Decision No 2/1999 of the ACP-EC Council of Ministers of 8 December 1999 on increasing the structural adjustment facility
Date: 1999-12-08
Institutions: ACP Council of Ministers
Subjects: ACP countries, EU aid, European Development Fund, agreement (EU), financial cooperation

28.4.2000

EN

Official Journal of the European Communities

L 103/75

DECISION No 2/1999 OF THE ACP-EC COUNCIL OF MINISTERS

of 8 December 1999

on increasing the structural adjustment facility

(2000/308/EC)

THE ACP-EC COUNCIL OF MINISTERS,

(7)

Having regard to the Fourth ACP-EC Convention, as amended
by the agreement signed in Mauritius on 4 November 1995, in
particular Article 282(5) thereof,

Whereas:

At the meeting in Accra on 13 November 1999 between
the ACP Development Finance Cooperation Ministerial
Committee and the Commission,
the ACP countries
stressed, as the Commission had done in its communi-
cation, the need for an increase in the SAF; they asked
least
for an immediate increase in the SAF of at
EUR 250 million.

(1)

(2)

(3)

(4)

(5)

(6)

On 6 July 1998, the Council of the European Union
adopted a decision (1) on the European Community's
the highly
participation in the debt
indebted poor countries
(HIPC) which involved a
Community action as a donor in the form of a 15 %
bonus on top of the basic structural adjustment facility
(SAF) allocation.

initiative for

At its summit in Cologne in June 1999, the G7 stressed
that the social dimension of the HIPC initiative should
be brought more to the fore.

the Commission adopted a
On 26 October 1999,
communication on a Community participation in the
debt-relief initiative for highly indebted poor countries
(HIPC) (hereinafter referred to as ‘the communication’) in
increase in the SAF
which it proposed a substantial
allocation as part of the Community's contribution to
the HIPC initiative.

In view of
the large number of countries who will
become eligible for the initiative over the next two years,
there will not be a sufficient margin to cover these
bonuses by reallocating funds within the SAF allocation
unless the overall amount in the SAF is increased.

Apart from this, SAF resources will be insufficient before
the entry into force of the next European Development
Fund (EDF) to cover the needs of ACP countries imple-
menting economic reforms.

from the
The unallocated programmable resources
eighth and previous EDFs are available for this purpose.

(8)

A decision of the ACP-EC Council of Ministers is needed
to mobilise these EDF resources,

HAS ADOPTED THIS DECISION:

Article 1

EUR 250 million of unallocated programmable resources from
the eighth and previous EDFs shall be used to increase the SAF
allocation under the eighth EDF.

Article 2

These resources shall be mobilised in accordance with the rules
and procedures for the implementation of financial coopera-
tion under the ACP-EC Convention.

Article 3

The Commission is requested to take the necessary measures to
implement this Decision.

This Decision shall enter into force on the day of its adoption.

Article 4

Done at Brussels, 8 December 1999.

For the ACP-EC Council of Ministers

The President

J. HORNE

(1) Council Decision 98/453/EC of 6 July 1998 concerning exceptional
(OJ L 198,

the heavily indebted ACP countries

assistance for
15.7.1998, p. 40).