CELEX: 51974PC1720
Language: en
Date: 1974-10-16
Title: DRAFT REGULATION IMPLEMENTING REGULATION NO ....... CONCERNING COMMUNITY LOANS (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 1720
Vol. 1974/0275
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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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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
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 ---pagebreak--- i
    COMMISSION OF THE EURQPEAN CCMMUNITIES
    Secretariat-General                                   COM(74)1720 final
                                                          Strasbourg, 16 October 1974
                          DRAFT REGULATION IMPLEMENTING REGULATION
                           NO         CONCERNING COMMUNITY LOANS
                      ( submitted to the Council by the Commission)
  COM(74 ) 1720 final
 ---pagebreak---                DRAFF REGULATION IMPLEMENTING
               REGULATION NO        CONCERNING
                     COI4MUNITY LOANS
The Council of the European Communities ,
Having regard, to the Treaty establishing the European Economio Community;
Having regard to Council Regulation No               of               ••••••
concerning Community loans , and in particular Article 6 thereof;
Having regard to the proposal from the Commission, which has for this '
purpose oonsulted the Monetary Committee ;
Whereas Regulation No ...... provides that the Community shall as neoessary
undertake operations to aoquire funds to re-lend to one or more Member States
in balanoe of payments difficulties due to the increase in the price of
                                                                           .1
petroleum products ;
                                                                          .
Whereas , in order to ensure that the Community debt is at all times duly
serviced , as regards "both capital and interest , it is essential to define
the conditions under which the Community shall "be entitled to reoeive from
the other Member States the necessary foreign exchange if the debtor Member
State finds itself unable to make payment on the due date or dates ;
Whereas a procedure must be provided whereby examination may be made both
of the circumstances preventing a debtor Member State from meeting its
obligations in respect of the debt and of those in whioh a Member State
might be exempted f*om the arrangements for the Member States to provide
the Community with the foreign exchange due from the debtor Member : State ;
                                                            »,
HAS ADOPTED THIS REGULATION :                                             ,
 ---pagebreak---  Article 1
Where it is found , in accordance with the procedure laid down in Article 5 ,
 that a Member State which has received a loan from the Community is unable
 in whole or in part tc provide the necessary foreign exchange to make a
 payment falling due in respect of such loan, the other Member States shall
be under an obligation to provide the Community in the proportions specified
 in Article 2 with this foreign exchange .
Article 2
The foreign exchange retired of the Member States pursuant to Article 1
shall be provided by them in the following proportions *
         Germany           22.02%      Italy                 14.68%
         United Kingdom    22.02%      Belgium/Luxembourg     7 . 34 /°
         France            22.02f<>    Netherlands .          7.34 /°
                                       Denmark                3.30%
                                       Ireland                1.28#
This scheme of apportionment shall be applied by dividing the total finano-
ing requirement among the other Member States in the prescribed proportions
without taking account of the debtor Member State 's quota.
Article 3
If under the procedure provided for in Article 6 one or more Member States
are temporarily exempted in whole or in part from providing the Community;
with foreign exchange due from the debtor Member State , the scheme of appor­
tionment set out in Article 2 shall be applied without taking account of the
quotas of these Member States .                                           »
Article 4
However, no Member State may be required to provide the Community with an
amount of foreign exchange which exceeds the appropriate percentage as    i
follows of the total amount of the loan t
 ---pagebreak---                                      - 3 -
/
                 Germany            44.047»     Italy                  29.36$       j
                 United. Kingdoffi  44.04$      Bel gium/Luxembourg    14.68$
                 France             44.04$      Natherlanâ»            14.68$
                                                Denmark                 6.60$
                                                Ireland                 2.56$
     2 . If this limit is reached and there remains a "balance to "be financed , this
         latter shall be divided in proportion to their original quotas among the
         Member States which otherwise would have been completely exempted front
         participating in the operation.
         Article 5                                                                   i
    1 . When a Member State receives a loan from the Community, the Commission in
         collaboration with the Monetary Committee and the Committee of Governors
         shall take the necessary measures to verify that the economic policy of this
         State acoords with the conditions laid down by the Council pursuant to
         Article 5 of Regulation No          of                 .   To this end, the
         Member State shall place at the disposal of the Commission all the necessary
         information .                                                             '
    2 . Such action shall be strengthened as the date for the repayment of the first
         instalment of capital approaches,                                         '
                                                                                   ι
    3 . Should it appear that a State may have difficulty in making a payment 'on
      , the due date , the Commission in collaboration with the Monetary Committee
         and the Committee of Governors shall , sufficiently in advance of the due
         date, make a special examination of the situation.     This examination 'shall
         be concerned in particular with the financing arrangements available io the
         debtor State both within and outside the Community.        ••            1
  • 4 . If this examination indicates that the debtor Member State will be partly
         or wholly unable to make payment on the due date , the Commission shall pro­
         pose to the Council that it implement the refinancing arrangements described
         in Articles 2-4 above .   The Counoil shall decide upon such proposal j>y a
         qualified majority.                                                     ;
                                                                                 !
