Annex ANNEXBII — ANNEX II (by way of indication) - PART II OF THE BUDGET — BORROWING-AND-LENDING OPERATIONS — BORROWING-AND-LENDING OPERATIONS GUARANTEED BY THE GENERAL BUDGET

National currencies have been converted into euro at the rate applicable at 31 December 2001.

Annex ANNEXBII - A — A. INTRODUCTION

This Annex is drawn up in accordance with Article 20(5)(c) of the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities (OJ L 356, 31.12.1977, p. 1), as last amended by Regulation (EC, ECSC, Euratom) No 762/2001 (OJ L 111,20.4.2001, p. 1).

It provides information about the amounts of the borrowing-and-lending operations guaranteed by the general budget: loans for balance-of-payments support, Euratom and new Community Instrument (NCI) loans and European Investment Bank loans to Mediterranean basin countries and, from 1991 onwards, borrowing operations to provide medium-term financial assistance to non-member countries, European Investment Bank loans in the countries of central and eastern Europe and the western Balkans, European Investment Bank loans for projects of mutual interest in certain non-member countries (developing countries in Asia and Latin America), European Investment Bank loans to South Africa and, since March 1994, Euratom borrowings to contribute to the financing required for improving the degree of efficiency and safety of nuclear power stations in certain non-member countries.

The main development affecting the amounts of Community borrowings outstanding in 2001 was the repayment of EUR 84 400 000  in NCI loans in the Member States and the repayment of tranches of loans elsewhere, EUR 150 000 000 by Algeria, EUR 70 000 000 by Bulgaria, EUR 9 000 000 by Moldova and EUR 17 000 000 by Ukraine. The year 2001 also featured the disbursement of loans to Bosnia and Herzegovina (EUR 10 000 000), the former Yugoslav Republic of Macedonia (EUR 10 000 000), the Federal Republic of Yugoslavia (EUR 225 000 000) and Tajikistan (EUR 60 000 000).

At 31 December 2001, outstanding operations covered by the general budget totalled EUR 15 449 000 000; of that total EUR 52 000 000 was inside the European Union and EUR 15 397 000 000 outside.

Annex ANNEXBII - B — B. BRIEF PRESENTATION OF THE VARIOUS CATEGORIES OF BORROWING-AND-LENDING OPERATIONS GUARANTEED BY THE GENERAL BUDGET

Annex BII-B I — I. SINGLE FACILITY PROVIDING MEDIUM-TERM FINANCIAL ASSISTANCE FOR MEMBER STATES' BALANCES OF PAYMENTS

Annex BII-B I 1 — Legal basis

Council Regulation (EEC) No 397/75 of 17 February 1975 concerning Community loans (OJ L 46, 20.2.1975, p. 1).

Council Regulation (EEC) No 682/81 of 16 March 1981 adjusting the Community loan mechanism designed to support the balance of payments of Member States (OJ L 73, 19.3.1981, p. 1).

Council Decision 83/298/EEC of 16 May 1983 concerning a Community loan in favour of the French Republic (OJ L 153, 11.6.1983, p. 44).

Council Regulation (EEC) No 1131/85 of 30 April 1985 amending Regulation (EEC) No 682/81 adjusting the Community loan mechanism designed to support the balance of payments of Member States (OJ L 118, 1.5.1985, p. 59).

Act of 12 June 1985 concerning the conditions of accession of the Kingdom of Spain and the Portuguese Republic and the adjustments of the Treaties (OJ L 302, 15.11.1985, p. 23), and in particular the declaration by the European Economic Community on the application of the Community loan mechanism in favour of Portugal contained in the Final Act.

Council Decision 85/543/EEC of 9 December 1985 concerning a Community loan in favour of the Hellenic Republic (OJ L 341, 19.12.1985, p. 17).

Council Regulation (EEC) No 1969/88 of 24 June 1988 establishing a single facility providing medium-term financial assistance for Member States' balances of payments (OJ L 178, 8.7.1988, p. 1).

Council Decision 91/136/EEC of 4 March 1991 concerning a Community loan in favour of the Hellenic Republic (OJ L 66, 13.3.1991, p. 22).

Council Decision 93/67/EEC of 18 January 1993 concerning a Community loan in favour of the Italian Republic (OJ L 22, 30.1.1993, p. 121).

Council Regulation (EC) No 332/2002 of 18 February 2002 establishing a facility providing medium-term financial assistance for Member States' balances of payments (OJ L 53, 23.2.2002, p. 1).

Annex BII-B I 2 — Description

In accordance with Regulation (EEC) No 1969/88, the European Union may grant loans to Member States which are experiencing, or are seriously threatened with, difficulties with their balance of payments. The outstanding amount of such loans is limited to EUR 16 000 000 000 in principal.

To this end, the Commission is empowered, on behalf of the European Community, to borrow on the capital markets or from financial institutions. The budget guarantee covers these borrowing operations. The outstanding amount of loans granted under this facility is limited to EUR 14 000 000 000 in principal. The balance compared with the ceiling of EUR 16 000 000 000 may be raised by recourse to the Member States.

For calculating the available balance of the authorised ceiling, the exchange rate for lending operations is that of the day on which they are concluded and for loan repayments the exchange rate is that of the day on which the corresponding loan was concluded.

Outstanding amounts on current Community loans pursuant to Regulation (EEC) No 682/81 count against the ceiling.

Decisions to grant loans to Member States are adopted by the Council acting by a qualified majority.

Loans are subject to the adoption by the Member State of economic policy measures which will restore a tolerable balance-of-payments situation.

In accordance with Regulation (EC) No 332/2002, the European Union may grant loans to Member States which are experiencing, or are seriously threatened with, difficulties in their balance of current payments or capital movements. Only Member States which have not adopted the euro may benefit from this Community facility. The outstanding amount of loans is limited to EUR 12 billion in principal.

Annex BII-B I 3 — Effect on the budget

Since both parts of these borrowing-and-on-lending operations are carried out on identical terms, they affect the budget only if the guarantee is activated should a debtor default.

Annex BII-B II — II. EURATOM BORROWING-AND-LENDING OPERATIONS

Annex BII-B II 1 — Legal basis

Council Decision 77/270/Euratom of 29 March 1977 empowering the Commission to issue Euratom loans for the purpose of contributing to the financing of nuclear power stations (OJ L 88, 6.4.1977, p. 9).

Council Decision 77/271/Euratom of 29 March 1977 on the implementation of Decision 77/270/Euratom empowering the Commission to issue Euratom loans for the purpose of contributing to the financing of nuclear power stations (OJ L 88, 6.4.1977, p. 11), authorising an initial tranche of up to EUR  500 000 000.

Council Decision 80/29/Euratom of 20 December 1979 amending Decision 77/271/Euratom on the implementation of Decision 77/270/Euratom empowering the Commission to contract Euratom loans for the purpose of contributing to the financing of nuclear power stations (OJ L 12, 17.1.1980, p. 28), increasing from EUR  500 000 000 to EUR 1 000 000 000 the total amount of Euratom loans which the Commission is empowered to contract.

Council Decision 82/170/Euratom of 15 March 1982 amending Decision 77/271/Euratom as regards the total amount of Euratom loans which the Commission is empowered to contract for the purpose of contributing to the financing of nuclear power stations (OJ L 78, 24.3.1982, p. 21), increasing from EUR 1 000 000 000 to EUR 2 000 000 000 the total amount of Euratom loans which the Commission is empowered to contract.

Council Decision 85/537/Euratom of 5 December 1985 amending Decision 77/271/Euratom as regards the total amount of Euratom loans which the Commission is empowered to contract for the purpose of contributing to the financing of nuclear power stations (OJ L 334, 12.12.1985, p. 23), increasing from EUR 2 000 000 000 to EUR 3 000 000 000 the total amount of Euratom loans which the Commission is empowered to contract.

Council Decision 90/212/Euratom of 23 April 1990 amending Decision 77/271/Euratom applying Decision 77/270/Euratom empowering the Commission to issue Euratom loans for the purpose of contributing to the financing of nuclear power stations (OJ L 112, 3.5.1990, p. 26), increasing from EUR 3 000 000 000 to EUR 4 000 000 000 the total amount of Euratom loans which the Commission is empowered to contract.

Annex BII-B II 2 — Description

The above Decisions empower the Commission to raise loans on behalf of the European Atomic Energy Community, the proceeds of which are for on-lending to finance investment projects involving the industrial generation of nuclear-based electricity and industrial fuel-cycle installations.

To reduce Europe's dependence on imported energy, the use of nuclear energy to generate electricity must be encouraged, with due account for safety and security requirements. Downstream from production, the investments necessary for the reprocessing and storage of waste will need to be promoted.

The borrowing-and-on-lending machinery set up by the European Atomic Energy Community enables electricity producers faced with a substantial increase in their investment and operating costs to make more extensive use of credit.

The loans raised are managed by the Commission, which, in conjunction with the European Investment Bank, also manages the loans granted.

In accordance with Article 4 of Decision 77/270/Euratom the Commission submitted a report to the European Parliament and to the Council on Euratom borrowing and lending as part of the annual report on Community borrowing-and-lending operations for 2000.

Annex BII-B II 3 — Effect on the budget

Since both parts of these borrowing and on-lending operations are carried out on identical terms, they affect the budget only if the guarantee is activated should a debtor default.

Annex BII-B III — III. BORROWING-AND-LENDING OPERATIONS PURSUANT TO THE NEW COMMUNITY INSTRUMENT FOR THE PROMOTION OF INVESTMENT IN THE COMMUNITY (NCI) AND AID GRANTED BY WAY OF EXCEPTION FOR THE RECONSTRUCTION OF REGIONS AFFECTED BY EARTHQUAKES (NCI-EARTHQUAKES)

Annex BII-B III 1 — Legal basis

Annex BII-B III 1 a — (a) NCI

Treaty establishing the European Community, and in particular Article 235 thereof.

Council Decision 78/870/EEC of 16 October 1978 empowering the Commission to contract loans for the purpose of promoting investment within the Community (OJ L 298, 25.10.1978, p. 9), up to the equivalent of EUR 1 000 000 000 in principal (NCI I).

