title: Information from the Commission - ECSC financial statements at 31 December 1997

text: 13. 8. 98 EN Official Journal of the European Communities C 255/3 ECSC FINANCIAL STATEMENTS AT 31 DECEMBER 1997 (98/C 255/03) Balance sheets at 31 December 1997 (amounts in ecus) - before allocation of surplus - ASSETS 31 December 1997 31 December 1996 Balances with central banks (Note 3) 555(cid:216)027 602(cid:216)921 Loans and advances: -(cid:217)repayable on demand -(cid:217)with agreed maturity dates or periods of notice (Note 4. 1) -(cid:217)loans (Note 4. 2) 6(cid:216)355(cid:216)643 367(cid:216)368(cid:216)554 1(cid:216)746(cid:216)786(cid:216)240 15(cid:216)711(cid:216)356 662(cid:216)066(cid:216)466 2(cid:216)239(cid:216)862(cid:216)130 Total 2(cid:216)120(cid:217)510(cid:216)437 2(cid:216)917(cid:216)639(cid:216)952 Loans and advances to customers (Note 5): -(cid:217)loans -(cid:217)levy -(cid:217)fines -(cid:217)credits 1(cid:216)836(cid:216)139(cid:216)393 2(cid:216)141(cid:216)909 72(cid:216)785(cid:216)575 14(cid:216)927(cid:216)351 2(cid:216)342(cid:216)728(cid:216)278 1(cid:216)316(cid:216)270 68(cid:216)565(cid:216)376 9(cid:216)910(cid:216)423 Total 1(cid:216)925(cid:216)994(cid:216)228 2(cid:216)422(cid:216)520(cid:216)347 Bonds and other fixed(cid:220)income securities (Note 6): -(cid:217)issued by public bodies -(cid:217)issued by other borrowers 1(cid:216)302(cid:216)095(cid:216)776 321(cid:216)410(cid:216)542 1(cid:216)254(cid:216)055(cid:216)367 193(cid:216)334(cid:216)405 Total 1(cid:216)623(cid:216)506(cid:216)318 1(cid:216)447(cid:216)389(cid:216)772 Tangible and intangible assets (Note 7) Other assets (Note 8) Prepayments and accrued income (Note 9) 2(cid:216)623(cid:216)844 87(cid:216)399(cid:216)574 3(cid:216)412(cid:216)827 20(cid:216)146(cid:216)111 169(cid:216)427(cid:216)311 198(cid:216)377(cid:216)594 TOTAL ASSETS 5(cid:216)930(cid:216)016(cid:216)739 7(cid:216)010(cid:216)089(cid:216)524 Off(cid:220)balance(cid:220)sheet commitments (Note 26) 590(cid:216)786(cid:216)635 1(cid:216)684(cid:216)494(cid:216)717 C 255/4 EN Official Journal of the European Communities 13. 8. 98 - before allocation of surplus - 31 December 1997 31 December 1996 LIABILITIES LIABILITIES VIS(cid:220)[(cid:220)VIS THIRD PARTIES Amounts owed to credit institutions: -(cid:217)with agreed maturity dates or periods of notice -(cid:217)borrowings (Note 10) 45(cid:216)239 2(cid:216)277(cid:216)664(cid:216)834 - 2(cid:216)542(cid:216)395(cid:216)630 Total 2(cid:216)277(cid:216)710(cid:216)073 2(cid:216)542(cid:216)395(cid:216)630 Debts evidenced by certificates (Note 11) Other liabilities (Note 12) Accruals and deferred income (Note 13) Provisions for liabilities and charges (Note 14) Commitments for the ECSC operating budget (Note 15) TOTAL LIABILITIES VIS(cid:220)[(cid:220)VIS THIRD PARTIES NET POSITION Provisions for operating budget (Note 16) financing the ECSC Provisions for large exposures (Note 17) 1(cid:216)359(cid:216)610(cid:216)749 12(cid:216)788(cid:216)060 121(cid:216)190(cid:216)289 87(cid:216)376(cid:216)377 853(cid:216)779(cid:216)193 4(cid:216)712(cid:216)454(cid:216)741 441(cid:216)712(cid:216)926 27(cid:216)000(cid:216)000 2(cid:216)134(cid:216)840(cid:216)697 78(cid:216)273(cid:216)662 159(cid:216)831(cid:216)193 75(cid:216)213(cid:216)372 1(cid:216)059(cid:216)928(cid:216)511 6(cid:216)050(cid:216)483(cid:216)065 207(cid:216)586(cid:216)988 36(cid:216)000(cid:216)000 500(cid:216)000(cid:216)000 176(cid:216)055(cid:216)284 69(cid:216)622(cid:216)926 468(cid:216)743(cid:216)644 176(cid:216)055(cid:216)284 67(cid:216)917(cid:216)524 Total 745(cid:216)678(cid:216)210 712(cid:216)716(cid:216)452 Reserves (Note 18): -(cid:217)guarantee fund -(cid:217)special reserve -(cid:217)former pension fund Value adjustment reserve Surplus brought forward Surplus for the financial year (Note 19) NET TOTAL TOTAL LIABILITIES Off(cid:220)balance(cid:220)sheet commitments (Note 26) 313(cid:216)119 537(cid:216)606 2(cid:216)320(cid:216)137 1(cid:216)217(cid:216)561(cid:216)998 5(cid:216)930(cid:216)016(cid:216)739 1(cid:216)060(cid:216)011 132(cid:216)487 2(cid:216)110(cid:216)521 959(cid:216)606(cid:216)459 7(cid:216)010(cid:216)089(cid:216)524 712(cid:216)444(cid:216)915 3(cid:216)578(cid:216)156(cid:216)001 13. 8. 98 EN Official Journal of the European Communities C 255/5 Profit(cid:220)and(cid:220)loss accounts for the year ending 31 December 1997 (amounts in ecus) CHARGES Interest payable and similar charges (Note 20) Commissions payable Net losses on financial operations: -(cid:217)foreign(cid:220)exchange losses -(cid:217)losses on bonds and other fixed(cid:220) income securities -(cid:217)value adjustments in bonds securities (Note 6) and other respect of fixed(cid:220)income Total Administrative expenditure (Note 21) Value adjustments in respect of tangible assets (Note 7) Other operating charges (Note 22) Value adjustments: provisions loans, advances, -(cid:217)value adjustment in respect of loans and advances -(cid:217)allocation the provision liabilities and charges (Note 14) to for Total TOTAL OPERATING CHARGES Extraordinary charges Conversion difference Allocation reserve (Note 19. 1) to the value adjustment Legal commitments year (Note 15) for the financial Allocation to the provision for financing the ECSC operating budget (Note 16) Allocation to the guarantee fund (Note 18) TOTAL CHARGES Surplus for the financial year (Note 19) TOTAL 1997 financial year 1996 financial year 331(cid:216)419(cid:216)509 844(cid:216)743 580(cid:216)314(cid:216)585 1(cid:216)264(cid:216)272 31(cid:216)292 1(cid:216)622(cid:216)062 14(cid:216)278(cid:216)026 372(cid:216)189 8(cid:216)818(cid:216)500 3(cid:216)033 5(cid:216)402(cid:216)521 2(cid:216)533(cid:216)922 27(cid:216)670(cid:216)405 34(cid:216)228(cid:216)973 15(cid:216)931(cid:216)380 5(cid:216)000(cid:216)000 573(cid:216)251 382(cid:216)650 9(cid:216)190(cid:216)689 363(cid:216)342(cid:216)222 580(cid:216)380 746(cid:216)892 0 180(cid:216)869(cid:216)553 274(cid:216)000(cid:216)000 31(cid:216)256(cid:216)356 850(cid:216)795(cid:216)403 2(cid:216)320(cid:216)137 853(cid:216)115(cid:216)540 7(cid:216)939(cid:216)476 5(cid:216)000(cid:216)000 777(cid:216)962 382(cid:216)568 61(cid:216)899(cid:216)378 657(cid:216)578(cid:216)241 4(cid:216)593(cid:216)762 0 1(cid:216)060(cid:216)011 201(cid:216)176(cid:216)900 73(cid:216)131(cid:216)189 19(cid:216)000(cid:216)000 956(cid:216)540(cid:216)103 2(cid:216)110(cid:216)521 958(cid:216)650(cid:216)624 C 255/6 EN Official Journal of the European Communities 13. 