2000/244/EC: Council Decision of 20 March 2000 amending Decision 97/787/EC providing exceptional financial assistance for Armenia and Georgia in order to extend it to Tajikistan
Date: 2000-03-20
Institutions: Council of the European Union
Subjects: Armenia, EU aid, Georgia, Tajikistan, financial aid

28.3.2000

EN

Official Journal of the European Communities

L 77/11

II

(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 20 March 2000

amending Decision 97/787/EC providing exceptional financial assistance for Armenia and Georgia
in order to extend it to Tajikistan

(2000/244/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 308 thereof,

Having regard to the proposals from the Commission,

Having regard to the opinion of the European Parliament (1),

Whereas:

(1)

(2)

(3)

(4)

(5)

Council Decision 97/787/EC provides exceptional finan-
cial assistance for Armenia and Georgia (2).

In parallel with its Decision to provide exceptional
financial assistance for Armenia and Georgia,
the
Council agreed also to consider a similar operation for
Tajikistan once circumstances allowed.

Tajikistan is undertaking fundamental political and
economic reforms and is making substantial efforts to
implement a market economy model.

In view of the initial results, particularly in terms of
growth and control of inflation, these reforms should be
continued with the primary aim of improving people's
living conditions and creating jobs.

Trade, commercial and economic links are expected to
develop between the Community and Tajikistan. Tajiki-
stan is eligible for a Partnership and Cooperation Agree-
ment with the European Communities and their Member
States and has formally requested to benefit from such
an agreement as soon as possible.

(6)

(7)

(8)

(9)

(10)

(11)

(12)

Tajikistan agreed with the International Monetary Fund
(IMF) in June 1998 on a three-year enhanced structural
adjustment facility.

The Tajik authorities have formally undertaken to settle
fully their outstanding financial obligations towards the
Community and Tajikistan secures a minimum servicing
of outstanding Community claims.

The Tajik authorities have formally requested excep-
tional financial support from the Community.

Tajikistan is a low-income country and is facing particu-
larly critical economic,
social and political circum-
stances. This country is eligible for highly concessional
loans from the World Bank and the IMF.

Concessional financial assistance from the Community
in the form of a mix of a long-term loan and straight
grants is an appropriate measure to help the beneficiary
juncture.
country at this critical

This assistance, both the loan and the grant component,
is highly exceptional and therefore in no way constitutes
a precedent.

The inclusion of a grant component in this assistance is
without prejudice to the powers of
the budgetary
authority.

(13)

This assistance should be managed by the Commission.

(1) Opinion delivered on 17 December 1999 (not yet published in the

Official Journal).

(2) OJ L 322, 25.11.1997, p. 37.

(14)

The Commission is to ensure that financial assistance is
used in accordance with the rules of budgetary control.

L 77/12

EN

Official Journal of the European Communities

28.3.2000

(15)

(16)

(17)

In implementing this Decision, the Commission will take
due account of progress made in the Inter-Tajik peace
process and,
in the holding of elections
under acceptable conditions.

in particular,

The Commission consulted the Economic and Financial
Committee before submitting its proposal.

The Treaty does not provide, for the adoption of this
Decision, powers other than those of Article 308,

HAS DECIDED AS FOLLOWS:

Sole Article

Decision 97/787/EC is hereby amended as follows:

1. Article 1(1) to (3) shall be replaced by the following:

The Community shall make available to Armenia,
in

‘1.
Georgia and Tajikistan exceptional financial assistance,
the form of long-term loans and straight grants.

The total

loan component of

2.
this assistance shall
amount to a maximum principal of EUR 245 million, with
a maximum maturity of 15 years and a grace period of 10
years. To this end, the Commission shall be empowered to
borrow, on behalf of
the necessary
resources that will be placed at the disposal of the benefi-
ciary countries in the form of loans.

the Community,

The grant component of this assistance shall consist of
3.
an amount of up to EUR 130 million during the 1997 to
2004 period, with a maximum of EUR 24 million annually.
The grants shall be made available in so far as the net
debtor position of the beneficiary countries towards the
Community has been reduced, as a rule, by at leat a similar
amount.’

2. Article 3(1) shall be replaced by the following:

‘1.
Subject to the provisions of Article 1(4) and Article 2,
the total amount of the loan offered to each country shall
be made available by the Commission in parallel with the
first instalments of the grants. The remainder of the grant
component of the assistance shall be made available by the
Commission in successive instalments, subject to the same
provisions.’

3. Article 5(2) shall be replaced by the following text:

‘2.
Before 31 December 2004, the Council shall examine
the application of this Decision to that date on the basis of
a comprehensive report by the Commission, which shall
also be submitted to the European Parliament.’

Done at Brussels, 20 March 2000.

For the Council

The President

J. GAMA