NoC164/32 OfficialJournaloftheEuropeanCommunities 1.7.92
increasingtheamount,expressedatthecurrentexchange
rate,ofcapitaloutstandingatthedateoftherefinancing
orrestructuring .5.TheMonetaryCommitteeshallbekeptinformed
ofdevelopments intheoperationsreferredtoinpara­
graphs2and3atleastonceayear.
Article5
AtleastonceayeartheCommissionshalladdresstothe
EuropeanParliamentandtotheCouncilareport,which
willincludeanevaluationontheimplementation ofthis
Decision .4.AllrelatedcostsincurredbytheCommunityin
concludingandcarryingouttheoperationunderthis
DecisionshallbebornebyRomania.
ProposalforaCouncilDecisionprovidingfurthermedium-termfinancialassistanceforBulgaria
(92/C164/15)
SEC(92)1081final
(SubmittedbytheCommissionon3June1992)
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticle235
thereof,
HavingregardtotheproposaloftheCommission
submittedfollowingconsultationwiththeMonetary
Committee,
HavingregardtotheopinionoftheEuropean
Parliament,
WhereasBulgariaisundertakingfundamentalpolitical
andeconomicreformsandhasdecidedtoadopta
marketeconomymodel;
Whereasthesaidreformsareunderimplementation with
financialsupportfromtheCommunityandwhereasthe
reformprocessneedstobeconsolidatedandbroadened;
Whereasthefinancialsupportofthereformsfromthe
Communitywillstrengthenmutualconfidenceandbring
BulgariaclosertotheCommunity ;
WhereasBulgariaandtheCommunityhaveenteredinto
negotiationsfortheconclusionofEuropeanagreements
establishingarelationshipofassociation;
Whereas,byDecision91/311/EEC(*),theCouncil
decidedtograntBulgariamedium-term financial
assistanceofamaximumamount,ofECU290million,
withaviewtoensuringasustainablebalanceof
paymentssituationinthatcountry;Whereas,however,despitetheBulgariagovernment's
courageousimplementation ofadjustmentmeasuresand
structuralreforms,thestabilizationphaseofthe
Bulgarianeconomyisstillunderwayandwhereas
additionalofficialsupportisrequiredinordertoensure
thesustainabilityofthebalanceofpaymentsandthe
strengtheningofthereserveposition;
WhereastheBulgarianauthoritieshaverequested
financialassistancefromtheInternationalMonetary
Fund(IMF),theGroupof24industrialcountriesand
theEuropeanCommunity,andwhereas,overandabove
theestimatedfinancingwhichcouldbeprovidedbythe
IMFandtheWorldBankandthecarryoveroffinancial
assistanceprovidedbytheGroupof24industrial
countriesfor1991,aresidualfinancialgapofsomeUS$
240millionremainstobecoveredin1992,inorderto
strengthenBulgaria'sreservepositionandtoavoidan
additionaldegreeofimportcompressionwhichcould
seriously wjeopardizetheachievementofthepolicy
objectivesunderlyingthegovernment'sreformeffort;
WhereasthesuccessofthereformprocessinBulgaria
willdependcruciallyonthesolutionoftheacutedebt
problemwhichthecountryisfacingandwhereasthe
Community'sfinancialassistanceshouldbeconditional
upondecisiveprogresstowardsacomprehensive
medium-term restructuring arrangement between
Bulgariaanditscommercialbankcreditors;
WhereastheCommission ascoordinatorofassistance
fromtheGroupof24industrialcountrieshasinvited
themtoprovidemedium-term financialassistanceto
Bulgaria;
WhereasthegrantbytheCommunityofamedium-term
loantoBulgariaisanappropriatemeasuretosupportthe
balanceofpaymentsandtostrengthenthecountry's
reserveposition; (')OJNoL174,3.7.1991,p.36.

NoC164/33 1.7.92 OfficialJournaloftheEuropeanCommunities .
