COMMISSION STAFF WORKING DOCUMENT (SWD) Accompanying the document REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Comprehensive Report on the functioning of the Guarantee Fund
Date: 2014-04-08
Institutions: European Commission
Subjects: Community loan, budgetary reserve (EU), credit guarantee, economic statistics, fund (EU), investment protection, management accounting













EUR-Lex - 52014SC0129 - EN











|



52014SC0129

COMMISSION STAFF WORKING DOCUMENT (SWD) Accompanying the document REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Comprehensive Report on the functioning of the Guarantee Fund /* SWD/2014/0129 final */









Table of Contents
1............ Chart of financial flows of the Fund. 3
2............ Graph 1: Guaranteed
Lending covered by the Fund and Fund's assets (end of year, in EUR billion)*  4
3............ Graph 2: Cover of
defaults by Fund Resources and recoveries (in EUR million) 1994-2012  4
4............ Graph 3: Geographical
distribution of EIB lending operations by group of countries covered by the
Fund at 31 December 2012 (% of the total outstanding amount covered, EUR 23.099
billion) 5
5............ Graph 4: Risk profile
of the loans covered by the fund in 2006, 2009 and 2013* [Moody's ratings] 5
6............ Table 1: Flows in and
out of the Fund since 1994 (in EUR million) 6
7............ Table 2: Use of the
budget line during the financial framework 2007-2013 (in EUR million, current
prices) 7
8............ Projections of
Provisioning needs for 2014-2020 (in EUR million, current prices)*. 7
1.           Chart of financial flows of the Fund 
 
2.           Graph 1: Guaranteed Lending covered by the Fund and
Fund's assets (end of year, in EUR billion)*
*
(Fund's Assets - y axis on the right side of the graph, Guaranteed Lending - y
axis on the left side of the graph) 
3.           Graph 2: Cover of defaults by Fund Resources and
recoveries (in EUR million) 1994-2012 
4.           Graph 3: Geographical distribution of EIB lending
operations by group of countries covered by the Fund at 31 December 2012 (% of
the total outstanding amount covered, EUR 23.099 billion)
Details of countries belonging to each geographical
region (at 31.12.2012):
 Asia: || Afghanistan, Bangladesh, Bhutan, Brunei, Cambodia, China, India, Indonesia, Iraq, South Korea, Laos, Maldives, Mongolia, Nepal, Pakistan, the Philippines, Singapore, Sri Lanka, Taiwan, Thailand, Vietnam, Yemen, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan; 
 Candidate Countries: || Turkey, The former Yugoslav Republic of Macedonia; 
 Eastern Europe, southern Caucasus and Russia: || Republic of Moldova, Ukraine, Belarus, Armenia, Azerbaijan, Georgia, Russia,; 
 Latin America: || Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, Venezuela; 
 Mediterranean: || Algeria, Egypt, The West Bank and the Gaza Strip, Israel, Jordan, Lebanon, Libya, Morocco, Syria, Tunisia; 
 Potential candidate countries: || Albania, Bosnia and Herzegovina, Montenegro, Serbia, Kosovo*[1]; 
 South Africa: || South Africa 
              5.       Graph 4: Risk profile of the loans covered by
the fund in 2006, 2009 and 2013* [Moody's ratings] 
              6.       Table 1: Flows in and out of the Fund since
1994 (in EUR million)
 1 First time application of IFRS standards in 2005. Portfolio valued at "Mark-to-Market". 
 2 Fund's net assets (EIB commission and other charges deducted) 
 3 Amount to be recovered from defaults = capital + interest + penalty interest for late payment. 
              7.       Table
2: Use of the budget line during the financial framework 2007-2013 (in EUR
million, current prices)
              
              8.       Projections
of Provisioning needs for 2014-2020 (in EUR million, current prices)* 
 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || Total 
 58.482 || 239.759 || 273.164 || 199.039 || 178.055 || 159.750 || 84.820 || 1,193.069 
*
The final audited figure inserted in the 2014 budget is EUR 58.432 million. The
projections for the remaining years are based on the Commission proposal for a decision of the European
Parliament and of the Council on granting an EU guarantee to the European
Investment Bank against losses under financing operations supporting investment
projects outside the Union [COM(2013) 293 of 23.5.2013]. The total provisioning
ceiling that appears in the above table takes into consideration only the fixed
ceiling (EUR 25 billion) of the mandate. 
Following
subsequent negotiations between the Council, the European Parliament and the
Commission, it was agreed on 17 December 2013 to increase the fixed
ceiling of the EU Guarantee to the EIB by 2 billion to a maximum amount of EUR
27 billion. The agreement also foresees an additional amount of EUR 110
million  for provisioning the Guarantee fund for external actions. This agreement
will need to be formally approved by the Council and European Parliament during
2014. 
[1]               This designation is
without prejudice to positions on status, and is in line with UNSCR 1244/1999
and the ICJ Opinion on the Kosovo declaration of independence."