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 Commumnity and the Socialist Federal Republic of Yugoslavia (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (87) 347
Vol. 1987/0196
 ---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
der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S. 1), zuletzt geändert durch die
Verordnung (EU) Nr. 2015/496 vom 17. März 2015 (ABI. L 79 vom 25.3.2015, S. 1), ist dieser Akt
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Verschlusssachen als herabgestuft angesehen.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                               COM(87 ) 347 final
                                               Brussels , 8 July 1987
                               Recommendation for a
                                 COUNCIL DECISION
                   on the conclusion of the second Protocol on
         financial cooperation between the European Economic Commumnity
                       and the Socialist Federal Republic
                                   of Yugoslavia
                          ( presented by the Commission )
                                        ■rf\Q\wn!o
                                  si &
C0MC87 ) 347 final
 ---pagebreak---                                          2-
                          EXPLANATORY NOTE
1.      On 25 July 1985 , the . Counci L authorised the Commission to open
negotiations with Yugoslavia for the conclusion of a second Financial
Protocol .  After a first session of discussions with the Yugoslav autho¬
rities , these negotiating directives were amended by the Council on
May 25 , 1987 .
2.      On the basis of these negotiating directives , a draft Protocol
was initialled by heads of delegation on June 17, 1987 .
3.      The initialled Protocol which will expire on June 30, 1991 , provides
for EIB loans totalling 550 MECU ( 200 MECU in the first Protocol 1980-85 ).
        The major part of this amountshall be used to finance projects
concerning transport infrastructures of a common interest , in particular
the transyugos lav highway , including its feeder roads and the remaining
part shall be used to finance other development projects .
4.      The Commission considers that in terms of the negotiating directives
it received , the draft Protocol is acceptable to the Community .     Accordingly
it recommends that the Council approves the results of the negotiations and
initiates the procedures for conclusion . Accordingly it presents herewith
a proposal for a Council Decision        concluding a Protocol on financial coope¬
ration between the European Economic Community and the Socialist Federal
Republic of Yugoslavia .
 ---pagebreak---                                          3
                            COUNCIL DECISION
 on the conclusion of the Second Protocol on financial cooperation between the
  European Economic Community and the Socialist Federal Republic of Yugoslavia
  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 Commu¬
 nity and the Socialist Federal Republic of Yugoslavia is hereby approved on behalf
 of the Community .
 The text of the Protocol is attached to thi s Dec isi on .
                                      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 .
Done at Brussels ,                                          For the Counci l
                                                             The President
 ---pagebreak---                        SECOND   PROTOCOL
on financial cooperation between the Socialist Federal Republic
                          of Yugoslavia
              and the European.. Ecopomi c Community
 ---pagebreak---                                             s
                                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 CF THE ASScfBLY OF THE SOCIALIST FEDERAL REPUBLIC
   OF YUGOSLAVIA ,
   of the other part ,
   REAFFIRMING their resolve to implement , in the framework of the Mediterranean
   policy of the enlarged Community , a cooperation which will contribute to
   the economic development of Yugoslavia and promote the strengthening
   of relations between the Community and Yugoslavia ,
   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
            The Community shall participate , within the framework of financial
   cooperation provided for in the Cooperation Agreement between
   the EEC and the Socialist Federal Republic of Yugos lavi a, and according to
   the conditions specified in this Protocol , in the financing of projects
   designed to contribute to the economic development of Yugoslavia
   and in particular these of common interest to Yugoslavia and the Community .
                                    Article 2
            For the purposes specified in Article 1 and for a period expiring on
   30 June 1991 , an aggregate amount of 550 Millions ECU may be committed in the
   form of loans from the European Investment Bank , hereinafter called " the Bank "
   granted from its own resources in accordance with the arrangements , conditions
   and procedures laid down in its statute .
21                                                                                  &
 ---pagebreak---                                    Artide 3
 1.          The amount fixed in article 2 shall be used to part finance specific
 capital projects submitted to the Bank with the agreement of the Socialist Federal
 Republic of Yugoslavia by banks or organizations of associated labour having
 their seat in Yugoslavia .
 2-           The major part    of this amount shall be used to finance projects
 concerning transport infrastructures of a common interest* in particular the
 transyugoslav highway including its feeder roads tand the remaining part snail
 be used to finance other development projects .
  3.a     Projects shall be examined for eligibility and loans granted, in accoi–
  dance with the detailed rules , conditions and procedures laid down by the
  Bank 's Statute .
  3.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
  projects , also taking into account the conditions obtaining on the capital
  markets on which the Bank procures its resources .
  3.c     The interest rate shall be determined in accordance with the Bank 's
  practice at the time of signature of each loan contract .
                                   Article 4
1.          The amounts to be committed each year shall be distributed as evenly
as possible throughout the period of application of this ProtocoL . During the
initial period of application , however , a proportionately higher amount may ,
within reasonable limits , be committed .
  2.      Any funds not committed by the end of the period referred to in Ar¬
  ticle 2 may be used , until exhausted . In that event the funds shall be
  used under the same conditions as provided for in this Protocol .
                                  Article 5
           Loans granted by the Bank for the execution of projects may take
  the form of co-financing in which , in particular , Yugoslav banks and the
  credit bodies and institutions of Member States or of third States , or
  international finance organizations , would take part .
                                  Article 6
          Organizations of associated Labour established in accordance with
  Yugoslav law , whether or not including foreign participations , shall have access
  on equal terms to the financing earmarked for financial cooperation .
