REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on guarantees covered by the general budget Situation at 31 December 2012
Date: 2013-12-12
Institutions: European Commission
Subjects: EIB loan, budgetary reserve (EU), general budget (EU), investment protection, third country













EUR-Lex - 52013DC0871 - EN











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52013DC0871

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on guarantees covered by the general budget Situation at 31 December 2012 /* COM/2013/0871 final - 2013/ () */









Table of Contents
1............ Introduction. 2
2............ Types of operations
covered by the EU Budget 2
3............ Events since the last
report at 30 June 2012. 3
3.1......... Balance of payments
support to non-euro Member States. 3
3.2......... Macro-financial
assistance. 3
3.3......... Euratom.. 3
3.4......... European Financial
Stabilisation Mechanism.. 3
3.5......... EU Budget guarantee for
EIB external financing. 4
4............ Data on risks covered
by the EU Budget 4
4.1......... Definition of risk. 4
4.2......... Risk composition. 5
4.3......... Annual risk covered by
the EU Budget 7
4.3.1...... Risk linked to Member
States. 7
4.3.2...... Risk linked to third
countries. 8
4.4......... Evolution of risk. 9
5............ Defaults, activation
of EU Budget guarantees and arrears. 11
5.1......... Payments from cash
resources. 11
5.2......... Payments from the EU
Budget 12
5.3......... Activation of the
Guarantee Fund for external actions. 12
6............ Guarantee Fund for
external actions. 14
6.1......... Recoveries. 14
6.2......... Assets. 14
6.3......... Target amount 14
7............ Evaluation of risks:
economic and financial situation of third countries with the largest exposure  14
7.1......... Objectives. 14
7.2......... Risk assessment methods. 14

1.                      
Introduction

The objective of this report is to monitor
the credit risks borne by the EU Budget resulting from the guarantees given and
the lending operations implemented directly by the European Union or indirectly
through the guarantee granted for EIB financing projects outside the Union.
This report is submitted pursuant to the Financial
Regulation[1]
which requires the Commission to report to the European Parliament and to
the Council on EU Budget guarantees and the corresponding risks[2].
It is completed by a Commission Staff Working Document with a set of detailed
tables and explanatory notes (the "SWD").

2.                      
Types of operations covered by the EU Budget

The risks covered by the EU Budget (the "EU Budget")
derive from a variety of lending and guarantee operations which can be divided
into two categories:
–     
loans granted by the European Union with
macroeconomic objectives, i.e. macro-financial assistance[3]
("MFA") loans to third countries in conjunction with the Bretton
Woods institutions, balance-of-payments[4]
("BOP") loans granting support to non-euro Member States experiencing
balance-of-payments difficulties, loans under the European financial
stabilisation mechanism ("EFSM")[5] granting
support to all Member States experiencing or seriously
threatened with a severe economic financial disturbance caused by exceptional occurrences
beyond their control; and
–     
loans with microeconomic objectives, i.e.
Euratom loans and most importantly European Investment Bank ("EIB")
financing of operations in non-Member States ("EIB external
financing") that are covered by EU guarantees[6].
The guaranteed EIB external financing, the
Euratom and MFA loans to third countries have since 1994 been covered by the
Guarantee Fund for external actions ("the Fund"),[7] while BOP and
EFSM loans are directly covered by the EU Budget.
The Fund covers defaults on loans and loan
guarantees granted to non-Member States or for projects in non-Member States.
It was established:
–     
to provide a 'liquidity cushion' in order to
avoid calling on the EU Budget every time a default or late payment on a
guaranteed loan arises; and
–     
to create an instrument of budgetary discipline
by laying down a financial framework for the development of the EU policy on
guarantees for Commission and EIB loans to EU non-member countries[8].
If third countries become Member States,
loans relating to such countries are no longer covered by the Fund and the risk
has to be directly borne by the EU Budget. The Fund is provisioned from the EU
Budget and has to be maintained at a certain percentage of the outstanding
amount of the loans and loan guarantees covered by the Fund. This percentage,
known as the target rate, is currently 9%[9].
If resources of the Fund are not sufficient, the EU Budget will provide the
necessary funds.

