Article 25 Types of financing

projects and programmes;

budget support if the partner country's management of public spending is sufficiently transparent, reliable and effective, and where it has put in place properly formulated sectoral or macroeconomic policies positively assessed by its principal donors; including, where relevant, the international financial institutions. The Commission shall consistently use an approach based on results and performance indicators and shall clearly define and monitor its conditionality and support efforts of partner countries to develop parliamentary control and audit capacities and to increase transparency and public access to information. Disbursement of budgetary support shall be conditional on satisfactory progress towards achieving the objectives in terms of impact and results;

sectoral support;

in exceptional cases, sectoral and general import programmes, which may take the form of:

1. (i)

   sectoral import programmes in kind;

2. (ii)

   sectoral import programmes providing foreign exchange to finance imports for the sector in question; or

3. (iii)

   general import programmes providing foreign exchange to finance general imports of a wide range of products;

funds made available to the EIB or other financial intermediaries on the basis of Commission programmes for the purpose of providing loans (in particular to support investment in and development of the private sector), risk capital (in the form of subordinated or conditional loans) or other temporary minority holdings in business capital, and contributions to guarantee funds in accordance with Article 32, to the extent that the financial risk of the Community is limited to these funds;

interest-rate subsidies, especially for environment related loans;

debt-relief, under internationally agreed debt relief programmes;

grants to finance projects submitted by entities of the type listed in Article 24(1)(b), (c), (d), (f) and (g)(i) to (v);

grants to finance the operating costs of entities of the type listed in Article 24(1)(b), (c), (d), (f) and (g)(i), (iii) and (iv);

funding for twinning programmes between public institutions, local authorities, national public bodies or private-law entities entrusted with public service tasks of a Member State and those of a partner country or region;

contributions to international funds, such as those managed by international or regional organisations;

contributions to national funds set up by partner countries and regions to attract joint financing from a number of donors, or contributions to funds set up by one or more donors for the purpose of the joint implementation of projects;

capital investments in international financial institutions and regional development banks;

human and material resources required for effective administration and supervision of projects and programmes by partner countries and regions.