CELEX: 51992PC0355
Language: en
Date: 1992-07-22
Title: Amended proposal for a COUNCIL DECISION providing financial assistance for Albania

No C 225 / 4                             Official Journal of the European Communities                                1 . 9 . 92
                 Amended proposal for a Council Decision providing financial assistance for Albania (')
                                                          (92/C 225 /03)
                                                       COM(92) 355 final
              (Submitted by the Commission pursuant to Article 149 (3) of the EEC Treaty on 24 July 1992)
             (l) OJ No C 188 , 25 . 7 . 1992, p. 5 .
                     ORIGINAL PROPOSAL                                                 AMENDED PROPOSAL
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                           Unchanged
Having regard to the Treaty establishing the European
Economic Community, and in particular Article 235
thereof,
Having regard to the proposal from the Commission,
submitted following consultation with the Monetary
Committee,
Having regard to the opinion of the European
Parliament,
Whereas Albania is undertaking fundamental political
and economic reforms and has decided to adopt a
market economy model ;
Whereas trade, commercial and economic links between
the Community and Albania are expected to develop
within the framework of the 1992 Cooperation
Agreement ;
Whereas financial assistance from the Community will be
instrumental in supporting the adjustment and reform
efforts of Albania, will strengthen mutual confidence and
will bring Albania closer to the Community;
Whereas Albania is a low-income country eligible to                Whereas Albania is a low-income country eligible to
highly concessional loans from the World Bank and the               highly concessional loans from the World Bank and the
IMF; whereas the Group of 24 agreed to consider                     IMF ; whereas the Group of 24 agreed to consider
complementary financial assistance, through long-term               complementary financial assistance particularly through
loans on concessional terms , as soon as the IMF has                grants or long-term loans on concessional terms, as soon
reached an agreement on a stabilization and reform                  as the IMF has reached an agreement on a stabilization
programme with Albania;                                             and reform programme with Albania ;
Whereas the Albanian authorities have requested                     Unchanged
financial assistance from the International Monetary
Fund (IMF), the Group of 24 industrial countries and
the Community;
 ---pagebreak--- 1 . 9 . 92                              Official Journal of the European Communities                            No C 225 / 5
                      ORIGINAL PROPOSAL                                                AMENDED PROPOSAL
Whereas over and above the estimated financing which
could be provided by the IMF, the World Bank and
official bilateral creditors in the context of the 12-month
stand-by arrangement expected to be agreed between
Albania and the IMF, a financial gap of some US $ 165
million remains to be covered in order to avoid an
additional degree of import compression which would
jeopardize the achievement of the policy objectives
underlying the Government's reform effort;
Whereas the Commission, as coordinator of assistance
from the Group of 24 has invited them to provide highly
concessional financial assistance to Albania in order to
support that country's adjustment and reform efforts ;
Whereas the grant by the Community of a long-term                 Whereas the economic and financial situation of Albania
highly subsidized loan to Albania is an appropriate               is such that financial assistance designed to support that
measure to support that country's balance of payments             country's balance of payments should take the form of
and strengthen its reserve position ;                             grants ;
Whereas the question of the risks associated with                 Deleted
guarantees from the general budget of the European
Communities will be examined in the context of the
renewal of the interinstitutional agreement of budgetary
discipline and improvement of the budgetary procedure ;
Whereas the Community financial assistance should be              Unchanged
managed by the Commission ;
Whereas the Treaty does not provide, for the adoption
of this Decision, powers other than those of Article 235,
HAS DECIDED AS FOLLOWS :
                           Article 1                                                  Amended as follows
 1.     The Community shall grant to Albania a long-term           1.    The Community shall provide to Albania financial
facility of a maximum amount of ECU 70 million in                  assistance of a maximum amount of ECU 70 million in
principal, with a maximum duration of 10 years, with a            the form of grants, with a view to ensuring a sustainable
view to ensuring a sustainable balance of payments                balance of payments situation and strengthening the
situation and strengthening the reserve position.                  reserve position of this country.
