article 4

—

—

—

Article 3

Article 4

Article 5

Annex I

Annex II