(1)

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) (2) has been substantially amended several times (3). In the interests of clarity and rationality the said Decision should be codified.

(2)

The European Council meeting in Madrid on 15 and 16 December 1995 confirmed the importance of the European Investment Bank, hereinafter referred to as ‘the EIB’, as an instrument of cooperation between the Community and Latin America and called on the EIB to intensify its activities in the region. These projects should be of interest to both the Community and the countries concerned.

(3)

The European Council meeting in Florence on 21 and 22 June 1996 welcomed the results of the Asia-Europe summit, which marked a turning-point in relations between the two continents.

(4)

The European Council meeting in Amsterdam on 16 and 17 June 1997 welcomed the conclusions adopted at the Second Euro-Mediterranean Conference, which was held at Valletta, Malta, on 15 and 16 April 1997 and reaffirmed the principles and objectives agreed at Barcelona in 1995.

(5)

The European Council meeting in Luxembourg on 12 and 13 December 1997 launched the enlargement process with the Central and Eastern European countries and Cyprus.

(6)

The European Council meeting in Cardiff on 15 and 16 June 1998 welcomed the efforts which the Republic of South Africa was making to modernise its economy and integrate it into the world trading system.

(7)

The EIB is completing the current loan programmes for Central and Eastern Europe, the Mediterranean region, Asia and Latin America and the Republic of South Africa pursuant to Decision 97/256/EC (4), as well as the lending that is governed by the Protocol on Financial Cooperation with the former Yugoslav Republic of Macedonia, according to Decision 98/348/EC (5).

(8)

The Council has invited the EIB to start operations in Bosnia and Herzegovina. These operations have continued, following the positive report (6) drawn up as stipulated in Council Decision 98/729/EC (7).

(9)

Although Bosnia and Herzegovina and the former Yugoslav Republic of Macedonia have been included in the Central and Eastern Europe region since the adoption of Decision 97/256/EC, the EIB’s total lending effort to applicant countries within this region should increase given the importance of the pre-accession facility the EIB plans to create for EIB lending for projects in these countries without a guarantee from the Community budget or Member States.

(10)

In these circumstances, the EIB should ensure that its guaranteed lending within the Central and Eastern Europe mandate will finance particularly projects in those countries which have fewer projects suitable for financing from the pre-accession facility or projects in non-applicant countries.

(11)

The Cooperation Agreements between the European Community and Nepal, between the European Community and the Lao People’s Democratic Republic and between the European Community and Yemen entered into force on 1 June 1996, 1 December 1997 and on 1 July 1998 respectively. The Cooperation Agreement between the European Community and South Korea was signed on 28 October 1996. Nepal, Yemen, Laos and South Korea should become beneficiaries of EIB funding under the EIB’s mandate for Asia and Latin America.

(12)

It is appropriate to make certain improvements in the programmes of operations in respect of duration and country coverage. It is appropriate to adjust the blanket guarantee rate and the portion of lending for which the EIB is invited to cover the commercial risk from non-sovereign guarantees.

(13)

The Council is calling on the EIB to continue its operations in support of investment projects carried out in those countries by offering it the guarantee provided for in this Decision.

(14)

In June 1996, the Commission, in agreement with the EIB, presented to the Council a proposal for a new guarantee system for EIB lending to third countries.

(15)

On 2 December 1996 the Council approved conclusions on new guarantee arrangements for EIB lending to third countries, according to which the approach of a global guarantee, without distinguishing between the regions and projects, is approved and a risk-sharing scheme accepted. Under the current risk-sharing scheme the budgetary guarantee should cover political risks arising from currency non transfer, expropriation, war or civil disturbance and denial of justice upon breach of certain contracts by the third-country government or other authorities.

(16)

Under the risk-sharing scheme, the EIB should secure commercial risks by means of non-sovereign third-party guarantees or by means of any other security or collateral as well as relying on the financial strength of the debtor, in accordance with its usual criteria.

(17)

The guarantee arrangements should not affect the excellent credit standing of the EIB.

(18)

Council Regulation (EC, Euratom) No 1149/1999 (8) revised the target amount and the provisioning rate for the Loan Guarantee Fund established by Council Regulation (EC, Euratom) No 2728/94 (9).

(19)

The financial perspective for the period 2000 to 2006 according to the Interinstitutional Agreement of 6 May 1999 between the European Parliament, the Council and the Commission on budgetary discipline and improvement of the budgetary procedure (10) envisages a ceiling for the loan guarantee reserve in the Community budget of EUR 200 million (at 1999 prices) per annum.

(20)

EIB financing in eligible third countries should be managed, in accordance with the EIB’s usual criteria and procedures, including appropriate control measures, as well as with the relevant rules and procedures concerning the Court of Auditors and OLAF, in such a way as to support Community policies and to enhance coordination with the Community’s other financial instruments. There is regular consultation between the EIB and the Commission to ensure coordination of priorities and activities in these countries and to measure progress towards the fulfilment of the Community’s relevant policy objectives. The setting and periodic review of the operation objectives and the measurement of their fulfilment are the responsibility of the EIB’s Board of Directors. In particular, EIB financing in the candidate countries should reflect the priorities established in the accession partnerships between the Community and those countries. Thus the transparency of the EIB lending under this Decision should be substantially enhanced. Hence, the Commission has reported on the application of Decision 2000/24/EC (11).

(21)

Close cooperation between the EIB and the Commission should ensure consistency and synergy with the European Union’s geographical cooperation programmes and ensure that the EIB loan operations complement and strengthen the European Union’s policies for those regions.

(22)

The Community guarantee covering the special earthquake facility for Turkey under Council Decision 1999/786/EC (12) continues to take the form of an extension of the global guarantee under this Decision.

(23)

The EIB and the Commission should adopt the procedures for granting the guarantee,