Council Decision 79/486/EEC of 14 May 1979 applying Decision 78/870/EEC empowering the Commission to contract loans for the purpose of promoting investment within the Community (OJ L 125, 22.5.1979, p. 16), authorising an initial tranche up to the equivalent of EUR  500 000 000 in principal.

Council Decision 80/739/EEC of 22 July 1980 applying for the second time Decision 78/870/EEC empowering the Commission to contract loans for the purpose of promoting investment within the Community (OJ L 205, 17.8.1980, p. 19), authorising a second tranche up to the equivalent of EUR  500 000 000 in principal.

Council Decision 80/1103/EEC of 25 November 1980 supplementing, as regards the application of part of the second tranche of loans, Decision 80/739/EEC applying for the second time Decision 78/870/EEC empowering the Commission to contract loans for the purpose of promoting investment within the Community (OJ L 326, 2.12.1980, p. 19), as regards the application of an amount equivalent to EUR  100 000 000 in principal.

Council Decision 82/169/EEC of 15 March 1982 empowering the Commission to contract loans for the purpose of promoting investment within the Community (OJ L 78, 24.3.1982, p. 19), up to the equivalent of EUR 1 000 000 000 in principal (NCI II).

Council Decision 82/268/EEC of 26 April 1982 implementing Decision 82/169/EEC empowering the Commission to contract loans for the purpose of promoting investment within the Community (OJ L 116, 30.4.1982, p. 16), authorising a single tranche up to the equivalent of EUR 1 000 000 000 in principal.

Council Decision 83/200/EEC of 19 April 1983 empowering the Commission to contract loans under the new Community Instrument for the purpose of promoting investment within the Community (OJ L 112, 28.4.1983, p. 26) totalling EUR 3 000 000 000 (NCI III).

Council Decision 83/308/EEC of 13 June 1983 applying Decision 83/200/EEC empowering the Commission to contract loans under the new Community Instrument for the purpose of promoting investment within the Community (OJ L 164, 23.6.1983, p. 31) which authorises a first tranche of loans of EUR 1 500 000 000.

Council Decision 84/383/EEC of 23 July 1984 applying Decision 83/200/EEC empowering the Commission to contract loans under the new Community Instrument for the purpose of promoting investment within the Community (OJ L 208, 3.8.1984, p. 53) authorising a third tranche of loans totalling EUR 1 400 000 000.

Council Decision 87/182/EEC of 9 March 1987 empowering the Commission to borrow under the new Community Instrument for the purpose of promoting investment within the Community (OJ L 71, 14.3.1987, p. 34) for EUR  750 000 000 (NCI IV).

Annex BII-B III 1 b — (b) NCI — Earthquakes

Council Decision 81/19/EEC of 20 January 1981 on Community aid granted by way of exception for the reconstruction of the regions affected by the Italian earthquake in November 1980 (OJ L 37, 10.2.1981, p. 21), authorising the Commission to contract loans up to EUR 1 000 000 000 in principal after deduction of any amounts lent by the European Investment Bank out of its own resources for the same purpose.

Council Decision 81/1013/EEC of 14 December 1981 on Community aid granted by way of exception for the reconstruction of the regions affected by the Greek earthquakes in February and March 1981 (OJ L 367, 23.12.1981, p. 27), which took effect retrospectively from 1 January 1981, authorising the Commission to contract loans up to EUR 80 000 000 in principal after deduction of any amounts lent by the European Investment Bank out of its own resources for the same purpose.

Annex BII-B III 2 — Description

Annex BII-B III 2 a — (a) NCI

The above Instruments empower the Commission to raise loans on behalf of the European Community, the proceeds of which are for on-lending to finance investment projects which contribute to greater convergence and integration of the economies of the Member States. These projects must help attain the priority European Union objectives in the energy, industry and infrastructure sectors, and assist the financing of investment by small and medium-sized undertakings in productive sectors and the promotion of new technologies and innovation taking account of, inter alia, the regional impact of the projects and the need to combat unemployment.

The new Community Instrument borrowing ceilings, like those for the other Community Financial Instruments, are fixed by unanimous decision of the Council. However, the new Community Instrument tranches, which under NCI I and II were also fixed by unanimous Council decision, are now authorised, following Decision 83/200/EEC, by the Council acting by a qualified majority.

Within the limits of the tranches authorised by the Council, the Commission borrows on the capital markets; under a cooperation agreement between the Commission and the European Investment Bank, the Bank, subject to the Commission's decision on the eligibility of projects, is authorised to take decisions on the granting of loans and to manage them.

In accordance with Article 6 of Decision 78/870/EEC, Article 10 of Regulation (EEC) No 1736/79 and Article 7 of Decisions 81/19/EEC, 82/268/EEC and 83/200/EEC the Commission, on 30 June 2001, submitted a report to the European Parliament and to the Council covering 2000 on:

• NCI borrowing-and-lending operations,

• European Union aid granted by way of exception for the reconstruction of the regions affected by the Italian earthquake in November 1980 and the Greek earthquakes in February and March 1981.

In addition, in accordance with Article 6 of Decision 83/200/EEC the Commission sends the European Parliament and the Council six-monthly reports on the rate of utilisation of NCI tranches.

On 31 December 1998 there was only some EUR  281 300 000 still available under the various NCIs (including NCI - Earthquakes).

Annex BII-B III 2 b — (b) NCI — Earthquakes

By extension of the initial provisions of the new Community Instrument and by way of sole exception, the Commission is empowered to contract loans for the purpose of financing investments for the reconstruction of the means of production and the economic and social infrastructure in the regions of southern Italy and Greece affected by the earthquakes of 23 November 1980 and February and March 1981 respectively.

The amount which the Commission is allowed to raise is limited to EUR 1 000 000 000 for Italy and EUR 80 000 000 for Greece, less any amounts lent by the European Investment Bank from its own resources.

The budget guarantee covers the Commission's borrowing operations.

The entire EUR 80 000 000 for Greece was raised and on-lent in 1982 under the NCI. For Italy, EUR  950 300 000 out of the EUR 1 000 000 000 authorised had been paid out at 31 December 1992, 63 % under the NCI and 37 % from the European Investment Bank's own resources.

Interest-rate subsidies of 3 % for a maximum of 12 years may be allowed by the European Union on loans of up to EUR 1 000 000 000 in principal granted for investment in the regions of Italy affected by the earthquake in November 1980 under the new Community Instrument for the promotion of investment in the Community in accordance with Article 1 of Decision 78/870/EEC, as supplemented by Article 1 of Decision 81/19/EEC, and/or by the European Investment Bank from its own funds.

Interest-rate subsidies of 3 % for a maximum of 12 years may be allowed by the European Union on loans of up to EUR 80 000 000 in principal granted for investment in the regions affected by the Greek earthquake disaster in February and March 1981 under the new Community Instrument for the promotion of investment in the Community in accordance with Article 1 of Decision 78/870/EEC, as supplemented by Article 1 of Decision 81/1013/EEC, and/or by the European Investment Bank from its own funds.

Finally, interest-rate subsidies of 3 % for a maximum of 12 years may be allowed by the European Union on loans of up to EUR  100 000 000 in principal granted by the European Investment Bank from its own funds for investment in the regions of Greece affected by the earthquake in September 1986, in accordance with Article 1 of Decision 88/561/EEC.

Annex BII-B III 3 — Effect on the budget

These back-to-back borrowing-and-lending operations should not represent a direct charge on the general budget. The possibility of temporarily investing borrowed funds deposited by the Commission with the European Investment Bank (Treasury) as provided in Article 4 of the new Community Instrument Decisions should not affect the neutral nature, from the point of view of the charge to the budget, of borrowing-and-lending operations under this Instrument.

The financial impact is confined to:

• activation of the guarantee should a debtor default,

• the associated interest-rate subsidies (earthquake loans).

Annex BII-B IV — IV. EUROPEAN COMMUNITY GUARANTEE FOR BORROWING PROGRAMMES CONTRACTED BY THE COMMUNITY TO PROVIDE FINANCIAL ASSISTANCE FOR MEDITERRANEAN NON-MEMBER COUNTRIES

Annex BII-B IV 1 — Legal basis

Council Decision 91/510/EEC of 23 September 1991 providing a medium-term loan to Algeria (OJ L 272, 28.9.1991, p. 90).

Council Decision 94/938/EC of 22 December 1994 providing further macrofinancial assistance for Algeria (OJ L 336, 31.12.1994, p. 28).

Annex BII-B IV 2 — Description

An operation for Algeria was authorised by the Council on 23 September 1991. The operation involves the borrowing and lending of EUR  400 000 000 in two tranches of EUR  250 000 000 and EUR  150 000 000. The first tranche was paid in January 1992. The second tranche was paid in August 1994. Algeria repaid in full the first tranche of EUR  250 000 000 on 15 December 1997. The second tranche of EUR  150 000 000 was repaid on 17 August 2001.

A new operation for Algeria involving EUR  200 000 000, in two tranches, over a period of no more than seven years, was proposed by the Commission and decided by the Council on 22 December 1994. The first tranche of EUR  100 000 000 was paid on 27 November 1995. In view of the clear improvement in Algeria's external position payment of the second tranche is no longer to be made.

Annex BII-B IV 3 — Effect on the budget

Since the entry into force of Council Regulation (EC, Euratom) No 2728/94 of 31 October 1994 establishing a Guarantee Fund for external action (OJ L 293, 12.11.1994, p. 1), as last amended by Regulation (EC, Euratom) No 1149/1999 (OJ L 139, 2.6.1999, p. 1), any defaults are covered by this Fund within the limit of the amount available.

The effect on the budget is thus limited to:

• payment to the Fund of 9 % of the capital value of the lending and guarantee operations decided and committed after 1 January 2000,

• activation of the budget guarantee should the debtor default.

