CELEX: 51988PC0431
Language: en
Date: 1988-07-26
Title: Proposal for a COUNCIL REGULATION (EEC) establishing a financing facility for imports of food products by developing countries from the European Community#Proposal for a COUNCIL DIRECTIVE establishing the terms and conditions of officially supported export credits for agricultural products#(presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (88) 431
Vol. 1988/0159
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 concernant
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar
1983 über die Freigabe der historischen Archive der Europäischen Wirtschaftsgemeinschaft und
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                           COM ( 88 ) 431 final
                                           Brussels , 26 July 1988
                               Proposai for a
                          COUNCIL REGULATION ( EEC )
     establishing a financing facility for imports of food products by
             developing countries from the European Community
                               Proposai for a
                              COUNCIL DIRECTIVE
    establishing the terms and conditions of officially supported   export
                     crédits for agricultural products
                       ( presented by the Commission )
 ---pagebreak---                                                                      C c /y . Ÿ3-i
                             EXPLANATORY liEliORAh'D'JM
1 . Food production in many developing countries is increasing at an
     insufficient rate to cope with demographic growth . Food imports by
     developing countries amount to 100-110 millions tonnes annually , of
     which 10 7, is covered by food aid programmes . Lack of foreign
     exchange and balance of payments difficulties have aggravated the
     situation in low-income food-deficit countries .
     On the other hand, some developing countries are food exporters and
     their ability to service their debt depends on their food exports
     which are directly competing with food exports from developed
     countries .
2 . At the same time , the Community has undertaken major reforms of its
     Common Agricultural Policy with the objective of achieving a better
     balance between supply and demand while ensuring that efforts to
     reduce surpluses do not have disrupting effects and that producers
     participate financially in these efforts .
     In carrying out     CAP    reforms ,     the  Community has  honoured the
     commitments it has made in the context of the conclusions adopted by
     the OECD    Ministerial   and  at    the   Venice  Summit in 1987 .    These
     commitments are also reflected in the negotiating mandate agreed by
     the Community for the negotiations on agriculture in the Uruguay
     Round .
     However , the European Council , at its meeting in February 1988, made
     it quite clear that the Community is taking a firm attitude towards
     the Community 's trading partners'. Firm instruments are therefore
     required in order to ensure greater predictability and stability of
     export markets .
 3 . The Community is currently facing increased competition from its
     Principal trading partner , which has at its disposai a wide range of
      concessional credit and other price reduction schemes in order to
     facilitate food exports to developing countries . As a rc-sult , thè
      Community , ill-equipped in this respect , has been unable to respond
     as favorably as it would wish to developing countries' requests to
     provide similar facilities . This has resulted in :
      i . inappropriate use of the Community's export refunds instrument
          in order to match ternis offered by competilors ;
                                                                                   £
 ---pagebreak---                                                                        2 .-
    ii . recourse to the use of national export credits , which has
         created internal competition problems within the Community .
    In order . to resolve the present unsatisfactory situation , it is
    proposed that the Council should adopt the following strategy : a
    Community instrument should be introduced uliich would combine use of
    the export refund with a concessional credit . aimed at benefitting
    certain food exports from the Community to developing countries ; in
    parallel with the introduction of this instrument , a strict
    framework should be established for Member States' practices
    regarding commercial agricultural export credits in the context of
    the mandate adopted by the Council in 1983 for negotiations on the
    application of the OECD Arrangement on Guidelines for Officially
    Supported Export Credits to agricultural products .
4 . The Commission is particularly conscious of the need to ensure that
    these initiatives should take due account of the Uruguay Round
    Multilateral Trade Negotiations . Quite apart from the fact that
    instruments similar to the proposed financing facility are used
    widely and aggressively by its principal competitor , the Community
    would ensure that this new instrument should conform to budgetary
    discipline .
5 . As regards the framework for officially supported agricultural
    export credits , such a framework would have the advantage of
    clarifying competition rules both inside the Community and outside
    in its relations with third countries . Because of this , it would
    make a solid contribution to the progress of the Uruguay Round
    negotiations .
6 . Finally ,    this dual proposal is compatible with the Single Act as
    regards more     precise budgetary discipline and a firm attitude
     towards the Community 's trading partners ,      and with development
    policy objectives , as recently expressed in the proposed Guidelines
     for the renewal , of the ACP-|j.EC Convention which the Commission has
    communi cated to the Council .
