ANNUAL REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT on the borrowing and lending activities of the Community in 1995
COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 24. 07. 1996 COM(96) 384 final ANNUAL REPORT FROM THE COMMISSION TQ THE COUNCIL AND THE EUROPEAN PARLIAMENT on the borrowing and lending activities of the Community in 1995 and REPORT FROM THE COMMISSION TO THE COUNCIL ANP THE EUROPEAN PARLIAMENT on the rate of utilization of the New Community Instrument (NCI) (half-year from 1 July 1995 to 31 December 1995) CONTENTS INTRODUCTION A. THE COMMISSIONS ANNUAL REPORT TO THE COUNCIL AND TO THE EUROPEAN PARLIAMENT ON THE BORROWING AND LENDING ACTIVITIES OF THE COMMUNITY IN 1995 1. Community borrowing 2. 3. 4. 5. Lending within the Community Lending outside the Community The European Investment Fund Budgetary impact of lending Statistical annex B. THE COMMISSION'S REPORT TO THE COUNCIL AND TO THE EUROPEAN PARLIAMENT ON THE RATE OF UTILIZATION OF THE NEW COMMUNITY INSTRUMENT (NCI) (half-year from 1 July 1995 to 31 December 1995) 1. 2. Overall situation at 31 December 1995 Breakdown of loans by country and sector Statistical annex REPORT ON THE BORROWING AND LENDING ACTIVITIES OF THE COMMUNITY INTRODUCTION A. Annual report This annual report is drawn up in accordance with the Council Decisions establishing the New Community Instrument (NCI)1 and lending instruments for Euratom research and finance. 2 In addition, Parliament, in its Resolution on improving political monitoring of the Community's borrowing and lending activities,3 called for the activities of the ECSC and the EIB to be included. The present annual report covers 1995; it is the sixteenth report published by the Commission and is intended to comply with the obligation imposed on it by the Council and Parliament to provide the fullest information possible on all these activities. The European Union's financial activities in 1995 were mainly devoted to completing the implementation of the innovative instruments decided at preceding European Summits and to developing the more conventional instruments, despite the sluggish pace of activity on the international financial markets. As a result, EIB lending has increased substantially, in particular as part of the European growth initiative aimed at accelerating the financing of the trans-European networks. As for the outside world, the European Union's activities were extended when the EIB implemented the new Council Decisions concerning Albania, Turkey and the peace process in Graza and the West Bank. In addition, in the context of the process of democratic normalization in the world, the Union, by means of EIB loans, was present for the first time in Haiti and in South Africa. The utilization of these instruments has had an effect on the activity of the facilities established in 1994, in particular the European Investment Fund (EIF) and the budget Guarantee Fund for external actions. In view of the expansion of these activities, the Council began to consider4 the nature of the risks incurred (commercial or political) and the best way of apportioning them. This is why the November 1995 Article 6 of Decision 78/870/EEC (OJ No L 298 of 25 October 1978); Article 7 of Decision 81/19/EEC (OJ No L 37 of 10 February 1981); Article 7 of Decision 81/1013/EEC (OJ No L 367 of 23 December 1981); Article 6 of Decision 82/169/EEC (OJ No L 78 of 24 March 1982); Article 7 of Decision 83/200/EEC (OJ No L 112 of 28 April 1983); Article 9 of Decision 87/182/EEC (OJ No L 71 of 14 March 1987). Article 4 of Decision 77/270/Euratom (OJ No L 88 of 6 April 1977). Doc. PE/67134 of 5 March 1981 (OJ No C 287 of 9 November 1981). Statement annexed to Council Decision 93/696/EC; OJ No L 321 of 23 December 1993. Council asked the Commission, together with the EIB, to submit a report on the possibility of part of the risk being shared between the Bank and the Community budget. B. Half-yearly report With a view to ensuring that borrowings designed to promote investment within the Community are continuously monitored, the 1983 and 1987 Decisions concerning the NCI also provide for the Commission to present Parliament and the Council with a six-monthly report about the rate of utilization of the NCI borrowing tranches. Part B of this document therefore provides an account of NCI activities over the period from 1 July to 31 December 1995. A. THE COMMISSIONS ANNUAL REPORT TO THE COUNCIL AND TO THE EUROPEAN PARLIAMENT ON THE BORROWING AND LENDING ACTIVITIES OF THE COMMUNITY IN 1995 1. COMMUNITY BORROWING 1. 1 In order to attain the objectives of the Treaty covering the territory of the Community, the Commission has been empowered to borrow funds on the capital market. These borrowings are intended for financing loans for Member States in balance-of-payments difficulties (ceiling of ECU 14 billion), for research and financing in connection with nuclear power stations (current Euratom ceiling of ECU 4 billion), for encouraging investment in the Community under the NCI (current ceiling of ECU 6. 8 billion) and, under the ECSC Treaty, for promoting productive capacity or conversion projects in the coal and steel industries. On the basis of the agreements concluded with non-Community countries, the Commission is empowered to borrow to finance programmes of financial assistance for the countries of Central and Eastern Europe, for the African, Caribbean and Pacific (ACP) countries and for measures adopted pursuant to the Mediterranean protocols. Within and outside the Union, the European Investment Bank (EEB) has been closely involved in the financing of common policies and priorities, to the point where its borrowings account for most issues (see Table 1). Also, the enlargement of the Community to fifteen at the beginning of 1995 required technical adjustments to the Statute and an increase in the Bank's capital, which consolidate its position as the Union's principal financial instrument. 1. 2 The volume of borrowing in the market by these Community institutions in 1995 totalled ECU 13. 2 billion, a fall of 13. 2% over the previous year (Table 1). The decline is slightly smaller for funds borrowed by the EIB (down 12. 