CELEX: 51991PC0140
Language: en
Date: 1991-04-19
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING REGULATION ( EEC ) NO 599/91 INTRODUCING A CREDIT GUARANTEE FOR EXPORTS OF AGRICULTURAL PRODUCTS AND FOODSTUFFS FROM THE COMMUNITY TO THE SOVIET UNION

COMMISSION OF THE EUROPEAN COMMUNITIES
                                             C0M(91) 140 final
                                             Brussels, 19 April 1991
                              Proposal for a
                        COUNCIL REGULATION (EECÏ
    amending Regulation (EEC) No 599/91 introducing a credit guarantee
  for exports of agricultural products and foodstuffs from the Community
                            to the Soviet Union
                      (presented by the Commission)
 ---pagebreak---                              Explanatory Memorandum
 Subject : Amendment to Council Regulation H' 599/91 of Search 1991
           (OJ 1991, L 67).
 Under Article 2 of Regulation 599/91, introducing a credit guarantee for
 exports of agricultural products and foodstuffs from the Community to the
 Soviet Union, the Commission is charged, in consultation with a committee
 composed of Member State representatives, with negotiating an agreement
 between the Community and the Soviet Union. Article 2 provides also that the
 agreement shall contain, inter alia, the provision governing the loans that
 will be granted to the Soviet Union.
 During the discussion that have taken place with the Soviet delegation on the
 terms of the agreement, the Soviet side indicated that the repayment schedule
of the loan envisaged in Article 3 of the Regulation, is not acceptable to
 them in view of repayment obligations on their side from previous credit
guarantee contracts. It was clearly stated by the delegation that they were
unable to start the reimbursement of the Community loan before 1993. Instead
of the 6 equal six-monthly instalments as from expiry of the drawing period
provided for by Art. 3 of the Regulation, the Soviet side therefore proposed
to repay the loans by means of 3 equal payments, respectively 20, 31 and 42
months after the date of signature of the agreement.
The Commission believes that it is in the interest of all parties concerned
to modify the terms of repayment. Therefore, the Commission proposes the
modification of Article 3 of the Regulation as presented in the attached
proposal. Adoption of this proposal, after consultation of the European
Parliament, at the earliest convenience, is required without delay to
conclude the agreement with the Soviet Union before the end of May.
                     i
This proposal has no impact on the budget of the Community.
                                                                               h
 ---pagebreak---                                      Proposal for a
                          COUNCIL REGULATION (EEC) No      /
                                           of
          amending Regulation (EEC) No 599/91 introducing a credit guarantee
        for exports of agricultural products and foodstuffs from the Community
                                  to the Soviet Union
  THE COUNCIL OF THE EUROPEAN COMMUNITIES,
  Having regard to the Treaty establishing the European Economic Community, and in
  particular Articles 113 and 235-thereof,
  Having regard to the proposal from the Commission,
  Having regard to the opinion of the European Par I lament,
  Whereas Council Regulation (EEC) No 599/91 of 5 March 1991(1> introduces a
  credit guarantee for the Soviet Union to import agricultural products and
  foodstuffs from the Community; whereas, at the request of the recipient country,
  the conditions for the reimbursement of the loans originally provided for should
 be altered in order to take account of commitments entered into previously,
 HAS ADOPTED THIS REGULATION:
                                       Article 1
 Article 3 of Regulation (EEC) No 599/91 is hereby replaced by the following:
 "Article 3
The credit for which repayments are covered by the guarantee may not exceed ECU
500 million.    Reimbursement shall involve three instalments of an equal
amount, paid 20, 31 and 42 months from the signing of the agreement provided for
in Art icle 2.
The credit shall be backed by a payment and transfer guarantee of a body
empowered to cover sovereign risk and to authorize foreign currency transfers.
(1) 0J No L 67, 14.3.1991, p. 21.
 ---pagebreak---                                        - 2 -
The period for drawing upon the credit shall be limited to six months as from the
date of signing of the agreement provided for above.   This loan may be drawn upon
 in tranches.  Payment of these tranches shall depend upon the degree to which the
Soviet Union complies with the provisions of the agreement referred to above and
with the conditions laid down for granting the guarantee."
                                     Article 2
This Regulation shall enter into force on the day following its publication in
the Official Journal of the European Communities.
This Regulation shall be blndi-ng in its entirety and directly applicable in all
Member States.
Done at Brussels,                                 For the Council
                                                                                 H
 ---pagebreak---                                                                                 ISSN 0254-1475
                                                                COM(91) 140 final
                                                      DOCUMENTS
EN                                                                                         11
                                  Catalogue number : CB-CO-91-164-EN-C
                                                               ISBN 92-77-71399-2
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