CELEX: 51993PC0020(02)
Language: en
Date: 1993-01-26
Title: Proposal for a COUNCIL REGULATION (EEC, Euratom) establishing a Guarantee Fund

No C 68 / 10                          Official Journal of the European Communities                                        11 . 3 . 93
The amounts of this reserve shall be the equivalent, in              The own resources necessary shall be made available as
 current prices for each financial year, of the following            provided in Council Regulation (EEC, Euratom) No
 amounts expressed in 1992 prices : ECU 200 million in                1552 / 89 (»).
 1993 and 1994 and ECU 300 million for each of the
 financial years between 1995 and 1999.                                               III . OTHER PROVISIONS
                                                                                                Article 18
 These amounts shall be adjusted to the corresponding                Budgetary discipline in respect of all other expenditure
 allocations in the financial perspective contained in the           shall be applied on the basis of the arrangements
 Interinstitutional Agreement if the financial perspective is        contained in the Interinstitutional Agreement.
 revised .
                                                                                                Article 19
                                                                     The financial implementation of any Council Decision or
                    3 . Common provisions                            any decision by the European Parliament and the
                                                                     Council exceeding the budget appropriations available in
                                                                     the general budget or the appropriations provided for in
                          Article 16
                                                                     the financial perspective contained in the Inter­
                                                                     institutional Agreement may not take place until the
The reserves shall be used by means of transfers to the              budget has been amended and, where necessary, the
 budget headings concerned in accordance with the                    financial perspective revised according to the procedure
provisions of the Financial Regulation.                              laid down for each of these cases .
                                                                                        IV. FINAL PROVISION
                                                                                                Article 20
                          Article 17
The own resources necessary for financing the reserves               Decision 88 / 377 /EEC is hereby repealed .
 shall not be called in from the Member States until the
 reserves are used in accordance with Article 16 .                   (') OJ No L 155 , 7 . 6. 1989, p. 1 .
                     Proposal for a Council Regulation (EEC, Euratom) establishing a Guarantee Fund
                                                         (93 / C 68 /08)
                                                      COM(93) 20 final
                                     (Submitted by the Commission on 17 February 1 993)
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,                           Whereas mechanisms currently exist for honouring
                                                                    guarantees when they are activated, in particular by
Having regard to the Treaty establishing the European               drawing provisionally on cash resources , as provided for
Economic Community, and in particular Article 235                   in Article 12 of Council Regulation No 1552/ 89 of 29
thereof,                                                            May       1989   implementing          Decision 88 / 376 / EEC ,
Having regard to the Treaty establishing the European               Euratom on the system of the Community's own
Atomic Energy Community, and in particular Article 203              resources ('), as last amended by Regulation (EEC,
thereof,                                                            Euratom) No . . .;
Having regard to the proposal from the Commission ,
                                                                    Whereas it is necessary for these mechanisms to be rein­
Having regard to the opinion of the European                        forced by making provisions for the risk of default ;
Parliament,
Having regard to the opinion of the Court of Auditors ,             Whereas it is possible to meet this need by the estab­
Whereas the European Council, meeting in Edinburgh                  lishment of a Guarantee Fund which may be drawn on
on 11 and 12 December, agreed that a Guarantee Fund                 to pay the Community's creditors direct ;
should be established to cover loan guarantees to
non-member countries ;                                              Whereas the Guarantee Fund should be constituted by
Whereas the general budget is exposed to increased                  the gradual payment of resources ; whereas the Fund will
financial risk as a result of the guarantees covering loans
to non-member countries ;                                           (') OJ No L 155 , 7. 6 . 1989, p. 1 .
 ---pagebreak--- 11 . 3 . 93                            Official Journal of the European Communities                              No C 68 / 11
subsequently also receive interest on its invested               If, at the end of a year, the Fund exceeds this amount,
resources and late repayments by defaulting debtors after        the surplus shall be paid back to a special heading in the
the Fund has paid creditors ;                                    statement of revenue in the budget.
Whereas , by reference to the practice of international
                                                                                            Article 4
financial institutions , a ratio of 10 °/o between the
Guarantee Fund's resources and guaranteed liabilities in         The payments provided for under the first indent of
principal would seem adequate ;                                  Article 2 :
Whereas initial payments to the Guarantee Fund equal to          — shall be equivalent to 14 % of the value of the
14 % of the amount of each operation would seem                      operation until the Fund reaches its target amount,
appropriate to attain this target amount ;
                                                                 — shall be reduced to 10 % when the target amount is
Whereas, once this amount is attained, payments to the               reached .
Guarantee Fund could then be limited to 10 % of the
amount of new operations ; whereas if the Guarantee                                         Article 5
Fund exceeds this amount the surplus will be paid back
to the budget ;                                                  If, as a result of the activation of guarantees, resources
Whereas management of the Guarantee Fund by the                  in the Fund fall below 75 % of the target amount, the
Commission will ensure effective and rapid implemen­             rate of provisioning on new operations shall be raised to
tation ;                                                          15 % until the target amount has been reached.
Whereas the Treaties do not provide any powers other             If a guarantee is activated before the Fund reaches its
than      those under    Article  235    and   Article  203 ,    target amount and the resources in the Fund fall below
respectively, for the adoption of this Regulation,               75 % of the target amount as a result, the rate of provi­
                                                                 sioning shall be raised to 15 % until the amount drawn
HAS ADOPTED THIS REGULATION :                                    has been fully restored.
                                                                 If, as a result of the activation of guarantees, the
                          Article 1                              resources in the Fund fall below 50 % of the target
A Guarantee Fund, hereinafter referred to as 'the Fund',         amount, the budgetary authority, acting on a proposal
                                                                 from the Commission , shall decide on measures to
shall be established, the purpose of which shall be to           replenish the Fund .
repay the Community's creditors direct in the event of
default by the beneficiary of a lending operation
                                                                                            Article 6
guaranteed by the general budget.
The operations referred to in the first subparagraph shall       The Fund shall be managed by the Commission, which
be covered by the Fund only if the beneficiaries are             shall adopt rules satisfying the principles of prudence and
non-member countries or a person not resident in the             sound financial management.
Community.
                                                                                           Article 7
                          Article 2
                                                                 The Commission shall, by no later than the following
The Fund shall be endowed by :                                   31 March , send to the European Parliament, the Council
                                                                 and the Court of Auditors an annual report on the
— payments from the general budget corresponding to a            situation of the Guarantee Fund and the management
     set percentage of each operation for a non-member           thereof in the previous year.
     country, decided on and committed by the
     Community and guaranteed by the budget,                                                Article 8
— interest on Fund resources invested,
                                                                 The revenue and expenditure account and the balance
— amounts recovered from defaulting debtors where the            sheet relating to the Fund shall be attached to the
     Fund has already honoured the guarantee .                   Communities' revenue and expenditure account and
                                                                 balance sheet.
                          Article 3
                                                                                            Article 9
The Fund shall rise to an appropriate level, known as
'the target amount', determined by reference to                  This Regulation shall enter into force on the seventh day
guaranteed liabilities .                                         following its publication in the Official Journal of the
                                                                 European Communities.
The target amount shall be 10 % of the Community's
outstanding liabilities in principal arising from loans and      This Regulation shall be binding in its entirety and
loan guarantees granted by the Community.                        directly applicable in all Member States .