1 ) SEC ( 88 ) 333 .
 ---pagebreak---                                                                           3 .-
A neu Commuriity instrument : the financing facility for imports of food
products by developing count ries from the European Community
7 . A financing facility for food imports by developing countries should
     be established which would provide financing on concessional terms
     with the! dual objective of :
     . meeting developing countries' food import needs on concessional
          terms , where desirable , without damaging export prospects of
          food-exporting developing countries ;
     . contributing to the Community 's efforts to reduce imbalances in
          agricultural markets ,   and enhancing the Community 's food export
          policy .
     The proposcd facility will contribute to an improvoment of the
     global market imba lance both on the demand si de and on the supply
     s i de .
8 . The facility will contribute towards assisting developing countries
     to meet their increasing food requirements , ? nd , in this context ,
     will operate in a coherent fashion vis- a- vis the Community 's
     development policy :
     .    it will not hinder recipient countries' efforts towards a greater
          degree of self-sufficiency and towards a rationalisation of their
          own agricultural policies , but on the contrary will be supportive
          of their adjustment efforts . In particular , counterpart funds
          generated by the concessional terms of the sale will be used in
          support of food policy reforms ;
      .   the facility will be operated uith due account of balance of
          payments cons iderat ions in the récipient countries .      Country
          sélection and timing will be decidcd accord ingly ;
      .   the facility will be operated so as not to hâve a dot r intentai
        • effect on the interests of foed-exporting devc-loping countries ;
      . the facility will be independent from the Community 's food aid
          policy , the scale of which should not be affected by the
          establishment of tire proposed facility .
 9 . The proposed facility will meet the main objectives underlined in
      the Commission' s Green Paper on the perspectives for the Common
      Agricultural Policy .   .
      The facility will constitute an important contribution to the
     overall efforts made to correct long-term imbalances in food markets
      suffering from structural surpluses , in line with the steps taken
 ---pagebreak---                                                                         4 .-
      since 1984 in this respect . For this reason , while the proposed
      facility is compatible with development policy , it is based on
      Article 43 of the Treaty .
      The facility will also be an element of diversification of export
      instruments in the framework of agricultural policy and will enable
      the Community to adapt closely to the diversity of financial
      situations   in those   areas of  the world  where  demand  for  food
      products is likely to grow in the future .
10 . In order to ensure compliance with thè Community's International
      obligations , exports under thè proposed facility will be made in
      accordance with thè FAO's Principles of Surplus Disposai . The
      operation of thè facility will follow thè notification and
      consultation procedures established by thè Committee on Surplus
      Disposai and will comply with thè present 6ATT rules on export
      subsidies .
11 . The scale of exports to be made under the facility will be
      determined in the light of requests from interested importing
      countries and the prevailing market situation . The Commission
      therefore does not propose any target for the volume of exports
      under the arrangement , nor does it propose a limitation on the range
      of products which might be eligible . Budgetary provisions have been
      made under the assumption that during the first year of application,
      the facility would allow exports of approximately 2 million tonnes
      of wheat and 56.000 tonnes of milk produts to take place under
      present market conditions .
12 . Exports under the proposed facility will be made at prevailing world
      market prices but on concessional terms which will include a grant
      element of not less than 35 X , and periods of credit exceeding 3
      years . This grant element , estimated at 76 Mio ECU , should be
       financed by budget credits written in the EA6GF guarantee section of
       the Community Budget .
 13 . The facility will be operated in such a way that the budget bears
       the cost of the grant element , but that the financial markets will
       provide the credit for the remaining cost to the importing country .
       Not only is this similar to other export schemes implemented in the
       Member States , but it also follows cuprent commercial practice and
       would stimulate competition in the financial markets .
       In view of the delicate economic and financial situation of many of
       the importing countries , it will be necessary for the Community
       Budget to guarantee the risks under the facility . Experience with
       other loans by Community institutions to the same countries , careful
       management of the scheme according to detailed criteria , and the
      public status of the Community , should minimise the risk of loss .
 ---pagebreak---                                                                         5 .-
     An alternative option wou ld be for both the grant and credit
     elements of the facility to be fully financed from the Community
     Budget . However, this would imply much higher implementat ion costs .