7%). As regards issues made by the Commission (allocated borrowings), the fall is in keeping with the guidelines laid down by the Council for disengaging the Commission from certain activities - mainly the activities of the ECSC and implicitly those of the NCI and Euratom - in favour of the EIB. The fall in EIB borrowings is not attributable to the pace of activity, as will be seen below, but above all to the market situation and in particular the reduction of inflation and the fall in interest rates. Lower interest rates have encouraged the Bank's clients to repay certain loans in advance to a larger extent than the institution itself has done in relation to its own borrowings. The result was an increase in liquidity and hence less need to borrow in order to finance the demand for loans, which is still increasing. This situation was less marked in the OECD countries, where inflation did not slow down so sharply, which is why the slowdown in borrowing issues for the area as a whole was more moderate (down 8. 3%). Overall, however, the European Institutions' share of borrowing in the OECD area declined slightly, falling from 4. 9% in 1994 to 4. 7% in 1995. Taking account of redemptions and cancellations, the amount of borrowing outstanding at 31 December 1995 was ECU 102. 9 billion, compared with ECU 100. 2 billion in 1994 (see Table 2 in Annex). In 1995, the uncertainties which appeared on the foreign exchange markets between the currencies traditionally used for transactions (dollar, yen, ecu) weakened the demand for borrowings in those currencies. Conversely, the proportion of borrowings denominated in stable Community currencies, particularly the Grerman mark and the Italian lira, increased; demand for the lira was supported by the large volume of lending by the EIB in Italy and the fact that it is considered to be undervalued. Table 1 Issues on the International market (ECU billion) 1. Community ofwhloh: 1. 1 ECSC 1. 2 EC (a) 1. 3 Euratom 1. 4 EIB 1988 1990 1991 1992 1993 1994 1995 9,6 10,5 125 109 15,7 20,1 15£ 132 Cv9 0,9 0,1 7,7 0,9 0,5 9,0 1,1 0,4 1,4 1,7 1,5 1,2 0,9 5,0 110 1517 130 14,2 08 0,3 0,1 142 0,4 OA 124 2. OECD countries (b) 151,2 193,1 141,5 2003 2127 337,0 309,7 2818 3. Community share 6,3 5,4 a8 $1 7,4 6,0 49 4,7 ( 1 a s % o f 2) 4. International issues by selected ourrendes 4. 1 US «(b) 4. 2 YEN(b) 4. 3 ECU 4. 4 U S * a s % o f2 4. 5 Yen as % of 2 4. 6 ECU as % of 2 630 134 9,5 41,7 89 6,3 106,6 142 114 56£ 7,4 5,9 55,0 17,9 14,1 38,9 127 10,0 65,9 29,1 26,0 31,6 HO 125 79,5 26,0 17,1 37,4 122 80 12B,1 37,9 6,1 37,4 11. 2 13 125,5 56,5 6,4 406 183 21 110,4 49,3 5,4 389 17,4 1,9 (a) (b) NCI -«balance of payments. Calculations based on fie yearly average exchange rate of tie ecu. Source: EC and OECD. The bulk of Community borrowing in 1995 was contracted at fixed rates; however, the persistent downward trend of interest rates gave a strong stimulus to variable-rate issues. For the EIB, the proportion of such issues reached 40% of the total. 2, LENDING WITHIN THE COMMUNITY 2. 1 Economic activity in the Community on average increased steadily (2. 7%) in 1995, although it tended to weaken in the second half-year. The recovery was mainly led by the strong export performance of the European economies and by the acceleration of investment. Real investment in the Community, as measured by gross fixed capital formation (GFCF), rose by 4. 5%. In spite of the economic recovery, the declining profile of activity during the year did not permit the hoped-for reduction in unemployment, in accordance with the wishes expressed by the European Council meeting in Corfu and Essen. In these circumstances, the need to pursue the proposed structural reforms and to implement the strategy set out in the Commission's White Paper on growth, competitiveness and employment seems increasingly urgent. 2. 2 In this context, EIB support for the Community's internal objectives was stepped up. In 1995 loans signed for projects in the Community totalled ECU 18. 6 billion, compared with ECU 17. 7 billion in 1994, an increase of 5. 2%. Projects were financed in all the fifteen Member States, helping to create an investment volume estimated at ECU 53 billion, or some 4% of the GFCF achieved in the Union. A significant volume of lending took place in Austria, Sweden and Finland in the first year of their accession. The most appreciable increase in loans was seen in Germany, Ireland, Portugal, Italy and Luxembourg (Table 2). In 1994, the ED3 adapted its loan conditions to the specific requirements of establishing coherent and efficient networks, essential for intra-Community trade. The Bank thus became directly involved in financing the trans-European networks and more especially in the priority projects identified by the Essen European Council. Under this heading, it approved loan commitments of ECU 7. 6 billion at the end of 1995. The financing of investment contributing to regional development and to the strengthening of economic and social cohesion in 1995 remained the Bank's most important sector of activity, representing over two-thirds of lending. These loans were concentrated in the areas qualifying for support under the Structural Funds, especially in the "cohesion" countries and in Germany's eastern regions. Since the reform of the Funds in 1989, loans have totalled ECU 71 billion, helping to finance investment estimated at ECU 212 billion (see Table 5 in Annex). Last year financing for infrastructure in the communications sector increased appreciably, totalling ECU 6. 6 billion compared with ECU 5. 7 billion in 1994. Financing for the transport sector totalled ECU 5. 5 billion, most of which was directed toward road and railway infrastructure (ECU 4. 7 billion). Major works were also carried out on airport (Bordeaux, Dublin, Frankfurt) and port infrastructure schemes. However, lending for telecommunications fell, after having risen sharply for several years. Tafate2 S f r u d u » c f B B I e t » * n g ( k a n c o r » Y^ Belçjun Denmark Germany Ghaace Spain Franco Mand Italy Luxembourg n rti fn ii 11 NBuKnanos Ftrlugal unttaaningnom Au&ia Finland Smckn Other (ArictelQ Community total 1987 ECUrrillion 1993 1994 1995 % ECUrrillion ECUrrillion % ECUrrillion % 37,1 3133 27$5 1643 7374 1. 0035 1736 31122 1,6 130 1. 1337 Q5 42 37 22 35 135 24 41,8 Q0 Q2 52 152 371,6 875,5 20936 511,1 4006,1 2206,5 3332 3362Û 3737 1. 4838 1. 929,1 ^^ 49 113 23 22,6 124 22 190 00 21 94 6153 8437 24073 5347 3011,5 2477,4 291,1 3099,5 31 3935 1. 109,7 35 43 136 30 17,0 140 1,6 17,5 Q0 23 33 1Q9 2454,7 139 1037 7. 4503 tf 1030 1110 17. 7242 Q6 1QQ0| 835 632 133 2603 Q5 03 Q1 1,5 17. 