Annex BII-B V — V. EUROPEAN COMMUNITY GUARANTEE FOR BORROWING PROGRAMMES CONTRACTED BY THE COMMUNITY TO PROVIDE FINANCIAL ASSISTANCE FOR NON-MEMBER COUNTRIES IN CENTRAL AND EASTERN EUROPE

Annex BII-B V 1 — Legal basis

Council Decision 91/384/EEC of 22 July 1991 providing medium-term financial assistance for Romania (OJ L 208, 30.7.1991, p. 64).

Council Decision 92/511/EEC of 19 October 1992 providing further medium-term financial assistance for Bulgaria (OJ L 317, 31.10.1992, p. 94).

Council Decision 92/542/EEC of 23 November 1992 providing medium-term financial assistance for Estonia, Latvia and Lithuania (OJ L 351, 2.12.1992, p. 29).

Council Decision 92/551/EEC of 27 November 1992 providing further medium-term financial assistance for Romania (OJ L 353, 3.12.1992, p. 30).

Council Decision 94/369/EC of 20 June 1994 providing further macrofinancial assistance for Romania (OJ L 168, 2.7.1994, p. 29).

Council Decision 97/472/EC of 22 July 1997 providing macrofinancial assistance for Bulgaria (OJ L 200, 29.7.1997, p. 61).

Council Decision 1999/731/EC of 8 November 1999 providing supplementary macrofinancial assistance to Bulgaria (OJ L 294, 16.11.1999, p. 27).

Council Decision 1999/732/EC of 8 November 1999 providing supplementary macrofinancial assistance to Romaniaia (OJ L 294, 16.11.1999, p. 29).

Annex BII-B V 2 — Description

An operation for Bulgaria involving EUR  110 000 000 to be paid in two tranches for a maximum period of seven years was proposed by the Commission and adopted by the Council on 19 October 1992.

The first tranche of EUR 70 000 000 was paid to Bulgaria on 7 December 1994. It will be repaid in one instalment after seven years. The second tranche of EUR 40 000 000 was paid in August 1996.

On 22 July 1997 the Council decided to grant Bulgaria long-term, macrofinancial assistance of a maximum of EUR  250 000 000, to be paid in two tranches. The first tranche of EUR  125 000 000 was paid to Bulgaria on 10 February 1998. The second tranche of EUR 125 000 000 was paid on 22 December 1998.

On 8 November 1999 the Council decided to grant Bulgaria additional macrofinancial assistance of a maximum of EUR  100 000 000. The loan was paid in two tranches. The first tranche of EUR 40 000 000 was paid to Bulgaria on 21 December 1999. The second tranche of EUR 60 000 000 was paid on 29 September 2000.

On 22 July 1991 the Council decided to grant a European Union guarantee for a borrowing-and-lending operation in respect of Romania.

The operation involves the borrowing of EUR  375 000 000 in two tranches for a period of seven years. The first tranche of EUR  190 000 000 was disbursed in January 1992 and repaid on 1 February 1999. The second tranche of EUR  185 000 000 was paid in April 1992 and repaid in full on 18 March 1998.

A new operation for Romania involving EUR 80 000 000 to be paid in a single tranche for a maximum period of seven years was proposed by the Commission and adopted by the Council on 27 November 1992. The loan was paid on 26 February 1993. It was repaid on 28 February 2000.

A third operation for Romania involving EUR  125 000 000, in two tranches, for a maximum period of seven years was proposed by the Commission and adopted by the Council on 20 June 1994. The first tranche of EUR 55 000 000 was paid on 20 November 1995. The second tranche of EUR 70 000 000 was paid in two instalments on 30 September 1997 (EUR 40 000 000) and 23 December 1997 (EUR 30 000 000).

On 8 November 1999 the Council decided to grant Romania additional macrofinancial assistance in the form of a long-term loan of a principal of up to EUR  200 000 000 for a maximum period of 10 years. The first tranche of EUR 100 000 000 was paid on 29 June 2000.

On 23 November 1992 the Council decided to grant a European Union guarantee for a borrowing-and-lending operation in respect of the Baltic States.

The operation involves the borrowing of EUR  220 000 000 divided up as follows:

• EUR 40 000 000 for Estonia,

• EUR 80 000 000 for Latvia,

• EUR  100 000 000 for Lithuania.

The loan will be for a maximum period of seven years and will be disbursed in two tranches. The first tranches of EUR 20 000 000 for Estonia and EUR 40 000 000 for Latvia were paid in March 1993 (Estonia and Latvia repaid the first tranche in full on 31 March 2000). The first tranche of EUR 50 000 000 for Lithuania was paid in July 1993. Half of the second tranche, i.e. EUR 25 000 000 of the EUR 50 000 000 planned, was paid to Lithuania on 16 August 1995. The second tranches of the loans to Estonia and Latvia are no longer to be paid, nor is the remainder of the second tranche of the loan to Lithuania. Furthermore, Lithuania repaid the first tranche on 27 July 2000.

The Commission must report to the European Parliament and to the Council at least once a year on the application of the decisions concerned.

Annex BII-B V 3 — Effect on the budget

Since the entry into force of Council Regulation (EC, Euratom) No 2728/94 of 31 October 1994 establishing a Guarantee Fund for external action (OJ L 293, 12.11.1994, p. 1), as last amended by Regulation (EC, Euratom) No 1149/1999 (OJ L 139, 2.6.1999, p. 1), any defaults are covered by this Fund within the limit of the amount available.

The effect on the budget is thus limited to:

• payment to the Fund of 9 % of the capital value of the lending and guarantee operations decided and committed after 1 January 2000,

• activation of the budget guarantee should the debtor default.

Annex BII-B VI — VI. EUROPEAN COMMUNITY GUARANTEE FOR THE BORROWING PROGRAMMES CONTRACTED BY THE COMMUNITY TO PROVIDE FINANCIAL ASSISTANCE TO THE COUNTRIES OF THE COMMONWEALTH OF INDEPENDENT STATES AND MONGOLIA

Annex BII-B VI 1 — Legal basis

Council Decision 91/658/EEC of 16 December 1991 granting a medium-term loan to the Soviet Union and its constituent Republics (OJ L 362, 31.12.1991, p. 89).

Council Decision 94/346/EC of 13 June 1994 providing macrofinancial assistance for Moldova (OJ L 155, 22.6.1994, p. 27).

Council Decision 94/940/EC of 22 December 1994 providing macrofinancial assistance for the Ukraine (OJ L 366, 31.12.1994, p. 32).

Council Decision 95/132/EC of 10 April 1995 providing macrofinancial assistance for Belarus (OJ L 89, 21.4.1995, p. 28).

Council Decision 95/442/EC of 23 October 1995 providing further macrofinancial assistance for the Ukraine (OJ L 258, 28.10.1995, p. 63).

Council Decision 96/242/EC of 25 March 1996 providing further macrofinancial assistance for Moldova (OJ L 80, 30.3.1996, p. 60).

Council Decision 97/787/EC of 17 November 1997 providing exceptional financial assistance for Armenia and Georgia (OJ L 322, 25.11.1997, p. 37).

Council Decision 98/592/EC of 15 October 1998 providing supplementary macrofinancial assistance for the Ukraine (OJ L 284, 22.10.1998, p. 45).

Council Decision 2000/244/EC of 20 March 2000 amending Decision 97/787/EC providing exceptional financial assistance for Armenia and Georgia in order to extend it to Tajikistan (OJ L 77, 28.3.2000, p. 11).

Council Decision 2000/452/EC of 10 July 2000 providing further macrofinancial assistance for Moldova (OJ L 181, 20.7.2000, p. 77).

Proposal for a Council decision, submitted by the Commission on 17 January 2002, providing supplementary macrofinancial assistance to Ukraine (COM (2002) 12 final).

Annex BII-B VI 2 — Description

The European Union has decided to grant a loan of EUR 1 250 000 000 to the former Soviet Union and its Republics.

The loan will be used to finance imports of agricultural products and foodstuffs from the European Union and the countries of central and eastern Europe.

The loan has been divided between the various independent States of the former Soviet Union. It will be granted for a period of three years.

On 13 June 1994 the Council decided to give the European Union's guarantee for a borrowing-and-lending operation for Moldova.

The loan is a long-term one, for a maximum amount of EUR 45 000 000 principal with a maximum duration of 10 years.

The first tranche of EUR 25 000 000 was paid to Moldova on 7 December 1994 for a duration of 10 years. It will be repaid over five years starting in the sixth year.

The second tranche of EUR 20 000 000 was paid on 8 August 1995. The loan will be repaid in five equal annual instalments starting in the sixth year.

The Council decided on 25 March 1996 to guarantee a borrowing-and-lending operation for Moldova for a maximum amount of EUR 15 000 000.

The loan was paid in one tranche in December 1996.

On 22 December 1994 the Council decided to give the European Union's guarantee for a borrowing-and-lending operation for Ukraine.

The loan is for a maximum amount of EUR 85 000 000 in principal with a maximum duration of 10 years. The loan was disbursed in a single tranche on 28 December 1995.

On 23 October 1995 the Council decided to grant a European Union guarantee for a second borrowing-and-lending operation for Ukraine.

The loan is for a maximum amount of EUR  200 000 000 in principal with a maximum duration of 10 years, and will be disbursed in two tranches.

Half of the first tranche, i.e. EUR 50 000 000 of the EUR  100 000 000 planned, was paid in August 1996. The second half was paid in December 1996. The second tranche of EUR  100 000 000 was paid on 25 September 1997.

On 10 April 1995 the Council decided to give the European Union's guarantee for a borrowing-and-lending operation for Belarus.

The loan is for a maximum amount of EUR 75 000 000 in principal with a maximum duration of 10 years.

On 17 November 1997 the Council decided to grant a European Union guarantee for an exceptional borrowing-and-lending operation for Georgia and Armenia (a loan to Georgia for a maximum amount of EUR  142 000 000 in principal and a loan to Armenia for EUR 28 000 000), with a maximum duration of 15 years.

The first tranche of EUR  110 000 000 was paid to Georgia on 24 July 1998 and will be repaid in five equal annual instalments from the 11th year (Georgia repaid EUR 10 000 000 in January 2000).