8. 98 INCOME 1997 financial year 1996 financial year Interest receivable and similar (Note 23) income interest on (including securities: 84(cid:216)157(cid:216)839 91(cid:216)253(cid:216)453 in 1996) fixed(cid:220)income in 1997 and Net profit on financial operations: -(cid:217)foreign(cid:220)exchange profits -(cid:217)profits on bonds and other fixed(cid:220) income securities -(cid:217)withdrawal of value adjustments in respect of bonds and other fixed(cid:220) income securities (Note 6) Value adjustment and advances and provisions: in respect of Total loans 36(cid:216)600 10(cid:216)665(cid:216)375 2(cid:216)533(cid:216)921 420(cid:216)240(cid:216)962 699(cid:216)872(cid:216)042 15(cid:216)240 26(cid:216)276(cid:216)516 2(cid:216)739(cid:216)881 13(cid:216)235(cid:216)896 29(cid:216)031(cid:216)637 -(cid:217)withdrawal of value adjustments in respect of loans and advances -(cid:217)transfer from the provision for large exposures (Note 17) 37(cid:216)198(cid:216)844 9(cid:216)000(cid:216)000 3(cid:216)092(cid:216)016 19(cid:216)000(cid:216)000 Other operating income (Note 24) Total TOTAL OPERATING INCOME Conversion difference Withdrawal from the value adjustment reserve (Note 19. 1) Income relating to the ECSC operating budget (Note 25) from Transfer for the financing the ECSC operating budget (Note 16) provision TOTAL INCOME 46(cid:216)198(cid:216)844 22(cid:216)507(cid:216)685 502(cid:216)183(cid:216)387 0 746(cid:216)892 301(cid:216)054(cid:216)072 49(cid:216)131(cid:216)189 853(cid:216)115(cid:216)540 22(cid:216)092(cid:216)016 1(cid:216)544(cid:216)770 752(cid:216)540(cid:216)465 1(cid:216)060(cid:216)011 0 190(cid:216)427(cid:216)105 14(cid:216)623(cid:216)043 958(cid:216)650(cid:216)624 13. 8. 98 EN Official Journal of the European Communities C 255/7 Allocation of the surplus for the year ending 31 December 1997 (amounts in ecus) 1997 financial year 1996 financial year Surplus not allocated at 1 January Surplus for the year to be allocated Allocation to the former pension fund (note 18) Surplus not allocated at 31 December Total 537(cid:216)606 2(cid:216)320(cid:216)137 2(cid:216)857(cid:216)743 1(cid:216)662(cid:216)513 1(cid:216)195(cid:216)230 132(cid:216)487 2(cid:216)110(cid:216)521 2(cid:216)243(cid:216)008 1(cid:216)705(cid:216)402 537(cid:216)606 C 255/8 EN Official Journal of the European Communities 13. 8. 98 NOTES RELATING TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 1997 (amounts in ecus) 1. PRESENTATION OF THE FINANCIAL STATEMENTS 1. 1. The European Coal and Steel Community (ECSC) was established by the Treaty of 18 April 1951. According to the Treaty, the task of the ECSC is to contribute to the economic expansion of the Member States through the establishment of a common market for coal and steel. Most of the ECSC’s funds come from the levy, the net profit from its financial activity, borrowings raised on the financial markets and direct bank loans. 1. 2. The ECSC’s financial statements at 31 December 1997 are presented in accordance with Council Directives 78/660/EEC and 86/635/EEC on the annual accounts and consolidated accounts of banks and other financial institutions (OJ L 222, 14. 8. 1978 and OJ L 372, 31. 12. 1986). 1. 3. ECSC accounts are kept in the various currencies used for its financial activity. The financial statements are expressed in ecus. The following rates have been used for converting year(cid:220)end balance(cid:220)sheet amounts expressed in national currency into ecus: Belgian and Luxembourg francs Danish krone German mark Greek drachma Portuguese escudo French franc Finnish markka Dutch guilder Irish pound Italian lira Austrian schilling Spanish peseta Swedish krona Pound sterling Canadian dollar Swiss franc United States dollar Japanese yen 31. 12. 1997 31. 12. 1996 40,7675 7,52797 1,97632 312,039 202,137 6,61214 5,98726 2,22742 40,10210 7,44655 1,94653 309,50200 195,96800 6,56193 5,81640 2,18472 0,771961 0,745342 1(cid:216)942,03 1(cid:216)913,72000 13,9020 167,388 8,73234 0,666755 1,58256 1,60553 1,10421 143,680 13,69650 164,16700 8,62800 0,737273 1,71660 1,69129 1,25299 145,84900 13. 8. 98 EN Official Journal of the European Communities C 255/9 1. 4. At 31 December 1997 the various currencies listed in 1. 3, together with the ecu, made up the ECSC’s balance sheet as follows: Currency Assets Liabilities (ECU) ECU Belgian franc Danish krone German mark Greek drachma Portuguese escudo French franc Finnish markka Dutch guilder Irish pound Luxembourg franc Italian lira Austrian schilling Spanish peseta Swedish krona Pound sterling Swiss franc United States dollar Japanese yen NOTES: 1(cid:216)181(cid:216)727(cid:216)815 1(cid:216)890(cid:216)577(cid:216)369 138(cid:216)080(cid:216)244 88(cid:216)537(cid:216)405 669(cid:216)480 0 1(cid:216)421(cid:216)513(cid:216)893 1(cid:216)202(cid:216)400(cid:216)271 2(cid:216)117(cid:216)650 142(cid:216)791(cid:216)176 822(cid:216)030(cid:216)596 112(cid:216)496 36(cid:216)515(cid:216)123 956(cid:216)864 133(cid:216)205(cid:216)287 366(cid:216)998(cid:216)357 4(cid:216)571(cid:216)323 104(cid:216)385(cid:216)745 269(cid:216)831 971(cid:216)902(cid:216)678 32(cid:216)923(cid:216)774 455(cid:216)253(cid:216)179 113(cid:216)991(cid:216)228 2(cid:216)115 141(cid:216)712(cid:216)138 606(cid:216)772(cid:216)399 0 14(cid:216)870(cid:216)747 0 119(cid:216)032(cid:216)991 326(cid:216)183(cid:216)302 3(cid:216)665(cid:216)239 81(cid:216)488(cid:216)050 0 867(cid:216)278(cid:216)955 32(cid:216)317(cid:216)804 441(cid:216)409(cid:216)957 113(cid:216)767(cid:216)997 Total 5(cid:216)930(cid:216)016(cid:216)739 5(cid:216)930(cid:216)016(cid:216)739 The ecu has a much larger place in the ECSC’s accounts than suggested by the above table. This is explained by certain accounting operations, mainly the offsetting of accounts receivable and payable relating to currency swaps. The offsetting of these items on the assets and liabilities sides is designed to prevent artificial inflation of the balance sheet. This accounting operation 268(cid:216)027(cid:216)585 in 1997. is carried out in ecus and involved a total of ECU The real weight of the ecu in the ECSC’s accounts can therefore be assessed more accurately if this amount is added both to the assets and to the liabilities sides of the balance sheet. 