14 . The administration of the facility will be based on agreements
     concluded on a case-by- case basis between the Community and
     individual recipient countries .
     These agreements will specify that :
     .   the Community would award a facility for the purchase of a
         specified quantity of food products . This facility would consist
         of a grant element and a guarantee on a credit , directly arranged
         by the Community on the financial markets , in favour of the
          importing country , in order to cover the balance of the export
          cost . The Commission would ensure that the grant element and
         proceeds of the credit would be paid in satisfaction of the sale
          price on proof of execution of the supply contract between the
          recipient country and the exporter ;
      .   the recipient country would undertake to maintain its usual
          commercial imports of the products concerned and not to re-export
          the same or similar products during a specified period;
     .    the récipient country will put the products supplied under the
          facility at agreed market prices in order not to disrupt domestic
          production and marketing policies and will undertake to use the
          counterpart funds generated by the concessional terms of the
          crédit in support of agreed objectives within its food policy .
15 . Insofar as decisions on the granting of the facility are concerned
     the Commission, within the existing budgetary and regulatory
      framework , will elaborate proposals which will be sent to a
      Committee composed of representatives of Member States .              In
      accordance with the Oecision 87 / 373/ CEE of the Council of 13 July
      1987, this Committee will be of an advisory nature and will function
      following the procedure defined in Article 2 , Procedure I of the
      above-mentioned Decision .    The Commission does not envisage the
      creation of a new Committee for this purpose as there exists a Food
      Aid Committee which has     competence in the field of development
       cooperation, but is also in a position to appreciate problems
      relating to agricultural exports to developing countries .
                                                                               (o
 ---pagebreak---                                                                           6 .-
A framework for Member states pa l icies conc erni ng agricu l tu rsl export
credits
16 . The Community has been a party to the " Arrangement on Guidelines for
      Officially Supported Export Credits " since its inception in 1978 .
      This arrangement ( also called the " Consensus") is an international
      gentleman 's agreement concluded within the framework of the OECD by
      the main industrialised nations . The Consensus governs the minimum
      conditions to be applied when governments or official public
      agencies finance,      subsidise or guarantee credits to foreign
      purchasers of capital goods arid services .
      The OECD Consensus does not cover agricultural products .    Therefore,
      in order to complete the consensus , the Community , in April 1983,
      agreed a mandate for negotiations with its OECD partners on
      agricultural export credits , on the following lines :
      .   limitation of credit to 180 days , with exceptions up to Iwo years
          subject to prior notification ;
      .   no officially-supported interest rate subsidies ;
      .   a prohibition on tied-aid credits ,   except for operations falling
          within the OECD 's Development Assistance Committee definition of
          official development assistance ;
       .  a commitmerit not to derogate f rom the foregoing conditions .
      Discussions within thè OECD have been at a standstill duo lo thè
      refusai of thè United States to discuss thè issues involved in
      isolation frorn other agricullural quest ioris .
 17 . It is therefore proposed that the Community should introduce a
      framework allowing Member States to apply the terms of the 1983
      negotiating mandate for discussions in the OECD on agricultural
      export credits . The potential would then exist for introducing
      equality .of terms between Community operators and it would also
      resolve the legal questions surrounding national ' subsidies . A
       "matching clause " would be inserted into the framework directive in
      order to allow for terms offered by third countries .       Use of this
      "matching clause " would be subject to a notification procedure to
      Member States and the Commission , and also to prior authorisation by
       the Commission on condition that this procedure would be carried out
      expeditiously .
 ---pagebreak---                                                                          7 .-
                                   *         *
                                        *
13 . In view of the foregoing ,   the Commission proposes that the Council
     should adopt :
     a . a Council   régulation establishing a    financing facility     for
         imports of food products     by  developing  countries  from    the
         European Community ;
     b . a Council Directive establishing the terms and conditions of
         officially supported export credits for agricultural products .