6813 1030 6630 8230 27150 5230 28130 22070 327,0 34330 79 3130 12320 2244,0 242 179 273 5190 136040 36 44 146 28 131 113 13 135 04 1,7 36 121 13 1,0 1,5 23 1030 The Bank, which is careful to ensure that all the projects it finances comply with Community standards concerning the environment and the environmental impact, went a step further in 1995 by granting loans worth ECU 6 billion for this objective, i. e. over one-third of all funding. This increase is due to the application of national and Community standards, and to the development of specific programmes concerning air and water quality, the discharge of effluent into the atmosphere, and the better management of domestic or industrial waste. 1995 was also marked by a pick-up in individual loans for industrial projects and in global loans for SMEs. Since July 1995 the eligibility criteria for loans have been extended to new types of investment in the services and distribution sector, and to the advance financing of research and development. Overall, lending in this area totalled ECU 3. 5 billion, double what was signed in 1994, a year when activity was particularly low. This increase partly reflects the popularity of the interest subsidy facility, which was offered to employment-creating SMEs by the Copenhagen Summit. The facility had been intended to run until 31 July 1995, but was extended until December to enable the new Member States to take advantage of the arrangements. At the end of 1995, the amount of ECU 1 billion was totally committed; some 4 400 European firms benefited, enabling some 45 000 jobs to be created. 2. 3. Looking ahead to the expiry of the ECSC Treaty in 2002, the Commission in its Decision of 28 June 1994 redefined the conditions of ECSC borrowing and lending policy. On this basis, loans signed in the Community totalled ECU 360. 4 million in 1995, a decrease of 46. 5% on 1994 (see Table 3). This decrease was caused by both the unpropitious economic conditions in the ECSC areas and the policy of the progressive disengagement of the ECSC instrument in accordance with the guidelines laid down. Table 3 ECSC loans in 1995 I (ECU "000) Article 54 Article 56 Housing Total 28. 627,1 39. 809,5 17. 781,4 60. 565,3 12. 523,7 10. 178,0 56. 990,0 98. 512,6 4. 744,6 7. 257,5 9. 380,3 2. 382,5 7. 956,6 1. 766,9 438,7 1. 495,1 47,5 89. 192,4 14. 906,2 10. 178,0 104. 756,1 100. 279,5 22. 964,7 8. 752,6 9. 380,3 47,5 Italy France Greece Portugal Netherlands Germany United Kingdom Spain Belgium Luxembourg Ireland Denmark Total 86. 218,0 260. 152,0 14. 087,3 360. 457,3 2. 4 As regards NCI activities, it should be noted that no new lending operations have been undertaken since 1991 (Table 4). 2. 5 The facility providing medium-term financial assistance for Member States' balances of payments was activated in recent years in favour of Greece and Italy. Italy obtained a loan of ECU 8 billion to be disbursed in four tranches (Council Decision 93/67/EEC of 18 January 1993). The Council Decision provided that the third and fourth tranches could be paid not earlier than 1 February 1994 and 1 February 1995. The Italian Government did not request these two tranches, the provision of which no longer seems necessary. In these circumstances and taking into account the commitments already entered into in favour of Greece, the total amount of loans outstanding under this facility remained at ECU 5 billion at 31 December 1995, the authorized ceiling being ECU 14 billion to be financed where necessary through the capital market. Table 4 NCJ loans at 31 December 1995 1 (ECU million) Financial agreements N ai ITALY GRŒCE Nail Nam NOIV TOTAL Reconstr Reconstr. Global loans 0 Productive sector (*) Infrastructure Biergy Total contracts signed, net (**) BB loans (own resources) 5,4 53a5 446,7 990,5 598,7 ao,o 4033 2138,0 6683 3227,4 10,6 279A 3003 465,3 258,3 15,9 1. 961,9 1. 0053 598,7 351,6 acto 997,5 2861,6 6683 6197,2 351,6 Authorized ceilings Balance 1. CCQO 1. 000,0 9,5 49,7 ao,o 0 1. 000,0 3. 000,0 750,0 6830,0 25 133,4 81,2 267,5 0 Industry and agicUture D Contracts sigied less cancellations 3. LENDING OUTSIDE THE COMMUNITY This activity involves those countries with which the Community has concluded cooperation agreements. A substantial volume of resources is being provided in forms appropriate to the specific circumstances of the countries in question (Table 5). 3. 1 In the context of the support for the adjustment and reform programmes of third countries, the Community continued to provide macroeconomic assistance in the form of balance-of-payments and structural adjustment support loans to complement the IMF programmes. In the case of the central and east European countries, Community support has been provided within the G-24 framework. In 1995 disbursements made for this purpose and corresponding to loans previously approved amounted to ECU 285 million. They break down into ECU 100 million for the Mediterranean countries (Algeria); ECU 80 million for the CEEC (Lithuania: ECU 25m, Romania: ECU 55m); and ECU 105 million for the CIS (Moldavia: ECU 20m, Ukraine: ECU 85m). In addition to this, new loans of a maximum of ECU 255m were approved in 1995 (Belarus: ECU 55m; Ukraine: ECU 200m), and ECU 30m of this sum was actually disbursed in 1995 to Belarus. 3. 2 Under the Council Decision of December 1991 relating to the commercial credit facility of ECU 1250m in favour of the new independent states of the former USSR 10 (CIS), the actual payments made in 1995, corresponding to loans signed earlier, amounted to ECU 95. 0 million (Azerbaijan: ECU 36. 2m; Uzbekistan: ECU 58. 7m). Since no new operation was decided in 1995, the total amount of credits granted under the facility remained at the same level as in 1994, i. e. ECU 1 133 million. Table 5 Financing outside the Community in 1995 I (ECU million) B E 1 Financial EC and EDF support for budgetary Own countries (1) resources (2) resources Total ACP-OCT Mediterranean basin CEEC as Latin America, Asia 225,0 23,0 100,0 80,0 230,0 (3) Total 410,0 248,0 Disbursements. 250,0 1. 015,0 1. 005,0 288,0 2. 558,0 475,0 1. 138,0 1. 085,0 230,0 288,0 3. 216,0 (1) (2) (3) Signed and managed by the EIB outofthe budgetary resources ofthe ECorlhe European Development Fund (EDF) Balance-of-payments loans and commercial credits. 3. 3 EIB financing outside the Community is also made available as part of the Community's cooperation policy with third countries. Such financing rose sharply in totalling ECU 2 806 million; 1995, up 24. 