L 346/54 Official Journal of the European Communities 22.12.98 COUNCIL DECISION of 14 December 1998 amending Decision 97/256/EC so as to extend the Community guarantee granted to the European Investment Bank to cover loans for projects in Bosnia and Herzegovina (98/729/EC) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 235 thereof, Having regard to the proposal from the Commission ('), Having regard to the opinion of the European Parlia- ment (%), Whereas it is necessary to increase efforts to ensure a stable political environment in Bosnia and Herzegovina; whereas, within the regional approach defined by the Council, it is desirable to consider an exceptional action aimed at rebuilding infrastructure in Bosnia and Herzego- vina; whereas, in order to finance this action, it is appro- priate to call on the European Investment Bank, herein- after referred to as ‘the EIB’; whereas the Council has invited the Commission to present a proposal concerning the extension to EIB lending in Bosnia and Herzegovina of the arrangements laid down by Council Decision 97/ 256/EC of 14 April 1997 granting a Community guar- antee to the European Investment Bank against losses under loans for projects outside the Community (Central and Eastern Europe countries, Mediterranean countries, Latin American and Asian countries, South Africa and the Former Yugoslav Republic of Macedonia) (); Whereas the involvement of the EIB in Bosnia and Herzegovina should be consistent with the policy of the Community in this country; whereas the EIB should operate within the framework of the reconstruction programme agreed at the various donors’ conferences and should finance projects which are of interest to the Community and to Bosnia and Herzegovina; Whereas the loans granted by the EIB, from its own resources under conditions laid down by it in accordance with its Statute, would need to be combined with a grant element from the Community budget for the EIB to () OJ C 192, 19. 6. 1998, p. 12. () OJ C 341, 9. 11. 1998. () OJ L 102, 19. 4. 1997, p. 33. Decision as amended by Deci- sion 98/348/EC (O] L 155, 29. 5. 1998, p. 53). intervene effectively; whereas this grant should take the form of interest-rate subsidies; whereas, in addition, bank loans could also be combined with outright grants as project co-financing; whereas it is appropriate that the subsidy rate should be the same as that already granted under the protocols on financial cooperation to other ex-Yugoslav republics; Whereas Council Regulation (EC) No 1628/96 of 25 July 1996 relating to aid for Bosnia and Herzegovina, Croatia, the Federal Republic of Yugoslavia and the former Yugo- slav Republic of Macedonia (*), provides for aid measures; whereas Article 8 of that Regulation states that operations referred to in it may cover expenditure relating to interest-rate subsidies for loans granted by the EIB; whereas the procedures of that Regulation for the financing decisions relating to operations covered by it should apply to these new arrangements; Whereas the provision of interest-rate subsidies is of an exceptional nature and should not set a precedent for Community financial assistance to Bosnia and Herzego- vina; Whereas the capacity of Bosnia and Herzegovina to service its external financial obligations should be secured by the implementation of macroeconomic reform programmes supported by the international financial institutions; Whereas EIB lending should be conditional upon the discharge of all due and outstanding financial obligations of all public entities in Bosnia and Herzegovina towards the EIB and the Community and upon the acceptance by Bosnia and Herzegovina of responsibility by way of guar- antee for such of those obligations as are not yet due; Whereas Decision 97/256/EC should therefore be amended accordingly; () OJ L 204, 14. 8. 1996, p. 1. Regulation as last amended by Regulation (EC) No 851/98 (O] L 122, 24. 4. 1998, p. 1).