                                                                              £
 ---pagebreak---                               Proposai for a
                         CÛUNCIL REGULATION ( EEC )
   establishing a financing facility for imports of food products by
             developing countries from the European Community
THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the           European  Economic
Community , and in particular Article 43 thereof ;
Having regard to the proposal from the Commission;
Having regard to the opinion of the European Parliament ;
Whereas many developing countries face severe food deficits
constituting a considerable burden on their balance of payments and are
engaged in adjustment policies requiring additional resources ; whereas
these developing countries have asked the Community to make available
agricultural products on concessional terms ; uhereas access to the use
of a medium or long term financing facility will help them to face
their balance of payments difficulties and will provide support to
their adjustment programmes ;
Uhereas such an instrument would be an important contribution to the
 Community 's efforts to reduce structural imbalance between supply and
 demand in the market organisations suffering from surpluses ;
 Whereas the establishment of such a financing facility thus fully meets
 the main objectives of the Community 's export policy on agricultural
 products as well as of internal market policy and constitutes therefore
 an instrument of the common agricultural policy ;
 Uhereas the facility will also be an element of diversification of
 export instruments in the framework of agricultural policy ;
 Uhereas the implementation of the financing facility has to be
 consistent with the recipient country 's own development policy and with
 the development cooperation of the Community with the country
 concerned, and its use should not harm the interests of other
 developing countries , in particular those exporting food products ;
 ---pagebreak---                                                                       2 .-
Whereas the conditions under which agricultural products are made
available to developing countries should be in conformity with the
FAO 's Principles of Surplus Disposal ; whereas conformity with FAO
Principles will be ensured through the supply of food aid being
facilitated by a credit to the importing country of more than 3 years
duration together with a grant element of not less than 35 1 on terms
equivalent to interest rates significantly below commercial rates ,
associated with   the establishment   of  usual marketing  requirements
( UMR );
Whereas in order to meet the above-mentioned objectives ,  the facility
should consist of a grant element financed by the EAG6F , and * a
Community credit guarantee in order to ensure the availability of
credit to the importing country ;
Whereas it is necessary to provide that the facility shall be made
available for food exports at the request of the Government of the
importing country or an agency thereof in the framework of an agreement
between the Commission and the Government of the country concerned ;
whereas it is necessary to provide that the facility shall be
exclusively used for the purchase of food products originating in the
Community ;
HAS ADOPTED THIS REGULATION :
                                Article 1
A financing facility ,   hereafter referred to as " the fc ci lity ",    is
established to allow developing countries to import food products from
the European Community under the conditions laid down in this
regulation .
                                                                            1о
 ---pagebreak---                                                                        3 --
                                    TITLE I
                              General guidelines
                                   Article 2
When deciding on the award of the facility referred to in Article 1 ,
particular consideration shall be given to the following criteria
without excluding other pertinent considerations :
(a)     Insofar as it concerns the countries to which the facility is
        granted,
        - the overall économie situation of the country ,
        - their food import requi rements ,
        - their balance of payments situation,
        - their own efforts in carrying out adjustment policies ,
        - the impact on the agricultural exports of other developing
          countries .
 (b)    Insofar as it concerns the Community ,
        - the development of the Community 's global exports of food
          products and the general situation of the relevant markets ,
        - the    traditional   imports  of   food products by the  country
          concerned from      the Community ,
        - the preferential character of relations between the country
          concerned and the Community ,
        - the crédit risk involved .
                                    Article 3
 The products supplied under this facility shall be marketed in such a
 way so as not to disturb the local market . The implementation of the
 facility    shall be    consistent with the beneficiary country 's own
 development policy , in particular relating to the food and agricultural
 sector , and with the Community 's development cooperation relations . The
 concessional element of the funds resulting from the sale of the
 products shall be used in support of agreed development programmes and
 the implementation of adjustment policies .
                                    Article 4
 1 . The facility awarded pursuant to the Regulation shall provide for a
     period of repayment of more than 3 years . A grant of not less than
     35 X, of the total cost , calculated in accordance with the practice
     followed under the OECD arrangement on export credits,shall be made
     available by the Community for each operation . The balance may
 ---pagebreak---                                                                      4 .-
    consist of a credit in favour of the beneficiary country directly
    arranged by the Community on financial markets , and guaranteed by
    the Community itself .
2 . The facility shall be made available for food imports by the Govern¬
    ment of the beneficiary country or an agency thereof in the
    framework of an agreement between the Commission and the Government
    or Government agency concerned . The above-mentioned agreement shall
    fix the terms of the facility . Its conclusion shall be subject to
    the presentation of a commercial contract stipulating all the
    provisions relative to the delivery .
3 . The Commission shall take all measures necessary to ensure that the
    facility is granted under conditions which are in conformity with
    the FAQ Principles of Surplus Disposal .
