L 45/1640
EN
Official Journal of the European Union
24.2.2022
COMMISSION BORROWING-AND-LENDING OPERATIONS — BORROWING-AND-LENDING OPERATIONS GUARANTEED BY THE UNION BUDGET (BY WAY OF INDICATION)
3.
Effect on the budget The COVID-19 outbreak has had a massive and disruptive impact on the economic system of each Member State.
It therefore calls for collective contributions by Member States in the form of guarantees supporting the loans from the Union budget.
Such guarantees are necessary to enable the Union to grant loans of a sufficient order of magnitude to Member States in order to support labour market policies which are under the greatest strain.
To ensure that the contingent liability arising from such loans is compatible with the applicable multiannual financial framework and own-resources ceilings, the guarantees provided by the Member States should be irrevocable, unconditional and on demand, while additional safeguards should enhance the robustness of the system.
In line with the complementary role of such guarantees, and without prejudice to their irrevocable, unconditional and on-demand nature, the Commission is expected, before calling on the guarantees provided by Member States, to draw on the margin available under the ownresources ceiling for payment appropriations to the extent that it is deemed sustainable by the Commission, having regard, inter alia, to the total contingent liabilities of the Union, including under the balance of payments facility established by Regulation (EC) No 332/2002 (1).
In the relevant call on guarantees, the Commission should inform the Member States about the extent to which the available margin has been drawn.
The need for guarantees provided by Member States may be reviewed if an agreement on a revised own-resources ceiling is reached.
Since both parts of these borrowing-and-lending operations are carried out on identical terms, they affect the budget only if the guarantee is activated in case of default.
As at 31 December 2020 the outstanding capital amount under this instrument is EUR 39 500 000 000.
(1) Council Regulation (EC) No 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).