The loan of EUR 28 000 000 to Armenia was paid on 30 December 1998 (Armenia repaid EUR 5 000 000 in December 1999).

On 15 October 1998 the Council decided to grant a European Union guarantee for a third borrowing-and-lending operation for Ukraine. The loan is for a maximum amount of EUR  150 000 000 in principal with a maximum duration of 10 years and will be disbursed in two tranches. The first tranche of EUR 58 000 000 was paid on 30 July 1999. Disbursement of the balance is no longer planned under this operation, but has been included in a new proposal for financial assistance totalling EUR  110 000 000, which was adopted by the Commission in January 2002.

On 20 March 2000 the Council decided to grant a European Union guarantee for an exceptional borrowing-and-lending operation for Tajikistan. The loan is for a maximum amount of EUR  75 000 000 principal with a maximum duration of 15 years. EUR 60 000 000 was paid in 2001.

On 10 July 2000 the Council decided to grant Moldova additional macrofinancial assistance of EUR 15 000 000 for a maximum period of 10 years.

Annex BII-B VI 3 — Effect on the budget

Since the entry into force of Council Regulation (EC, Euratom) No 2728/94 of 31 October 1994 establishing a Guarantee Fund for external action (OJ L 293, 12.11.1994, p. 1), as last amended by Regulation (EC, Euratom) No 1149/1999 (OJ L 139, 2.6.1999, p. 1), any defaults are covered by this Fund within the limit of the amount available.

The effect on the budget is thus limited to:

• payment to the Fund of 9 % of the capital value of the lending and guarantee operations decided and committed after 1 January 2000,

• activation of the budget guarantee should the debtor default.

Annex BII-B VII — VII. EUROPEAN COMMUNITY GUARANTEE FOR THE BORROWING PROGRAMMES CONTRACTED BY THE COMMUNITY TO PROVIDE FINANCIAL ASSISTANCE FOR THE COUNTRIES OF THE WESTERN BALKANS

Annex BII-B VII 1 — Legal basis

Council Decision 97/471/EC of 22 July 1997 providing macrofinancial assistance for the former Yugoslav Republic of Macedonia (OJ L 200, 29.7.1997, p. 59).

Council Decision 1999/282/EC of 22 April 1999 providing macrofinancial assistance to Albania (OJ L 110, 28.4.1999, p. 13).

Council Decision 1999/325/EC of 10 May 1999 providing macrofinancial assistance to Bosnia and Herzegovina (OJ L 123, 13.5.1999, p. 57).

Council Decision 1999/733/EC of 8 November 1999 providing supplementary macrofinancial assistance to the former Yugoslav Republic of Macedonia (OJ L 294, 16.11.1999, p. 31).

Council Decision 2001/549/EC of 16 July 2001 providing macrofinancial assistance to the Federal Republic of Yugoslavia (OJ L 197, 21.7.2001, p. 38).

Annex BII-B VII 2 — Description

On 22 July 1997 the Council decided to grant a European Union guarantee for a borrowing-and-lending operation for the former Yugoslav Republic of Macedonia,

The loan is for a maximum amount of EUR 40 000 000 in principal for a duration of 15 years.

The first tranche of EUR 25 000 000, for a maximum duration of 15 years, was paid to the former Yugoslave Republic of Macedonia on 30 September 1997. It will be repaid in five equal annual instalments from the 11th year.

The second tranche of EUR 15 000 000 was paid on 13 February 1998. It will be repaid in five equal annual payments from the 11th year.

On 22 April 1999 the Council decided to grant a European Union guarantee for a borrowing-and-lending operation for Albania.

The loan is for a maximum amount of EUR 20 000 000 in principal for a maximum duration of 15 years.

On 10 May 1999 the Council decided to grant a European Union guarantee for a borrowing-and-lending operation for Bosnia in the form of a long-term loan for a maximum amount of EUR 20 000 000 in principal for a maximum duration of 15 years.

The first tranche of EUR 10 000 000, for a maximum duration of 15 years, was paid to Bosnia on 21 December 1999. The second tranche of EUR 10 000 000 was paid in 2001.

On 8 November 1999 the Council again decided to grant a European Union guarantee for a borrowing-and-lending operation for the former Yugoslav Republic of Macedonia in the form of a long-term loan for a maximum amount of EUR 50 000 000 in principal for a maximum duration of 15 years.

The first tranche of EUR 10 000 000, for a maximum duration of 15 years, was paid to the former Yugoslav Republic of Macedonia in January 2001.

On 16 July 2001 the Council again decided to grant a European Union guarantee for a borrowing-and-lending operation for the Federal Republic of Yugoslavia (now Serbia and Montenegro) in the form of a long-term loan for a maximum amount of EUR 225 000 000 in principal for a maximum duration of 15 years. The loan was paid in a single tranche in October 2001.

Annex BII-B VII 3 — Effect on the budget

Since the entry into force of Council Regulation (EC, Euratom) No 2728/94 of 31 October 1994 establishing a Guarantee Fund for external action (OJ L 293, 12.11.1994, p. 1), as last amended by Regulation (EC, Euratom) No 1149/1999 (OJ L 139, 2.6.1999, p. 1), any defaults are covered by this Fund within the limit of the amount available.

The effect on the budget is thus limited to:

• payment to the Fund of 9 % of the capital value of the lending and guarantee operations decided and committed after 1 January 2000,

• activation of the budget guarantee should the debtor default.

Annex BII-B VIII — VIII. EUROPEAN COMMUNITY GUARANTEE FOR EURATOM BORROWINGS TO IMPROVE THE DEGREE OF EFFICIENCY AND SAFETY OF NUCLEAR POWER STATIONS IN THE COUNTRIES OF CENTRAL AND EASTERN EUROPE AND THE COMMONWEALTH OF INDEPENDENT STATES

Annex BII-B VIII 1 — Legal basis

Council Decision 94/179/Euratom of 21 March 1994 amending Decision 77/270/Euratom to authorise the Commission to contract Euratom borrowings in order to contribute to the financing required for improving the degree of efficiency and safety of nuclear power stations in certain non-member countries (OJ L 84, 29.3.1994, p. 41).

Annex BII-B VIII 2 — Description

Pursuant to Decision 94/179/Euratom, the European Union extends the scope of Euratom borrowings to the improvement of the degree of efficiency and safety of nuclear power stations in the countries of central and eastern Europe and the Commonwealth of Independent States.

The maximum amount of Euratom borrowings for the Member States and non-member countries remains fixed at EUR 4 000 000 000.

Annex BII-B VIII 3 — Effect on the budget

Since the entry into force of Council Regulation (EC, Euratom) No 2728/94 of 31 October 1994 establishing a Guarantee Fund for external action (OJ L 293, 12.11.1994, p. 1), as last amended by Regulation (EC, Euratom) No 1149/1999 (OJ L 139, 2.6.1999, p. 1), any defaults are covered by this Fund within the limit of the amount available.

The effect on the budget is thus limited to:

• payment to the Fund of 9 % of the capital value of the lending and guarantee operations decided and committed after 1 January 2000,

• activation of the budget guarantee should the debtor default.

Annex BII-B IX — IX. EUROPEAN GUARANTEE FOR EUROPEAN INVESTMENT BANK LOANS TO MEDITERRANEAN COUNTRIES

Annex BII-B IX 1 — Legal basis

Annex BII-B IX 1 a — (a)European Investment Bank loans

Council decision of 8 March 1977 (Mediterranean Protocols).

Council Decision 78/666/EEC of 25 July 1978 concerning the conclusion of the Financial Protocol between the European Economic Community and Greece (OJ L 225, 16.8.1978, p. 25).

Council Regulation (EEC) No 2210/78 of 26 September 1978 concerning the conclusion of the Cooperation Agreement between the European Economic Community and the People's Democratic Republic of Algeria (OJ L 263, 27.9.1978, p. 1).

Council Regulation (EEC) No 2211/78 of 26 September 1978 concerning the conclusion of the Cooperation Agreement between the European Economic Community and the Kingdom of Morocco (OJ L 264, 27.9.1978, p. 1).

Council Regulation (EEC) No 2212/78 of 26 September 1978 concerning the conclusion of the Cooperation Agreement between the European Economic Community and the Republic of Tunisia (OJ L 265, 27.9.1978, p. 1).

Council Regulation (EEC) No 2237/78 of 26 September 1978 concerning the conclusion of the Financial Protocol and the Additional Protocol to the Agreement between the European Economic Community and the Portuguese Republic (OJ L 274, 29.9.1978, p. 1).

Council Regulation (EEC) No 1273/80 of 23 May 1980 on the conclusion of the interim Protocol between the European Economic Community and the Socialist Federal Republic of Yugoslavia on the advance implementation of Protocol 2 to the Cooperation Agreement (OJ L 130, 27.5.1980, p. 98).

Council Regulation (EEC) 3323/80 of 18 December 1980 on the conclusion of the Agreement in the form of an Exchange of Letters between the European Economic Community and the Portuguese Republic concerning the implementation of preaccession aid for Portugal (OJ  L  349, 23.12.1980, p. 1).

Council decision of 4 June 1981 (financial cooperation with Spain).

Council decision of 19 July 1982 (further exceptional aid for the reconstruction of Lebanon).

Council Regulation (EEC) No 3177/82 of 22 November 1982 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the People's Democratic Republic of Algeria (OJ  L  337, 29.11.1982, p. 1).

Council Regulation (EEC) No 3178/82 of 22 November 1982 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Arab Republic of Egypt (OJ  L  337, 29.11.1982, p. 8).

Council Regulation (EEC) No 3179/82 of 22 November 1982 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Hashemite Kingdom of Jordan (OJ  L  337, 29.11.1982, p. 15).

Council Regulation (EEC) No 3180/82 of 22 November 1982 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Lebanese Republic (OJ L 337, 29.11.1982, p. 22).

Council Regulation (EEC) No 3181/82 of 22 November 1982 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Kingdom of Morocco (OJ  L  337, 29.11.1982, p. 29).

Council Regulation (EEC) No 3182/82 of 22 November 1982 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Syrian Arab Republic (OJ  L  337, 29.11.1982, p. 36).