9% on ECU 2 558 million was financing from resources, and ECU 248 million came from operations using risk capital drawn from Community or Member States* budgetary funds (Table 5). the previous year, and the Bank's own The substantial increase in these loans is due both to the stepping-up of activities outside the Union and their extension to new geographical areas. The stepping-up of lending activities was very marked in the Mediterranean and in Latin America and Asia (ALA), while it stabilized in central Europe and in the African, Caribbean and Pacific countries. Loans were also granted for the first time to South Africa, Haiti and Palestine. In the African, Caribbean and Pacific (ACP) countries and the Overseas Countries and Territories (OCT), the EEB provided assistance amounting to ECU 430 million (against ECU 462 million in 1993), of which ECU 225m was in the form of risk capital from the resources ofthe European Development Fund (EDF). 11 In sectoral terms, two-thirds of financing (ECU 291m) went to basic infrastructure (roads, public works, ports and airports). Energy production and transportation and the exploitation of hydrocarbons received finance totalling ECU 108 million. Works to supply drinking water and sewerage works received ECU 105m, while lending for communications infrastructure totalled ECU 78 million. In Africa, the first global loans, based on a separate protocol, and totalling ECU 45 million, were made in the Republic of South Africa. in on the countries seaboard the Mediterranean Lending totalled ECU 1 038 million in 1995, of which ECU 23 million were drawn from own resources. Over two-thirds of the loans (ECU 718 million) are financed under non-protocol horizontal financial cooperation for regional cooperation and environmental protection projects; loans under the current bilateral protocols totalled ECU 320m. Operations encompassed eleven countries and centred on improving transport infrastructure, water resource management, sewerage and irrigation, and the generation and transportation of energy. A line of ECU 125m in global loans was also used for small investments carried out by local authorities and private sector firms. Under the European Union's initiative to support the Middle East peace process, the EIB in October 1995 signed the "framework support agreement" between the Bank and the Palestinian Authority. Global loans totalling ECU 26 million (of which ECU 6 million came from risk capital) were signed at the end of 1995 for the financing of new investment in industry, the agri-foodstuffs sector, tourism and services in Gaza and on the West Bank. Support for the peace process should be seen in a wider regional context characterized in 1995 by loans in Jordan, for the reconstruction of the Lebanon and for investment involving Israeli and Egyptian operators. Lending of ECU 15 million to Malta and ECU 10 million to Cyprus is intended to enable compliance with the Community Directives on the discharge of waste water and the extension of urban sewerage installations. In the central and east European countries (CEEC), lending amounted to ECU 1 005 million in 1995 (ECU 957 million in 1994). Ten countries received loans, including Albania for the first time. Most of these loans (97%) were provided under the Decision of the Board of Governors of May 1994 for a In addition, programme of ECU 3 billion with a Community budget guarantee. ECU 32 million were advanced to Slovenia under the protocol which entered into force in 1993. Several of these loans contributed to projects which are the direct adjuncts to trans-European networks. The productive sector also received global loans totalling ECU 315m in six countries. Lastly, eight countries in Latin America and Asia, signatories to cooperation agreements with the European Union, received loans totalling ECU 288 million. These operations were mounted under the authorization given by the Board of 12 Governors in February 1993 to finance capital investment of mutual interest to the country concerned and the Union or involving European partners, up to a ceiling amount of ECU 750 million over a period of three years. By end-1995 financing under this heading had amounted to ECU 607 million. 3. 4 On 5 March 1990 the Community decided to make ECSC loans available for financing industrial investment projects in Poland and Hungary up to a ceiling of ECU 200m. Since 1991 that decision has also applied to the Czech and Slovak Federal republics, Bulgaria and Romania. No new loan has been concluded since the ECU 42m loan, signed in 1994 and disbursed in 1995, to finance investment in a steel plant in Poland. 3. 5 On 21 March the Council decided to authorize the Commission to contract Euratom borrowings the proceeds of which will be allocated in the form of loans to finance improvements in the efficiency and safety of nuclear power stations in some CEEC and CIS countries. Under the global ceiling fixed by the Council, an amount of some ECU 1. 1 billion could be granted under this facility. In 1995 the appraisal of projects was actively continued, but because of their technical, as well as political, complexity, no financing project has reached the final decision-making stage. 3. 6 The Community and the EIB are both shareholders and close partners ofthe EBRD: they each hold 3% ofthe Bank's capital. They work in close cooperation and match their resources: the Commission provides technical assistance for projects undertaken by the EBRD, while the EIB and the EBRD are helping to finance a number of projects in central and eastern Europe. According to the EBRD's annual report for 1995, the Board approved 134 new projects in the CEEC and the former Soviet Union (against 106 in 1994). Signed commitments amounted to ECU 2 billion (against ECU 1878m in 1994). In view of the increase in demand, equity holdings as a proportion of the Bank's entire activities rose from 21% to 24% during 1995, i. e. ECU 695m. 4. THE EUROPEAN INVESTMENT FUND The European Investment Fund (ELF), which has been operational since June 1994, expanded its activity of providing guarantees for the financing of projects forming part of trans-European networks (TEN) and those undertaken by small and medium-sized enterprises. The Fund now has 78 shareholders, consisting of 76 banks and financial institutions from the member countries of the Union together with the European Commission and the EIB. At the end of 1995 the subscribed capital stood at ECU 1 784 million, i. e. 89. 2% ofthe authorized capital of ECU 2 billion. Since it was set up 28 operations, corresponding to a volume of ECU 1441m, have been approved; operations signed total ECU 631. 