Article 1 Guarantee and ceilings
1. The Community shall grant the European Investment Bank (EIB) a global guarantee (the ‘Community guarantee’) in respect of payments not received by the EIB, but due to it, in connection with loans and loan guarantees for EIB-eligible investment projects carried out in countries covered by this Decision, where the loan financing or guarantee has been granted according to a signed agreement which has neither expired nor been cancelled (EIB financing operations) and has been granted in accordance with the EIB’s own rules and procedures and in support of the relevant external policy objectives of the Community. 2. The Community guarantee shall be restricted to 65 % of the aggregate amount of credits disbursed and guarantees provided under EIB financing operations, less amounts reimbursed, plus all related amounts. 3. The maximum ceiling of the EIB financing operations throughout the period 2007-2013, less amounts cancelled, shall not exceed EUR 27 800 000 000. This maximum ceiling shall be broken down into two parts: (a) a basic ceiling of a fixed maximum amount of EUR 25 800 000 000, the regional distribution of which is set out in paragraph 4, to cover the entire period 2007-2013; (b) an optional mandate of EUR 2 000 000 000. The activation in whole or in part of this optional amount and its regional distribution will be decided by the European Parliament and the Council in accordance with the procedure laid down in Article 251 of the Treaty. The decision will be based on the outcome of the mid-term review set out in Article 9. 4. The basic ceiling referred to in paragraph 3(a) shall be broken down into the following binding regional ceilings: (a) pre-accession countries: EUR 8 700 000 000; (b) neighbourhood and partnership countries: EUR 12 400 000 000; broken down into the following indicative sub-ceilings: (i) Mediterranean countries: EUR 8 700 000 000; (ii) Eastern Europe, Southern Caucasus and Russia: EUR 3 700 000 000; (c) Asia and Latin America: EUR 3 800 000 000; broken down into the following indicative sub-ceilings: (i) Latin America: EUR 2 800 000 000; (ii) Asia (including Central Asia): EUR 1 000 000 000; (d) Republic of South Africa: EUR 900 000 000. 5. Within the regional ceilings, the governing bodies of the EIB may decide to reallocate an amount of up to 10 % of the regional ceiling between sub-ceilings. 6. The Community guarantee shall cover EIB financing operations signed during the period beginning on 1 February 2007 and ending on 31 October 2011. EIB financing operations signed under Decisions 2006/1016/EC and 2008/847/EC shall continue to benefit from the Community guarantee under this Decision. 7. If, on expiry of the period referred to in paragraph 6, the European Parliament and the Council have not adopted a decision granting a new Community guarantee to the EIB for its financing operations outside the Community, that period shall be automatically extended by six months.
Article 2 Countries covered
1. The list of countries eligible or potentially eligible for EIB financing under Community guarantee is laid down in Annex I. 2. For countries listed in Annex I and marked with ‘*’ and for other countries not listed in Annex I, the eligibility of such country for EIB financing under Community guarantee shall be decided by the European Parliament and the Council on a case-by-case basis in accordance with the procedure laid down in Article 251 of the Treaty. 3. The Community guarantee shall cover only EIB financing operations carried out in countries that have concluded a framework agreement with the EIB establishing the legal conditions under which such operations are to be carried out. 4. In the event of serious concerns over the political or economic situation in a specific country, the European Parliament and the Council may decide to suspend new EIB financing under Community guarantee in that country in accordance with the procedure laid down in Article 251 of the Treaty. 5. The Community guarantee shall not cover EIB financing operations in a specific country where the agreement concerning such operations has been signed after that country’s accession to the European Union.
Article 3 Consistency with policies of the Community
1. The consistency of EIB external actions with the external policy objectives of the Community shall be strengthened with a view to maximising synergies of EIB financing and budgetary resources of the European Union, in particular through regular and systematic dialogue and early consultation on: (a) strategic documents prepared by the Commission, such as country and regional strategy papers, action plans and pre-accession documents; (b) the EIB’s strategic planning documents and project pipelines; (c) other policy and operational aspects. 2. The cooperation shall be carried out on a regionally differentiated basis, taking into consideration the EIB’s role as well as the policies of the Community in each region. 3. An EIB financing operation shall not be included under the cover of the Community guarantee in the event that the Commission delivers a negative opinion on such an operation within the framework of the procedure provided for in Article 21 of the Statutes of the EIB. 4. The consistency of EIB financing operations with the external policy objectives of the Community shall be monitored in accordance with Article 6.