Council Regulation (EEC) No 3183/82 of 22 November 1982 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Republic of Tunisia (OJ L 337, 29.11.1982, p. 43).

Council decision of 17 October 1983 (extension of financial cooperation with Spain and Portugal).

Council Regulation (EEC) No 3354/83 of 22 November 1983 on the conclusion of a Protocol relating to financial cooperation between the European Economic Community and the State of Israel (OJ L 335, 30.11.1983, p. 7).

Council Regulation (EEC) No 787/84 of 26 March 1984 on the conclusion of a Protocol relating to financial and technical cooperation between the European Economic Community and the Republic of Cyprus (OJ  L  85, 28.3.1984, p. 37).

Council Decision of 18 June 1984 (letter from the President of the Council to the EIB recommending a second extension of financial cooperation with Spain and Portugal).

Council decision of 9 October 1984 (loan outside the Yugoslavia Protocol).

Council Decision 87/604/EEC of 21 December 1987 concerning the conclusion of the second Protocol on financial cooperation between the European Economic Community and the Socialist Federal Republic of Yugoslavia (OJ L 389, 31.12.1987, p. 65).

Council Decision 88/30/EEC of 21 December 1987 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the People's Democratic Republic of Algeria (OJ L 22, 27.1.1988, p. 1).

Council Decision 88/31/EEC of 21 December 1987 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Arab Republic of Egypt (OJ L 22, 27.1.1988, p. 9).

Council Decision 88/32/EEC of 21 December 1987 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Hashemite Kingdom of Jordan (OJ  L  22, 27.1.1988, p. 17).

Council Decision 88/33/EEC of 21 December 1987 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Lebanese Republic (OJ  L  22, 27.1.1988, p. 25).

Council Decision 88/34/EEC of 21 December 1987 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Republic of Tunisia (OJ  L  22, 27.1.1988, p. 33).

Council Decision 88/453/EEC of 30 June 1988 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Kingdom of Morocco (OJ  L  224, 13.8.1988, p. 32).

Council Decision 88/597/EEC of 21 November 1988 on the conclusion of a Protocol on financial cooperation between the European Economic Community and the State of Israel (OJ L 327, 30.11.1988, p. 51).

Council Decision 89/378/EEC of 12 June 1989 concerning the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and Malta (OJ L 180, 27.6.1989, p. 46).

Council Decision 90/153/EEC of 26 February 1990 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Republic of Cyprus (OJ L 82, 29.3.1990, p. 32).

Council Decision 92/44/EEC of 19 December 1991 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Republic of Tunisia (OJ  L  18, 25.1.1992, p. 34).

Council Decision 92/206/EEC of 16 March 1992 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the People's Democratic Republic of Algeria (OJ L 94, 8.4.1992, p. 13).

Council Decision 92/207/EEC of 16 March 1992 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Arab Republic of Egypt (OJ  L  94, 8.4.1992, p. 21).

Council Decision 92/208/EEC of 16 March 1992 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Hashemite Kingdom of Jordan (OJ  L  94, 8.4.1992, p. 29).

Council Decision 92/209/EEC of 16 March 1992 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Lebanese Republic (OJ  L  94, 8.4.1992, p. 37).

Council Decision 92/210/EEC of 16 March 1992 on the conclusion of a Protocol on financial cooperation between the European Economic Community and the State of Israel (OJ  L  94, 8.4.1992, p. 45).

Council Regulation (EEC) No 1763/92 of 29 June 1992 concerning financial cooperation in respect of all Mediterranean non-member countries (OJ L 181, 1.7.1992, p. 5).

Council Decision 92/548/EEC of 16 November 1992 concerning the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Kingdom of Morocco (OJ L 352, 2.12.1992, p. 13).

Council Decision 92/549/EEC of 16 November 1992 on the conclusion of the Protocol on financial and technical cooperation between the European Economic Community and the Syrian Arab Republic (OJ L 352, 2.12.1992, p. 21).

Council Decision 93/408/EEC of 19 July 1993 on the conclusion of a Protocol on financial cooperation between the European Economic Community and the Republic of Slovenia (OJ L 189, 29.7.1993, p. 152).

Council Decision 94/67/EC of 24 January 1994 on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Syrian Arab Republic (OJ L 32, 5.2.1994, p. 44).

Council Decision 95/484/EC of 30 October 1995 on the conclusion of a Protocol on financial and technical cooperation between the European Community and the Republic of Malta (OJ L 278, 21.11.1995, p. 14).

Council Decision 95/485/EC of 30 October 1995 on the conclusion of a Protocol on financial and technical cooperation between the European Community and the Republic of Cyprus (OJ L 278, 21.11.1995, p. 22).

Council Decision 97/256/EC of 14 April 1997 granting a Community guarantee to the European Investment Bank against losses under loans for projects outside the Community (central and east European countries, Mediterranean countries, Latin American and Asian countries and South Africa) (OJ L 102, 19.4.1997, p. 33).

Council Decision 1999/786/EC of 29 November 1999 granting a Community guarantee to the European Investment Bank (EIB) against losses under loans for projects for the reconstruction of the earthquake-stricken areas of Turkey (OJ L 308, 3.12.1999, p. 35).

Council Decision 2000/24/EC of 22 December 1999 granting a Community guarantee to the European Investment Bank against losses under loans for projects outside the Community (central and eastern Europe, Mediterranean countries, Latin America and Asia and the Republic of South Africa) (OJ L 9, 13.1.2000, p. 24).

Council Decision 2000/788/EC of 4 December 2000 amending Decision 2000/24/EC so as to establish a European Investment Bank special action programme in support of the consolidation and intensification of the EC-Turkey customs union (OJ L 314 , 14.12.2000, p. 27).

Annex BII-B IX 1 b — (b) General budget guarantee

Under the terms of the abovementioned Council Decision of 8 March 1977, the European Union guarantees loans to be granted by the European Investment Bank as part of the European Union's financial commitments towards the Mediterranean Basin countries.

This decision was the basis for the contract of guarantee signed by the European Economic Community and the European Investment Bank on 30 October 1978 in Brussels and 10 November 1978 in Luxembourg introducing a global guarantee of 75 % of all appropriations made available for loans in the following countries: Malta, Tunisia, Algeria, Morocco, Portugal (Financial Protocol, emergency aid), Turkey, Cyprus, Egypt, Jordan, Syria, Israel, Greece, former Yugoslavia and Lebanon.

The contract of guarantee is extended for each new Financial Protocol. The level of the global guarantee is given in section D (table 3).

Decision 97/256/EC was the basis for a contract of guarantee between the European Community and the European Investment Bank signed in Brussels on 25 July 1997 and in Luxembourg on 29 July 1997 setting up a guarantee restricted to 70 % of the aggregate amount of the appropriations made available, plus all related sums.

Decision 1999/786/EC was the basis for a contract of guarantee between the European Community and the European Investment Bank signed in Brussels on 18 April 2000 and in Luxembourg on 23 May 2000 setting up a guarantee restricted to 65 % of the aggregate amount of the appropriations made available, plus all related sums.

Decision 2000/24/EC was the basis for a contract of guarantee between the European Community and the European Investment Bank signed in Brussels on 19 July 2000 and in Luxembourg on 24 July 2000 setting up a guarantee restricted to 65 % of the aggregate amount of the appropriations made available, plus all related sums.

Annex BII-B IX 2 — Description

Under the Financial Protocols concluded with Mediterranean Basin non-member countries, global amounts are laid down for loans to be granted by the European Investment Bank from its own funds. The European Investment Bank grants the loans for purposes which may contribute to the economic and social development of the countries in question (transport infrastructures, ports, water supply, production and distribution of energy, agricultural projects and promotion of small and medium-sized businesses).

Acting on a proposal from the Commission and after consulting Parliament, the Council decided on 14 April 1997 to renew the Community guarantee to the European Investment Bank for loans for projects in the following Mediterranean countries: Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, Syria, Tunisia, Turkey, Gaza and the West Bank. The guarantee is restricted to 70 % of the aggregate amount of the appropriations made available, plus all related sums. The overall ceiling of the appropriations made available is equivalent to EUR 7 105 000 000, of which EUR 2 310 000 000 is for the abovementioned Mediterranean countries. It covers a period of three years beginning on 31 January 1997. If, on expiry of this period, the loans granted by the European Investment Bank have not attained the overall amounts referred to above, the period will be automatically extended by six months.

The European Investment Bank is invited to aim to cover the commercial risk on 25 % of its lending from non-sovereign guarantees.

The Council decided on 29 November 1999 to grant a Community guarantee to the European Investment Bank against losses under loans for projects for the reconstruction of the earthquake-stricken areas of Turkey. The guarantee is restricted to 65 % of the aggregate amount of the appropriations made available, plus all related sums. The overall ceiling of the appropriations made available is equivalent to EUR  600 000 000 and covers a period of three years beginning on 29 November 1999. If, on expiry of this period, the loans granted by the European Investment Bank have not attained the overall amounts referred to above, the period will be automatically extended by six months.

The European Investment Bank is invited to aim to cover the commercial risk on 30 % of its lending from non-sovereign guarantees. This percentage is to be increased whenever possible, in so far as the market allows.

On 22 December 1999, on the basis of a Commission proposal and after consulting Parliament, the Council decided once again to give the European Investment Bank the Community guarantee against losses resulting from loans for projects carried out in the following Mediterranean countries: Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, Syria, Tunisia, Turkey, Gaza and the West Bank. The guarantee is limited to 65 % of the total value of the appropriations made available plus all the related amounts. The overall ceiling on the appropriations made available is equivalent to EUR 18 410 000 000, EUR 6 425 000 000 of which is for the abovementioned Mediterranean countries, and it covers a period of seven years from 1 February 2000 to 31 January 2007. If at the end of that period the loans granted by the European Investment Bank have not reached the abovementioned total values, the period is automatically extended by six months.

On 4 December 2000 the Council decided to establish a European Investment Bank special action programme in support of the consolidation and intensification of the EC-Turkey customs union. The value of those loans is limited to an overall ceiling of EUR 450 000 000.