8m. TEN projects accounted for 91% ofthe total, with the remainder being granted for SME projects. 13 The TEN projects signed in 1995 related to the transport, telecommunications and energy sectors. In December 1995 the Commission and the Fund signed an agreement on a pilot project entitled "Growth and Environment", under which a partial EEF guarantee will be provided for SME projects which have positive spin-offs for the environment. In this connection, the Fund has examined and offered guarantee contracts to a number of shareholder banks. 5. BUDGETARY IMPACT OF LENDING The Community's general budget is affected by lending activity where loans are accompanied by interest subsidies and/or budget guarantees. 5. 1 Interest subsidies Interest subsidies are granted in the Community in the following fields: (i) the industrial conversion of coal and steel areas (Article 56 of the ECSC Treaty); (ii) the reconstruction of the disaster-hit areas of Italy and Greece, where they are paid out via the EBB as borrowings are repaid; (iii) in the context ofthe "SME facility" (see Table 7 in Annex). No industrial loans at reduced rates for investment projects designed to promote consumption of Community coal (Article 54, second paragraph) have been made. With regard to the granting of subsidies for conversion loans in coal and steel areas (Article 56), interest subsidies amounted to ECU 11. 5 million in 1995 against ECU 114. 3min 1993 and ECU 51. 1m in 1994. The Copenhagen European Council of June 1993 increased by ECU 3 billion the temporary facility agreed in Edinburgh for major infrastructure projects. Of that amount, ECU 1 billion are directed towards strengthening the competitiveness of small and medium-sized European enterprises and would carry interest subsidies linked to the creation of employment. The subsidy amounts to ECU 3 000 peradditional job created (equivalent on average to a 2% interest rebate). Following the adoption ofthe Council decision of 19 April 1994, the EIB started to sign global lending agreements with financial intermediaries in all Member States in the second half of 1994. to beneficiaries was closed on 15 December 1995, the entire budget of ECU 1 billion having been allocated. The budgetary payments for this facility amounted to ECU 65. 5m in 1994 and to ECU 2. 8m in 1995, which demonstrates the speed with which loan applications were made, and consequently the interest aroused by this facility. The allocation of loans Interest subsidies are also provided in connection with EIB loans outside the Community (see Table 8 in Annex). 14 5. 2 Budget guarantees 5. 2. 1 Coverage All the outstanding borrowing contracted by the Community to finance loans managed by the Commission (Euratom, NCI, balance of payments) is guaranteed by the general budget. The Bank's loans from own resources granted to non-Community countries in pursuit of the Community's policy of providing financial assistance for development are covered by a guarantee agreement. The guarantees are provided by Member States for loans in ACP countries and by the Community for Mediterranean, Central and east European (CEEC) countries, the countries in Latin America and Asia with which the European Union has concluded cooperation agreements and South Africa. Details of the Community budget guarantees provided in this connection are as follows: (i) EBB loans to Mediterranean countries: these loans are covered by a global Community guarantee for 75% ofthe amount of loans signed. At the end of 1995 outstanding loans totalled ECU 2 167 million, of which ECU 385 million were accounted for by loans in Spain, Greece and Portugal (pre-accession) and ECU 1 782 million by loans in non-member Mediterranean countries. (ii) EIB loans to the CEEC: loans contracted are fully covered by the Community guarantee. At 31 December 1995, the ED3 opened ECU 1 647 million in credit to these countries out of a total allocation of ECU 1. 7 billion under the budget heading CEEC I. The total amount outstanding for loans at the end of 1995 totalled ECU 837 million. At the end of 1993 the Community renewed its guarantee to cover EIB lending to the CEEC, including the Baltic States and Albania, up to a ceiling of ECU 3 000 million over the following three years (CEEC II). At 31 December 1995 the EIB opened credit worth ECU 1 894 million from this allocation. At the same date the amount ofthe guarantee outstanding was only ECU 96m. (iii) EIB loans to other third countries: loans granted to Latin American and Asian countries with which the Community has concluded cooperation agreements are fully covered by the Community guarantee. This programme was decided in February 1993 and relates to a global amount of ECU 750 million over a period of three years, with a ceiling of ECU 250m a In 1995 loans signed stood at ECU 607m, while the guarantee year. outstanding at the end ofthe year amounted to ECU 149 million. 15 (iv) EEB loans to South Africa: in June 1995 the Community provided its guarantee for loans made by the EIB in South Africa over the following two years up to a maximum amount of ECU 300 million. These loans are fully guaranteed by the Community budget. At 31 December 1995 the EIB opened credit worth ECU 45 million but nothing has been disbursed. The Community decided in 1991 to provide a guarantee covering 98% of a bank loan to the former USSR up to a ceiling of ECU 500m (ECU 406m in capital) for imports of agricultural and food products. In February 1992, this credit was allocated exclusively to Russia. The credit was repaid in full at the end of 1995. 5. 2. 2 Outstanding guarantees at 31 December 1995 At the end of 1995 the outstanding guarantees provided by the Community budget, the details of which are given in Table 6, exceeded ECU 13 billion, more than 44% of which were for countries outside the Community. Compared with 1994, total outstanding guarantees have decreased by ECU 655 million. However, the proportion of commitments in relation to non-Community countries has increased steadily from 37. 5% in 1992 to 44% at present. The annual risk covered by the general budget, which concerns the repayment of the debt (principal and interest), stood at ECU 2 855 million in 1995, of which ECU 1 682 million related to third countries. At 31 December 1995 the Community's claims not as yet honoured by defaulting debtors stood at ECU 296. 52 million, of which ECU 68. 2 million are owed by some republics ofthe former Yugoslavia and ECU 228. 