3.                      
Events since the last report at 30 June 2012
3.1.                
Balance of payments support to non-euro Member
States

No new operations
took place during the second semester 2012. The precautionary EU medium-term
financial assistance for Romania has not been activated. The expiry date for
request for funds was 31 March 2013. 

3.2.                
Macro-financial assistance

There were no disbursements during this period but 64.5 million were
repaid by the beneficiary countries (Romania EUR 12.5 million, BiH: EUR 2
million, fYRoM EUR 5 million, Serbia EUR 44.8 million and Montenegro EUR 0.2 million).


3.3.                
Euratom

No loan disbursements took place during the reported period. Repaid
amounts consisted of EUR 6.5 million from Bulgaria and EUR 4.8 million from
Ukraine.

3.4.                
European Financial Stabilisation Mechanism

Disbursements to Ireland and Portugal
amounted respectively to EUR 3.3 billion and EUR 2 billion during the last six
months of 2012. 
Outstanding amounts at 31 December 2012 for
the four facilities are presented in table 1.
Additional Facilities implemented:
As part of the response to the crisis, several
other mechanisms have been established which, however, do not imply any risk to
the EU Budget:
- European Financial
Stability Facility (EFSF)[10]: the EFSF was created by the euro area Member
States following the decisions taken on 9 May 2010 within the framework of the
Ecofin Council. The EFSF’s mandate is to safeguard financial stability in
Europe by providing financial assistance to euro area Member States within the
framework of a macro-economic adjustment programme. EFSF was created as a
temporary rescue mechanism and was a stakeholder in loans granted to Greece
(together with the IMF and some Member States) as well as to Ireland and
Portugal (together with the IMF, some Member States and EU/EFSM)[11]. In October 2010, it
was decided to create a permanent rescue mechanism, the European Stability
Mechanism. [the link to
the ESM website is in footnote 10]
- European Stability Mechanism
(ESM)[12]: The ESM Treaty entered into force on 27 September 2012. From this date onwards, the ESM became a permanent
crisis mechanism and the main instrument to finance new programmes. In parallel
to the ESM, the EFSF will continue with its ongoing programmes for Greece,
Portugal and Ireland. As of 1 July 2013, the EFSF may no
longer engage in new financing programmes or enter into new loan facility
agreements. The ESM is an intergovernmental organisation under public
international law, based in Luxembourg. Its shareholders are the 17 euro area
Member States. The total subscribed capital is €700 billion of which paid-in
capital is EUR 80 billion (the last of 5 tranches is due to be paid by first
half of 2014) and committed callable capital is EUR 620 billion. Its effective
lending capacity is EUR 500 billion
- the
Greek Loan Facility (GLF)[13]
which is financed via bilateral loans from the other euro area Member States,
centrally administered by the Commission.

3.5.                
EU Budget guarantee for EIB external financing

Under the 2007-2013 external mandate, the loan
signatures increased by 16% during the second semester 2012 and amounted to EUR
3,163 million. The amount of loans disbursed was EUR 1,736 million (+ 18%
compared to 30 June 2012). Thus, the cumulative amount of loans signed and
loans disbursed under the mandate reached - respectively – EUR 23,161 million
and EUR 11,362 million at 31 December 2012. For previous EIB external mandates,
see Annex to Table A1 of the SWD.

4.                      
 Data on risks
covered by the EU Budget
4.1.                
Definition of risk

The risk borne by the EU Budget derives
from the outstanding amount of capital and interest in respect of guaranteed
operations.
For the purpose of this report, two methods
are used for evaluating the risks borne by the EU Budget (either directly or
indirectly via the Fund):
–     
"The total risk covered" is based on
the sum of the total amount of capital outstanding for the operations concerned
on a given date including accrued interest[14].

