CELEX: 51987PC0347
Language: en
Date: 1987-07-08 00:00:00
Title: RECOMMENDATION FOR A COUNCIL DECISION ON THE CONCLUSION OF THE SECOND PROTOCOL ON FINANCIAL COOPERATION BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA

1.9.87                           Official Journal of the European Communities                           No C 235/5
                                                        II
                                                (Preparatory Acts)
                                          COMMISSION
       Recommendation for a Council Decision on the conclusion of the Second Protocol on financial
       cooperation between the European Economic Community and the Socialist Federal Republic of
                                                   Yugoslavia
                                               COM(87) 347 final
                          (submitted by the Commission to the Council on 15 July 1987)
                                                 (87/C 235/05)
       THE COUNCIL OF THE EUROPEAN COMMUNITIES,
       Having regard to the Treaty establishing the European Economic Community, and in
       particular Article 238 thereof,
       Having regard to the recommendation from the Commission,
       Having regard to the assent of the European Parliament,
       Whereas the Protocol on financial cooperation between the European Economic Community
       and the Socialist Federal Republic of Yugoslavia signed on . . . should be approved,
       HAS DECIDED AS FOLLOWS:
                                                     Article 1
       The Second Protocol on financial cooperation between the European Economic Community
       and the Socialist Federal Republic of Yugoslavia is hereby approved on behalf of the
       Community.
       The text of the Protocol is attached to this Decision.
                                                     Article 2
       The President of the Council shall give the notification provided for in Article 16 paragraph 2
       of the Protocol.
                                                     Article 3
       This Decision shall enter into force on the day following its publication in the Official Journal
       of the European Communities.
 ---pagebreak--- No C 235/6                            Official Journal of the European Communities                                   1.9.87
             Second Protocol on financial cooperation between the Socialist Federal Republic of Yugoslavia
                                         and the European Economic Community
             THE COUNCIL OF THE EUROPEAN COMMUNITIES,
             on the one part, and
             THE FEDERAL EXECUTIVE COUNCIL OF THE ASSEMBLY OF THE SOCIALIST FEDERAL
             REPUBLIC OF YUGOSLAVIA,
             on the other part,
             REAFFIRMING their resolve to implement, in the framework of the Mediterranean policy of
             the enlarged Community, cooperation which will contribute to the economic development of
             Yugoslavia and promote the strengthening of relations between the Community and Yugo-
             slavia,
             ANXIOUS to pursue to this end the financial cooperation provided for in the Cooperation
             Agreement,
             HAVING DECIDED to conclude this Protocol and to this end have designated as their
             Plenipotentiaries:
                         Article 1                               including its feeder roads and the remaining part shall be
                                                                 used to finance other development projects.
The Community shall participate, within the framework
of financial cooperation provided for in the Cooperation
Agreement between the EEC and the Socialist Federal              3. (a) Projects shall be examined for eligibility and loans
Republic of Yugoslavia, and according to the conditions                  granted in accordance with the detailed rules,
specified in this Protocol, in the financing of projects                 conditions and procedures laid down by the
designed to contribute to the economic development of                    Bank's Statute.
Yugoslavia and in particular those of common interest to
Yugoslavia and the Community.                                       (b) Loans granted by the Bank shall be subject to
                                                                         terms as to duration established on the basis of
                                                                         the economic and financial characteristics of
                         Article 2                                       projects, also taking into account the conditions
For the purposes specified in Article 1 and for a period                 obtaining on the capital markets on which the
expiring on 30 June 1991, an aggregate amount of 550                     Bank procures its resources.
million ECU may be committed in the form of loans
from the European Investment Bank, hereinafter called               (c) The interest rate shall be determined in
'the Bank' granted from its own resources in accordance                  accordance with the Bank's practice at the time of
with the arrangements, conditions and procedures laid                    signature of each loan contract.
down in its statute.
                                                                                           Article 4
                         Article 3
                                                                 1. The amounts to be committed each year shall be
1. The amount fixed in Article 2 shall be used to part           distributed as evenly as possible throughout the period of
finance specific capital projects submitted to the Bank          application of this Protocol. During the initial period of
with the agreement of the Socialist Federal Republic of          application, however, a proportionately higher amount
Yugoslavia by banks or organizations of associated               may, within reasonable limits, be committed.
labour having their seat in Yugoslavia.