3 million by the independent states ofthe former USSR, Tajikistan, Armenia, Georgia and Turkmenistan. All the provisional drawings on the Commission's cash resources in respect of the guarantee have been regularized by the budget up to 1993 and by the budget Guarantee Fund since its establishment by Council Regulation (EC, Euratom) No 2728/94 of 31 October 1994. 16 Table 6 Capital outstanding on guaranteed operations (at 31 Dec 1995) (1) Operation Member States A. Balance of payments 1. Greece I 2. Greece II 3. Italy B. Other 4. Euratom (2) 5. NCI (including earthquake reconstr. 6. EJB Mediterranean (E,GR,P) Non-Communitv countries A. Financial assistance 1. Hungary 2. Czech Republic 3. Slovak Republic 4. Bulgaria 5. Romania 6. Algeria 7. Israel 8. Baltic States 9. CIS 10. Moldavia 11. Ukraine 12. Belarus B. Other 13. SB Mediterranean 14. EIB CEEC I and II 15. EIB Latina America, Asia 16. South Africa 17. CIS guarantee (ECU million) Amount ceiling Amount outstanding at 31 Dec 1994 Amount outstanding at 31 Dec 1995 26. 330 14. 000 4. 000 6. 830 1. 500 17. 782 5. 170 1. 050 250 255 400 580 600 160 220 1. 250 45 285 75 12. 612 6. 362 4. 700 750 300 500 7. 844 5. 022 1. 000 4. 022 2. 822 779 1. 570 473 5. 926 3. 485 790 250 125 360 455 400 160 110 810 25 2. 441 1. 688 574 46 133 7. 263 5. 045 1. 000 4. 045 2. 218 720 1. 113 385 5. 851 2. 987 440 250 125 360 510 500 160 135 347 45 85 30 2. 864 1. 782 933 149 TOTAL 44. 112 13. 770 13. 114 (1) Exchange rate as at31/12/95. (2) Extension of Euratom loans to certain third countries (Council Decision of 21/03/94). 17 STATISTICAL ANNEX 18 Table 1 Trend of borrowing and lending in the Cornrnunity (ECU million) (BCU rate at year-end) 1985 1986 1987 1938 1989 1990 1991 1932 1993 1994 1995 I. Borrowing ECSC 1. 265 1. 517 1. 487 880 913 1. 086 1. 446 1. 474 906 644 386 Balance of payments (1) 862 880 360 1. 695 1209 4. 969 245 410 Euratom Nd 344 488 853 93 860 541 611 945 522 76 49 - 49 70 66 Total Commission 2469 a408 3. 811 1. 918 1. 435 1. 512 3190 2683 5. 877 1. 008 862 BB(2) Total EC II. Lending 5. 699 6. 786 5. 593 7. 663 9. 034 10. 996 13. 672 12974 14224 14. 148 12395 ai68 10. 194 9. 404 9. 584 10. 469 12508 16. 862 15. 657 20. 101 15. 156 13257 ECSC 1. 010 1. 069 969 908 700 993 1. 382 1. 486 918 Balance of payments (1) 862 860 360 1. 695 1209 4. 969 Euratom NCI 211 443 884 393 314 425 357 78 24 39 9 30 403 410 674 245 49 Total Cornrrisdon 2105 2767 2568 1355 778 1. 367 3. 116 2454 5. 917 968 813 BB(3) Total BC 5. 641 a678 6. 967 8. 844 11. 507 12605 14. 438 16. 066 17. 724 17. 682 18. 604 7. 746 9. 445 9. 535 10. 109 12285 13972 17. 554 18520 23. 641 18. 650 19. 417 Note: The differences between total borrowing and lending by the Commission are due to borrowing operations undertaken for refinancing purposes and to changes in fe balance of loans not assigned by the end ofthe year. The differences between borrowing and lending by the EIB are due to the fact that EIB lending operations are f nanced both from borrowings and from the Bank's own resources. (1) Mechanism for providing financial support for Member States and assistance for non-member coutries. (2) Total resources raised. (3) Loans signed out of own resources, no accourt being taken ofthe guarantees provided by the EIB to promoters (none in 1995) or of operations financed out of NCI resouces. 19 Table 2 Community borrowings outstanding (at year-end) (1) (2) (ECU million) ECSC EIB Euratom NCI Sub-total borrowings borrowing Balance-of-pa Total 1982 1963 1984 1985 1986 1987 1988 a i 78 16570 1. 272 1. 747 25. 767 a539 20. 749 1. 680 a269 32237 7. 119 25. 007 1. 892 4432 38. 450 7. 034 2a736 2013 4960 4Û743 a761 30271 2168 5. 202 44. 402 6689 31557 2500 5229 46. 375 6825 36. 928 2164 5514 51. 431 1989 (3) a738 42330 1. 945 5. 122 55. 135 591 4. 610 4932 3236 1. 890 2997 2459 2075 1990 1991 1992 1993 1994 1995 a673 4a459 1. 687 4542 61. 361 (4)2045 7. 139 5a893 1. 563 a817 71. 412 7. 327 67. 784 1. 338 a326 79. 775 7. 331 78. 661 1. 018 2202 89212 a548 8a673 &966 87. 079 779 720 1. 570 92570 1. 113 94878 3516 4. 026 5204 7. 697 a032 2a358 3&847 4a382 4a979 46292 49. 372 5a890 58210 6a405 74. 928 aaaoi 94. 416 10Q267 102910 (1) The conversion rates used were those obtained on 31 December of each year. As the majority of borrowings are denominated in national currencies,*-» difference betweentwo year-ends relects,onihe one hand,changes in the valuation of te e*sfing stock and, on tie other, tie net volume of borrowings during tie year. (2) Original amount of borrowings, plus or minus repayments of tie principal, cancellations, annulments and e>change-rate adjustments. (3) As from 1989including shortterm (newEIB approach). (4) As from 1990also includes balance-of-payments and Inarcial assistance for non-member countries. 20 Table 3 Community borrowings in 1995, by currency J (ECU mill ion) EIB Euratom ECSC Balance-of- NCI Payments(l) Total Borrowing 1995 % 1994 % 400 410 ECU BFR DKR DM ESC FF DRA HFL IRL LFR LIT OSC PTA SFM SVK UKL 2397 1. 004 - - 342 149 145 135 193 a343 1. 574 18 77 996 - - - - - - - Sub-total 1Q773 SFR USD YEN CAD 323 528 771 Sub-total 1. 622 TOTAL 12395 7 - 182 10 14 9 46 20 98 386 - - 386 66 66 66 - - - - - - - - 410 810 7 2579 1. 014 356 149 145 135 202 ai 0,1 19,5 7,6 2,7 1,1 1,1 1,0 1,5 a389 25,6 1. 594 18 77 1. 094 11. 569 389 528 771 120 0,1 0,6 a3 87,3 29 4,0 5,8 4,1 5,5 0,3 14,1 a9 7,7 Q2 4,4 1,2 1,3 17,0 0,4 6,5 12,3 7a8 5,6 11,1 4,4 1. 688 127 21,2 410 ia257 100,0 100,0 (1) Balance of payments and fnancial assistance for non-member countries. 21 Table 4 Lending intfn C u i m u i t y in 1994and 1995 by sector and instaurent (ECUrrillion) ECSC JBffi. Euratom Nd(D Total %of total 1994 1995 1994 1995 1994 1995 1994 1995 1994 1995 1994 1995 Producflve sector 3337 3m 389*3 4617,1 of w f t tr allocators ftomglobal loans 21Q0 2213 1. 7936 29549 114 114 39124 4933/U 228 27A\ 20180 3 1 ^7 11,7 17,5 Infrastructure 3337 141 96182 10031,5 99329 1QCB5,6 57. 7 56£ crfwttdrtalloGtions tomgjobal loans B w gy of whldt allccalcns tomojobal loans 8075 12990 897,5 12330 52 73 33839 3083,1 33339 30831 195 170 ea3 S98i 6213 933 Q4 Qd TOTAL 6734 3304| 1662V4 17. ^1,7 114 173392 181421 100 100 'D Rraiang gated (indvidjd leers axl alosalcreforfigobà loans) 22 Table S Financing in the Community by the EIB in 1994 and 1995, by economic objective 1. Regional development 1. 1 By country Belgium Denmark G e r m a ny Greece S p a in France Ireland Italy L u x e m b o u rg Netherlands Portugal United Kingdom Austria Finland S w e d en 1. 