CELEX: 51992PC0242
Language: en
Date: 1992-06-03
Title: Proposal for a COUNCIL DECISION empowering the Commission to indemnity the European Investment Bank against losses under loans for projects in certain countries outside the Community

COMMISSION OF THE EUROPEAN COMMUNITIES
                                               COM(92) 242 final
                                               Brussels, 3 June 1992
           COMMUNICATION FROM THE COMMISSION TO THE COUNCIL
          EXTENSION OF OPERATIONS BY THE EUROPEAN INVESTMENT
                      BANK OUTSIDE THE COMMUNITY
                             Proposal for a
                            COUNCIL DECISION
    empowering the Commission to indemnify the European Investment
  Bank against losses under loans for projects in certain countries
                         outside the Community
                      (presented by the Commission)
 ---pagebreak--- EXTENSION OF OPERATIONS BY THE EUROPEAN INVESTMENT
            BANK OUTSIDE THE COMMUNITY
         (Communication by the Commission)
                                                   <
 ---pagebreak---                             EXPLANATORY   MEMORANDUM
     The Community has an extensive network of relationships with an
     important number of countries with the aim of fostering their
     economic development.
     In    particular,     the    Community's      external      policy     assists
     developments towards a market economy in many countries , towards
     a more efficient       Insertion In the International economy and
     fosters the process of regional Integration.             In recent years the
     Community has intensified its economic co-operation with countries
     which    are   making    sustained    efforts     for    a   sound   economic
     development.
II.  The EIB represents an important element                In the Community's
     external    activity.    It not only contributes to the economic
     co-operation policy of the Community but also intensifies, by its
     presence, the historical links that exist between Member States
     and the beneficiary countries; the extension of the EIB external
     activities    to countries with         which    the EEC has        concluded
     cooperation agreements, will therefore further enhance the impact
     of the EEC in the worId.
III. This extension will be focused on projects of mutual interest, the
     financing of which will be subject to the Bank's usual criteria.
     Decisions to finance a specific project will be taken, on a
     case-by-case basis, by the Board of Directors of the EIB.
     An overall limit of ECU 250 million, per year, shall be set for a
     three-year period; this limit will be reviewed at the end of the
     per iod.
     There was agreement that these loans should benefit from Community
     budget    guarantees. Furthermore,        these     guarantees     should   be
     treated in accordance with what will be agreed as to the future
     treatment of Community guarantees.
IV.  The Commission therefore asks the Council to:
     1.   invite the EIB to extend Its lending operations, up to a limit
          of ECU 250 million per year for a three-year period, to
          projects of mutual        interest   in countries with which the
          Community has concluded co-operation agreements.
     2.   adopt the attached       Decision   providing     a   guarantee    in the
          Communi ty budget,
          note that the Commission will, within the framework of
          budgetary procedure, propose the appropriate budgetary cover.
                                                                                    3
 ---pagebreak---                                  Proposal for a
                                COUNCIL DECISION
    empowering the Commission to Indemnify the European Investment Bank
    against    losses    under   loans  for   projects   In  certain   countries
    outside the Community.
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having    regard    to    the  Treaty   establishing    the   European    Economic
 Community,,and in particular Article 235 thereof,
 Having regard to the proposal from the Commission1,
 Having regard to the opinion of the European Parliament2,
 Whereas the General Affairs Council of 13 and 14 May 1991 agreed, on
 the   basis   of   a   communication    from   the  Commission,    to  a   limited
 extension    of   European     Investment   Bank   operations   in   those   third
 countries     with    which    the   Community    has   concluded    co-operation
 agreements;
 Whereas the Ecofin Council of 8 July 1991 confirmed the orientations of
  the General Affairs Council;
  1    OJ No C
  2    OJ No C
 ---pagebreak--- Whereas the Ecofln Council of 19 May 1992 decided on the guidelines to
be  applied   for  loans    from  the   European    Investment    Bank   granted  in
countries    with   which     the    Community     has  concluded      co-operation
agreements;
Whereas the Council has invited the Bank, and the Bank has agreed, to
make available, in conformity with Its Statutes, loans for projects of
mutual   Interest   that   meet   its usual     criteria   in   certain    countries
outside the Community under the guarantee provided in this Decision;
HAS DECIDED AS FOLLOWS:
                                   Sole Art icle
The Community    shall   fully guarantee      the European     Investment   Bank  In
cases where    the Bank does not receive the payments due under any loan
granted   in  accordance     with   Its  usual    criteria    in   those   countries
outside   the  Community     with   which   the   Community    has   concluded   co-
operation agreements. An overall          limit of ECU 250 million per         year,
shall be set for a three-year period; this limit will be reviewed at
the end of this period.
To this end the Bank and the Commission shall agree on the procedures
for Implementing the guarantee.
Done at Brussels,
                                                                For the Counc
                                                                The President
                                                                                     S
 ---pagebreak--- FINANCIAL RECORD
1.   Budget  line concerned
     Article BO-219: EEC guarantees    for EIB  loans to other countries
     outside the Community.
2.   Reference (legal base)
     To be created by the proposed         decision,  on  the  basis  of
     Article 235 of the Treaty.
3.   Classification of the expenditure
     ObiIgatory.
4.   Description and justification for the action
     The budget entry is intended to provide a budgetary support for
     guarantees offered by the European Community to the European
      Investment Bank to cover loans which the Bank has been asked to
     extend to finance capital investment projects In those countries
     outside the Community with which the Community has concluded co-
     operation agreements.
5.   Nature of the expendlture and method of calculation
      a)  Nature of the expend! Uire
          A guarantee to the European Investment Bank.
     b)   Method of calculation
          A token entry Is proposed given that the amount and timing of
          any call on this budget line cannot be calculated In advance
          and furthermore it Is to be hoped that this budget entry will
          not be called on.
6.    Effect of the action on Intervention credits
      Not applicable.
7.    Financing of Intervention expenditure
      Not applIcable.
8.    Financial  Impact on staff costs and pperations
      Not applicable.
                                                                         £
 ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM (92) 242 final
                                                      DOCUMENTS
EN                                                                               li
                                Catalogue number: CB-CO-92-258-EN-C
                                                             ISBN 92-77-44926-8
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