That Decision was at the origin of the extension of the contract for the provision of security signed by the European Community and the European Investment Bank on 19 July 2000 in Brussels and 24 July 2000 in Luxembourg, under which the guarantee is limited to 65 % of the total value of the appropriations made available plus all the related sums. The overall ceiling on the appropriations made available is equivalent to EUR 19 110 000 000 and covers a period of seven years from 1 February 2000 to 31 January 2007. If at the end of that period the loans granted by the European Investment Bank have not reached the abovementioned total values the period is extended by six  months.

Annex BII-B IX 3 — Effect on the budget

Since the entry into force of Council Regulation (EC, Euratom) No 2728/94 of 31 October 1994 establishing a Guarantee Fund for external action (OJ L 293, 12.11.1994, p. 1), as last amended by Regulation (EC, Euratom) No 1149/1999 (OJ L 139, 2.6.1999, p. 1), any defaults are covered by this Fund within the limit of the amount available.

The effect on the budget is thus limited to:

• payment to the Fund of 9 % of the capital value of the lending and guarantee operations decided and committed after 1 January 2000,

• activation of the budget guarantee should the debtor default. Previously the guarantee was applied for the first time in February 1988. Since then the European Union has had to pay 11 times when Lebanon has defaulted, All the EUR 32 009 000 paid out has ben repaid. The guarantee was first applied for some of the Republics of the former Yugoslavia in October 1992. Since then the Commission has had to step in on 23 occasions. The total paid out comes to EUR 138 746 428,15; EUR 26 400 000 has been repaid by the former Yugoslav Republic of Macedonia and EUR 7 100 000 by Bosnia and Herzegovina, corresponding to all their defaults,

• the granting, in a series of cases, of interest-rate subsidies of 2 % in non-repayable aid, subject to the overall amounts laid down by the Financial Protocols.

Annex BII-B X — X. EUROPEAN COMMUNITY GUARANTEE FOR LOANS GRANTED BY THE EUROPEAN INVESTMENT BANK IN NON-MEMBER COUNTRIES OF CENTRAL AND EASTERN EUROPE AND THE WESTERN BALKANS

Annex BII-B X 1 — Legal basis

Decision of 29 November 1989 by the Board of Governors of the European Investment Bank concerning Bank operations in Hungary and Poland.

Council Decision 90/62/EEC of 12 February 1990 granting a Community guarantee to the European Investment Bank against losses under loans for projects in Hungary and Poland (OJ L 42, 16.2.1990, p. 68).

Council Decision 91/252/EEC of 14 May 1991 extending to the Czechoslovakia, Bulgaria and Romania Decision 90/62/EEC granting the Community guarantee to the European Investment Bank against losses under loans for projects in Hungary and Poland (OJ L 123, 18.5.1991, p. 44).

Council Decision 93/166/EEC of 15 March 1993 granting a Community guarantee to the European Investment Bank against losses under loans for investment projects carried out in Estonia, Latvia and Lithuania (OJ L 69, 20.3.1993, p. 42).

Council Decision 93/696/EC of 13 December 1993 granting a Community guarantee to the European Investment Bank against losses under loans for projects in central and east European countries (Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Bulgaria, Estonia, Latvia, Lithuania and Albania) (OJ L 321, 23.12.1993, p. 27).

Decision 90/62/EEC is the basis for the contract of guarantee signed by the European Economic Community and the European Investment Bank on 24 April 1990 in Brussels and 14 May 1990 in Luxembourg concerning loans in Hungary and Poland, and the extension of this contract to loans in Czechoslovakia, Romania and Bulgaria signed on 31 July 1991 in Brussels and Luxembourg.

This contract of guarantee was the subject of an instrument signed in Brussels on 19 January 1993 and in Luxembourg on 4 February 1993 to replace the Czech and Slovak Federal Republic by the Czech Republic and the Slovak Republic from 1 January 1993.

Decision 93/696/EC is the basis for a contract of guarantee signed by the European Community and the European Investment Bank in Brussels on 22 July 1994 and in Luxembourg on 12 August 1994.

Council Decision 97/256/EC of 14 April 1997 granting a Community guarantee to the European Investment Bank against losses under loans for projects outside the Community (central and east European countries, Mediterranean countries, Latin American and Asian countries and South Africa) (OJ L 102, 19.4.1997, p. 33).

Decision 97/256/EC is the basis for a contract of guarantee between the European Community and the European Investment Bank signed in Brussels on 25 July 1997 and in Luxembourg on 29 July 1997.

Council Decision 98/348/EC of 19 May 1998 granting a Community guarantee to the European Investment Bank against losses under loans for projects in the former Yugoslav Republic of Macedonia and amending Decision 97/256/EC of 14 April 1997 granting a Community guarantee to the European Investment Bank against losses under loans for projects outside the Community (central and east European countries, Mediterranean countries, Latin American and Asian countries and South Africa) (OJ L 155, 29.5.1998, p. 53).

Council Decision 98/729/EC 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 (OJ L 346, 22.12.1998, p. 54).

These two Decisions are the basis for a contract of guarantee between the European Community and the European Investment Bank signed in Brussels on 25 July 1997 and in Luxembourg on 29 July 1997.

Council Decision 2000/24/EC of 22 December 1999 granting a Community guarantee to the European Investment Bank against losses under loans for projects outside the Community (central and eastern Europe, Mediterranean countries, Latin America and Asia and the Republic of South Africa) (OJ L 9, 13.1.2000, p. 24).

This Decision was the basis for a contract of guarantee between the European Community and the European Investment Bank signed in Brussels on 19 July 2000 and in Luxembourg on 24 July 2000.

Council Decision 2000/688/EC of 7 November 2000 amending Council Decision 2000/24/EC so as to extend the Community guarantee granted to the European Investment Bank to cover loans for projects in Croatia (OJ L 285, 10.11.2000, p. 20).

Council Decision 2001/778/EC of 6 November 2001 amending Decision 2000/24/EC so as to extend the Community guarantee granted to the European Investment Bank to cover loans for projects in the Federal Republic of Yugoslavia (OJ L 292, 9.11.2001, p. 43).

Annex BII-B X 2 — Description

In response to a call made by the Council on 9 October 1989, the Board of Governors of the European Investment Bank decided on 29 November 1989 to authorise the Bank to provide loans from its own resources to finance investment projects in Hungary and Poland for a total amount not exceeding EUR 1 000 000 000. These loans are granted to finance investment projects which satisfy the Bank's usual requirements for loans from its own resources.

On 14 May 1991 and 15 March 1993 the Council, acting on a proposal from the Commission and after consulting Parliament, decided that this guarantee should be extended to any loans that the European Investment Bank might make in the other countries of central and eastern Europe (Czechoslovakia, Bulgaria and Romania) over a period of two years up to a maximum of EUR  700 000 000.

On 13 December 1993 the Council, acting on a proposal from the Commission and after consulting Parliament, decided to renew for three years the European Union guarantee for EUR 3 000 000 000 in European Investment Bank loans for projects in Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Bulgaria, Estonia, Latvia, Lithuania and Albania.

The budget guarantee covers all aspects of debt-servicing (repayment of capital, interest, related costs) in connection with these loans.

Acting on a proposal from the Commission and after consulting Parliament, the Council decided on 14 April 1997 to renew the Community guarantee to the European Investment Bank for loans for projects in Albania, Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia. The guarantee is restricted to 70 % of the aggregate amount of the appropriations made available, plus all related sums. The overall ceiling of the appropriations made available is equivalent to EUR 7 105 000 000, of which EUR 3 520 000 000 is for the abovementioned countries of central and eastern Europe. It covers a period of three years beginning on 31 January 1997. If, on expiry of this period, the loans granted by the European Investment Bank have not attained the overall amounts referred to above, the period will be automatically extended by six months.

The Council decided on 19 May 1998 to grant a Community guarantee to the European Investment Bank against losses under loans for projects in the former Yugoslav Republic of Macedonia. The guarantee is restricted to 70 % of the aggregate amount of the appropriations made available, plus all related sums. The overall ceiling of the appropriations made available is equivalent to EUR  150 000 000 for a period of two years beginning on 1 January 1998. If, on expiry of this period, the loans granted by the European Investment Bank have not attained the overall amounts referred to above, the period will be automatically extended by six months.

The Council decided on 14 December 1998 to amend Decision 97/256/EC in order to extend the Community guarantee to the European Investment Bank to loans for projects in Bosnia and Herzegovina. The guarantee is restricted to 70 % of the aggregate amount of the appropriations made available, plus all related sums. The overall ceiling of the appropriations made available is EUR  100 000 000 for a period of two years beginning on 22 December 1998. If, on expiry of this period, the loans granted by the European Investment Bank have not attained the overall amounts referred to above, the period will be automatically extended by six months.

The European Investment Bank is invited to aim to cover the commercial risk on 25  % of its lending from non-sovereign guarantees.

Acting on a proposal from the Commission and after consulting Parliament, the Council decided on 22 December 1999 to renew the Community guarantee to the European Investment Bank for loans for projects in Albania, the former Yugoslav Republic of Macedonia, Bosnia and Herzegovina, Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia. The guarantee is restricted to 65 % of the aggregate amount of the appropriations made available, plus all related sums. The overall ceiling of the appropriations made available is equivalent to EUR 18 410 000 000, of which EUR 8 680 000 000 is for the abovementioned countries of central and eastern Europe. It covers a period of seven years beginning on 1 February 2000 and ending on 31 January 2007. If, on expiry of this period, the loans granted by the European Investment Bank have not attained the overall amounts referred to above, the period will be automatically extended by six months.

The European Investment Bank is invited to aim to cover the commercial risk on 30 % of its lending from non-sovereign guarantees. This percentage is to be increased whenever possible, in so far as the market allows.

On 7 November 2000 the Council decided to extend the guarantee granted by the Community to the European Investment Bank to loans for projects in Croatia. The value of those loans is limited to an overall ceiling of EUR 250 000 000, granted over four years.