–     
The budgetary approach defined as "the
annual risk borne by the EU Budget" is based on the calculation of the
maximum amount of annual payments due which the EU would have to pay out in a
financial year assuming that all payments of the guaranteed loans are in
default[15].

4.2.                
Risk composition

Until 2010 the maximum risk in terms of
total outstanding amounts covered was mainly linked to loans granted to third
countries. Since 2011 the financial crisis has impacted heavily on the public
finances of the Member States leading to an increase in the lending activity of
the EU to support higher sovereign financing needs in Member States.
As a consequence the composition of risk
has changed. At 31 december 2012:
·                        
72% of the total outstanding amount guaranteed
concerns borrowing operations linked to loans to Member States which are
directly covered by the EU Budget (compared to 45% at 31.12.2010).
The total risk covered by the EU Budget at 31
December 2012 is presented in the following table 1.
 Table 1: Total outstanding amounts covered by the EU Budget at 31 December 2012 in EUR million 
   || Outstanding Capital || Accrued Interest || Total || % 
 Member States* ||   ||   ||   ||   
 MFA || 13 || 0 || 13 || <1% 
 Euratom || 387 || 2 || 389 || <1% 
 BOP || 11,400 || 223 || 11,623 || 14% 
 EIB*** || 2,653 || 23 || 2,676 || 3% 
 EFSM || 43,800 || 677 || 44,477 || 54% 
 Sub-total Member States || 58,253 || 925 || 59,178 || 72% 
 Third Countries** ||   ||   ||   ||   
 MFA || 533 || 4 || 537 || 1% 
 Euratom || 36 || 0 || 36 || <1% 
 EIB*** || 22,367 || 159 || 22,526 || 27% 
 Sub-total third countries || 22,936 || 163 || 23,099 || 28% 
 Total || 81,189 || 1,088 || 82,277 || 100% 
 *   This risk is directly covered by the EU Budget. This also includes MFA, Euratom and EIB loans granted to countries prior to their accession to the EU. ** This risk is covered by the Fund. ***About 82% of EIB lending operations (sovereign and sub-sovereign lending operations) are covered by a comprehensive guarantee while on the remaining operations the EIB benefits from a political risk coverage only. 
Tables A1, A2, A3 and A4 of the SWD provide
more detailed information on these outstanding amounts, in particular in terms
of ceiling, disbursed amounts or guarantee rates.
The total outstanding amount of capital and
interest covered by the EU Budget continued to increase mainly because of the
amounts granted under the EFSM.

4.3.                
Annual risk covered by the EU Budget

For 2013, the maximum amount which the EU
would have to pay out (directly and via the Fund) - assuming that all
guaranteed loans would be in default - was EUR 1,871 million. This represents
the capital and interest payments from guaranteed loans falling due during
2013  (out of the total outstanding at 31 December 2012), assuming that
defaulting loans are not accelerated (for details see
Table A2 in SWD). 

4.3.1.          
Risk linked to Member States

The risk linked to Member States concerns:
(a) EIB lending and/or MFA and/or Euratom
loans granted before the accession to the EU 
(b) the loans granted under the BOP
facility, and 
(c) the loans granted under the EFSM
scheme.
Table 2: Ranking of the Member States
according to the annual risk borne by the EU Budget in 2013 (EUR million)
 Ranking || Country || Loans || Max annual risk || Weight of the country vis-à-vis annual risk of Member States (MS) || Weight of the country vis a vis total annual risk (MS and non-MS) 
 1 || Ireland || c) || 665.5 || 30.0% || 15.3% 
 2 || Portugal || c) || 648.3 || 29.2% || 14.9% 
 3 || Romania || a)+b) || 392.5 || 17.7% || 9.0% 
 4 || Hungary || a)+b) || 133.3 || 6.0% || 3.1% 
 5 || Latvia || a)+b) || 96.6 || 4.4% || 2.2% 
 6 || Bulgaria || a) || 85.8 || 3.9% || 2.0% 
 7 || Poland || a) || 72.5 || 3.3% || 1.7% 
 8 || Czech Republic || a) || 68.4 || 3.1% || 1.6% 
 9 || Slovak Republic || a) || 37.2 || 1.7% || 0.9% 
 10 || Slovenia || a) || 9.4 || 0.4% || 0.2% 
 11 || Lithuania || a) || 5.1 || 0.2% || 0.1% 
 12 || Cyprus || a) || 5.1 || 0.2% || 0.1% 
 13 || Malta || a) || 0.3 || 0.0% || 0.0% 
 Total ||   ||   || 2,219.9 || 100% || 51.1% 