                                Article 5
The award of the facility shall be made subject to the conditions that
the facility is used exclusively for the purchase of agricultural
products originating in the Community , and that free competition shall
be guaranteed for supply of the products .
                                 Article 6
 The grant element under Article 4 ( 1 ) of this Regulation shall be
regarded as intervention measures designed to regulate the agricultural
markets within the meaning of Article 3(1 ) of Regulation ( EEC ) n°
729 / 70 .
 ---pagebreak---                                                                         5 .-
                                  TITLE   II
                                 Procedures
                                  Article 7
The Commission, in accordance with the procedure laid down in Article 8
shall :
- adopt the list of products for which the facility may be awcrded ; on
    an annual or multiannual basis ,
-   decide on    the award of the     facility  and  the terms  of  such    a
    facility ,
- adopt as necessary the detailed rules for the application of this
    régulation .
                                  Article 8
Where reference is made to the procedure of this Article ,               the
Commission shall be assisted by a committee of an advisory nature ,
composed of the representatives of the Member Slates and chaired by the
representative of the Commission .
The representative of the Commission shall submit to the committee a
draft of the measures to be taken .        Ihe committee shall deliver its
opinion on the draft , within a lime limit which the chairman may lay
down according to the urgency of the matter , if necessary by taking a
vote .
The opinion shall be recorded in the minutes . In addition, each Member
State shall have the right to ask to have its position recorded in the
minutes .
The Commission shall take the utmost account of the opinion delivered
by the Committee . It shall inform the Committee of the manner in which
 its opinion has been taken into account .
                                   Article 9
 In accordance with the decisions taken under Article 7,     the Commission
 shall decide on :
 -   the conclusion of the agreement for the award of the facility ,
- all the appropriate measures to ensure the proper implementation of
     the facility , the marketing of the products and the use of the funds
    corresponding to the grant element .
                                                                                 i
                                                                              43
 ---pagebreak---                                                                          6 .-
                               Art i c te J 0
This régulation shatl enter into force on 1 January , 1989 .
This régulation   shall be    binding in        its entirety    and directly
applicable in ail Member States .
Pone at ,                                          For lhe Council
                                                    The President
                                              t   i
 ---pagebreak--- FINANCIAL STATEMENT
                                                                DATE :
                                                --
                                                              |        10 June 1988
1.   BUDGET HEADING :      to be established          APPROPRIATIONS :
2.   TITLE :    Draft Regulation implementing the facility for imports of
                agricultural products by developing countries from the
                Community
3.   LEGAL BASIS :      Article A3 - EEC Treaty
A.   AIMS :     To bring into use the financing facility for imports of
                Community agricultural products by the developing countries .
                                                                            million ECU
5.    FINANCIAL IMPLICATIONS             PERIOD  . CURRENT FINAN¬        FOLLOWING
                                         OF 12     CIAL YEAR             FINANCIAL YEAR
                                         MONTHS      ( 1988 )               ( 1989 )
 5.0   EXPENDITURE                                                        76m ECU1
       - CHARGED TO THE ÉC
          BUDGET ( REFUNDS /
          INTERVENTIONS )
       - NATIONAL AUTHORITIES
       - OTHER
 5.1   REVENUE
       - OWN RESOURCES OF THE EC
          ( LEVIES / CUSTOMS DUTIES )
       - NATIONAL
                                           1990         1991           1992           • · ·
 5.0.1    ESTIMATED EXPENDITURE         76m ECU2     76m ECU2        76m ECU2
 5.1.1    ESTIMATED REVENUE
 5.2   METHOD OF CALCULATION
                                    See page 2
 6.0
 6.1
 6.2
 6.3    WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY ?                             TES
  COMMENTS :
  ^A heading covering thè "grant " element and a heading covering thè " credit
   guarantee" element . The 1989 preliminary draft budget provides for an
   appropriation for thè "grant " part under Artide B296 ( EAGGF Guarantee ).
  ^Estimâtes hâve been calculated on the basis of '■ products likely to be
   imported by the developing countries using this facility .
 ---pagebreak--- 1. The estimated flnancial implications of the drait hâve been calculated
   on the basis of certain assumptions which are without préjudice to
   subséquent decisions which may need to be taken to implement the
   proposed System .
