2003/825/EC: Council Decision of 25 November 2003 amending Decision 2002/882/EC providing further macro-financial assistance to the Federal Republic of Yugoslavia with regard to additional macro-financial assistance to Serbia and Montenegro
Date: 2003-11-25
Institutions: Council of the European Union
Subjects: Community loan, EU aid, Serbia and Montenegro, donation, economic stabilisation, financial aid

L 311/28

EN

Official Journal of the European Union

27.11.2003

COUNCIL DECISION

of 25 November 2003

amending Decision 2002/882/EC providing further macro-financial assistance to the Federal
Republic of Yugoslavia with regard to additional macro-financial assistance to Serbia and
Montenegro

(2003/825/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Com-
munity, and in particular Article 308 thereof,

Having regard to the proposal from the Commission,

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

(8)

(9)

The increase of macro-financial assistance to Serbia and
Montenegro should not be to the detriment of foreseen
macro-financial assistance for other countries covered by
the same budget heading.

The Treaty provides for no powers, other than those in
Article 308 thereof, for the adoption of this Decision,

Whereas:

(1)

(2)

(3)

(4)

(5)

(6)

(7)

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

Decision 2002/882/EC (2) provides for further macro-
financial assistance to be made available to the Federal
Republic of Yugoslavia with a view to ensuring a
sustainable balance of payments situation and strength-
ening the country's reserve position.

On 4 February 2003, there was a constitutional change
and the country is now called Serbia and Montenegro.

Following the assassination of the Serbian Prime Minister
on 11 March 2003, the external outlook of the country
appears to be more uncertain, in particular with respect
to the size of private capital inflows, including foreign
direct
financing needs
investments, while important
continue to put a heavy strain on the economy.

Additional balance of payments needs in 2003 and
possibly in 2004 have been identified in the context of
the current IMF programme and Serbia and Montenegro
will require significant additional external financing in
2003 and possibly in 2004 over and above official
financing which could be provided by the International
Monetary Fund,
the World Bank and other donors,
including the Community.

An increase in Community macro-financial assistance to
Serbia and Montenegro is an appropriate measure to
help, with other donors, ease the country's financial
constraints.

The grant component of this assistance is without preju-
dice to the powers of the budgetary authority and its
implementation will be subject
to the availability of
appropriations under the corresponding budget heading.

HAS DECIDED AS FOLLOWS:

Article 1

Decision 2002/882/EC is hereby amended as follows:

1. In Articles 1, 2, 3 and 4, the term ‘FRY’ shall be replaced by

the term ‘Serbia and Montenegro’.

2. In Article 1, paragraphs 2 and 3 shall be replaced by the

following:
‘2.
The loan component of this assistance shall amount
to a maximum principal of EUR 80 million with a
maximum maturity of 15 years. To this end, the Commis-
sion is empowered to borrow, on behalf of the Community,
the necessary resources that will be placed at the disposal of
Serbia and Montenegro in the form of a loan.

The grant component of this assistance shall amount

3.
to a maximum of EUR 120 million.’

3. In Article 3(1), the first phrase shall be replaced by the

following:
‘1.
The loan and grant components of this assistance shall
be made available to Serbia and Montenegro in at least three
instalments.’

Article 2

This Decision shall take effect on the day of its publication in
the Official Journal of the European Union.

Done at Brussels, 25 November 2003.

For the Council

The President

G. TREMONTI

(1) Opinion delivered on 23 October 2003 (not yet published in the

Official Journal).

(2) OJ L 308, 9.11.2002, p. 25.