4.3.2.          
Risk linked to third countries

The Fund covers guaranteed loans to third
countries with maturities extending up to 2042. In 2013, the Fund will bear a
maximum annual risk related to third countries of EUR 2,127.7 million (49%
of the total annual risk).
The top ten countries (out of forty-six) are
ranked below according to their total outstanding. They account for EUR 1,642 million
or 77.2% of the annual risk borne by the Fund. The economic situation of these
countries is analysed and commented in point 3 of the SWD. Creditworthiness, as
assessed by the rating agencies, is also indicated in each country table. 
The risk linked to third countries concerns
EIB lending and/or MFA and/or Euratom loans (details are included in table A3b
and A4 of the SWD).
Table 3: Ranking of the 10 most
important third countries according to the annual risk borne by the Fund in
2013 (EUR million).
 Ranking || Country || Max annual risk || Weight of the country vis-à-vis annual risk of third countries || Weight of the country vis-à-vis total annual risk (MS and non-MS) 
 1 || Turkey || 483.4 || 22.7% || 11.1% 
 2 || Tunisia || 209.3 || 9.8% || 4.8% 
 3 || Egypt || 204.8 || 9.6% || 4.7% 
 4 || Morocco || 192.2 || 9.0% || 4.4% 
 5 || Serbia || 167.5 || 7.9% || 3.9% 
 6 || Lebanon || 89.5 || 4.2% || 2.1% 
 7 || South Africa || 88.8 || 4.2% || 2.0% 
 8 || Syria || 77.7 || 3.7% || 1.8% 
 9 || Brazil || 71.4 || 3.4% || 1.6% 
 10 || Bosnia and Herzegovina || 57.0 || 2.7% || 1.3% 
   || Total of the 10 || 1,641.6 || 77.2% || 37.8% 

