1. The EU guarantee shall not, at any time, exceed EUR 16 000 000 000, of which a part may be allocated for EIB funding or guarantees to the EIF in accordance with paragraph 3. Aggregate net payments from the general budget of the Union under the EU guarantee shall not exceed EUR 16 000 000 000.
2. The remuneration for risk-taking of a portfolio shall be allocated amongst contributors in proportion to their respective share in the risk-taking. The EU guarantee shall be eligible to provide either first loss guarantees on a portfolio basis or a full guarantee. The EU guarantee may be granted on a pari passu basis with other contributors.
3. Where the EIB provides funding or guarantees to the EIF in order to conduct EIB financing and investment operations, the EU guarantee shall provide for a full guarantee on such funding or guarantees provided that an equal amount of funding or guarantees is provided by the EIB without coverage by the EU guarantee, up to an initial limit of EUR 2 500 000 000. Without prejudice to paragraph 1, that limit may where appropriate be adjusted by the Steering Board up to a maximum of EUR 3 000 000 000, without an obligation on the EIB to match the amounts over and above the initial limit.
4. Where the EIB calls on the EU guarantee in accordance with the EFSI Agreement, the Union shall pay on demand in accordance with the terms of that Agreement.
5. Where the Union makes a payment to the EIB upon a call on the EU guarantee, the Union shall be subrogated into the relevant rights of the EIB relating to any of its financing or investment operations covered by this Regulation and the EIB shall, on behalf of the Union, pursue the recovery of claims for the amounts paid and reimburse the Union from the sums recovered in accordance with the provisions and procedures referred to in Article 4(2)(c)(iv).
6. The EU guarantee shall be granted as a guarantee on demand in respect of the instruments referred to in Article 10 and shall cover:
(a)
for debt instruments referred to in Article 10(2)(a), the principal and all interest and amounts due to the EIB but not received by it in accordance with the terms of the financing operations until the event of default;
(b)
for equity investments referred to in Article 10(2)(a), the amounts invested and their associated funding cost;
(c)
for operations referred to in Article 10(2)(b), the amounts used and their associated funding costs.
The EU guarantee shall also cover the amounts referred to in the second and third subparagraphs of Article 9(6).