CELEX: 51976PC0491
Language: en
Date: 1976-09-15
Title: COMMUNITY LOAN Consolidation of a $ 100 million tranche of the variable interest rate roll-over credit (Proposal of a decision submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 491
Vol. 1976/0147
 ---pagebreak--- Disclaimer
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concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
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file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak--- /
    COMMISSION OF THE EUROPEAN COMMUNITIES
                                              COM(76)491 final.
                                                          \
                                              Luxembourg , 15 September 197 o .
                                                                                \
  ;                        .                                     /
                                 COMMUNITY LOAN
          Consolidation of a $ 100 million tranche of the variable interest
                             rate roll-over credit
                              (Proposal of a decision
                    submitted to the Council by the Commission )
     COM(76 ) 491 final .
 ---pagebreak---               PROPOSAL FOR A COUNCIL DECISION"
THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the European Economic
Community
Having regard to Regulation ( EEC ) number 397/ 75 of 17th February
1975 concerning community loans ( 1 ) and in particular the second
paragraph of Article 2, and Article 3 thereof
Having regard to the proposal from the Commission , which for this
purpose consulted the Monetary Committee
Whereas by Decision 76/ 322 / EEC ( 2 ) of the 15 March 1976, the Council
authorized the Commission to conclude a series of borrowing operations
which form a package including ti particular ( Article 1 , sub paragraph
4 )" a variable interest-rate loan of U.S. 2 300 million for five years
from a syndicate qf banks , and whereas this borrowing has been made
Whereas it is in the interests of both the Community and of the
Member States benefitting from the Decision of the 15 March 1976 ,
to change the Community loans from variable to fixed rates of
interest
Whereas the Council has therefore authorised the Commission to ini­
tiate negociations with a view to carrying out one or more operations
to fund     this variable interest loan , by means of a loan or loans at
fixed interest .
Whereas these negociations have led to the possibility of carrying
out a fixed interest borrowing operation for U.S. $ 100 million ,
 corresponding to the tranche of the variable interest rate loan repaya­
ble on the 15 October 1976 on the Commission 's initiative .
Whereas the terms of the loan to the Italian Republic       and to Ireland
must therefore be altered
 ( 1 ) 0J N° L 46 , 20.2.75 , p.1
 ( 2 ) 0J N° L 77 , 24.3.76, p. 2
 ---pagebreak--- HAS ADOPTED THIS DECISION
                 ARTICLE  1
The Commission is authorized to exercise its right to prepay one
tranche of U.S. £ 100 million of the variable interest rate bank
loan , and to take all necessary measures in that connexion .
                 ARTICLE 2
The Commission shall be authorized to take all actions and execute
all documents necessary , proper or desirable to conclude , on behalf
of the Community , a public issue in the United States of notes
denominated in U.S. dollars underwritten by various investment
banking firms , as indicated below , on the following major terms :
Form of loan :           bearer coupon notes in the denomination of
                         U.S. t 1,000 ; registered notes in the denomi­
                         nation of U.S. 2 1,000 and any multiple thereof
Total amount   :         U.S. 8 100 millr»n
Redemption :             at par after five years
Payment of
interest  :              semi-annually , on April 1 and October 1 ,
Managing
Underwriters             Managing Underwriter : Morgan Stanley & C°
                                                  Incorporated
                         Co-Managers : The First Boston Corporation
                                        Kuhn , Loeb & C°
                                        Lehman Brothers Incorporated
                                        Salomon Brothers
The rate of interest on , and public issue price for , the aforesaid
notes will be fixed by agreement between the Commission , or such
agents as it may designate , and the underwriters .
 ---pagebreak---                      ARTICLE 3
The Commission is authorized to execute the necessary contracts
in the name of the Community /, with the Italian Republic       and
Ireland :
- for repayment by these Member States of their portion of the
proceeds of the variable interest rate bank loan to be repaid by the
Community , and
- to lend the Italian Republic      and Ireland respectively 10 / 13
and 3/ 13 of the proceeds of the borrowing operation carried out
under the terms of Article 2 , and in the same currencies and on
the same terms as the said operation .
                    ARTICLE 4
Council Decisions 76 / 323 / CEE and 76 / 324/ CEE of the 15 March 1976
fixing the economic policy conditions to be observed by the
Italian Beoublic     and Ireland stand unchanged .
                    ARJIÇLE 5
The fin & .icial operations resulting from this decision shall be
carried out by the European Monetary Cooperation Fund .
                    ARJIÇLE 6
This decision is addressed to the Member States
                         Done at Brussels ,                  1976 .