4.4.                
Evolution of risk

In the financial markets, 2012 saw an
escalation of the peripheral sovereign bond crisis and high volatility in
European bond markets. In this context, concerns about the sustainability of
euro area government debt and the future of the monetary union, or
"redenomination risk", gained new traction. This deterioration led
policymakers to respond, with several key announcements after late June,
including the implementation of a common bank regulatory regime (the “banking
union”) with the ECB as the ultimate supervisor, a new ECB bond-buying
programme (the “Outright Monetary Transactions” Programme or OMT) which
provided the ability to intervene in an unlimited way in the financial markets
and produced a sharp rally in peripheral bonds. In addition, the ESM became
operational in October with a fresh EUR 500 billion lending capacity.
Nevertheless, the level of uncertainty
remains high as the global economic and financial crisis continues to affect
the economic recovery in the EU and the global growth. Geopolitical tensions
affecting some Southern Mediterranean countries added also uncertainty on the
economic recovery in certain third countries.
·     
Balance of payments facility
The EU medium-term financial assistance
under the BOP facility was re-activated in November 2008 to help Hungary and
subsequently in January and May 2009 to help Latvia and Romania to restore
market confidence for a total commitment of EUR 14.6 billion. EUR 1.2 billion will
not be disbursed as the deadline for disbursement has expired. 
In addition to the EUR 5 billion of BOP
assistance for Romania already provided, the Council decided on 12 May 2011 to
provide precautionary financial assistance for this country of up to EUR 1.4 billion[16]. However, no disbursements have been made and the Facility expired
on 31 March 2013.. 
The BOP facility with its overall ceiling
of EUR 50 billion had at 31 December 2012 a remaining capacity of EUR 37.2
billion to provide further BOP assistance if required.
·     
European Financial Stabilisation Mechanism
(EFSM)
As a result of the measures taken by
policy-makers, the financial markets have relatively calmed down since the last
months of 2012. Nevertheless, non-negligible risks remain in the political,
economic and financial landscape which might affect the successful fulfiment of
the increased refinancing needs of Member States' governments in the coming
months and years.
The Ecofin Council conclusions set the
maximum volume of the mechanism to EUR 60 billion[17],
with the legal limit being provided in Article 2(2) of Council Regulation No
407/2010, which limits the outstanding amount to the margin available under the
own resources ceiling.
Following the Council decisions to grant
Union financial assistance to Ireland[18]
(up to EUR 22.5 billion) and Portugal[19]
(up to EUR 26 billion), disbursements reached EUR 21.7 billion to Ireland and
EUR 22.1 billion to Portugal.
Out of its maximum volume of
EUR 60 billion, the EFSM has - at 31 December 2012 - a remaining
capacity of EUR 11.5 billion to provide further assistance, if
required[20].
·     
Macro-financial assistance loans
Following the entry into
force of the Lisbon Treaty, MFA decisions are no longer taken by the Council alone,
but in accordance with the ordinary legislative procedure (co-decision). A new
legislative proposal for a MFA Framework Regulation had been adopted by the
Commission on 4.7.2011 to improve the decision–making process under the Lisbon
Treaty[21],
in order to achieve a quicker and more efficient decision making process and to
harmonize it with that of other external financing instruments. However,
further to intensive discussions with the Council and the Parliament, the
Commission decided on 8 May 2013 to withdraw its
proposal. 
The outstanding amount of
MFA loans has decreased for the reported period from EUR 610 million to EUR 545.5 million.
·     
Euratom loans
The Euratom lending to Member States or in
certain eligible non-member countries (Russian Federation, Armenia, Ukraine)
has a ceiling of EUR 4 billion of which around 85% has already been
used. The remaining rouhgly EUR 600 million could be used for
financing new projects. In 2012, discussions were on-going for a EUR 300
million loan to Ukraine dedicated to the upgrade of existing nuclear
facilities. The loan was signed on 7 August 2013.
·     
EIB loans
Under the EIB
general mandate covering the period 2007-2013, a total amount of EUR 23,161
million had been signed at 31 December 2012, of which EUR 11,362 million
had been disbursed at that date (see Table A6 of the SWD). For more information
on the countries covered by the EIB mandates, see Tables A1 and A2 of the SWD.
The EIB started
experiencing defaults on certain interests payments and loan repayments from
the Syrian Government as of end of 2011 (see paragraph 5.3 below). 

5.                      
Defaults, activation of EU Budget guarantees and
arrears
5.1.                
Payments from cash resources

The Commission draws on its cash resources
in order to avoid delays and resulting costs in servicing its borrowing
operations when a debtor is late in paying the EU[22].

5.2.                
Payments from the EU
Budget

As no defaults from Member States were
recorded during the second half of 2012, no appropriation was requested under
the p.m. lines of Article 01 04 01 of the EU Budget "European
Union guarantees for Union and Euratom borrowing operations and for EIB lending
operations".