2. ACCOUNTING PRINCIPLES AND METHODS 2. 1. The financial statements are drawn up in accordance with generally recognised accounting principles. 2. 2. Charges and income for the financial year are converted to ecus at the monthly accounting rate in force on the day of the transaction. C 255/10 EN Official Journal of the European Communities 13. 8. 98 3. BALANCES WITH CENTRAL BANKS This item represents the ECSC’s balances with the central banks of certain Member States. 4. LOANS AND ADVANCES TO CREDIT INSTITUTIONS 4. 1. With agreed maturity dates or periods of notice The breakdown of the remaining time to maturity of these operations is as follows: Up to three months Three months to one year Over one year (ECU) 31. 12. 1997 31. 12. 1996 361(cid:216)076(cid:216)698 6(cid:216)291(cid:216)856 - 636(cid:216)956(cid:216)250 15(cid:216)598(cid:216)022 9(cid:216)512(cid:216)194 Total 367(cid:216)368(cid:216)554 662(cid:216)066(cid:216)466 4. 2. Loans The breakdown of the time to maturity of these loans is as follows: Up to three months Three months to one year One to five years Over five years 31. 12. 1997 31. 12. 1996 (ECU) 172(cid:216)233(cid:216)077 324(cid:216)131(cid:216)965 151(cid:216)481(cid:216)547 525(cid:216)525(cid:216)670 1(cid:216)149(cid:216)308(cid:216)488 1(cid:216)466(cid:216)966(cid:216)464 101(cid:216)112(cid:216)710 95(cid:216)888(cid:216)449 Total 1(cid:216)746(cid:216)786(cid:216)240 2(cid:216)239(cid:216)862(cid:216)130 13. 8. 98 EN Official Journal of the European Communities C 255/11 5. LOANS AND ADVANCES TO CUSTOMERS 5. 1. Loans The loans granted to credit institutions are shown under "Loans and advances to credit institutions’ (see Note 4). The other loans break down as follows: 1. (cid:217)Loans disbursed from borrowed funds(cid:216)(˛) -(cid:217)amounts outstanding -(cid:217)value adjustments 31. 12. 1997 31. 12. 1996 (ECU) 1(cid:216)943(cid:216)860(cid:216)811 (cid:134)(cid:217)170(cid:216)220(cid:216)655 2(cid:216)395(cid:216)599(cid:216)317 (cid:134)(cid:217)115(cid:216)731(cid:216)446 Subtotal 1(cid:216)773(cid:216)640(cid:216)156 2(cid:216)279(cid:216)867(cid:216)871 2. (cid:217)Loans from the special reserve and other own funds for financing subsidised housing 20(cid:216)235(cid:216)203 20(cid:216)355(cid:216)307 Interim total 1(cid:216)793(cid:216)875(cid:216)359 2(cid:216)300(cid:216)223(cid:216)178 The breakdown of these loans by time remaining to maturity is as follows at 31 December: -(cid:217)up to three months -(cid:217)three months to one year -(cid:217)one to five years -(cid:217)over five years 1997 1996 84(cid:216)129(cid:216)143 55(cid:216)848(cid:216)217 1(cid:216)007(cid:216)507(cid:216)068 816(cid:216)611(cid:216)585 114(cid:216)196(cid:216)449 767(cid:216)048(cid:216)080 907(cid:216)432(cid:216)527 627(cid:216)277(cid:216)568 3. (cid:217)Loans paid from the former pension fund to officials of the European Communities for housing construction 4. (cid:217)Loans repayments overdue and interest on arrears -(cid:217)amounts outstanding -(cid:217)value adjustments 41(cid:216)539(cid:216)969 42(cid:216)163(cid:216)173 724(cid:216)065 - 18(cid:216)428(cid:216)850 (cid:134)(cid:217)18(cid:216)086(cid:216)923 Grand total 1(cid:216)836(cid:216)139(cid:216)393 2(cid:216)342(cid:216)728(cid:216)278 (˛)(cid:217)At 31 December 1997, claims on defaulting borrowers are included (see Note 8). NB: These loans are generally guaranteed by Member States, banks or companies or by mortgages. 5. 2. Levy Before value adjustment, this item amounts to ECU 9(cid:216)165(cid:216)606 at 31 December 1997 (ECU 8(cid:216)171(cid:216)552 at 31 December 1996). It comprises in particular ECU 6(cid:216)342(cid:216)867 subject to legal proceedings (ECU 6(cid:216)042(cid:216)902 at 31 December 1996) and ECU 282(cid:216)491 relating to temporary deferment in respect of coal in stock (ECU 414(cid:216)223 at 31 December 1996). Payment of the levy in respect of coal in stock is temporarily deferred under a general decision taken in 1972. 5. 3. Fines This item contains the Commission’s claims on companies fined in accordance with the rules set out in the Treaty. After value adjustment it amounts to ECU 72(cid:216)785(cid:216)575 (ECU 68(cid:216)565(cid:216)376 at 31 December 1996). in this is fines totalling ECU 104(cid:216)364(cid:216)350 that the The main component Commission imposed on steel companies for infringing the rules on competition in the marketing of steel beams (Decision 94/215/ECSC(cid:216)(˛)). ECU 32(cid:216)151(cid:216)350 has been paid in fines under this Decision, against which appeals have been lodged with the Court of First Instance by virtually all the companies concerned. item (˛)(cid:217)OJ L 116, 6. 5. 1994. C 255/12 EN Official Journal of the European Communities 13. 8. 98 5. 4. Interest subsidies to be recovered This item comprises claims on companies in receipt of a subsidised loan which the Commission has been obliged to ask to reimburse all or part of the interest subsidy already paid. 6. BONDS AND OTHER FIXED(cid:220)INCOME SECURITIES 6. 