         If the examination raises serious doubts as regards the debtor Member State 's
         alleged incapacity to pay. the Commission shall make a report to the Council ,
         which may include a proposal that it implement the refinancing arrangements .
         In the absence of such a proposal , the debtor Member State may make applica­
         tion to the Council , which shall decide thereon by qualified majority after
         consulting the Monetary Committee and the Committee of Governors#
 ---pagebreak--- Article 6
Any Member State which wisnea to be exempted from participating in
refinancing arrangements owing to balance of payment difficulties and/or
serious deterioration in its foreign reserve position shall make known it
reasons at the examination provided for in Article 5 ( 3 ).   The procedure
provided for in Article 5 ( 4 ) shall apply to such request .
Article 7
Any Member State which has been exempted m whole or in part , whether as
regards a payment in respect of its own loan or as regards participation
in refinancing arrangements , shall be under an obligation to make payment
or to provide its share as soon as its balance of payments situation and
foreign exchange reserve position so permit .
This Regulation shall be binding in its entirety and directly applicable
in all Member States .
                                     Done at Brussels ,
                                     For the Council ,
                                     The President .
 ---pagebreak---                                    - 3 -
                                                                 νί /,-'Λ              t
                                                                 ·%
                Germany           44.04%      Italy                       29.36$      J
                United. Kingdom   44.04$      Belgiura/Luxembourg         14.68/»
                France            44.04$      Natherlanda                 14.637»      s
                                              Denmark                      6.60>
                                              Ireland                      2.56$       ;
   2 . If this limit is reached and there remains a "balance to "be financed, tnis
        latter shall be divided in proportion to their original quotas among the
       Member States which otherwise would have "been completely exempted front
       participating in the operation.
       Article 5                                                                       i
  1 . When a Member State receives a loan from the Community, the Commission in
       collaboration with the Monetary Committee and the Committee of Governors
       shall take the necessary measures to verify that the economic policy of this
       State acoords with the conditions laid down by the Council pursuant to
       Article 5 of Regulation No          of                 ,      To this end, the
       Member State shall place at the disposal of the Commission all the neoessary
       information .                                                                 '
  2 , Such action shall be strengthened as the date for the repayment of the first
       instalment of capital approaches,                                             '
                                                                                     ι
  3 . Should it appear that a State may have difficulty in making a payment 'on
    , the due date , the Commission in collaboration with the Monetary Committee
       and the Committee of Governors shall , sufficiently in advance of the due
       date, make a special examination of the situation.     This examination shall
       be concerned in particular with the financing arrangements available io the
       debtor State both within and outside the Community.           «■ .   '       1
• 4 . If this examination indicates that the debtor Member Stats will be partly
       or wholly unable to make payment on the due date , the Commission shall pro­
       pose to the Council that it implement the refinancing arrangements desoribed
       in Articles 2-4 above .   The Council shall decide upon such proposal fry a
       qualified majority.                                                         <
                                                                                   1
       If the examination raises serious doubts as regards the debtor Member State 's
       alleged incapacity to pay, the Commission shall make a report to the Council ,
       which may include a proposal that it implement the refinancing arrangements .
       In the absence of such a proposal , the debtor Member State may make applica­
       tion to the Council , which shall decide thereon by qualified majority, after
       consulting the Monetary Committee and the Committee of Governors*          j
                                                                                  ;      ./.
 ---pagebreak--- Article 6
Any Member State which wisnea to be exempted from participating in
refinancing arrangements owing to balance of payment difficulties and/or
serious deterioration in its foreign reserve position shall make known it
reasons at the examination provided for in Article 5 ( 3 ). The procedure
provided for in Article 5 ( 4) shall apply to such request .
Article 7
Any Member State which has been exempted m whole or in part , whether as
regards a payment in respect of its own loan or as regards participation
in refinancing arrangements , shall be under an obligation to make payment
or to provide its share as soon as its balance of payments situation and
foreign exchange reserve position so permit .
This Regulation shall be binding in its entirety and directly applicable
in all Member States .
                                    Done at Brussels ,
                                    For the Council ,
                                    The President .