5.3.                
Activation of the Guarantee Fund for external
actions

In the event of late payment by the
beneficiary of a loan to third countries granted or guaranteed by the EU, the
Fund is called on to cover the default within three months of the request[23].
The EIB
experienced defaults on certain interest payments and loan repayments from the
Syrian Government. Since official payment requests have remained unsuccessful,
the EIB started to call the Guarantee Fund in May 2012. At 31 December 2012,
the EIB had made four payment requests for a total amount of EUR 42 million.
Two were paid in 2012 for an amount of EUR 24 million (of which 2.1 million has
been recovered by the Bank in August 2012). As the situation of the country has
not improved, further calls were made in 2013 as described in the table below. 
Table 4: Calls
on the Guarantee Fund for defaulting loans in Syria
 Call number || Called on || Paid/to be paid on || Amount called in EUR million || Penalties and accrued interests in EUR million (1) || Amount recovered || Total 
 1 || 10/05/2012 || 10/08/2012 || 15.45 || n.a. || 2.15 || 13.30 
 2 || 27/08/2012 || 27/11/2012 || 8.57 || n.a. ||   || 8.57 
 3 || 18/10/2012 || 18/01/2013 || 2.60 || 0.01 ||   || 2.61 
 4 || 12/11/2012 || 12/02/2013 || 14.96 || 0.40 ||   || 15.36 
 5 || 15/01/2013 || 15/04/2013 || 3.18 || n.a. ||   || 3.18 
 6 || 21/02/2013 || 21/05/2013 || 8.13 || 0.18 ||   || 8.31 
 7 || 15/04/2013 || 15/07/2013 || 4.89 || 0.01 ||   || 4.90 
 8 || 15/05/2013 || 15/08/2013 || 14.53 || 0.39 ||   || 14.92 
 9 || 24/06/2013 || 24/09/2013 || 3.18 || 0.10 ||   || 3.29 
 Total ||   ||   || 75.49 || 1.20 || 2.15 || 74.54 
(1) Penalties and accrued interests are claimed by the
Bank only with the second payment request of each individual loan and run from the
defaulting date until the payment date by the Guarantee Fund. 
The amounts
called by the Bank are withdrawn from the Guarantee Fund account after
authorization by the Commission services and supporting documentation,
including evidence that the Bank has claimed the defaulting amounts from the
borrower, in compliance with the Guarantee Agreement referred to in Article 14
of Decision No 1080/2011/EU of the European Parliament and of the Council of 25
October 2011 granting an EU guarantee to the European Investment Bank against
losses under loans and loan guarantees for projects outside the Union and
repealing decision No 633/2009/EC[24].
The total
capital outstanding of guaranteed loans related to Syria amounts to EUR 551 million,
with the last loan maturity in 2030. In conformity with the Guarantee
Agreement, when the EU makes a payment under the EU Guarantee, it is subrogated
into the right and remedies of the EIB. Recovery proceedings are to be
undertaken by the EIB in respect of the subrogated sums.

6.                      
Guarantee Fund for external actions
6.1.                
Recoveries[25]

At 31 December 2012, the Fund had EUR 21.87
million arrears to recover.

6.2.                
Assets

At 31 December 2012, the net assets[26]
of the Fund amounted to EUR 2,020.49 million.

6.3.                
Target amount

The Fund has to reach an appropriate level (target amount) set at 9%
of the total outstanding capital liabilities arising from each operation, plus
accrued interest. At 31 December 2012,
the ratio between the Fund's resources (EUR 2,020.49 million) and the outstanding capital liabilities[27]
(EUR 23,099.15 million) within the
meaning of the Guarantee Fund Regulation were
lower than the target amount. Consequently, a provisioning of EUR 58.43 million was inserted in the draft
EU Budget of 2014.
In February 2012, the EU Budget paid EUR 260.17 million to the Fund as foreseen in the draft
EU Budget of 2012 and in accordance with the rules of the Guarantee Fund
Regulation (the 9% target amount).

7.                      
Evaluation of risks: economic and financial
situation of third countries with the largest exposure
7.1.                
Objectives

The previous sections of this report
provide information on quantitative aspects of the risk borne by the EU Budget.
Section 3 of the SWD provides a macroeconomic analysis of the third countries to
which the Guarantee Fund (and in fine the EU Budget) has the largest
exposure, or which benefit from the EU lending facilities (MFA and Euratom
loans).