1. Valuation Bonds and other fixed(cid:220)income securities are valued at average purchase price or market value at 31 December 1997, whichever is the lower. This principle is not applied in the case of securities considered as financial fixed assets (see note 6. 5). 6. 2. Composition Bonds and other fixed(cid:220)income securities break down as follows: (ECU) 31. 12. 1997 31. 12. 1996 Value adjustments on bonds and other fixed(cid:220)income securities (withdrawal) 1(cid:216)306(cid:216)255(cid:216)040 1(cid:216)256(cid:216)416(cid:216)093 1(cid:216)798(cid:216)538 (cid:134)(cid:217)4(cid:216)159(cid:216)264 (cid:134)(cid:217)2(cid:216)360(cid:216)726 1(cid:216)302(cid:216)095(cid:216)776 1(cid:216)254(cid:216)055(cid:216)367 89(cid:216)033(cid:216)938 40(cid:216)206(cid:216)650 9(cid:216)691(cid:216)158 (cid:134)(cid:217)9(cid:216)785(cid:216)153 (cid:134)(cid:217)93(cid:216)995 79(cid:216)248(cid:216)785 40(cid:216)112(cid:216)655 242(cid:216)495(cid:216)366 153(cid:216)300(cid:216)950 254(cid:216)409 (cid:134)(cid:217)333(cid:216)609 (cid:134)(cid:217)79(cid:216)200 242(cid:216)161(cid:216)757 153(cid:216)221(cid:216)750 1(cid:216)637(cid:216)784(cid:216)344 1(cid:216)449(cid:216)923(cid:216)693 11(cid:216)744(cid:216)105 (cid:134)(cid:217)14(cid:216)278(cid:216)026 (cid:134)(cid:217)2(cid:216)533(cid:216)921 1(cid:216)623(cid:216)506(cid:216)318 1(cid:216)447(cid:216)389(cid:216)772 ISSUED BY PUBLIC BODIES -(cid:217)gross value -(cid:217)value adjustment -(cid:217)net value OWN(cid:220)DEBT SECURITIES -(cid:217)gross value -(cid:217)value adjustment -(cid:217)net value ISSUED BY OTHER BORROWERS -(cid:217)gross value -(cid:217)value adjustment -(cid:217)net value TOTAL -(cid:217)gross value -(cid:217)value adjustment -(cid:217)net value 6. 3. Maturities in 1998 Securities in the portfolio reaching final maturity during 1998 represent the following amounts (ECU): -(cid:217)issued by public bodies: -(cid:217)own(cid:220)debt securities: -(cid:217)issued by other borrowers: 487(cid:216)441(cid:216)866 - 23(cid:216)072(cid:216)663 Total 510(cid:216)514(cid:216)529 13. 8. 98 EN Official Journal of the European Communities C 255/13 6. 4. Listed/unlisted securities The securities portfolio comprises ECU 1(cid:216)543(cid:216)830(cid:216)768 of securities with a stock(cid:220) exchange listing, the balance of ECU 79(cid:216)675(cid:216)550 being unlisted securities. 6. 5. Financial fixed assets 6. 5. 1. Financial fixed assets are defined as securities that will remain in the portfolio until their final maturity. They comprise mainly short(cid:220)term paper and own(cid:220)debt securities repurchased for servicing ECSC borrowings. 6. 5. 2. Financial fixed assets are valued at average purchase price or redemption value, whichever is the lower. The redemption value of these securities is less than the average purchase price by a total of ECU 8(cid:216)645(cid:216)845. 6. 5. 3. Financial fixed assets are made up as follows (ECU): -(cid:217)issued by public bodies: -(cid:217)own(cid:220)debt securities: -(cid:217)other issuers: 40(cid:216)333(cid:216)549 89(cid:216)033(cid:216)938 0 Total 129(cid:216)367(cid:216)487 C 255/14 EN Official Journal of the European Communities 13. 8. 98 7. TANGIBLE AND INTANGIBLE ASSETS Year of acquisition Acquisition price 31. 12. 1996 Net value Operations during the year Acquisitions Net book value of disposals Amortisation (ECU) 31. 12. 1997 Net value Tangible assets: -(cid:217)Washington -(cid:217)Lisbon -(cid:217)Canberra -(cid:217)Windhoek Intangible assets: 1971 1986(cid:220)1993 1987 1992 882(cid:216)654 2(cid:216)670(cid:216)796 2(cid:216)511(cid:216)059 802(cid:216)172 235(cid:216)344 1(cid:216)264(cid:216)962 1(cid:216)165(cid:216)122 447(cid:216)434 3(cid:216)112(cid:216)862 -(cid:217)Lease on Milan building 1986 879(cid:216)882 299(cid:216)965 Total tangible and intangible assets 3(cid:216)412(cid:216)827 - - - - - - - 215(cid:216)732 - - - 19(cid:216)612 224(cid:216)887 194(cid:216)187 74(cid:216)572 0 1(cid:216)040(cid:216)075 970(cid:216)935 372(cid:216)862 215(cid:216)732 513(cid:216)258 2(cid:216)383(cid:216)872 - 59(cid:216)993 239(cid:216)972 215(cid:216)732 573(cid:216)251 2(cid:216)623(cid:216)844 The various buildings owned by the ECSC were originally leased to the European Community. The rent paid on such leases provided a return on the funds invested by the ECSC. Under the terms of the leases, in 1994 and 1995, the Commission repaid the outstanding principal due to the ECSC with a view to transferring ownership officially from the ECSC to the European Community. The transfer of ownership of the building in Washington was completed in 1997. For the ECSC, this transaction generated a capital gain of ECU 156(cid:216)982, this being the difference between the transfer price (ECU 372(cid:216)714) and the net book value (ECU 215(cid:216)732) at the date of the transfer. As regards the other buildings, pending the completion of legal formalities for the transfer of ownership that are currently being conducted with the competent authorities, the advances received from the European Community feature on the liabilities side of the balance sheet for a total of ECU 5(cid:216)067(cid:216)579 (Note 12). 13. 8. 98 EN Official Journal of the European Communities C 255/15 8. OTHER ASSETS Exchange value currency exchange operations (swaps)(cid:216)(˛) in ecus of the difference between receivable and payable under currency -(cid:217)loans, payments due and not received and rescheduled payments(cid:216)(ˇ) -(cid:217)portfolio taxes and VAT to be reclaimed -(cid:217)loans to officials - miscellaneous -(cid:217)miscellaneous Cumulative value adjustments 31. 12. 1997 31. 12. 1996 (ECU) 79(cid:216)710(cid:216)355 - - 2(cid:216)890(cid:216)676 4(cid:216)777(cid:216)265 21(cid:216)278 58(cid:216)384(cid:216)142 3(cid:216)590(cid:216)273 5(cid:216)051(cid:216)395 55(cid:216)174 87(cid:216)399(cid:216)574 67(cid:216)080(cid:216)984 - (cid:134)(cid:217)46(cid:216)934(cid:216)873 (˛)(cid:217)See Note 12. (ˇ)(cid:217)At 31 December 1997, the amounts due are included in loans and advances to customers (Note 5. 