Proposal for a Council Regulation (EC, Euratom) amending Council Regulation (EC, Euratom) No 2728/94 establishing a guarantee fund for external actions
6. 2. 1999 EN Official Journal of the European Communities C 32/11 Proposal for a Council Regulation (EC, Euratom) amending Council Regulation (EC, Euratom) No 2728/94 establishing a Guarantee Fund for external actions (1999/C 32/12) COM(1998) 168 final - 98/0117(CNS) (Submitted by the Commission on 18 March 1998) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 235 thereof, Whereas the Treaties do not provide any powers other than those pursuant to Article 235 of the EC Treaty and Article 203 of the Euratom Treaty for the adoption of this Regulation, Having regard to the Treaty establishing the European Atomic Energy Community, and in particular Article 203 thereof, Having regard to the proposal from the Commission, Having Parliament, regard to the opinion of the European Having regard to the opinion of the Court of Auditors, Whereas the Guarantee Fund is endowed by payments from the general budget of the European Communities, by the interest on its invested resources and by the amounts recovered from defaulting debtors where the Fund has already honoured the guarantee; Whereas experience of the functioning of the Guarantee Fund indicates that a ratio of 8Ø% between the Fund’s resources in principal, increased by unpaid interest due, would be adequate; guaranteed liabilities and Whereas payments to the Guarantee Fund equal to 6Ø% of the amount of each operation would seem sufficient to attain the target amount; Whereas the Guarantee Fund attained its target amount on 31 December 1997 and the provisioning rate should be reviewed; Whereas if the Guarantee Fund exceeds the target amount the surplus is paid back to the general budget of the European Communities; Whereas experience has Commission departments are closely functioning of the Guarantee Fund; shown that the various in the involved in these Whereas, financial management of the Guarantee Fund should be entrusted to the Commission; whereas the financial management of the Fund is subject to audit by the Court of Auditors; circumstances, the HAS ADOPTED THIS REGULATION: Article 1 Regulation amended as follows: (EC, Euratom) No 2728/94 is hereby 1. In Article 3 the second paragraph is replaced by the following: "The target amount shall be 8Ø% of the Community’s total outstanding capital liabilities arising from each operation, increased by unpaid interest due. ’ 2. Article 4(1) is replaced by the following: "The payments provided for under the first indent of Article 2 shall be equivalent to 6Ø% of the capital value of the operations. ’ 3. In Article 5 the first paragraph is replaced by the following: the activation of guarantees "If, as a result of following default, resources in the Fund stand below 75Ø% of the target amount, the rate of provisioning on new operations shall be raised to 7Ø% until the target amount has once more been reached. ’ 4. Article 6 is replaced by the following: "The financial management of the Fund shall be entrusted to the Commission. ’ 5. Article 9 is replaced by the following: "The Commission shall, before 31 December 2006, submit a comprehensive report on the functioning of the Fund. ’ Article 2 This Regulation shall enter into force on 1 January 1999. This Regulation shall be binding directly applicable in all Member States. in its entirety and