On 6 November 2000 the Council decided to extend the guarantee granted by the Community to the European Investment Bank to loans for projects in the Federal Republic of Yugoslavia (now Serbia and Montenegro). The value of those loans is limited to an overall ceiling of EUR 350 000 000.

Annex BII-B X 3 — Effect on the budget

Since the entry into force of Council Regulation (EC, Euratom) No 2728/94 of 31 October 1994 establishing a Guarantee Fund for external action (OJ L 293, 12.11.1994, p. 1), as last amended by Regulation (EC, Euratom) No 1149/1999 (OJ L 139, 2.6.1999, p. 1), any defaults are covered by this Fund within the limit of the amount available.

The effect on the budget is thus limited to:

• payment to the Fund of 9 % of the capital value of the lending and guarantee operations decided and committed after 1  January 2000,

• activation of the budget guarantee should the debtor default.

Annex BII-B XI — XI. EUROPEAN COMMUNITY GUARANTEE TO THE EUROPEAN INVESTMENT BANK AGAINST LOSSES UNDER LOANS FOR PROJECTS OF MUTUAL INTEREST IN CERTAIN NON-MEMBER COUNTRIES

Annex BII-B XI 1 — Legal basis

Council Decision 93/115/EEC of 15 February 1993 granting a Community guarantee to the European Investment Bank against losses under loans for projects of mutual interest in certain third countries (OJ L 45, 23.2.1993, p. 27).

This Decision is the basis for a contract of guarantee signed by the European Community and the European Investment Bank in Brussels on 4 November 1993 and in Luxembourg on 17 November 1993.

Council Decision 96/723/EC of 12 December 1996 granting a Community guarantee to the European Investment Bank against losses under loans for projects of mutual interest in Latin American and Asian countries with which the Community has concluded cooperation agreements (OJ L 329, 19.12.1996, p. 45).

Decision 96/723/EC was the basis for a contract of guarantee between the European Community and the European Investment Bank signed in Brussels on 18  March 1997 and in Luxembourg on 26  March 1997.

Council Decision 97/256/EC of 14 April 1997 granting a Community guarantee to the European Investment Bank against losses under loans for projects outside the Community (central and east European countries, Mediterranean countries, Latin American and Asian countries and South Africa) (OJ  L  102, 19.4.1997, p. 33).

This Decision was the basis for a contract of guarantee between the European Community and the European Investment Bank signed in Brussels on 25 July 1997 and in Luxembourg on 29 July 1997.

Council Decision 2000/24/EC of 22 December 1999 granting a Community guarantee to the European Investment Bank against losses under loans for projects outside the Community (central and eastern Europe, Mediterranean countries, Latin America and Asia and the Republic of South Africa) (OJ L 9, 13.1.2000, p. 24).

This Decision was the basis for a contract of guarantee between the European Community and the European Investment Bank signed in Brussels on 19 July 2000 and in Luxembourg on 24 July 2000.

Council Decision 2001/777/EC of 6 November 2001 granting a Community guarantee to the European Investment Bank against losses under a special lending action for selected environmental projects in the Baltic Sea basin of Russia under the Northern Dimension (OJ L 292, 9.11.2001, p. 41).

Annex BII-B XI 2 — Description

Pursuant to Council Decision 93/115/EEC the European Union guarantees, on a case-by-case basis, loans made by the European Investment Bank in third countries with which the European Union has concluded cooperation agreements.

Decision 93/115/EEC set an overall limit of EUR  250 000 000 a year for a period of three years.

On 12 December 1996 the Council granted the EIB a 100 % Community guarantee for loans for projects of mutual interest in certain third countries (Asian and Latin American developing countries) with which the Community has concluded cooperation agreements. This guarantee is restricted to an overall ceiling of EUR  275 000 000 to be granted in 1996. The period of validity for this decision will be automatically extended by six months if, at 31 December 1996, the loans granted by the European Investment Bank have not attained the ceiling of EUR  275 000 000.

Acting on a proposal from the Commission and after consulting Parliament, the Council decided on 14 April 1997 to renew the Community guarantee to the European Investment Bank for loans for projects in the following countries of Asia and Latin America: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Salvador, Uruguay, Venezuela, Bangladesh, Brunei, China, India, Indonesia, Macao, Malaysia, Mongolia, Pakistan, Philippines, Singapore, Sri Lanka, Thailand and Vietnam. The guarantee is restricted to 70 % of the aggregate amount of the appropriations made available, plus all related sums. The overall ceiling of the appropriations made available is equivalent to EUR 7 105 000 000, of which EUR  900 000 000 is for the abovementioned countries of Asia and Latin America. It covers a period of three years beginning on 31 January 1997. If, on expiry of this period, the loans granted by the European Investment Bank have not attained the overall amounts referred to above, the period will be automatically extended by six months.

The European Investment Bank is invited to aim to cover the commercial risk on 25 % of its lending from non-sovereign guarantees.

The Council decided on 22 December 1999 to renew the Community guarantee to the European Investment Bank for loans for projects in the following countries of Asia and Latin America: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Salvador, Uruguay, Venezuela, Bangladesh, Brunei, China, India, Indonesia, Laos, Macao, Malaysia, Mongolia, Nepal, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Vietnam and Yemen. The guarantee is restricted to 65 % of the aggregate amount of the appropriations made available, plus all related sums. The overall ceiling of the appropriations made available is equivalent to EUR 18 410 000 000, of which EUR 2 480 000 000 is for the abovementioned countries of Asia and Latin America. It covers a period of seven years beginning on 1 February 2000 and ending on 31 January 2007. If, on expiry of this period, the loans granted by the European Investment Bank have not attained the overall amounts referred to above, the period will be automatically extended by six months.

The European Investment Bank is invited to aim to cover the commercial risk on 30 % of its lending from non-sovereign guarantees. This percentage is to be increased whenever possible, in so far as the market allows.

Council Decision 2001/777/EC of 6 November 2001 granting a Community guarantee to the European Investment Bank against losses under a special lending action for selected environmental projects in the Baltic Sea basin of Russia under the Northern Dimension (OJ L 292, 9.11.2001, p. 41).

Annex BII-B XI 3 — Effect on the budget

Since the entry into force of Council Regulation (EC, Euratom) No 2728/94 of 31 October 1994 establishing a Guarantee Fund for external action (OJ L 293, 12.11.1994, p. 1), as last amended by Regulation (EC, Euratom) No 1149/1999 (OJ L 139, 2.6.1999, p. 1), any defaults are covered by this Fund within the limit of the amount available.

The effect on the budget is thus limited to:

• payment to the Fund of 9 % of the capital value of the lending and guarantee operations decided and committed after 1 January 2000,

• activation of the budget guarantee should the debtor default.

Annex BII-B XII — XII. EUROPEAN COMMUNITY GUARANTEE FOR EUROPEAN INVESTMENT BANK LOANS TO SOUTH AFRICA

Annex BII-B XII 1 — Legal basis

Council Decision 95/207/EC of 1 June 1995 granting a Community guarantee to the European Investment Bank against losses under loans for projects in South Africa (OJ L 131, 15.6.1995, p. 31).

This Decision is the basis of a contract of guarantee signed by the European Community and the European Investment Bank in Brussels on 4 October 1995 and in Luxembourg on 16 October 1995.

Council Decision 97/256/EC of 14  April 1997 granting a Community guarantee to the European Investment Bank against losses under loans for projects outside the Community (central and east European countries, Mediterranean countries, Latin American and Asian countries and South Africa) (OJ  L  102, 19.4.1997, p. 33).

This Decision was the basis for a contract of guarantee between the EC and the European Investment Bank signed in Brussels on 25 July 1997 and in Luxembourg on 29 July 1997.

Council Decision 2000/24/EC of 22 December 1999 granting a Community guarantee to the European Investment Bank against losses under loans for projects outside the Community (central and eastern Europe, Mediterranean countries, Latin America and Asia and the Republic of South Africa) (OJ L 9, 13.1.2000, p. 24).

This Decision was the basis for a contract of guarantee between the European Community and the European Investment Bank signed in Brussels on 19 July 2000 and in Luxembourg on 24 July 2000.

Annex BII-B XII 2 — Description

In accordance with the provisions of Decision 95/207/EC, the European Union will guarantee European Investment Bank loans to South Africa up to a maximum total amount of EUR  300 000 000.

The budget guarantee covers all the debt-servicing (repayment of principal, interest and ancillary costs) in connection with these loans.

Acting on a proposal from the Commission and after consulting Parliament, the Council decided on 14 April 1997 to renew the Community guarantee to the European Investment Bank for loans for projects in the Republic of South Africa. The guarantee is restricted to 70 % of the aggregate amount of the appropriations made available, plus all related sums. The overall ceiling of the appropriations made available is equivalent to EUR 7 105 000 000, of which EUR  375 000 000 is for the Republic of South Africa. It covers a period of three years beginning on 1 July 1997. If, on expiry of this period, the loans granted by the European Investment Bank have not attained the overall amounts referred to above, the period will be automatically extended by six months.

The European Investment Bank is invited to aim to cover the commercial risk on 25  % of its lending from non-sovereign guarantees.

Acting on a proposal from the Commission and after consulting Parliament, the Council decided on 22 December 1999 to renew the Community guarantee to the European Investment Bank for loans for projects in the Republic of South Africa. The guarantee is restricted to 65 % of the aggregate amount of the appropriations made available, plus all related sums. The overall ceiling of the appropriations made available is equivalent to EUR 18 410 000 000, of which EUR 825 000 000 is for the Republic of South Africa. It covers a period beginning on 1 July 2000 and ending on 31 January 2007. If, on expiry of this period, the loans granted by the European Investment Bank have not attained the overall amounts referred to above, the period will be automatically extended by six months.

The European Investment Bank is invited to aim to cover the commercial risk on 30  % of its lending from non-sovereign guarantees. This percentage is to be increased whenever possible, in so far as the market allows.

Annex BII-B XII 3 — Effect on the budget

Since the entry into force of Council Regulation (EC, Euratom) No 2728/94 of 31 October 1994 establishing a Guarantee Fund for external action (OJ L 293, 12.11.1994, p. 1), as last amended by Regulation (EC, Euratom) No 1149/1999 (OJ L 139, 2.6.1999, p. 1), any defaults are covered by this Fund within the limit of the amount available.

