11. 9. 97 Official Journal of the European Communities L 248/27 COMMISSION DECISION of 16 April 1997 on aid granted by the Region of Sardinia, Italy, in the agriculture sector (Only the Italian text is authentic) (97/612/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular Article 93 (2) thereof, After giving notice to the parties concerned to submit their comments ('), in accordance with Article 93 (2), Whereas: By letter of 1 September 1992, Italy notified to the Commission, under Article 93 (3) of the Treaty, Regional Law No 17 of 27 August 1992 of the Region of Sardinia (hereinafter referred to as ‘Law No 17/92)). Article 12 of Law No 17/92 amends Article 5 of Regional Law No 44 of 13 December 1988 of the Region of Sardinia (hereinafter referred to as ‘Law No 44/88’) which had never been examined under Articles 92 and 93 of the Treaty. Neither had the provisions adopted by the Giunta Regionale (Regional Executive) for implementing that Article undergone such an examination. Article 5 of Law No 44/88 introduces aid, in the form of subsidized loans, to assist in restoring the liquidity of farms whose financial situation has been affected by adverse circumstances. These loans, which have a maximum term of 15 years (including a three-year pre- redemption period), must be used to consolidate current liabilities. It is for the Regional Executive to determine, by means of an appropriate decision in each case, the practical ar- rangements for granting the loans and in particular the adverse circumstances which justify the measure, the sector or sectors involved, the amount of the aid in rela- tion to the degree of indebtedness, and the term of the loan. According to the information supplied by the Italian authorities, Article 5 of Law No 44/88 has been applied four times since 1988. () OJ C 271, 29. 9. 1994, p. 14. (1) Decision of the Regional Executive of 30 December 1988 (market crisis in the glasshouse sector) The adverse circumstance which produced the crisis was the collapse in the prices of glasshouse products, which meant that growers were unable to cover their production costs. In this first instance in which Article 5 was applied, the only condition laid down by the regional author- ities was that the holding’s short-term indebtedness should be more than 75 % of the value of its gross output in the year under consideration. (2) Decision of the Regional Executive of 27 June 1990 (forestry holdings) In 1550 the regional authorities decided to grant the aid provided for in Article 5 of Law No 44/88 to for- estry holdings which had plantations which were not yet ready for commercial felling, for the purpose of paying off and/or consolidating debts falling due before 30 June 1990 and contracted in order to make investments and for management purposes, the over- drafts existing on that date, and debts owing to employees (for the payment of wages), to landowners (for rent) and to suppliers (for the purchase of goods). In this case too, the total short-term debt had to amount to 75 % or more of gross output. The term of the loans was set at 13 years (with a three-year pre- redemption period). (3) Decision of the Regional Executive of 20 November 1990 (rabbit farmers) In this case the aid was paid to rabbit farmers who had lost at least 20 % of their animals as the result of a disease which had seriously affected the Region in the spring of 1990. The 15-year subsidized loans (with a three-year pre- redemption period) could cover two annual (or four half-yearly) repayments on long-term loans already contracted, plus an amount equal to the holding’s financial requirements for one year.