                                                                 2. Any funds not committed by the end of the period
2. The major part of this amount shall be used to                referred to in Article 2 may be used, until exhausted. In
finance projects concerning transport infrastructures of a       that event the funds shall be used under the same
common interest, in particular the transyugoslav highway         conditions as provided for in this Protocol.
 ---pagebreak--- 1.9.87                                    Official Journal      European Communities                             No C 2 3 5 / 7
                           Article 5                                                        Article 10
Loans granted by the Bank for the execution of projects            Yugoslavia shall take the necessary measures to ensure
may take the form of co-financing in which, in                     that interest and all other payments due to the Bank in
particular, Yugoslav banks and the credit bodies and               respect of loans granted in the context of financial
institutions of Member States or of third States, or inter-        cooperation are exempted from any taxes or levies
national finance organizations, would take part.                   imposed by the federal authorities, the republics, the
                                                                   autonomous provinces or the communal authorities.
                           Article 6                                                        Article 11
Organizations of associated Labour established in                  The provision of a guarantee by the Socialist Federal
accordance with Yugoslav law, whether or not including             Republic of Yugoslavia or other sufficient guarantees
foreign participations, shall have access on equal terms to        shall be required by the Bank as a condition for granting
the financing earmarked for financial cooperation.                 loans.
                                                                                            Article 12
                           Article 7
                                                                   Throughout the duration of the loans accorded pursuant
The execution, management and maintenance of projects              to this Protocol, Yugoslavia shall undertake to take all
financed within the framework of financial cooperation             necessary measures in conformity with its national
between the Socialist Federal Republic of Yugoslavia and           legislation to make available to debtors enjoying such
the European Economic Community shall be the                       loans and to guarantors of the loans the foreign currency
responsibility of the beneficiaries referred to in Article 3       necessary for the payment of interest, commission and
paragraph 1.                                                       other charges and repayment of the principal.
The Bank shall ensure that its loans are utilized in                                        Article 13
accordance with the agreed allocations and under                   The results of financial cooperation may be examined
optimum economic conditions.                                       within the Cooperation Council.
                                                                                            Article 14
                           Article 8
                                                                   One year before the expiry of this Protocol, the
All natural and legal persons coming within the scope of            Contracting Parties shall examine what arrangements
the Treaty establishing the European Economic                       could be made for financial cooperation during a
Community and all legal persons of the Socialist Federal           possible further period.
Republic of Yugoslavia may participate on equal terms in
tendering procedures and other procedures for the                                            Article 15
award of contracts likely to be financed. Such legal
                                                                   This Protocol shall be annexed to the Cooperation
persons formed in accordance with the law of a Member
                                                                   Agreement between the European Economic Community
State of the EEC or of the Socialist Federal Republic of
                                                                    and the Socialist Federal Republic of Yugoslavia signed
Yugoslavia must have their registered offices, their
                                                                    in Belgrade on 2 April 1980.
 administrative head offices or their principal
establishments in the teritories in which the Treaty                                         Article 16
 establishing the EEC is applied or in the Socialist Federal
 Republic of Yugoslavia; however, where only their                  1. This Protocol shall be subject to approval in
 registered ofices are in those territories or in the Socialist     accordance with the Contracting Parties' own pro-
 Federal Republic of Yugoslavia, the activities of such             cedures; the Contracting Parties shall notify each other
 legal persons must be effectively and continuously linked          that the procedures necessary to this end have been
with the economy of those territories or of the Socialist           completed.
 Federal Republic of Yugoslavia.                                    2. This Protocol shall enter into force on the first day
                                                                    of the second month following the date on which the
                                                                    notifications provided for in paragraph 1 have been
                           Article 9                                given. .
 Yugoslavia shall apply to contracts awarded for the                                         Article 17
 execution of projects financed within the framework of
 financial cooperation fiscal and customs arrangements at           This Protocol is drawn up in two original copies in the
 least as favourable as those applied in respect of most            Danish, Dutch, English, French, German, Greek, Italian,
 favoured state or most favoured international organiz-             Portuguese, Spanish and Serbo-Croat languages, each of
 ation in the field of development.                                 these texts being equally authentic.