25.7.92 OfficialJournaloftheEuropeanCommunities NoC188/5
II
(PreparatoryActs)
COMMISSION
ProposalforaCouncilDecisionprovidinglong-termfinancialassistanceforAlbania
(92/C188/05)
COM(92)307final
(SubmittedbytheCommissionon7July1992)
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticle235
thereof,Whereasoverandabovetheestimatedfinancingwhich
couldbeprovidedbytheIMF,theWorldBankand
officialbilateralcreditorsinthecontextofthe12-month
stand-byarrangementexpectedtobeagreedbetween
AlbaniaandtheIMF,afinancialgapofsomeUS$165
millionremainstobecoveredinordertoavoidan
additionaldegreeofimportcompressionwhichwould
jeopardizetheachievementofthepolicyobjectives
underlyingtheGovernment'sreformeffort; HavingregardtotheproposalfromtheCommission,
submittedfollowingconsultationwiththeMonetary
Committee ,
WhereastheCommission ,ascoordinatorofassistance
fromtheGroupof24,hasinvitedthemtoprovidehighly
concessional financialassistancetoAlbaniainorderto
supportthatcountry'sadjustmentandreformefforts;HavingregardtotheopinionoftheEuropean
Parliament ,
WhereasthegrantbytheCommunityofalong-term
highlysubsidizedloantoAlbaniaisanappropriate
measuretosupportthatcountry'sbalanceofpayments
andstrengthenitsreserveposition;
Whereasthequestionoftherisksassociatedwith
guaranteesfromthegeneralbudgetoftheEuropean
Communities willbeexaminedinthecontextofthe
renewalin1992oftheInterinstitutional Agreementof
budgetarydisciplineandimprovementofthebudgetary
procedure;
WhereastheCommunityfinancialassistanceshouldbe
managedbytheCommission ;
WhereastheTreatydoesnotprovide,fortheadoption
ofthisDecision,powersotherthanthoseofArticle235,WhereasAlbaniaisundertakingfundamentalpolitical
andeconomicreformsandhasdecidedtoadopta
marketeconomymodel;
Whereastrade,commercialandeconomiclinksbetween
theCommunityandAlbaniaareexpectedtodevelop
withintheframeworkofthe1992Cooperation
Agreement ;
WhereasfinancialassistancefromtheCommunitywillbe
instrumentalinsupportingtheadjustmentandreform
effortsofAlbania,willstrengthenmutualconfidenceand
willbringAlbaniaclosertotheCommunity ;
WhereasAlbaniaisalow-incomecountryeligibleto
highlyconcessionalloansfromtheWorldBankandthe
IMFandwhereastheGroupof24agreedtoconsider
complementary financialassistancethroughlong-term
loansonconcessionalterms,assoonastheIMFhas
reachedanagreementonastabilizationandreform
programmewithAlbania;HASDECIDEDALFOLLOWS :
WhereastheAlbanianauthoritieshaverequested
financialassistancefromtheInternationalMonetary
Fund(IMF),theGroupof24industrialcountriesand
theCommunity ;Article1
1.TheCommunityshallgranttoAlbaniaalong-term
loanfacilityofamaximumamountofECU70millionin

NoC188/6 OfficialJournaloftheEuropeanCommunities 25.7.92
principal,withamaximumdurationof10years,witha
viewtoensuringasustainablebalanceofpayments
situationandstrengtheningthereserveposition.
2.Tothisend,theCommision isempoweredto
borrow,onbehalfoftheCommunity ,thenecessary
resourcesthatwillbeplacedatthedisposalofAlbaniain
theformofaloan.
3.ThisloanwillbemanagedbytheCommissionin
fullconsultationwiththeMonetaryCommitteeandina
mannerconsistentwithanyAgreementreachedbetween
theIMFandAlbania.
4.Allinterestpaymentsunderthepresentloanfacility
shallbeborneduringthefirstfiveyearsbythegeneral
budgetoftheEuropeanCommunities .Duringthe
remainingloanperiod,aninterestratesubsidyof6%
peryearshallbegrantedandfinancedbythegeneral
budgetoftheEuropeanCommunities .
Article2
1.TheCommissionisempoweredtonegotiatewith
theAlbanianauthorities,afterconsultationwiththe
MonetaryCommittee ,theeconomicpolicyconditions
attachedtotheloan.Theseconditionsshallbeconsistent
withanyagreementasreferredtoinArticle1(3)and
witharrangementsmadebytheGroupof24.
2.TheCommissionshallverifyatregularintervals,in
collaborationwiththeMonetaryCommitteeandinclose
coordinationwiththeGroupof24andtheIMF,thatthe
economicpolicyinAlbaniaisinaccordancewiththe
objectivesofthisloanandthatitsconditionsarebeing
fulfilled.
Article3
1.TheloanshallbemadeavailabletoAlbaniaintwo
instalments .Thefirstinstalmentshallbereleasedassoon
asa'stand-byarrangement'hasbeenconcludedbetween
AlbaniaandtheIMFandthesecondinstalmentnot
beforethefirstquarterof1993,subjecttoArticle2(2).2.ThefundsshallbepaidtotheNationalBankof
Albania.
Article4
1.Theborrowingandlendingoperationsreferredto
inArticle1shallbecarriedoutusingthesamevaluedate
andmustnotinvolvetheCommunityinthetransfor­
mationofmaturities,inanyexchangeorinterest-rate
risk,orinanyothercommercialrisk.
2.TheCommissionshalltakethenecessarysteps,if
Albaniasodecides,toincludeintheloanconditions ,and
alsotoexercise,anearlyrepaymentclause.
3.AttherequestofAlbania,andwherecircumstances
permitanimprovementintheinterestrateontheloans,
theCommissionmayrefinanceallorpartofitsinitial
borrowingsorrestructurethecorresponding financial
conditions .Refinancingorrestructuringoperationsshall
becarriedoutinaccordancewiththeconditionssetout
inparagraph 1andshallnothavetheeffectofextending
theaveragedurationoftheborrowingconcernedor
increasingtheamount,expressedatthecurrentexchange
rate,ofcapitaloutstandingatthedateoftherefinancing
orrestructuring .
4.AllrelatedcostincurredbytheCommunityin
concludingandcarryingouttheloanoperationunder
thisDecisionshallbebornebyAlbania.
5.TheMonetaryCommitteeshallbekeptinformed
ofdevelopments intheoperationsreferredtoinpara­
graphs2and3atleastonceayear.
Article5
AtleastonceayeartheCommissionshalladdresstothe
EuropeanParliamentandtotheCouncilareport,which
willincludeanevaluation,ontheimplementation ofthis
Decision .