CELEX: 51993PC0706(02)
Language: en
Date: 1994-02-04
Title: Amended proposal for a COUNCIL REGULATION (ECSC, EC, Euratom) establishing a Guarantee Fund for external operations

5 . 3 . 94                             Official Journal of the European Communities                               No C 68 / 17
              Amended proposal for a Council Regulation (ECSC, EC, Euratom) establishing a Guarantee
                                                  Fund for external operations (x)
                                                          (94 / C 68 / 08 )
                                                        COM(93) 706 final
              (Submittet by the Commission pursuant to Article 189 A (2) of the EC Treaty and Article 119 (2)
                                            of the EAEC Treaty on 4 February 1994)
              o OJ No C 68 , 11 . 3 . 1993 , p . 10 .
              In the light of the opinions of the European Parliament and the Court of Auditors, the
              Commission is presenting the following proposal :
                    ORIGINAL PROPOSAL                                                  AMENDED PROPOSAL
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European
Community, and in particular Article 235 thereof,
Having regard to the Treaty establishing the European
Atomic Energy Community, and in particular Article 203
thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European
Parliament,
Having regard to the opinion of the Court of Auditors .
Whereas the European Council, meeting in Edinburgh                   Whereas the institutions have agreed, in the Interinstitu­
on 11 and 12 December, agreed that a Guarantee Fund                  tional Agreement of 29 October 1993 , to enter in the
should be established to cover loan guarantees to                    general budget a reserve for loans and loan guarantees :
non-member countries ;
Whereas the general budget is exposed to increased
financial risk as a result of the guarantees covering loans
to non-member countries ;
Whereas mechanisms currently exist for honouring guar­
antees when they are activated, in particular by drawing
provisionally on cash resources, as provided for in
Article 12 of Council Regulation (EEC, Euratom)
No 1552 / 89 implementing Decision 88 / 376 / EEC,
Euratom on the system of the Community's own
resources (*), as last amended by Regulation (EEC,
Euratom) No . . .;
O OJ No L 155 , 7 . 6 . 1989 , p . 1 .
 ---pagebreak---   No C 68 / 18                        Official Journal of the European Communities                               5 . 3 . 94
                     ORIGINAL PROPOSAL                                              AMENDED PROPOSAL
 Whereas it is necessary for these mechanisms to be
 reinforced by making provisions fot the risk of default;
 Whereas it is possible to meet this need by the
 establishment of a Guarantee Fund which may be drawn
 on to pay the Community's creditors direct ;
 Whereas the Guarantee Fund should be constituted by
 the gradual payment of resources ; whereas the Fund will
 subsequently also receive interest on its invested
 resources and late repayments by defaulting debtors after
 the Fund has paid creditors ;
 Whereas, by reference to the practice of international
 financial institutions, a ratio of 10 % between the
 Guarantee Fund's resources and guaranteed liabilities in
 principal would seem adequate ;
 Whereas initial payments to the Guarantee Fund equal to
  14 % of the amount of each operation would seem
 appropriate to attain this target amount;
 Whereas, once this amount is attained, payments to the
 Guarantee Fund could then be limited to 10 % of the
 amount of new operations ; whereas if the Guarantee
 Fund exceeds this amount, the surplus will be paid back
 to the budget;
Whereas management of the Guarantee Fund by the
 Commission will ensure effective and rapid implemen­
 tation ;
                                                                Whereas, to ensure maximum transparency for oper­
                                                                ations relating to the Fund, payments from the Fund and
                                                                late repayments received from defaulting debtors should
                                                                be recorded in the general budget to enable the Court of
                                                                Auditors to conduct its controls ;
Whereas the Treaties do not provide any powers other
than      those under Article     235  and   Article  203 ,
respectively, for the adoption of this Regulation,
HAS ADOPTED THIS REGULATION :
                          Article 1
A Guarantee Fund, hereinafter referred to as 'the Fund',
shall be established, the purpose of which shall be to
repay the Community's creditors direct in the event of
default by the beneficiary of a lending operation
guaranteed by the general budget.
 ---pagebreak---   5 . 3 . 94                             Official Journal of the European Communities                        No C 68 / 19
                      ORIGINAL PROPOSAL                                             AMENDED PROPOSAL
  The operations referred to in the first subparagraph shall
  be covered by the Fund only if the beneficiaries are
  non-member countries or a person not resident in the
  Community.
                            Article 2
 The Fund shall be endowed' by :
 — payments from the general budget corresponding to a             — payments from the general budget corresponding to a
       set percentage of each operation for a non-member              set percentage of each operation for a non-member
       country, decided on and committed by the                       country, decided on and committed by the
       Community and guaranteed by the budget,                        Community and guaranteed by the Communities
 — interest on Fund resources invested,
 — amounts recovered from defaulting debtors where the
       Fund has already honoured the guarantee.
                            Article 3
 The Fund shall rise to an appropriate level, known as
 'the target amount', determined by reference to
 guaranteed liabilities .
 The target amount shall be 10 % of the Community's
 outstanding liabilities in principal arising from loans and
 loan guarantees granted by the Community.
 If, at the end of a year, the Fund exceeds this amount,
 the surplus shall be paid back to a special heading in the
 statement of revenue in the budget.
                           Article 4
 The payments provided for under the first indent of
 Article 2 :
— shall be equivalent to 14 % of the value of the
      operation until the Fund reaches its target amount,
— shall be reduced to 10 % when the target amount is
      reached .
                           Article 5
If, as a result of the activation of guarantees, resources
in the Fund fall below 75 % of the target amount, the
rate of provisioning on new operations shall be raised to
15 % until the target amount has been reached.
If a guarantee is activated before the Fund reaches its
target amount and the resources in the Fund fall below
75 % of the target amount as a result, the rate of provi­
sioning shall be raised to 15 % until the amount drawn
has been fully restored.
 ---pagebreak--- No C 68 /20                            Official Journal of the European Communities               5 . 3 . 94
                    ORIGINAL PROPOSAL                                            AMENDED PROPOSAL
If, as a result of the activation of guarantees, the
resources in the Fund fall below 50 % of the target
amount, the budgetary authority, acting on a proposal
from the Commission, shall decide on measures to
replenish the Fund.
                          Article 6
The Fund shall be managed by the Commission, which
shall adopt rules satisfying the principles of prudence and
sound financial management.
                          Article 7
The Commission shall, by no later than the following 31
March, send to the European Parliament, the Council
and the Court of Auditors an annual report on the
situation of the Guarantee Fund and the management
thereof in the previous year.
                          Article 8
The revenue and expenditure account and the balance
sheet relating to the Fund shall be attached to the
Communities' revenue and expenditure account and
balance sheet.
                          Article 9
This Regulation shall enter into force on the seventh day
following its publication in the Official Journal of the
European Communities.
This Regulation shall be binding in its entirety and
directly applicable in all Member States .