CELEX: 51977DC0075
Language: en
Date: 1977-03-09
Title: COMMUNITY LOAN: FUNDING OF A US $100 MILLION TRANCHE OF THE VARIABLE INTEREST RATE ROLL-OVER CREDIT (submitted by the Commission to the Council)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 75
Vol. 1977/9003
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 ---pagebreak---                                                                COM(77)75 final
                                                              Bruxelles, le 9 March 1977
       COMMISSION
            DES
COMMUNAUTES EUROPEENNES
      Secrétariat général
                       COMMUNITY LOAN :   FUNDING OF A US Sim MILLION TRANCHE
                                         OF THE VARIABLE INTEREST RATE ROLL-OVER
                                         CREDIT
                                                    VARIABLE
                                                    <&*■
                             ( submitted by the Commission to the Council )
 ---pagebreak---                                                          11 / 155 / 77-E
                            Proposal for a
                           COUNCIL DECISION
         concerning the conversion of a tranche of a Community
         variable interest rate loan into a fixed interest rate loan
  THE COUNCIL OF THE EUROPEAN COMMUNITIES-
       %                 .
  Having TOgard to the Treaty establishing the European Economic Community ,
  Having regard to Council Regulation ( EEC ) N° 397/ 75 of 17 February 1975
                                 (1>
  concerning Community loans , and in particular the second paragraph of
  Article 2 , and Art\flie 3 thereof .
  Having regard to the prGjfj^sal from the Commission, which for this purpose
  consulted the Monetary Con^fittee,
  Whereas , by Council Decision 76/ 322/ EEC of 15 March 1976 concerning a
                                                                         (2)
  Community loan in favour of the Iti^an Republic and of Ireland             , the
  Commission has been authorized to com&ude , on behalf of the Community , a
  series of borrowing operations which for^Q^ package including , in particular ,
  a variable interest rate loan of US t 300 ^folion for five years from a
  syndicate of banks , as provided for by Article 1(4 ); whereas this borrowing
  has been made ;
   Whereas it is in the interests of both the Community Sral the Member States
   benefiting from the said Decision to change the Communit^5£pans from variable
   to fixed rates of interest ;                                    ty*
   Whereas the Council has , therefore , authorized the Commission to initiate
   negotiations to this end;                                                  ^
   Whereas these negotiations have made possible the first loan funding o^<ation
   of US t 100 million which was the subject of Council Decision 76/ 771 / EEC ^
 1 ) 0J N° L 46 , 20.2.1975 , p.1
2 ) 0J N° L 77 , 24.3.1976 , p. 12
             >
 ---pagebreak--- 20 September 1976         whereas a further operation , also for an amount of US
t 100 million , would seem possible in the form of a fixed interest rate bank
loan ;
Whereas the financial terms of the loan to Ireland and to the Italian Republic
must , therefore , be altered ,
HAS ADOPTED THIS DECISION      :
      I                               ARTICLE 1
 TheVfojimission shall be authorized to exercise the right to prepay one tranche
 of US W^po million of the variable interest rate bank loan referred to in
Article 1^(> of Decision 76/ 322/ EEC , and to take all necessary measures to
 that end .
                       ty         . ARTICLE 2
 The Commission shall be aqj^horized to take all actions and execute all dec –-.en
 necessary , proper or desirable to conclude , on behalf of the Community ,
 agreement for a loan denominated in US dollars with a syndicate of banks ,
 on the following major terms            A,
                                           X
 Form of loan                  . :        a single, overall loan contract
                                                 %
 Total amount                      :      US S 100 million
 Rédemption                        :      in three tranche«£
                                          US t 25 million afvaj' three and a hal * ear
                                                              %£oui and a half . .- ars
                                          US t 45 million afteW^our
                                          US £ 30 million after vw,e and a half years
                                                                  %
 Payment of interest               :      annually
 Leading bank                      :      Algemene Bank Nederland
                                                                               %
 The rate of interest shall be fixed by agreement between the Commission , or
 such agents as it may designate , and the banks .
                                                                       • .i• •
( 3 ) OJ . N° L 265 , 29.9.1976 , p. 27
 ---pagebreak---                                 ARTICLE 3
The Commission shall be authorized to conclude the necessary agreements c.~
behalf of the Community , with Ireland and the Italian Republic ,
- 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
        I
- to lend Ireland and the Italian Republic respectively three-thirteenths
    ar^j^en-thirteenths of the proceeds of the borrowing operation carried cut
    in a<$j^rdance
          g^aance with
                   wixn Article
                          « rticie 2,
                                    t and in the same currencies and on the sare
    terms a^&he
          a^Skhe said operation .
                                ARTICLE 4
Council Decisions 76/*^/EE-C ( 1 )and 76/324/EEC(2) of 15 March 1976 fixing
the economic policy conc^i^pns to be observed by Ireland and by the Italian
Republic shall remain in force .
                                ARTICLE 56.
                                        %
                                          %
The financial operations referred to in^j^is Decision shall be carried out
                                  *         Ti
by the European Monetary Co-operation Funcre^?
                             ■  ARTICLE 6
                                                          V
This Decision is addressed to the Member States .           fy,
                                                              %•
                                                                %
                                                      Done at Brussels .
                                                      For the Counci l
                                                      Tka President
                                                      The Di*aci /^ûr\f
                                                                          \  VV
                                                                               %
( 1 ) OJ N° L 77 / 24.3 . 1976 , p. 15
( 2 ) OJ N° L 77 , 24.3.1976 , p. 16