Article 4 Cooperation with other international financial institutions
1. EIB financing operations shall increasingly be carried out, where appropriate, in cooperation between and/or by means of co-financing by the EIB and other international financial institutions, or European bilateral institutions, in order to maximise synergies, cooperation and efficiency and to ensure reasonable sharing of risks and coherent project and sector conditionality. 2. The cooperation referred to in paragraph 1 shall be facilitated by coordination, carried out notably in the context of Memoranda of Understanding, where appropriate, between the Commission, the EIB and the main international financial institutions and European bilateral institutions operating in the different regions. 3. The cooperation with international financial institutions and other donors shall be assessed at the mid-term review set out in Article 9.
Article 5 Coverage and terms of the Community guarantee
1. For EIB financing operations entered into with a State, or guaranteed by a State, and for other EIB financing operations entered into with regional or local authorities or government-owned and/or government-controlled public enterprises or institutions, where such other EIB financing operations have an appropriate EIB credit risk assessment taking into account the credit risk situation of the country concerned, the Community guarantee shall cover all payments not received by the EIB, but due to it (the ‘Comprehensive Guarantee’). For the purposes of this Article and Article 6(4), the notion of State includes the West Bank and Gaza Strip, as represented by the Palestinian Authority, and Kosovo ( *1 ) , as represented by the UN Interim Administration Mission. 2. For EIB financing operations other than those indicated in paragraph 1, the Community guarantee shall cover all payments not received by the EIB, but due to it, where the non-receipt has been caused by the realisation of one of the following political risks (the ‘Political Risk Guarantee’): (a) non-transfer of currency; (b) expropriation; (c) war or civil disturbance; (d) denial of justice upon breach of contract.
Article 6 Reporting and accounting
1. The Commission shall report annually to the European Parliament and the Council on EIB financing operations carried out under this Decision. The report shall include an assessment of impact and effectiveness of EIB financing operations at project, sector, country and regional level as well as the contribution of the EIB financing operations to the fulfilment of the external policy objectives of the Community, taking into account the operational objectives of the EIB. It shall also include an assessment of the extent of cooperation between the EIB and the Commission, and between the EIB and other international financial institutions and bilateral donors. 2. For the purposes of paragraph 1, the EIB shall provide the Commission with yearly reports on EIB financing operations carried out under this Decision and on the fulfilment of the external policy objectives of the Community, including cooperation with other international financial institutions. 3. The EIB shall provide the Commission with statistical, financial and accounting data on each of the EIB financing operations which are necessary to fulfil the Commission’s reporting duties or requests by the European Court of Auditors as well as with an auditor’s certificate on the outstanding amounts of the EIB financing operations. 4. For the purposes of the Commission’s accounting and reporting of the risks covered by the Comprehensive Guarantee, the EIB shall provide the Commission with the EIB’s risk assessment and grading information concerning EIB financing operations with borrowers or guaranteed obligors other than States. 5. The EIB shall provide the information referred to in paragraphs 2, 3 and 4 at its own expense.
Article 7 Recovery of payments made by the Commission
1. Where the Commission makes any payment under the Community guarantee, the EIB shall, in the name and on behalf of the Commission, pursue the recovery of claims for the amounts paid. 2. The EIB and the Commission shall enter into an agreement laying down the detailed provisions and procedures relating to recovery of claims no later than the date of conclusion of the agreement referred to in Article 8.
Article 8 Guarantee agreement
The EIB and the Commission shall enter into a guarantee agreement laying down the detailed provisions and procedures relating to the Community guarantee.
Article 9 Review
1. The Commission shall present to the European Parliament and the Council a mid-term report on the application of this Decision by 30 April 2010, accompanied by a proposal for its amendment, inter alia, drawing upon an external evaluation, the terms of reference of which are specified in Annex II to this Decision. 2. The Commission shall present a final report on the application of this Decision by 31 July 2013.
Article 11 Entry into force
This Decision shall enter into force on the third day following its publication in the Official Journal of the European Union .