                                  Article 7
         The execution , management and maintenance of projects financed within
 the framework of financial cooperation between the Socialist Federal Republic
 of Yugoslavia and the European Economic Community shall be the responsibility
 of the beneficiaries referred to in Article 3 paragraph 1 .
         The Bank shall ensure that its loans are utilised in accordance
 with the agreed allocations and under optimum economic conditions .              4
 ---pagebreak---                               Artide 8
        ALL naturaL and LegaL persons coming within the scope of the Treaty
 establishing the European Economic Community and aLL   LegaL
 persons of the SociaList FederaL RepubLic of YugosLavia may participate
on equaL terms in tendering procedures and other procedures for the award
of contracts LikeLy to be financed . Such LegaL persons formed in accoi–
dance with the Law of a Member State of the EEC or of the SociaList
 FederaL RepubLic of YugosLavia must have their registered offices , their
administrative head offices or their principaL estabLi shments in the
territories in which the Treaty estabLishing the EEC is appLied or in the
SociaList FederaL RepubLic of YugosLavia ; however , where onLy their registered
offices are in those territories or in the SociaList FederaL RepubLic of YugosLa ¬
via , the activities of such LegaL persons must be effectiveLy and continuousLy
 Linked with the economy of those territories or of the SociaList FederaL RepubLic
of YugosLavia .
                                ArticLe 9
        YugosLavia shaLL appLy to contracts awarded for the execution of projects
financed within the framework of financiaL cooperation fiscaL and customs
arrangements at Least as favourabLe as those appLied in respect of most
favoured state or most favoured fnternationaL organization in the fieLd of
deve Lopment .
                                 ArticLe 10
        YugosLavia shaLL take the- necessary measures to ensure that interest and
aLL other payments due to the Bank in respect of Loans granted in the context
of financiaL cooperation are exempted from any taxes or Levies imposed by the
federaL authorities , the repubLics , the autonomous provinces or the communaL
authorities .
                                ArticLe 11
         The provision of a guarantee by the SociaList FederaL RepubLic of
YugosLavia or other sufficient guarantees shaLL be required by the Bank
as a condition for granting Loans .
                               ArticLe 12
 Throughout the duration of the Loans accorded pursuant to this ProtocoL ,
 YugosLavia shaLL undertake to take aLL necessary measures in conformity
 with its nationaL LegisLation to make avai Lable to debtors enjoying such
 Loans and to guarantors of the Loans the foreign currency necessary for
 the payment of interest , commission and other charges and repayment of
 the principaL .
 ---pagebreak---                                               -g-
                                 Article 13
         The results of financial cooperation may be examined within the Coope ¬
 ration Council .
                                 Article 14
         One year before the expiry of this Protocol , the Contracting Parties
 shall examine what arrangements could be made for financial cooperation
 during a possible further period .
                                Art i c le 1 5
        This Protocol shalL be annexed to the Cooperation Agreement
between the European Economic Community and the Socialist Federal Republic
of Yugoslavia signed in Belgrade on the 2nd April 1980 .
                               Article 16
1.     This Protocol shall be subj ect-to approva l in accordance with the
Contracting Parties' own procedures ; the Contracting Parties shall notify
each other that the procedures necessary to this end have been completed .
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 given .
                                 Arti c le 17
        This Protocol is drawn up in t.wo original copies in the Danish , Dutch ,
 English , French , German , Greek , Italian , Portuguese , Spanish and Serbo-Croat
 languages , each of these texts being eo'ially authentic .
 ---pagebreak---                                      î
                     Joint Déclaration concerning Article A
          It is understood that the application of Article 4 is dependent
upon the submission to the Bank by the Federal Executive Council of Yugoslavia
of mutually acceptable projects .
                   Declaration of the Delegation of the Community
                               concerning Article 8
         The provisionsof the Financial Protocol are without prejudice
to the general question of the origin of goods and services eligible for
financing by the bank from its own resources and do not , in this connection ,
affect the exercise by the Bank 's bodies of their powers under the Statute
of the Bank .
 ---pagebreak---                                lO
Declaration of the Yugoslav Delegation concerning Article 3 ,
paragraph 3
The Yugoslav delegation expressed the wish to benefit from the
most favourable lending terms and conditions available for the
loans to be granted by the Bank .
The Bank took due note of this wish .
                                                               «
 ---pagebreak---                                ч
Declaration of the Yugoslav Delegation concerning interest subsidies
The Yugoslav Delegation expressed the wish that the Community may
reconsider the possibility of granting some budgetary funds in order
to subsidise interest rates on EIB loans if and when the Community 's
budgetary situation would allow so .
The Community Delegation took note of this Declaration .
 ---pagebreak---                  Joint Déclaration ad art . 11
         Under the terms of Article 11 " sufficient guarantees " may be guarantees
issued to the Bank by authorised Yugoslav credit institutions with the benefit
of the counterguarantee of the Federal Socialist Republic of Yugoslavia .
 ---pagebreak---                           Déclaration of the
             Community Delegation concerning transit possi bi l i t i es
         On the occasion of the initialling of the second financial
Protocol , the Delegation of the Community recalls to the Yugoslav
delegation the importance the Community attaches to Yugoslav autho¬
rities allowing an increase of the transit possibilities through
their territory .
         The Yugoslav delegation takes note of that Declaration .