PURPOSE: to create the conditions for the guarantee fund for external actions to receive risk premiums from EIB financing operations under the private sector mandate for refugee projects.
LEGISLATIVE ACT: Regulation (EU) 2018/409 of the European Parliament and of the Council amending Council Regulation (EC, Euratom) No 480/2009 establishing a Guarantee Fund for external actions.
CONTENT: this Regulation amends Regulation (EC, Euratom) No 480/2009 establishing a Guarantee Fund for external actions. The amendments introduced are as follows:
- risk-premium revenues generated under the financing operations of the European Investment Bank (EIB) that benefit from a Union budgetary guarantee should be paid into the fund;
- where the amount of the Fund exceeds 10 % of the Union's total outstanding capital liabilities, the surplus should be paid back into the general budget of the Union in order to better protect the general budget of the Union against potential additional risk of default of the EIB financing operations addressing the long-term economic resilience of refugees, migrants, host and transit communities, and communities of origin as a strategic response to addressing root causes of migration;
- the financial management of the fund shall be entrusted to the EIB by the Commission.
The Commission shall:
- present by 30 June 2019 at the latest, an independent external evaluation of the advantages and disadvantages of entrusting the financial management of the assets of the fund and of the European fund for sustainable development to the Commission, the EIB or a combination of the two. Where appropriate, the evaluation shall be accompanied by a legislative proposal;
- present each year, a report on the presentation of the financial position and information on the functioning of the fund at the end of the previous calendar year, including detailed information on the outstanding capital of guaranteed loans or the fund's assets during the previous calendar year, as well as conclusions and lessons learned. The report shall also include information about the financial management and performance and the risk of the Fund at the end of the previous calendar year. Starting in 2019 and every three years thereafter, the report shall also include an assessment of the adequacy of the 9% target and the 10% threshold for the fund.
ENTRY INTO FORCE: 8.4.2018.