1). Total 87(cid:216)399(cid:216)574 20(cid:216)146(cid:216)111 9. PREPAYMENTS AND ACCRUED INCOME 31. 12. 1997 31. 12. 1996 (ECU) -(cid:217)Interest on loans and swaps -(cid:217)Interest on deposits and securities portfolio -(cid:217)Levy declared for current and previous years but payable after 31 December -(cid:217)Issuing costs and redemption premiums 88(cid:216)543(cid:216)207 45(cid:216)429(cid:216)135 26(cid:216)209(cid:216)470 9(cid:216)245(cid:216)499 132(cid:216)745(cid:216)798 53(cid:216)004(cid:216)743 24(cid:216)303(cid:216)131 646(cid:216)113 Cumulative value adjustments 169(cid:216)427(cid:216)311 210(cid:216)699(cid:216)785 - (cid:134)(cid:217)12(cid:216)322(cid:216)191 Total 169(cid:216)427(cid:216)311 198(cid:216)377(cid:216)594 C 255/16 EN Official Journal of the European Communities 13. 8. 98 10. AMOUNTS OWED TO CREDIT INSTITUTIONS The remaining time to maturity on these operations is as follows: Repayable on demand Up to three months Three months to one year One to five years Over five years 31. 12. 1997 31. 12. 1996 (ECU) - - 147(cid:216)072(cid:216)173 68(cid:216)199(cid:216)122 246(cid:216)407(cid:216)737 608(cid:216)666(cid:216)894 1(cid:216)831(cid:216)349(cid:216)202 1(cid:216)653(cid:216)514(cid:216)445 52(cid:216)880(cid:216)961 212(cid:216)015(cid:216)169 Total 2(cid:216)277(cid:216)710(cid:216)073 2(cid:216)542(cid:216)395(cid:216)630 11. DEBTS EVIDENCED BY CERTIFICATES Part of the borrowings outstanding at 31 December 1997 will reach maturity during the 1998 financial year. These borrowings total ECU 320(cid:216)146(cid:216)925. 12. OTHER LIABILITIES 31. 12. 1997 31. 12. 1996 (ECU) Exchange value currency exchange operations (swaps)(cid:216)(˛) in ecus of the difference between receivable and payable under currency Current account, ECSC operating budget Advance payments for transfer of buildings(cid:216)(ˇ) Other - 3(cid:216)572(cid:216)400 5(cid:216)067(cid:216)579 4(cid:216)148(cid:216)081 61(cid:216)402(cid:216)589 11(cid:216)092(cid:216)742 5(cid:216)440(cid:216)293 338(cid:216)038 Total 12(cid:216)788(cid:216)060 78(cid:216)273(cid:216)662 (˛)(cid:217)See Note 8. (ˇ)(cid:217)In accordance with the opportunity offered under the Decision of 11 June 1992, in the course of 1994 and 1995 the Commission made advance payments in respect of the transfer of the buildings leased to it by the ECSC (Note 7). 13. 8. 98 EN Official Journal of the European Communities C 255/17 13. ACCRUALS AND DEFERRED INCOME 31. 12. 1997 31. 12. 1996 (ECU) Interest on borrowings and credit lines 111(cid:216)943(cid:216)954 159(cid:216)589(cid:216)145 Commission on loans Issuing premiums 233(cid:216)001 9(cid:216)013(cid:216)334 242(cid:216)048 - Total 121(cid:216)190(cid:216)289 159(cid:216)831(cid:216)193 14. PROVISION FOR LIABILITIES AND CHARGES 31. 12. 1996 Allocation Withdrawal Exchange(cid:220)rate movement Operations in 1997 (ECU) 31. 12. 1997 Provision for withholding tax to be paid(cid:216)(˛) Provision for interest(cid:220)rate risk(cid:216)(ˇ) 5(cid:216)950(cid:216)545 32(cid:216)552(cid:216)393 273(cid:216)462 7(cid:216)259(cid:216)038 Provision activities(cid:216)(—) for special costs relating to banking 200(cid:216)000 - Provision for appeal against Decision 94/215/ECSC(cid:216)((cid:209)) 36(cid:216)510(cid:216)434 1(cid:216)286(cid:216)000 Total 75(cid:216)213(cid:216)372 8(cid:216)818(cid:216)500 - - - - - (cid:134)(cid:217)98(cid:216)333 3(cid:216)442(cid:216)838 6(cid:216)125(cid:216)674 43(cid:216)254(cid:216)269 - - 200(cid:216)000 37(cid:216)796(cid:216)434 3(cid:216)344(cid:216)505 87(cid:216)376(cid:216)377 (˛)(cid:217)This provision was created to allow the ECSC to meet its obligations in respect of a securities transaction on which there is a difference of interpre(cid:220) tation regarding the applicability of withholding tax. (ˇ)(cid:217)Following the default of one borrower, long(cid:220)term securities issued by the ECSC (i. e. with a maturity date after 2002) are no longer paired with asset items bearing an equivalent interest rate. Under the principle of caution and in view of the expiry of the ECSC Treaty in 2002, a provision has been constituted to fully cover interest(cid:220)rate risks. (—)(cid:217)This provision was created to cover any legal costs and other unforeseen expenditure. The risk in question is primarily in the legal field because the ECSC has less recourse, for its operations, to national agents who bear all expenditure relating to loan operations. ((cid:209))(cid:217)This provision was created from the fines paid under Decision 94/215/ECSC of 16 February 1994 to cover the possible reimbursement of the amounts received should the Court of First Instance rule in favour of the companies which have appealed against this Decision (Note 5. 3). C 255/18 EN Official Journal of the European Communities 13. 8. 98 15. COMMITMENTS FOR THE ECSC OPERATING BUDGET In 1997, commitments for the ECSC operating budget were as follows: Commitments at 31. 12. 1996 New legal commitments Payments Cancellations Commitments at 31. 12. 1997 (ECU) Redeployment Research Interest subsidies (Article 54) Interest subsidies (Article 56) Social measures, steel industry Social measures, coal industry (Rechar) 302(cid:216)944(cid:216)688 183(cid:216)426(cid:216)384 65(cid:216)974(cid:216)553 84(cid:216)000(cid:216)000 81(cid:216)080(cid:216)040 71(cid:216)750(cid:216)672 24(cid:216)766(cid:216)541 9(cid:216)129(cid:216)829 263(cid:216)072(cid:216)660 186(cid:216)545(cid:216)883 4(cid:216)400(cid:216)769 - 879(cid:216)370 - 3(cid:216)521(cid:216)399 330(cid:216)905(cid:216)781 1(cid:216)841(cid:216)000 18(cid:216)491(cid:216)916 104(cid:216)127(cid:216)711 210(cid:216)127(cid:216)154 147(cid:216)817(cid:216)759 - (cid:134)(cid:217)4(cid:216)295(cid:216)291 40(cid:216)982(cid:216)806 11(cid:216)130(cid:216)244 90(cid:216)433(cid:216)130 29(cid:216)054(cid:216)000 23(cid:216)876(cid:216)769 16(cid:216)228(cid:216)508 79(cid:216)381(cid:216)853 Total 1(cid:216)059(cid:216)928(cid:216)511 180(cid:216)869(cid:216)553 191(cid:216)783(cid:216)476 195(cid:216)235(cid:216)395 853(cid:216)779(cid:216)193 13. 