This report meets the requirement imposed on the Commission to inform
the Council and the European Parliament on an annual basis of the
borrowing and lending activities of the Community. The report therefore
describes these operations for each of the areas concerned. To complete
the picture of lending activities in 2003, it also gives a brief summary
of the macro-financial assistance provided by the Community to the
countries of Central and Eastern Europe
and of the interest subsidies and guarantees associated with Community
loans. It also provides information on Euratom’s lending activities.
- Borrowing activities in 2003: given that the New Community Instrument
ceilings have been fully used up and the ECSC Treaty expired in 2002, no
funds were raised under these instruments in 2003. The borrowing for
macro-financial assistance in 2003 was raised to grant loans to
Serbia and
Montenegro, the
former Yugoslav Republic of
Macedonia (FYROM) and Romania.
There was only one borrowing under the Euratom loans instrument to
Bulgaria. Despite these
factors, total borrowing by the European Communities and the European
Investment Bank (EIB) increased in 2003 by 10.5% to
EUR 42.1 billion, against EUR 38.1 billion the
previous year, mainly due to an increase in borrowings by the EIB. The
total amount of borrowing outstanding as at 31 December 2003 was
EUR 196.4 billion, 7.1% up on 2002. The breakdown of borrowing
by currency shows a decrease in the share of euro borrowings in 2003 to
54.9% from 59.0% in 2002 of all issues, while issues in other Community
currencies increased from 17.7% to 19.1%.
- The Community’s macro-financial assistance in the form of loans: the
Community’s action, which is by its very nature exceptional, focuses on
neighbouring regions, such as Central and Eastern Europe, the Western
Balkans, the Caucasus and the countries of the southern Mediterranean. As the candidate countries have made
significant progress towards macro-economic adjustment and 10 of these
countries joined the European Union in 2004, macro-financial assistance is
gradually being phased out. In contrast, the Western Balkans region has
significantly benefited over recent years from Community macro-financial
assistance, which also includes a significant grant component. In the
Western Balkans, the Council approved in 2003 supplementary
macro-financial assistance in the form of a loan of
EUR 25 million to Serbia and Montenegro, accompanied by a
grant of up to EUR 45 million. Loan disbursements for a total
amount of EUR 118 million were completed in 2003 in favour of
Serbia and
Montenegro
(EUR 40 million), the former
Yugoslav Republic of Macedonia
(EUR 28 million) and Romania
(EUR 50 million). Assistance in the form of outright grants
totalling EUR 85 million was also paid out in 2003, of which
EUR 7 million went to Tajikistan, EUR 25 million to
Bosnia and Herzegovina,
EUR 35 million to Serbia and Montenegro and EUR 18 million to
the former Yugoslav
Republic of Macedonia.
- EIB lending in Central and Eastern Europe, the Mediterranean, Asia
and Latin America and the Republic of South
Africa: in Central and Eastern
Europe, the Bank has again been active in the accession
countries, helping them to progress with their preparations for accession
and European integration. In addition, the Bank has developed a
significant level of activity in the countries of the Western Balkans by
supporting investment projects in Albania, Croatia, Serbia and Montenegro and the former Yugoslav Republic of
Macedonia. In 2003 the Bank made its
first investments in the health and education sectors in pursuit of one of
its major new objectives. The EIB gave priority to upgrading, modernising
and developing the communications and energy sectors, with particular
emphasis on Trans-European Networks (TENs). Environmental issues related
to EIB projects, as well as environmental projects per se, were given
priority during the gradual adaptation of the legislation of the countries
concerned to that of the EU.
In the Mediterranean region, the Bank’s lending under mandate takes
place mainly within the framework of the Euro-Mediterranean Partnership,
in support of the economic development of the countries concerned. EIB
lending supported individual investment projects and, through the global
loan mechanism, smaller projects and SMEs, while at the same time
strengthening the financial sector in the various countries. In addition
to its lending under mandate, the Bank has continued with its programme of
lending from its own resources, without budgetary guarantee, under its
Facility for Euro-Mediterranean Investment and Partnership (FEMIP).
In Asia and Latin America, the Bank finances projects that are of
interest to both the Community and the countries concerned – cofinancing
with EU promoters, transfer of technology, cooperation in the fields of
energy and environmental protection.
In the Republic of South
Africa, the Bank’s objective is to contribute
to the successful implementation of the country’s reconstruction and
development programme.
The report finally notes that the cumulative total for risk-sharing
projects since the start of lending activity under the Council Decisions
established since 1 February 2000 was
EUR 2 068 million at the end of 2003, i.e. 10.6% of the
overall lending ceiling for these countries and 19.1% of lending to
date.
- Lending activity of the Signatories of the
Lomé/Cotonou Conventions: total EIB lending in the ACP/OCT amounted
to EUR 463.2 million in 2003, of which
EUR 177.6 million was from the Bank’s own resources and
EUR 285.6 million from risk capital. This includes the first
loans under the Cotonou Agreement which came into force on
1 April 2003.