Brussels, 30/04/2003 (Agence Europe) - The European Commission initiated has begun a formal investigation procedure concerning possible State aid involved in an Italian Shipbuilding Guarantee Fund. Notified on 16 May 2001, the fund is not yet operative - is intended to cover the risk of loans taken out for the construction and conversion of ships in Italian shipyards.. The guarantees can be given to a sum no greater than 40% of the amount of the loan and within this limit - would cover up to 90% of the final loss incurred by the banks for capital, contractual interest and interest on arrears, and costs. In exchange the beneficiaries will acquire a one-off premium. According to the Shipbuilding Regulation State-granted guarantee schemes for ship-financing are only allowed if the scheme is free of State aid. General rules for assessment of whether a guarantee or a guarantee scheme contains aid are laid down in the Commission Notice on Guarantees 2000 (OJ C71). At this stage, the Commission has doubts that the Italian guarantee scheme fulfils all the conditions as set forth in this Notice on Guarantees. In particular, the Commission has doubts that the State-provided guarantee scheme, which charges a uniform premium independently of the insured risk.