8. 98 EN Official Journal of the European Communities C 255/19 16. PROVISION FOR FINANCING THE ECSC OPERATING BUDGET Provisions at 31. 12. 1996 Operations during the year Withdrawal Allocation (ECU) Provisions at 31. 12. 1997 Budgetary contingency reserve(cid:216)(˛) 80(cid:216)000(cid:216)000 - Surplus from the out(cid:220)turn of the operating budget: -(cid:217)1996 financial year 49(cid:216)131(cid:216)189 49(cid:216)131(cid:216)189 - - 80(cid:216)000(cid:216)000 - Provision for financing future operating budgets(cid:216)(ˇ) 274(cid:216)000(cid:216)000 274(cid:216)000(cid:216)000 Impact on the result 49(cid:216)131(cid:216)189 274(cid:216)000(cid:216)000 Provision for late(cid:220)payment fines and surcharges to be paid subsequently(cid:216)(—) Provision for subsidies to be recovered(cid:216)(—) 68(cid:216)565(cid:216)376 9(cid:216)890(cid:216)423 - - 4(cid:216)220(cid:216)199 5(cid:216)036(cid:216)928 72(cid:216)785(cid:216)575 14(cid:216)927(cid:216)351 Total 207(cid:216)586(cid:216)988 441(cid:216)712(cid:216)926 (˛)(cid:217)This reserve is intended to cover any differences between expenditure committed and income generated by activities during the budget period. The provision has been increased in view of the abolition of the levy and the expiry of the ECSC Treaty in 2002. (ˇ)(cid:217)This provision was foreseen by the budgetary authority when it approved the 1997 ECSC operating budget. It was prompted by the reduction of the levy to 0(cid:216)% from 1998 and the need to plan for the regular financing of future operational budgets until 2002. (—)(cid:217)Fines and interest subsidies whose repayment has been requested are considered as ECSC resources only when they have actually been paid. Fines imposed but not yet paid and interest subsidies whose repayment has been requested are therefore allocated to provisions. 17. PROVISION FOR LARGE EXPOSURES Against the background of the expiry of the ECSC Treaty in 2002 and the gradual reduction in outstanding loans, exposure is becoming increasingly concentrated on a limited number of large loans (these large exposures are defined in accordance with Directive 92/121/EEC of 21 December 1992 on the monitoring and control of large exposures). The provision for large exposures concerns loans exceeding 25(cid:216)% of the ECSC’s own funds which are not covered by first(cid:220)rate guarantees. It is intended to provide cover specifically for this concentration of risk and enable the ECSC to weather any major default. The provision, calculated on the basis of outstanding large exposures at 31 December 1997 and according to a procedure recommended by a firm of international experts, totals ECU 27 million. C 255/20 EN Official Journal of the European Communities 13. 8. 98 18. RESERVES Reserves at 31. 12. 1996 after allocation Transfer (withdrawal) Reserves at 31. 12. 1997 before allocation Allocations at 31. 12. 1997 Reserves at 31. 12. 1997 after allocation (ECU) Guarantee fund Special reserve Former pension fund 31(cid:216)256(cid:216)356 468(cid:216)743(cid:216)644 176(cid:216)055(cid:216)284 69(cid:216)622(cid:216)926 500(cid:216)000(cid:216)000 176(cid:216)055(cid:216)284 69(cid:216)622(cid:216)926 - - 1(cid:216)662(cid:216)513 500(cid:216)000(cid:216)000 176(cid:216)055(cid:216)284 71(cid:216)285(cid:216)439 Total 714(cid:216)421(cid:216)854 31(cid:216)256(cid:216)356 745(cid:216)678(cid:216)210 1(cid:216)662(cid:216)513 747(cid:216)340(cid:216)723 The guarantee fund is intended to cover lending and borrowing operations. After allocation of ECU 31,26 million, the guarantee fund totalled ECU 500 million at 31 December 1997. This reinforcing of the guarantee fund is connected with the forthcoming expiry of the ECSC Treaty. On 11 September 1996 the Commission confirmed its intention of maintaining reserves to cover 100(cid:216)% of those loans outstanding after 23 July 2002 which are not guaranteed by the government of a Member State. This means that the guarantee fund must be gradually increased to approximately ECU 720 million (including any specific value adjustments). In view of (a) the regular decrease in the amounts outstanding up to and after 23 July 2002 and (b) the increase in the guarantee fund, the solvency ratio can be expected to depart from the 14 to 16(cid:216)% range laid down during the period of continuous operation and move towards 100(cid:216)%. The ECSC’s solvency ratio thus increased from 21(cid:216)% at 31 December 1996 to 28(cid:216)% at 31 December 1997. The special reserve is used to grant loans from ECSC own funds to finance subsidised housing. The former pension fund originally represented the ECSC’s total pension obligations prior to 5 March 1968. Since that date, the Member States have assumed responsibility, via the general budget, for the payment of staff pensions. This fund is used to finance housing loans for officials of the European Communities and has also been used to grant special loans to the coal and steel industries. 13. 8. 98 EN Official Journal of the European Communities C 255/21 19. ANALYSIS OF THE RESULT FOR THE FINANCIAL YEAR Overall ECSC performance is influenced by both the result of non(cid:220)budgetary operations (lending/borrowing, investment, exchange(cid:220)rate variations) and the out(cid:220)turn of the ECSC operating budget. 19. 1. Non(cid:220)budgetary operations Result 31. 12. 1997 31. 12. 