31.1.2001 Official Journal of the European Communities L 29/49 COMMISSION DECISION of 4 October 2000 on the aid scheme implemented by Portugal in favour of the pigfarming sector (notified under document number C(2000) 2755) (Only the Portuguese text is authentic) (2001/86/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Article 88(2) thereof, Having regard to Council Regulation (EEC) No 2759/75 of 29 October 1975 on the common organisation of the market in pigmeat (1), as last amended by Regulation (EC) No 1365/ 2000 (3, and in particular Article 21 thereof, Having called on interested parties to submit their comments pursuant to the provision cited above (}) and having regard to their comments, Whereas: PROCEDURE (1)  Following articles in the press, on 8 December 1998 the Commission sent the Portuguese authorities a letter requesting information about a possible aid package in favour of the pigfarming sector. (2) By letter of 16 December 1998, recorded as received on 21 December 1998, the Portuguese Permanent Repre- sentation to the European Union notified the Commis- sion of the abovementioned aid measures pursuant to Article 88(3) of the Treaty. (3)  The aid measures notified were adopted by Decree-Law No 4/99 of 4 January 1999 and published in the Didrio da Repuiblica (¥). (4) By letter of 17 March 1999, recorded as received on 18 March 1999, the Portuguese Permanent Representation to the European Union sent the Commission the addi- tional information it had requested by letter of 5 February 1999. (5) By letter SG(99)D/4066 of 4 June 1999, the Commis- sion informed Portugal of its decision to initiate the procedure laid down in Article 88(2) of the EC Treaty in respect of the aid measures. The procedure was recorded under Aid No C 31/99. J L 282, 1.11.1975, p. 1. J L 156, 29.6.2000, p. 5. J C 220, 31.7.1999, p. 19. (6) (11) (12) (13) The Commission's decision to initiate the procedure was published in the Official Journal of the European Communi- ties °). The Commission called on other interested parties to submit their comments on the measures. By letters of 4 August 1999, recorded as received on 5 August 1999, 23 September 1999, recorded as received on 28 September 1999, and 22 June 2000, recorded as received on 26 June 2000, the Portuguese authorities submitted their observations to the Commission on the procedure in question. The Commission has received no comments from other interested parties. DESCRIPTION Portuguese Decree-Law No 4/99 is applicable to under- takings engaged in the closed-cycle production, fattening and finishing of piglets. Article 2 of the abovementioned Decree-Law grants a moratorium on short-term loans taken out by the above undertakings under Decree-Laws No 145/94 of 24 May 1994 and No 298/98 of 28 October 1998 and reduces the interest rates applicable. The moratorium provides for a one-year extension of reimbursement plans for the loans taken out and will cover both capital and interest due. Article 3 of the Decree-Law No 4/99 makes additional short-term credit lines available to the abovementioned undertakings at a subsidised rate of interest. The loans cannot exceed one year in duration. For both measures, the interest-rate subsidy is to amount to 70 % in general and 100 % for those undertakings with up to 20 breeding sows. The interest will be calcu- lated on the basis of the rational reference rate laid down in Decree-Law No 359/89 of 18 October 1989 (¢), except where that rate is higher than the actual rate applied by the banks. In the latter case, the interest rate will be reduced to that actually applied. When initiating the Article 88(2) procedure, the Commission was of the opinion that the measures fell within the scope of Article 87(1) of the Treaty. () See footnote 3. (°) Currently 8 %.