7.2.                
Risk assessment methods

The risk assessment presented in the SWD is
based on the information on the economic and financial situation, ratings and
other known facts of the countries having received guaranteed loans. This
assessment does not include estimations of expected losses and recoveries which
are inevitably highly uncertain.
[1]               Regulation (EU, Euratom) No 966/2012 of the European
Parliament and of the Council of 25 October 2012 on the financial rules
applicable to the general budget of the Union and repealing Council Regulation
(EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).
[2]               COM(2013)211 final and SWD(2013)130 final make up the
previous report on the guarantees covered by the Budget at 30 June 2012.
[3]               MFA may also take the form of grants to third
countries. 
[4]               Council Regulation (EC) N° 332/2002 of 18 February
2002 establishing a facility providing medium-term financial assistance for
Member States' balances of payments (OJ L 53, 23.2.2002, p.1).
[5]               Council Regulation (EU) No 407/2010 of 11 May 2010
(OJ L 118, 12.5.2010, p.1). 
[6]               References to legal bases are
listed in Table A4 of the SWD.
[7]               Council Regulation (EC, Euratom) No 480/2009 of
25 May 2009 establishing a Guarantee Fund for external actions
(codified version), the "Guarantee Fund Regulation" (OJ L 145,
10.6.2009, p.10).
[8]               Although external risks are covered in fine by
the EU budget, the Guarantee Fund acts as an instrument
to protect the EU budget against the risk of payment defaults. For the latest
annual report on the Fund and its management, see COM(2013)661 final and the
accompanying Staff Working Document (SWD(2012)217 final).
[9]               For a comprehensive report on the functioning of the
Fund and the provisioning target rate, see COM(2010)418 final and the
accompanying Staff Working Document (SEC(2010)968 final).
[10]             About
the EFSF: http://www.efsf.europa.eu
[11]             the loans granted under the EU/EFSM are guaranteed by
the EU Budget
[12]             About the ESM : http://esm.europa.eu
[13]             About the GLF:  http://ec.europa.eu/economy_finance/assistance_eu_ms/greek_loan_facility/
[14]             See Table 1 of the Report.
[15]             For the purpose of this calculation, it is assumed that
defaulting loans are not accelerated, i.e. only payments due are taken into
account (see also Tables 2 and 3 of the Report and Table A2 of the SWD).
[16]             Council Decision 2011/288/EU of 12 May 2011 providing precautionary EU medium-term financial assistance
for Romania (OJ L 132, 19.5.2011, p.15).
[17]             Cf. Press release on extraordinary Ecofin Council
meeting 9/10 May 2010 (http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/114324.pdf)
[18]             Council Implementing Decision 2011/77/EU of 7 December
2011 on granting Union financial assistance to Ireland (OJ L 30, 4.2.2011, p. 348).
[19]             Council Implementing Decision 2011/344/EU of 30 May
2011 on granting Union financial assistance to Portugal (OJ L 159, 17.6.2011,
p.88) and Corrigendum to Council Implementing Decision of 17 May 2011 on
granting Union financial assistance to Portugal (OJ L 178, 10.7.2012, p.15).
[20]             For further information on EFSM, see also the report
from the Commission on borrowing and lending activities of the European Union in
2012 (COM(2013)752 final) [due to be adopted on 31 October]. 
[21]             COM(2011)396 final.
[22]             See Article 12 of Council
Regulation (EC, Euratom) No 1150/2000 of 22 May 2000 implementing Decision
2007/436/EC, Euratom, on the system of the European Communities own resources
(OJ L 130, 31.5.2000, p. 1).
[23]             Since its inception in 1994, the Fund has been called at
the reporting date for a cumulative amount of EUR 502 million. For more
details, see Section 2.5.4 of the SWD.
[24]             OJ L 280, 27.10.2011, p. 1.
[25]             Since its inception in 1994, the total recoveries by
the Fund at the reporting date have amounted to EUR 579 million (this includes
the amount of capital and interest repaid, plus penalties interests for late
payments, plus exchange rate gains and losses realized).
[26]             Total assets of the Fund minus accrued payables (EIB
fees and audit fees).
[27]             Including accrued interests.