1996 (ECU) GROSS OPERATING MARGIN BEFORE CHANGES IN PROVISIONS: -(cid:217)lending/borrowing operations (cid:134)(cid:217)3(cid:216)029(cid:216)327 (cid:134)(cid:217)9(cid:216)120(cid:216)323 -(cid:217)interest on bank accounts 28(cid:216)622(cid:216)820 35(cid:216)777(cid:216)487 -(cid:217)transactions concerning portfolio securities 81(cid:216)422(cid:216)198 112(cid:216)333(cid:216)406 -(cid:217)miscellaneous (cid:134)(cid:217)1(cid:216)499(cid:216)987 (cid:134)(cid:217)2(cid:216)512(cid:216)676 Total 105(cid:216)515(cid:216)704 136(cid:216)477(cid:216)894 NET CHANGES IN PROVISIONS: -(cid:217)provision for liabilities and charges(cid:216)(˛) (cid:134)(cid:217)8(cid:216)818(cid:216)500 (cid:134)(cid:217)34(cid:216)228(cid:216)973 -(cid:217)provision for large exposures(cid:216)(ˇ) 9(cid:216)000(cid:216)000 19(cid:216)000(cid:216)000 -(cid:217)reserve for exchange differences(cid:216)(—) 746(cid:216)892 (cid:134)(cid:217)1(cid:216)060(cid:216)011 -(cid:217)value adjustments in respect of loans and advances 36(cid:216)826(cid:216)654 (cid:134)(cid:217)24(cid:216)578(cid:216)389 Result of non(cid:220)budgetary operations 143(cid:216)270(cid:216)750 95(cid:216)610(cid:216)521 Amount allocated to financing the operating budget(cid:216)((cid:209)) (cid:134)(cid:216)109(cid:216)694(cid:216)257 (cid:134)(cid:216)50(cid:216)500(cid:216)000 Result after deducting the net balance allocated to the operating budget 33(cid:216)576(cid:216)493 45(cid:216)110(cid:216)521 (˛)(cid:217)Note 14. (ˇ)(cid:217)Note 17. (—)(cid:217)During 1997, changes in exchange rates led to an exchange loss of ECU 746(cid:216)892, which was offset by a withdrawal from the value adjustment reserve. ((cid:209))(cid:217)In accordance with the change in accounting method on 31 December 1992, income received during the 1997 financial year has been allocated to financing the 1997 operating budget (net balance as in Note 19. 2). C 255/22 EN Official Journal of the European Communities 13. 8. 98 19. 2. Out(cid:220)turn of the ECSC operating budget 31. 12. 1997 31. 12. 1996 (ECU) OUT(cid:220)TURN OF THE BUDGET Expenditure: -(cid:217)administrative expenditure (Note 21) 5(cid:216)000(cid:216)000 5(cid:216)000(cid:216)000 -(cid:217)legal commitments (Note 15) 180(cid:216)869(cid:216)553 201(cid:216)176(cid:216)900 -(cid:217)financing of future operational budgets 274(cid:216)000(cid:216)000 0 Total 459(cid:216)869(cid:216)553 206(cid:216)176(cid:216)900 Revenue (net amounts): -(cid:217)levy (Note 25) -(cid:217)fines (Note 25) 101(cid:216)640(cid:216)567 95(cid:216)872(cid:216)589 0 0 -(cid:217)interest subsidies (Note 25) 4(cid:216)168(cid:216)145 4(cid:216)336(cid:216)252 -(cid:217)miscellaneous (Note 25) 0 9(cid:216)397 -(cid:217)cancellations of legal commitments (Note 25) 195(cid:216)235(cid:216)395 89(cid:216)966(cid:216)808 -(cid:217)surplus from the previous budget (Note 16) 49(cid:216)131(cid:216)189 14(cid:216)623(cid:216)043 -(cid:217)net balance for the year (Note 19. 1) 109(cid:216)694(cid:216)257 50(cid:216)500(cid:216)000 Total 459(cid:216)869(cid:216)553 255(cid:216)308(cid:216)089 BUDGET OUT(cid:220)TURN 0 49(cid:216)131(cid:216)189 19. 3. Result for the financial year 31. 12. 1997 31. 12. 1996 (ECU) Result from non(cid:220)budgetary operations after deducting the net balance allocated to the operating budget (Note 19. 1) 33(cid:216)576(cid:216)493 45(cid:216)110(cid:216)521 Out(cid:220)turn of the budget (Note 19. 2) 0 49(cid:216)131(cid:216)189 Total 33(cid:216)576(cid:216)493 94(cid:216)241(cid:216)710 to Allocation operating budget (Note 16) the provisions for financing the 0 (cid:134)(cid:217)73(cid:216)131(cid:216)189 Allocation to the guarantee fund (Note 18) (cid:134)(cid:217)31(cid:216)256(cid:216)356 (cid:134)(cid:217)19(cid:216)000(cid:216)000 RESULT BEFORE ALLOCATION 2(cid:216)320(cid:216)137 2(cid:216)110(cid:216)521 13. 8. 98 EN Official Journal of the European Communities C 255/23 20. INTEREST AND OTHER CHARGES 31. 12. 1997 31. 12. 1996 (ECU) Interest on loans and swaps 329(cid:216)439(cid:216)704 578(cid:216)089(cid:216)223 Bank interest Issuing costs and redemption premiums 36(cid:216)150 1(cid:216)943(cid:216)655 143(cid:216)213 2(cid:216)082(cid:216)149 Total 331(cid:216)419(cid:216)509 580(cid:216)314(cid:216)585 21. ADMINISTRATIVE EXPENDITURE The ECSC paid a lump sum of ECU 5 million to the general budget of the Commission of the European Communities to cover its administrative expenditure. 22. OTHER OPERATING CHARGES Borrowing costs Swift/Reuters charges Other 31. 12. 1997 31. 12. 1996 (ECU) 90(cid:216)620 173(cid:216)665 118(cid:216)365 104(cid:216)432 201(cid:216)272 76(cid:216)864 Total 382(cid:216)650 382(cid:216)568 23. INTEREST RECEIVED AND SIMILAR INCOME 31. 12. 1997 31. 12. 1996 (ECU) Interest on loans and swaps 305(cid:216)580(cid:216)385 571(cid:216)400(cid:216)594 Payment and redemption premiums Bank interest 1(cid:216)657(cid:216)860 28(cid:216)844(cid:216)878 Interest on bonds and other fixed(cid:220)income securities 84(cid:216)157(cid:216)839 1(cid:216)297(cid:216)295 35(cid:216)920(cid:216)700 91(cid:216)253(cid:216)453 Total 420(cid:216)240(cid:216)962 699(cid:216)872(cid:216)042 C 255/24 EN Official Journal of the European Communities 13. 8. 98 24. OTHER OPERATING INCOME Lapsed coupons and bonds Other income from lending activities Miscellaneous 31. 12. 1997 31. 12. 1996 (ECU) 36(cid:216)351 22(cid:216)124(cid:216)702 346(cid:216)632 606(cid:216)165 - 938(cid:216)605 Total 22(cid:216)507(cid:216)685 1(cid:216)544(cid:216)770 25. INCOME RELATING TO THE OPERATING BUDGET Levy(cid:216)(˛) Fines(cid:216)(ˇ) Miscellaneous (ECU) 31. 12. 1997 31. 12. 1996 101(cid:216)650(cid:216)532 96(cid:216)114(cid:216)647 0 0 0 9(cid:216)398 Cancellation of legal commitments (Note 15) 195(cid:216)235(cid:216)395 89(cid:216)966(cid:216)808 Repayment of interest subsidies (Notes 5. 