Translation of "taux plafond garanti " (French → English) :

This specific ceiling should therefore not apply to ad hoc individual aid granted outside the scope of a guarantee scheme, to aid granted to undertakings in difficulty, or to guarantees on underlying transactions not constituting a loan, such as guarantees on equity transactions. The specific ceiling should be determined on the basis of the fact that taking account of a cap rate (net default rate) of 13 %, representing a worst case scenario for guarantee schemes in the Community, a guarantee amounting to EUR 1 500 000 can be considered as having a gross grant equivalent identical to the general de minimis ceiling.

12. Remains convinced that a reduction of the provisioning rate from 9% to 8% would not undermine the shielding capacity of the Guarantee Fund and would increase the lending capacity without having to change the ceiling of the financial perspective; is also in favour of reducing the blanket guarantee given to the European Investment Bank (EIB) from 65% to 50%; points out that a reduction of the blanket guarantee would have no negative consequences on the EIB, given that in practice the totality of each loan is guaranteed until 65% of the total portfolio is reached;

3. Remains convinced that a reduction of the provisioning rate from 9% to 8% would not undermine the shielding capacity of the Guarantee Fund and would increase the lending capacity without having to change the ceiling of the financial perspective; is also in favour of reducing the blanket guarantee given to the European Investment Bank from 65% to 50%; points out that a reduction of the blanket guarantee would have no negative consequences on the EIB, given that in practice the totality of each loan is guaranteed until 65% of the total portfolio is reached;

For these reasons, I have recommended three amendments to the Commission’s proposal, the first of which concerns the general ceiling for the guarantee fund, and the two others the reconciliation of the guarantee percentage rate with Mrs Rühle’s report.

The Commission considered that the criteria which it normally lays down for this type of aid had been met. Under these criteria, there must be a link with investments, the total of previous and present assistance must not exceed the ceilings laid down by the Commission, and the measure must be designed either to reduce interest rates to their present level or to assist certain holdings which are experiencing financial difficulties but are likely to be economically and technically viable.

- Reform of the structural Funds: five general objectives were established and the budget available was to be doubled in real terms between 1987 and 1993. Budgetary discipline (a) Containment of the CAP by means of an agricultural guideline: the annual growth in EAGGF Guarantee expenditure is limited to 74% of the growth of Community GNP (b) Establishment of expenditure ceilings for all major categories of expenditure.