2 By m a j or sector Energy Transport Telecommunications W a t e r, sewerage Other infrastructure Industry, agriculture Services 2. Infrastructure of Community interest 2. 1 Transport 2. 2 Telecommunications 2. 3 Other 3. Environmental protection and improvement 3. 1 Environment 3. 2 T o wn planning 4. Energy 4. 1 Indigenous resources 4. 2 Import diversification 4. 3 Efficient use of energy 5. Industrial competitiveness 1994 1995 ECU million ECU million 12. 035,1 100 12. 143,5 100 178,6 506,9 1. 801,6 632,1 2. 659. 2 1. 571,7 237,7 2. 159,2 17,7 1. 127. 1 1. 143,3 2. 104,4 4. 209,8 1. 925,2 766,2 404. 0 2. 09Z9 532,6 5. 698,3 3. 543,2 2. 155,1 4. 866,0 3. 152,1 1. 713,9 3. 525,6 850,8 919,8 1. 755,0 1. 791,5 1. 5 4,2 15,0 5,3 22,1 13,1 2,0 17,9 0,1 9. 4 9,5 17,5 35,0 16,0 6,4 3,4 17,4 4. 4 100 62,2 37,8 100 64,8 35,2 100 24,1 26,1 49,8 249,0 304,0 1. 786,3 335,7 2. 697,0 1. 440,1 165,5 2. 458,8 79,3 24,0 1. 252,8 1. 258,6 63,8 23,7 4,7 2. 009,0 4. 385,0 885,0 1. 229,0 385,0 2. 534,0 718,0 6. 592,0 5. 494,0 1. 098,0 6. 044,0 3. 972. 0 2. 072,0 3. 433,0 1. 037,0 894,0 1. 502. 0 3. 450,0 2,1 2,5 14,7 2,8 22,2 11,9 1,4 20,2 0,7 0,2 10,3 10,4 0,5 0,2 0,0 16,5 36,1 7,3 10,1 3,2 20,9 5,9 100 83,3 16,7 100 65,7 34,3 100 30,2 26,0 43,8 of w h i c h: small a nd medium-sized enterprises (1) 1. 693,4 6. 776 2. 881,0 N u m u ui Numb» 11. 736 (1) N. B. Including allocations from NCI global l o a n s. As some loans serve a number of purposes simultaneously, the amounts shown under the different headings c a n n o t be a g g r e g a t e d. 23 Table6 Geographical breakdown of lending (1) in the Community In 1994 and 1995 1994 Belgium Denmark Germany Greece Spain France Ireland Italy Luxembourg Netherlands Portugal United Kingdom Austria Finland Sweden Art 18 (2) Total 1995 Belgium Denmark Germany Greece Spain France Ireland Italy Luxembourg Netherlands Portugal United Kingdom Austria Finland Sweden Art 18 (2) Total ECSC EIB Euratom NCI (ECU million) Balance of payments Amount % 39,8 82,1 143,4 0,0 30,7 14,5 0,1 29,3 333,8 673,7 615,3 849,7 2407,9 534,7 aon,5 2477,4 291,1 a099,5 5,1 399,5 1. 109,7 2454,7 89,5 60,2 15,3 260,8 17. 681,9 655,1 931,8 2551,3 534,7 a0422 2491,9 291,2 312a8 5,1 399,5 1. 109,7 2788,5 89,5 60,2 15,3 260,8 ia355,6 ECSC EIB Euratom NCI Balance of payments Amount % a7 104,8 229 14,9 89,2 9,4 10,2 100,3 666,0 825,0 2715,0 525,0 281*0 2207,0 327,0 a435,0 79,0 319,0 1. 2320 2244,0 2420 179 273 519 360,4 iaeo4,o 67a7 825,0 2819,8 525,0 2840,9 2221,9 327,0 a524,2 8a4 319,0 1. 2422 2344,3 2420 179,0 273,0 519,0 ia964,4 3,6 5,1 ia9 29 16,6 ia6 1. 6 17,0 0,0 22 6,0 15,2 0,5 0,3 0,1 1,4 100 a6 4,4 14,9 28 15,0 11,7 1,7 ia6 0,5 1,7 6,6 124 1,3 0,9 1,4 27 100 (1) (2) Loans granted Community projects Ihatcannotbe located ina particular Member State (e. g. telecommunication cables and satellites, North Sea Oil). 24 Table 7 Interest subsidies paid out in the Community by the various Community mechanisms, 1977-1995 I (ECU million) Non-discounted systems (1) Discounted systems (2) ECSC Art54 ECSC Art. 56 Employmen Earthquake EMS ERDF SME Year (restruot) (oonvers. ) in Portugal reconstr. facility 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 (1) (2) 1,3 9. 8 10. 4 25,7 7,6 10. 5 4,0 6. 2 3,6 5. 9 24 3,0 26 1. 3 1,0 27 16,5 8,0 33,4 6,3 19,3 7,1 34,0 74,9 33,1 35,6 38,6 425 40,6 48,6 106,0 114,3 51,1 11,5 121 200,0 197,0 193,2 209,8 200,0 4,0 3,9 3,0 14,4 24,4 28,4 28,6 28,6 27,8 28,6 23,1 20,1 17,2 65,5 28 Interestsubsidies spread overtime and charged to the funds setaside forthis purpose in the annual budgets. Interestsubsidies paid by the Commission after discounting to a presentvalue, and charged to the budgetas a single sum in tie initial year. 25 Table 8 Programmas of financial assistance outside the Community in force or under negotiation at 31/12/1985 (InMioKU) Agreement CuratJori Loans Operations from Macro-flnandal BCSC Total from budgetary resources assistance (3) loans committed BBown resK capital Non-repayable Granted Osbursed ACPStatas-OCT ACP OCT ACP OCT South Africa MedrterrxountrlesfS) Turkey Algeria Morocco Tunisia Egypt Jordan Lebanon Syria Israel Gaza and Ctsjordanla(6) Malta Cyprus "Nan-protocoT horizontal financial -Rrst financial Rotocd Fourth Lomé Convention Qxrcl Decision -Second Financial Rotocd Fourth Lomé Gbnvenfion Qjurici Decision Cbuncl Decision 1996 1996 2000 2000 1997 Kbt yet in force Fourth Financial Rotocd 2000 1996 Fourth financial protocol Third financial protocol Fourth financial protocol Fourth financial Rctocd Counci Decision Fourth financial Rotocd 1996 1998 Fourth Financial Rotocd 1998 resources operations aid 0) (2) (3) 1,200 25 825 25 9. 975 (4 115 (4 35 300 750 280 220 168 310 80 45 110 115 82 250 30 50 1,000 33 11,967 (4; 100 (4 600 500 160 160 18 25 15 16 2 2 2 2 52 193 101 242 44 22 34 41 250 13 22 cooperation Counci Decision 1996 1,800 25 205 (7j Czech FkpuoUc, Slovak RipuMc, Bulgaria. Baltic States, tingary, Fbmanta, Albania. Slovenia as Former USSR Moldova Ukraine Belarus Counci Decision financial protocol 1996 1997 3,000 150 _20J81 250 255 400 220 1,050 580 105 (9) 250 125 360 135 790 510 85 1,250 (10) 1,133 45 285 55 45 85 30 Latin American and Asian countries Counci Decision 1996 750 d) (2) (3) (4) (5) (6) (7) (8) (9) (10) Loans attracting interest subsides from the Hjropean Devebprrent F^ in the case of projected the ACP S r a^ general budget of the Bjropean Cbrrrrunibes in the case tf projector certain Medterraneanca interest subsidies are charged to non-repayable aid Granted and managed by the BB Granted and managed by the Corrrrfesion. hdudng amounts intended fa interest subsides on BB loans. The arrtxjrte avaiabë under tre previous financial p r^ (Lebanon, Syria) a residual amounts. Loans fromown resources wB be attributed to 'non-prctoccf cooperation. West Bank and Gaza strip; loans from own resources are covered by tre'NxvprcAxof hortecrtalfiraic^ hcludng some HU100 rrilon of interest subsides fa FJB bare in the err^ronrrental sector. Nan-repayable assistance (straight grant). Commercial credts. 26 12,000 165 14. 625 165 300 5,630 950 438 284 568 126 69 146 158 242 500 45 74 2,030 8. 