4 and 16)(cid:216)(—) 4(cid:216)168(cid:216)145 4(cid:216)336(cid:216)252 Total 301(cid:216)054(cid:216)072 190(cid:216)427(cid:216)105 (˛)(cid:217)The ECSC is authorised under the Treaty to impose a levy on coal and steel produced by undertakings in the Community. The levy is calculated on the basis of the average values in the Community of the various products concerned. The levy rate was 0,31(cid:216)% for the years 1980 to 1990, 0,29(cid:216)% for 1991, 0,27(cid:216)% for 1992, 0,25(cid:216)% for 1993, 0,23(cid:216)% for 1994, 0,21(cid:216)% for 1995, 0,19(cid:216)% for 1996 and 0,17(cid:216)% for 1997. On 23 December 1997, the European Commission decided to set the levy rate for the 1998 financial year at 0(cid:216)%. At 31 December 1997, levy income included ECU 15(cid:216)213 in respect of surcharges for late payment (ECU 66(cid:216)022 at 31 December 1996). (ˇ)(cid:217)This item comprises the revenue from fines imposed by the Commission in accordance with Articles 58 and 65 of the ECSC Treaty, together with surcharges for late payment. (—)(cid:217)This item comprises the revenue from the repayments of interest subsidies which the Commission was obliged to demand. 26. OFF(cid:220)BALANCE(cid:220)SHEET COMMITMENTS 26. 1. Commitments received 31. 12. 1997 31. 12. 1996 (ECU) (a)(cid:217)Commitments arising from swaps: -(cid:217)notional capital interest(cid:220)rate swaps commitments relating to -(cid:217)capital commitments relating to interest(cid:220)rate and currency swaps 243(cid:216)048(cid:216)695 404(cid:216)417(cid:216)158 347(cid:216)737(cid:216)940 1(cid:216)218(cid:216)389(cid:216)909 (b)(cid:217)Commitments on securities: -(cid:217)securities bought forward - 61(cid:216)687(cid:216)650 Total 590(cid:216)786(cid:216)635 1(cid:216)684(cid:216)494(cid:216)717 13. 8. 98 EN Official Journal of the European Communities C 255/25 26. 2. Commitments given 31. 12. 1997 31. 12. 1996 (ECU) (a)(cid:217)Loans granted: -(cid:217)global loan contracts, lines still to be used - 1(cid:216)542(cid:216)037(cid:216)656 -(cid:217)loans from borrowed funds signed but not yet disbursed -(cid:217)loans from own funds signed but not yet disbursed (b) Commitments arising from swaps: -(cid:217)notional capital interest(cid:220)rate swaps commitments relating to -(cid:217)capital commitments relating to interest(cid:220)rate and currency swaps (c) Commitments on securities: -(cid:217)securities bought forward (d) Receipts from lapsed coupons and bonds 182(cid:216)293(cid:216)126 253(cid:216)115(cid:216)328 19(cid:216)039(cid:216)158 37(cid:216)096(cid:216)332 243(cid:216)048(cid:216)695 404(cid:216)417(cid:216)158 268(cid:216)027(cid:216)585 1(cid:216)279(cid:216)792(cid:216)499 - 36(cid:216)351 61(cid:216)687(cid:216)650 9(cid:216)378 Total 712(cid:216)444(cid:216)915 3(cid:216)578(cid:216)156(cid:216)001 C 255/26 EN Official Journal of the European Communities 13. 8. 98 27. CHANGES IN THE FINANCIAL SITUATION FOR THE YEAR ENDING 31 DECEMBER 1997 (ECU million) 1997 1996 Origin of funds: Balance of profit(cid:220)and(cid:220)loss account 2,3 2,1 Items not involving a movement of funds: -(cid:217)amortisation of issuing costs and redemption premiums -(cid:217)value adjustments in respect of securities -(cid:217)value adjustments in respect of tangible assets -(cid:217)value adjustments in respect of loans and advances (net) 0,4 11,7 0,6 23,4 0,8 (cid:134)(cid:217)0,2 0,8 43,0 -(cid:217)decrease in "Provision for legal commitments’ (cid:134)(cid:217)206,1 (cid:134)(cid:217)195,4 -(cid:217)increase budget’ in "Provision for financing the ECSC operating -(cid:217)decrease in accruals and deferred payments -(cid:217)decrease in accruals and deferred income and issuing costs and redemption premiums -(cid:217)decrease in "Other liabilities’ -(cid:217)increase in "Other assets’ -(cid:217)allocation to the provision for risks and charges -(cid:217)withdrawal from the provision for large exposures -(cid:217)allocation to (withdrawal from) the provision for changes in the ecu rate -(cid:217)exchange(cid:220)rate adjustments in respect of borrowings and loans -(cid:217)allocation to the guarantee fund/special reserve 234,1 (cid:134)(cid:217)38,6 62,8 (cid:134)(cid:217)47,8 41,5 62,7 (cid:134)(cid:217)65,5 (cid:134)(cid:217)271,6 (cid:134)(cid:217)109,0 (cid:134)(cid:217)11,8 12,2 (cid:134)(cid:217)9,0 (cid:134)(cid:217)0,7 (cid:134)(cid:217)26,9 31,3 34,0 (cid:134)(cid:217)19,0 1,1 88,2 19,0 TOTAL FUNDS (cid:134)(cid:217)98,3 (cid:134)(cid:217)231,3 Other resources: -(cid:217)proceeds from borrowings -(cid:217)loan repayments -(cid:217)disposals of buildings -(cid:217)decrease in bank balances and portfolio 473,8 1(cid:216)661,0 0,2 116,3 298,2 1(cid:216)860,0 1,1 40,6 Use of funds: -(cid:217)loan disbursements -(cid:217)redemptions of borrowings TOTAL RESOURCES 2(cid:216)153,0 1(cid:216)968,6 546,9 1(cid:216)606,1 283,7 1(cid:216)684,9 TOTAL USES 2(cid:216)153,0 1(cid:216)968,6 13. 8. 98 EN Official Journal of the European Communities C 255/27 OUT(cid:220)TURN OF THE ECSC OPERATING BUDGET FOR 1997 Requirements Forecast (draft 1997 operating budget) Out(cid:220)turn Resources Forecast (draft 1997 operating budget) (ECU million) Out(cid:220)turn Operations to be financed from current reim(cid:220) bursable): resources (not Resources for the financial year 1. (cid:217)Current resources 1. (cid:217)Administrative expenditure 5,0 5,0 2. Aid for redeployment (Article 56) 3. Aid for research (Article 55) 85,0 84,0 66,0 84,0 3. 1. (cid:217)Steel 3. 2. (cid:217)Coal 3. 3. (cid:217)Social 55,0 29,0 0,0 55,0 29,0 0,0 4. Aid for conversion 2,0 1,8 1. 1. (cid:217)Yield from levy at 0,17(cid:216)% 100,3 101,6 1. 2. (cid:217)Net balance 96,0 109,7 1. 3. (cid:217)Fines and surcharges for late payment 1. 4. (cid:217)Miscellaneous p. m. 6,0 p. m. 4,2 2. Cancellation of commit(cid:220) ments unlikely to be imple(cid:220) mented 173,0 195,2 5. 6. 7. Social measures (steel) (Article 56) p. m. p. m. 3. Unused resources carried over from 1996 49,1 49,1 Social measures (coal) (Article 56) 30,0 29,0 4. Utilisation of the contin(cid:220) gency reserve p. (cid:216)m. p. (cid:216)m. Provision for financing the operating budget 218,4 274,0 5. Extraordinary resources p. m. p. m. TOTAL 424,4 459,8 TOTAL 424,4 459,8 Operations financed by from non(cid:220)borrowed funds loans Origin of non(cid:220)borrowed funds Subsidised housing 13,0 13,0 Special Reserve and ECSC pension fund former 13,0 13,0