Chapter III, Article 18 · Regulation (EU) 2024/1449

Contents

Article 18Provisioning#

1.Pursuant to Article 211(1) of the Financial Regulation, a provisioning for the loans under this Regulation shall be constituted at the rate of 9 % upon making available any funds falling under Article 6(3) of this Regulation. The provisioning shall be constituted from the envelope referred to in Article 6(2), point (a), of this Regulation.Budgetary commitments for the provisioning shall be made by 31 December 2027. By way of derogation from Article 211(2), last sentence, of the Financial Regulation, the provisioning shall be paid progressively and fully constituted at the latest when the loans are fully disbursed.

2.The provisioning shall be paid to the common provisioning fund through a specific budget line and be used as part of provisions supporting similar risks. The provisioning rate shall be reviewed at least every three years from 24 May 2024.

3.The Commission is empowered to adopt a delegated act in accordance with Article 30 to amend the provisioning rate while applying the criteria set out in Article 211(2) of the Financial Regulation.

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Defined terms · 10

Show every defined term

beneficiary
means any of the following: Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia or Serbia.
blending operation
means an operation supported by the Union budget that combines non-repayable forms of support from the Union budget with repayable forms of support from development or other public financial institutions, including export credit agencies, or from commercial finance institutions and investors;
do no significant harm
means not supporting or carrying out economic activities that do significant harm to any environmental objective, where relevant, within the meaning of Article 17 of Regulation (EU) 2020/852.
enlargement policy framework
means the overall policy framework for the implementation of this Regulation as defined by the European Council and the Council, and includes the revised enlargement methodology, agreements that establish a legally binding relationship with the beneficiaries, the negotiating frameworks governing accession negotiations with candidates, where applicable, as well as resolutions of the European Parliament, relevant communications from the Commission, including, where applicable, on the rule of law, and joint communications from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy.
Facility Agreement
means an arrangement concluded between the Commission and the beneficiary laying down the principles for the financial cooperation between the beneficiary and the Commission under this Regulation;
final recipient
means a person or entity receiving funding under the Facility;
loan agreement
means an arrangement concluded between the Commission and a beneficiary laying down the conditions applicable to the support of the Facility;
measures
means reforms and investments as set out in the Reform Agendas under Chapter III;
payment conditions
means conditions for the release of funds that take the form of observable and measurable qualitative or quantitative steps to be implemented by a beneficiary, as set out in the Reform Agenda under Chapter III;
Reform Agenda
means a comprehensive, coherent and prioritised set of targeted reforms and priority investment areas in each beneficiary, including payment conditions that indicate satisfactory progress or completion of related measures, and an indicative timetable for their implementation;