1. Subject to compliance with the conditions specified in Article 1 (2) and (3), the elements of State aid contained in the agreements listed below are compatible with the common market by virtue of Article 92 (3) (c) of the EC Treaty and compatible with the functioning of the EEA Agreement by virtue of Article 61 (3) (c) thereof:
- the agreement between the Fondo de Garantía Salarial and La Seda de Barcelona SA by which the company will reimburse over a fixed period Pta 1 221 136 511 with regard to the payment by the Fondo de Garantía Salarial of wages and severance pay owed by the company to its former employees,
- the agreement by which a guarantee was provided by the Institut Català de Finances in support of three loans taken out by La Seda de Barcelona SA and the interest thereon, totalling in all no more than Pta 1 700 000 000, and
- the agreement by which a guarantee was provided by the Comunidad de Madrid in support of a loan taken out by La Seda de Barcelona SA and the interest thereon, totalling in all no more than Pta 1 000 000 000.
2. By 31 December 1999, as a result of the full implementation of the restructuring plan, which was submitted to the Commission by the Spanish Government by letter dated 27 November 1995, the capacity of La Seda de Barcelona SA to produce all forms of staple fibre and filament yarn based on polyamide, polyester, polypropylene or acrylic shall not exceed 67 000 tonnes.
3. By no later three months after the end of the current financial year and by no later than three months after the end of each subsequent financial year until the Commission is satisfied that La Seda de Barcelona SA has fully implemented the revised restructuring plan, the Kingdom of Spain shall report annually to the Commission (a) progress by the company in implementing the plan, including a statement of its capacity, measured in tonnes, to produce each of its products (b) the receipt of any aid by the company since the date of this Decision, (c) the company's financial position, (d) the total amount reimbursed by the company with respect to its agreement with the fondo de Garantía Salarial and the total amounts repaid by the company in respect of the loans and interest thereon supported by the guarantees provided by the Institut Català de Finances and the Comunidad de Madrid and (e) the total amount paid by the company to the Institut Català de Finances and the Comunidad de Madrid by way of an annual premium for the provision by those bodies of a loan guarantee.