The effect on the budget is thus limited to:

• payment to the Fund of 9 % of the capital value of the lending and guarantee operations decided and committed after 1 January 2000,

• activation of the budget guarantee should the debtor default.

Annex ANNEXBII - C — C. FORECASTS FOR NEW BORROWING-AND-LENDING OPERATIONS IN 2003 AND 2004

The following table gives a rough indication of possible new borrowings and the disbursement of new loans (guaranteed by the general budget) in 2003 and 2004.

Annex BII-C A — A. EC AND EURATOM BORROWING-AND-LENDING OPERATIONS WITH A BUDGET GUARANTEE

Annex BII-C A I — Community macrofinancial assistance for non-member countries

Annex BII-C A I 1 — Macrofinancial assistance for Albania — Albania III and IV

After two macrofinancial assistance operations for Albania in the form of donations, the Council decided on a new operation (Albania III) in the form of a EUR  20 000 000 loan on 22  April 1999.

The planned operation has not been programmed because of Albania's reluctance to accept the financing conditions. According to information from the International Monetary Fund (IMF) and the Albanian authorities, Albania might require exceptional financial assistance in 2002 and 2003. A new proposal for macrofinancial assistance or revision of the old proposal could therefore be decided in the form of donations and loans.

Annex BII-C A I 2 — Macrofinancial assistance for Algeria — Algeria II

The first tranche (EUR  100 000 000) of the macrofinancial assistance of EUR  200 000 000 decided in 1994 was disbursed in 1995 in support of Algeria's 1994/95 economic programme.

In view of the country's political and financial situation, disbursement of the second tranche was suspended in 1998. Given the distinct improvement in Algeria's external situation, disbursement of the second tranche is no longer planned.

Annex BII-C A I 3 — Macrofinancial assistance for the former Yugoslav Republic of Macedonia — FYROM II and III

A new macrofinancial assistance operation consisting of loans not exceeding EUR 50 000 000 and donations not exceeding EUR 30 000 000 was decided by the Council in 1999. The first loan tranche of EUR 10 000 000 was disbursed in 2001. The second tranche of EUR 12 000 000 was disbursed in January 2002.

Disbursement of the balance of EUR 28 000 000 is planned in the course of 2002 at the latest.

In 2003, the Commission might propose a third macrofinancial assistance operation consisting of loans not exceeding EUR 30 000 000. If this is approved, disbursement is planned for 2003.

Annex BII-C A I 4 — Macrofinancial assistance for Belarus

The first tranche (EUR  30 000 000) of the macrofinancial assistance of EUR  55 000 000 decided in 1995 was disbursed that year in support of Belarus's economic programme for 1995. In view of the country's political and economic situation, there are no plans at present for disbursing the second tranche.

Annex BII-C A I 5 — Macrofinancial assistance for Bosnia and Herzegovina — Bosnia I, II and possibly III

The first macrofinancial assistance operation consisting of loans not exceeding EUR 20 000 000 and donations not exceeding EUR 40 000 000 was decided by the Council in 1999. The first loan tranche of EUR 10 000 000 was disbursed in 1999 and the second loan tranche of EUR 10 000 000 in 2001.

A second macrofinancial assistance operation consisting of loans which could amount to EUR 40 000 000 as well as donations is also envisaged in 2002. The loans could be disbursed in three tranches in 2002 and 2003.

A third macrofinancial assistance operation could be proposed by the Commission. If approved, it would lead to disbursement of EUR 15 000 000 in 2003.

Annex BII-C A I 6 — Macrofinancial assistance for Romania — Romania IV

A new macrofinancial assistance operation of up to EUR 200 000 000 was decided in 1999. The first tranche of EUR 100 000 000 was paid in 2000 and the second tranche is planned, in two instalments, in 2002.

Annex BII-C A I 7 — Macrofinancial assistance for the Ukraine — Ukraine III

On 15 October 1998 the Council decided to grant theUkraine a medium-term facility of up to EUR 150 000 000 to support the country's economic programme for 1999/2000. The first tranche of EUR 58 000 000 was disbursed in 1999. Disbursement of the balance is no longer planned under this operation, but has been included in a new proposal for assistance adopted by the Commission in January 2002. This proposal for a new financial assistance operation totalling EUR  110 000 000 was submitted to Parliament and the Council for possible adoption in 2002. Disbursement would follow in two equal tranches in 2002 and 2003.

Annex BII-C A I 8 — Macrofinancial assistance for Moldova — Moldova III

On 10 July 2000 the Council took a decision to grant macrofinancial assistance of EUR 15 000 000. The first tranche of EUR 10 000 000 is to be paid in the first half of 2002 and the balance later in the year.

An initial macrofinancial assistance operation totalling EUR 225 000 000 in the form of loans was adopted in July 2001 and completely disbursed in September 2001.

In 2002, the Commission might propose a second operation in the form of loans totalling EUR 75 000 000. If this is approved, disbursement would follow in 2002 to 2003.

Annex BII-C A I 9 — Macrofinancial assistance for Serbia and Montenegro — FRY I and II

An initial macrofinancial assistance operation totalling EUR 225 000 000 in the form of loans was adopted in July 2001 and completely disbursed in September 2001.

In 2002 the Commission might propose a second operation in the form of loans totalling EUR 75 000 000. If this is approved, disbursement would follow in 2002 to 2003.

Annex BII-C A I 10 — 

Annex BII-C A II — Euratom loans to non-member countries

On 21 March 1994 the Council decided to empower the Commission to contract borrowings and grant Euratom loans to help improve the degree of efficiency and safety of nuclear power stations in certain countries of central and eastern Europe and the Commonwealth of Independent States. It is estimated that in the framework of this decision a loan of USD 585 000 000 will be signed in early 2003, followed by another loan of USD  223 500 000 the same year. Disbursements in this sector should amount to EUR 40 000 000 in 2002 and EUR 210 000 000 in 2003.

Annex BII-C B — B. EUROPEAN INVESTMENT BANK LOANS WITH A GENERAL BUDGET GUARANTEE

Annex BII-C B 1 — European Investment Bank loans to non-member Mediterranean Basin countries

The volume of loans signed under the new ‘MED‚ mandate for EUR 6 425 000 000 and the financial protocols which have yet to be committed in full may be estimated at around EUR 1 535 000 000 for 2002 and around EUR 1 350 000 000 for 2003. Loans totalling EUR 150 000 000 could be signed in 2002 under the special facility for reconstruction in Turkey.

Annex BII-C B 2 — European Investment Bank loans to non-member countries in central and eastern Europe

Loans of around EUR 1 100 000 000 in 2002 and EUR 1 100 000 000 in 2003 could be signed under the new ‘CEEC‚ mandate, including the extension of this mandate to Serbia and Montenegro. For the special ‘Baltic Sea/Russia‚ operation, EUR 25 000 000 should be signed in 2002 and EUR 40 000 000 in 2003.

Annex BII-C B 3 — European Investment Bank loans to South Africa

Under the new ‘South Africa‚ mandate of EUR 825 000 000, loans of about EUR 125 000 000 may be signed in 2002 and 2003.

Annex BII-C B 4 — European Investment Bank loans to other non-member countries

Under the new ‘ALA‚ mandate of EUR 2 480 000 000, loans of about EUR 350 000 000 may be signed in 2002 and EUR 325 000 000 in 2003.

Annex BII-C B 5 — Risk situation

The amount outstanding on borrowing, lending and guarantee operations at 31 December 2001 came to EUR 15 449 000 000: EUR 52 000 000 in the Member States and EUR 15 397 000 000 in non-member countries.

Annex BII-C B 6 — Guarantee Fund

The Council adopted Regulation (EC, Euratom) No 2728/94 of 31 October 1994 establishing a Guarantee Fund for external action in accordance with the conclusions of the Edinburgh European Council of 11 and 12 December 1992. This Regulation was last amended by Regulation (EC, Euratom) No 1149/1999 (OJ L 139, 2.6.1999, p. 1).

Annex BII-D — D. CAPITAL OPERATIONS AND DEBT MANAGEMENT

Annex BII-D I — Technical notes on Table 1

Annex BII-D I 1 — 1. — — Table 1

Annex BII-D I 1 a — 

(a) For balance of payments, ‘NCI‚ and ‘Euratom‚ operations the amounts borrowed should correspond to the amounts lent.

However, the funds borrowed may be exchanged under swap operations for other currencies (at different interest rates) and these currencies are then lent.

Divergent movements in the parities against the euro of the currencies borrowed and lent are the reasons for the differences between the columns ‘Repayments‚ and ‘Amount outstanding‚ for borrowing-and-lending operations.

The differences in interest rates for the currencies used in borrowing-and-lending operations are the reasons for differences in the column ‘Interest‚ for these two types of operations.

Annex BII-D I 1 b — 

(b) Exchange rate: the amounts in Column (2) ‘Equivalent at date of signature‚ are converted at the rate applicable on the date of signature. As regards refinancing operations, Table 1 shows both the initial operation (e.g. in 1979) and the replacement operation (e.g. in 1986), the amount for the latter being converted at the rate of the initial operation. The resulting duplication affects the annual figures but is eliminated in the total.

All other amounts are converted at the rate applicable at 31 December 2001.

Annex BII-D I 1 c — 

(c) Column (3) ‘Initial amount received/paid up to 31 December 2001‚: with reference to 1986, for example, this column shows the cumulative total of all amounts received up to 31 December 2001 under loans signed in 1986 (table 1), including refinancing (which produces some duplication).

Annex BII-D I 1 d — 

(d) Column (4) ‘Amount outstanding at 31 December 2001‚: these are net figures, with no duplication as a result of refinancing operations. They are obtained by subtracting from the column 3 figure the cumulative total of repayments made up to 31 December 2001, including repayments in respect of refinancing operations (total not given in the tables).

Annex BII-D I 1 e — 

(e) Column 7 = column 4 - column 5.

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