030 250 255 400 220 1,050 580 105 3,000 170 1,635 1,250 45 285 55 750 B. THE COMMISSION'S REPORT TO THE COUNCIL AND TO THE EUROPEAN PARLIAMENT on the rate of utilization ofthe New Community Instrument (NCI) (half-year from 1 July 1995 to 31 December 1995) 1. Overall situation at 31 December 1995 Council Decisions 83/200/EEC (Article 6) and 87/182/EEC (Article 8) on the financing of the NCI require the Commission to draw up a six-monthly report on the rate of utilization ofthe tranches of NCI III and IV. The present report covers the period from 1 July 1995 to 31 December 1995. The different legal bases determine the method of assessing the amount of loans signed in relation to the maximum authorized borrowing: (i) for NCI III, the volume of loans is lower than that of borrowings in order to take account of the currencies borrowed and the associated costs and expenses; (ii) for NCI IV, the ceiling applies to the loans signed. At the end of 1995 the situation regarding the use of the tranches for which a six-monthly report has to be drawn up was as follows: Use of NCI: situation at 31. 12. 1995 (ECU million) Ceiling Amounts used Balance NCI III NCI IV 3. 000 750 2. 862 669 138 n 81 H The special borrowing of ECU lOOmillion for European innovation projects has notyetbeen authorized by the Council. The borrowing operations carried out in the six months under review with a view to financing NCI activities or refinancing previous activities are shown in Annex 2(B). 27 2. Breakdown of loans by country and sector The table below provides an overall view of loans signed, converted into "borrowing equivalents" at 31 December 1995. The loans in the various currencies have been converted into ecus at the exchange rate in force on the last working day of the quarter preceding the signing ofthe contract. Distribution of loans signed by country at 31. 121995 | (ECU million) Country N ai Nan Nam Naiv Na Reconstr. Total % Belgium Denmark Greece Spain France Ireland Italy Netherlands Portugal UK Total 66,8 70,0 239,0 479,9 100,6 114,9 125,0 116,6 473,4 23,6 6^2 1102 72,3 303,0 111,2 69,2 938,7 68,4 80,0 23,6 533,5 306,1 187,4 1. 206,0 424,0 1. 228. 5 285. 7 598,7 a066,3 3,2 29,9 134,9 67,1 109,3 9. 9 95,8 3,2 39,8 407,1 0,4 8,6 4,9 3,0 19,5 6,8 49,5 0,1 0,6 6. 6 990,5 997,5 2861,6 6583 678,7 6197,1 100,0 SECTOR Productive sector Infrastructure N am NCMV 52,8% 100. 0 % 26,5% Energy 20,7% 100,0% 100,0% NIC IV is of interest because of its special features, such as the options of converting loans into risk capital, using loans to finance the purchase of intangible assets and deferring interest payments. No loan transactions have been carried out since 1991. 28 STATISTICAL ANNEX 29 NCI IV LOANS CEILING: ECU 750 MILUON (1) - (Situation at 31. 12. 1995) Breakdown by country (2) Annex 1 UK Ref. Project description Date of contract ECU m illion (2) 64/87 64/87 68/87 68/87 69/87 69/87 70/87 70/87 70/87 70/87 70/87 71/87 7V87 73/87 105/87 105/87 106/87 107/87 107/87 108/87 108/87 110/87 CV87 M 8/8 7 M 8/8 7 M 8/8 7 M 8/8 7 206/87 206/87 207/87 207/87 23V87 64/88 »l/88 101/88 101/88 101/88 »3/88 B3/88 103/88 H3/88 109/88 128/88 128/88 135/88 D5/88 185/88 185/88 199/88 237/88 237/88 237/88 237/88 175/89 119/90 119/90 48/91 I. LOANS SIGNED FIH(SmallBusiness)PG-VI/A FIH(SmallBusmess)PG-VI/B BNL-PMI V/A BNL-PMI V/B IMI-PMI V/A IMI-PMI V/B MEDIOCR. CENTR. - PMI I V/A MEDIOCR. CENTR. - PMI I V/B MEDIOCR. CENTR. - PMI IV/C MEDIOCR. CENTR. -PMI IV/D MEDIOCR. CENTR. - PMI IV/E INTERBANCA -PMI IV/A INTERBANCA-PMI IV/B BPI-PGV CENTROBANCA -PMI IV/A CENTROBANCA -PMI IV/B SAN PAOLO Agrohdustria II CREDIOP-PMII/A CRBDIOP-PMII/B BANCO DI NAPOLI - PMI A BANCO DI NAPOLI - PMI B B°DE SANTANDER - P YME B°DE BILBAO-PYME EFIBANCA-PMI IV/A EFIBANCA-PMI IV/B EFIBANCA-PMI IV/C EFIBANCA-PMI IV/D B°DE VIZCAYA-PYMEA B°DE VIZCAYA-PYMEB B°ESPANOLDE CREDITO -PYME B°ESPANOLDE CREDITO-PYME CREDITNATIONAL-PMIIII INVBSTORS IN INDUSTRY - GROUPED LOAN V EFIBANCA-PMI V/A EFIBANCA-PMI V/B EFIBANCA-PMI V/C BFIBANCA-PMI V/D MEDIOCR. LOMBARDO - PMI A MEDIOCR. LOMBARDO - PMI B MEDIOCR. LOMBARDO - PMI C MEDIOCR. LOMBARDO - PMI D BARCLAYS BANK II GL CENTROBANCA -PMI V/A CENTROBANCA -PMI V/B CREDIOP-PMI Il/A CREDIOP-PMIII/B BANCO DI SICILIA - PMI Il/A BANCO DI SICILIA - PMI II/B CREDIT INDUSTRI EL ET COMML. IMI-PMI VI/A IMI-PMI VI/B IMI-PMIVI/C IMI-PMI VI/D BARCLAYS BANK III/A KREDIETBANK N. V. -GL KREDIETBANK N. V. -GL B°ESPANOL DB CREDITO PG PY 15. 09. 87 24. 05. 88 12. 10. 87 12. 10. 87 31. 07. 87 31. 07. 87 15. 09. 87 10. 12. 87 03. 02. 88 16. 03. 88 23. 06. 88 07. 10. 87 07. 10. 87 22. 07. 87 1112. 87 IL 12. 87 05. 1187 18. 12. 87 18. 12. 87 18. 12. 87 18. 12. 87 24. 07. 87 23. 07. 87 17. 12. 87 H. 12. 87 24. 06. 88 24. 06. 88 17. 12. 87 30. 1188 18. 12. 87 18. 1188 05. 02. 88 28. 12. 88 05. 10. 88 05. ». 88 16. 0189 16. 0189 10. 10. 88 10. 10. 88 06. 02. 89 06. 02. 89 21. 12. 88 19. 12. 88 19. 12. 88 09. 12. 88 09. 12. 88 25. 05. 89 25. 05. 89 29. 1188 19. 12. 88 19. 12. 88 06. 02. 89 06. 02. 89 30. 1189 20. 12. 90 20. 12. 90 28. 05. 91 TOTAL I II. LOANS APPROVED, AWAITING SIGNATURE BALANCE CEILING DK 3180 3143 20,19 3164 9,37 8,60 12,04 10,94 18,04 5,54 25,44 3180 31. 43 18,68 8,01 37,29 15,98 6. 19 5,88 4,81 3,27 18,98 9,34 4,00 9. 91 9,34 4. 00 13,34 4,67 2,00 4,60 197 20,19 3164 4,67 2,00 4. 55 195 9,37 8,60 12,04 M,94 20,00 20,90 4,53 194 4. 57 196 6,79 2,91 9,14 3,92 45,55 13,23 5,67 4,53 194 4,58 196 52,32 9,06 3,88 13,72 5,88 29,38 18,04 5,54 25,44 9,91 18,68 8,01 37,29 15,98 6,19 5,88 4,81 3,27 18,98 9,34 4,00 9,34 4,00 D. 34 4,67 2,00 4,60 197 4,67 2,00 4,55 195 20,00 20,90 4,53 194 4,57 196 6,79 2,91 9,14 3,92 13,23 5,67 4,53 194 4,58 196 9,06 3,88 13,72 5. 88 52,32 45,55 29. 38 668,82 23,58 63,23 118,22 72,32 285. 73 9,91 95,83 0,00 SU8 750,00 (1) JO L°. 271 of 14. 03. 1987 (loans ceiling). (2) Conversion rates aie those obtained on the last working day of the quarter preceding the signing of each loan. 30 NCI BORROWING, BY CURRENCY Annex 2 A. -Debt outstanding at 31. 12. 1995 (1) || Currency (million) Equivalent in ECU miHion(2) 90. 0 90. 0 408-6 2,100. 0 387. 5 1,000. 0 1 2-0 100. 0 250. 0 216. 9 326. 1 183. 8 25. 8 14. 2 66. 1 190. 2 | | 1/113. 1 ECU BFR DM FF HFL LFR LIT PTA UKL CAD SFR USD YEN Total B. - New operations: 1. 07. 1995 - 31. 12. 1995 | Equivalent in MECU (3) Date Duration Coupon of issue 24. 11. 95 24. 11. 95 24. 11. 95 24. 11. 95 (years) 2 3 5 4 (%) 3 3. 5 4 3. 75 Currency (million) Fresh Re capital (1) financings FS25 FS25 FS25 FS25 - - - - 16. 5 16. 5 16. 5 16. 5 (1) Excluding refinancing operations,designed to reduced Die costofservicing existing debt initially conlracted athigher interestrates. (2) Exchange rates as at31. 12. 1995 (3) Exchange rates atsignature. 31 ISSN 0254-1475 COM(96) 384 final DOCUMENTS EN 01 09 Catalogue number : CB-CO-96-382-EN-C ISBN 92-78-07369-5 Office for Officiai Publications of the European Communities L-2985 Luxembourg 3Z