The Commission has decided to close the procedure of Article 93(2) with respect to a German development aid in the form of a loan to build 2 (1066 TEU) container vessels to Indonesia. The development aid is in the form of a 12 years (incl. 1 year's grace) credit covering 85% of the price with an interest rate of 4.25%. The Commission has examined the submissions of the German Government, two Member States and an association of shipbuilders in the light of Article 4(7) of the 7th Directive. The Commission has concluded that all the criteria of its letter on development aid of 3 January 1989 have been met, in particular that the ships must not be operated under a flag of convenience, the real owner must be a resident in the development country, the ships must not be sold without approval, the grant element of the aid granted must be at least 25% and the country must be on the Commission's list of development countries. Moreover, the German Government has established the genuine development content of the aid. On these grounds the Commission considers the aid to be genuine development aid as meant under Article 4(7) of the 7th Directive and that it therefore can be regarded as compatible with the common market. * * *