Whereasthequestionoftherisksassociatedwith
guaranteesfromthegeneralbudgetoftheEuropean
Communities willbeexaminedinthecontextofthe
renewalin1992oftheInterinstitutional Agreementon
budgetarydisciplineandimprovementofthebudgetary
procedure;
WhereastheCommunityloanshouldbemanagedbythe
Commission ;
WhereastheTreatydoesnotprovide,fortheadoption
ofthisDecision,powersotherthanthoseofArticle235,
HASDECIDEDASFOLLOWS :
Article1
1.TheCommunityshallgranttoBulgariaa
medium-term loanfacilityofamaximumamountof
ECU110millioninprincipal,withamaximumduration
ofsevenyears,withaviewtoensuringasustainable
balance-of-payments situationandstrengthening the
reserveposition.
2.TothisendtheCommission isempoweredto
borrow,onbehalfoftheEuropeanEconomic
Community,thenecessaryresourcesthatwillbeplaced
atthedisposalofBulgariaintheformofaloan.
3.ThisloanwillbemanagedbytheCommissionin
fullconsultationwiththeMonetaryCommitteeandina
mannerconsistentwithanyagreementreachedbetween
theIMFandBulgaria.
Article2
1.TheCommissionisempoweredtonegotiatewith
theBulgarianauthorities,afterconsultationwiththe
MonetaryCommittee,theeconomicpolicyconditions
attachedtotheloan.Theseconditionsshallbeconsistent
withtheagreementsreferredtointhethirdparagraphof
Article1andwitharrangementsmadebytheGroupof
24industrialcountries .
2.TheCommissionshallverifyatregularintervals,in
collaborationwiththeMonetaryCommitteeandinclose
coordinationwiththegroupof24industrialcountries
andtheIMF,thattheeconomicpolicyinBulgariaisin
accordancewiththeobjectivesofthisloanandthatits
conditionsarebeingfulfilled.
Article3
1.TheloanshallbemadeavailabletoBulgariaintwo
instalments .Thefirstinstalmentshallbereleasedassoon
as:—theBulgarianauthoritieshavetakenthenecessary
stepstoallowthedisbursements oftheamounts
committedbynonCommunity/Groupof24
industrialcountriesinthecontextofthe1991
balance-of-payments financingpackage,
—anagreementinprinciplehasbeenreachedbetween
Bulgariaanditscommercialbankcreditorsonaset
oforientationsregardingafuturedebtrestructuring
package.
2.SubjecttotheprovisionsofArticle2(2),the
secondinstalmentshallbereleasedinviewofdecisive
progresstowardsacomprehensive medium-term debt
restructuring agreementbetweenBulgariaandits
commercialbankcreditorsandnotbeforethefourth
quarterof1992.
3.ThefundsshallbepaidtotheNationalBankof
Bulgaria.
Article4
1.Theborrowingandlendingoperationsreferredto
inArticle1shallbecarriedoutusingthesamevaluedate
andmustnotinvolvetheCommunityinthetrans­
formationofmaturities,inanyexchangeorinterest-rate
risk,orinanyothercommercialrisk.
2.TheCommissionshalltakethenecessarysteps,if
Bulgariasodecides,toincludeintheloanconditions,
andalsotoexercise,anearlyrepaymentclause.
3.AttherequestofBulgaria,andwherecircum­
stancespermitanimprovementintheinterestrateonthe
loans,theCommissionmayrefinanceallorpartofits
initialborrowingsorrestructurethecorresponding
financialconditions .Refinancingorrestructuringoper­
ationsshallbecarriedoutinaccordancewiththe
conditionssetoutinparagraph 1andshallnothavethe
effectofextendingtheaveragedurationofthe
borrowingconcernedorincreasingtheamount,
expressedatthecurrentexchangerate,ofcapital
outstandingatthedateoftherefinancingorrestruc­
turing.
4.AllrelatedcostsincurredbytheCommunityin
concludingandcarryingouttheoperationunderthis
DecisionshallbebornebyBulgaria.
5.TheMonetaryCommitteeshallbekeptinformed
ofdevelopments intheoperationsreferredtoinpara­
graphs2and3atleastonceayear.
Article5
AtleastonceayeartheCommissionshalladdresstothe
EuropeanParliamentandtotheCouncilareport,which
willincludeanevaluation,ontheimplementation ofthis
Decision .