   The assumptions are as follows :
   - Annual export of 2 million tonnes of wheat , 21 000 tonnes of butteroil
     and 35 000 tonnes of skimmed-mi Ik powder ( not additional to traditional
     exports ) .
     Value cereals      : 2 million t x 65 ECU / t          = 130m ECU
     Value butteroil    : 21 000 t x 1 250 ECU / t          = 26m ECU
     Value SMP          : 35 000 t x 975 ECU / t            =  34m ECU
                                                              190m ECU
   - 40% grant element . The balance of each export transaction is borrowed
     by the importlng country with a guarantee included in the budget of
     the EC ( Chapter . ).
   - Amount of grant element :  190m ECU x 40% = 76m ECU .
2. The financial implications hâve been calculated on the assumption that
   no purchasing country will default .
 ---pagebreak---                                 Proposai for a
                        COUNCIL DIRECTIVE
             Establishing the terras and conditions of officially
              supported export credits for agricultural products
  THE COUNCIL OF THE EUROPEAN COMMUNITIES
  Having regard to the Treaty establishing the           European Economic
  Community , and in particular Article 113 thereof ;
  Having regard to. the proposal from the Commission;
  Whereas it is important to ensure fair competition between Community
1 exporters as regards terms and conditions for export credits for
  agricultural products ;
  Whereas national practices in financing export of agricultural products
  must be compatible with the principles of the CAP;
  Whereas the OECD arrangement on officially supported export credits
  ( the Consensus ) does not apply to export credits for agricultural
  products;
  Whereas the establishment of framework conditions for export credits
  for agricultural products is an 'appropriate means to avoid the erosion
  of present financing practices ,
  HAS ADOPTED THIS DIRECTIVE :
                                     TITLE I
                                                i
                               General provisions
                                    Article 1
   Member States shall not extend official support for export credits for
  agricultural products on terms more favourable than provided for in
   this Directive .
 ---pagebreak---                                                                                   2 .-
                                  Article 2
This Directive . applies to officially                     supported export   credits
concerning agricultural products .
                                   TITLE II
                         Crédit ternis and conditions
                                   Article 3
1 . The repayment term shall not normal ly exceed :
     - 180 days for products other than cereals ,
     - three years for cereals or cereal préparations .
2 . Repayment terms in excess of those contained in paragraph 1 , shall
     be subject to the provisions for consultation and information
     procedures as set out in Article 7 .
                                   Article 4
Purchasers shall make cash payments on or before the date of shipment
equal to a minimum of 15 per cent of the export contract value .
                                   Article 5
 Participants shall      not  provide       subsidised official         financing    or
 financing support .
 Interest payable on the outstanding balance of principal shall be
 repayable not less frequently than every 6 months , commencing not later
 than 6 months after the date of shipment .
                                    TITLE III
                                      Hatching
                                     Article 6
                                    ■ ■' ■ – ■ ■ ■ ■■ ■ *» i
 1 . A Member State which intends to match non-conforming credit
      conditions offered by a third country , after having made best
      endeavours to verify that these non-conforming terms are receiving
      official support , shall give prior notification of its intention to
      the Commission and to other Member States , and request authorization
      from the Commission .
 ---pagebreak---                                                                      3 .-
                                                                           1
2 . Such a notification shall be macie in accordimeli with thè procedure »
    described in Artide A of thè Council • Decision 73 / 391 on
     consultation and information procedures in thè fields of credit
     insurance , guarantees and financial credits .
3 . The decision by the Commission shall be taken within a period which
     reflects market conditions and at the latest on the 5th working day
     following receipt of the request for prior authorization .
                      i
4 . Should the Commission grant such authorization , the Member State may
     match such non-conforming crédit conditions .
                                     TITLE IV
                           Consultation procedures
                                    Artic le 7
 Consultations provided for in this Directive are to be carried out in
 conformity with the provisions as cstablished in Council Decision
 73 /391 on consultation and information procedures in the ficlds of
 crédit insurance , guarantees and finaricial crédits .
                                     TITLE V
                                 final provision
                                    Artide 8
 Member States shall take the measures necessary to ensure compliance of
 this Directive within six months of its notification .
                                    Article 9
                               i             ~–
 This Directive is addressed to the Kcmber States .
 Done at ,                                       For the Council ,
                                                    The President
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