2 . To this end, the Commission is empowered to                    Deleted
borrow, on behalf of the Community, the necessary
resources that will be placed at the disposal of Albania in
the form of a loan .
 3 . This loan will be managed by the Commission in                2 . This grant will be managed by the Commission in
full consultation with the Monetary Committee and in a             full consultation with the Monetary Committee and in a
manner consistent with any agreement reached between               manner consistent with any agreement reached between
the IMF and Albania .                                              the IMF and Albania.
 ---pagebreak--- No C 225 /6                            Official Journal of the European Communities                                  1 . 9 . 92
                      ORIGINAL PROPOSAL                                               AMENDED PROPOSAL
4. All interest payments under the present loan facility         Deleted
shall be borne during the first five years by the general
budget of the European Communities. During the
remaining loan period, an interest rate subsidy of 6 %
per year shall be granted and financed by the general
budget of the European Communities,
                           Article 2                                                       Article 2
1.     The Commission is empowered to negotiate with             1.     The Commission is empowered to negotiate with
the Albanian authorities, after consultation with the            the Albanian authorities, after consultation with the
Monetary Committee, the economic policy conditions               Monetary Committee, the economic policy conditions
attached to the loan . These conditions shall be consistent      attached to the grant. These conditions shall be
with any agreement as referred to in Article 1 (3) and           consistent with any agreement as referred to in Article 1
with arrangements made by the Group of 24.                       (2) and with arrangements made by the Group of 24.
2. The Commission shall verify at regular intervals, in          2. The Commission shall verify at regular intervals, in
collaboration with the Monetary Committee and in close           collaboration with the Monetary Committee and in close
coordination with the Group of 24 and the IMF, that the          coordination with the Group of 24 and the IMF, that the
economic policy in Albania is in accordance with the             economic policy in Albania is in accordance with the
objectives of this loan and that its conditions are being        objectives of this grant and that its conditions are being
fulfilled .                                                      fulfilled .
                           Article 3                                                       Article 3
1.     The loan shall be made available to Albania in two        1.     The grant shall be made available in two
instalments. The first instalment shall be released as soon      instalments. A first instalment of ecu 35 million shall be
as a 'stand-by arrangement' has been concluded between           released as soon as a 'stand-by arrangement' has been
Albania and the IMF and the second instalment not                concluded between Albania and the IMF and the second
before the first quarter of 1993, subject to Article 2 (2).      instalment not before the first quarter of 1993, subject to
                                                                 the provisions of Article 2 (2) and on the basis of a satis­
                                                                 factory track record in the implementation of the
                                                                 'stand-by arrangement'.
2.     The funds shall be paid to the National Bank of           2.     The funds shall be paid to the National Bank of
Albania.                                                         Albania.
                           Article 4                             Deleted
 1.    The borrowing and lending operations referred to
in Article 1 shall be carried out using the same value date
and must not involve the Community in the transfor­
mation of maturities, in any exchange or interest-rate
risk, or in any other commercial risk.
2. The Commission shall take the necessary steps, if
Albania so decides, to include the loan conditions, and
also to exercise, an early repayment clause.
 ---pagebreak--- 1 . 9 . 92                              Official Journal of the European Communities                          No C 225 / 7
                       ORIGINAL PROPOSAL                                               AMENDED PROPOSAL
3 . At the request of Albania, and where circumstances
permit an improvement in the interest rate on the loans,
the Commission may refinance all or part of its initial
borrowings or restructure the corresponding financial
conditions. Refinancing or restructuring operations shall
be carried out in accordance with the conditions set out
in paragraph 1 and shall not have the effect of extending
the average duration of the borrowing concerned or
increasing the amount, expressed at the current exchange
rate, of capital outstanding at the date of the refinancing
or restructuring.
4 . All related costs incurred by the Community in
concluding and carrying out the loan operation under
this Decision shall be borne by Albania.
5 . The Monetary Committee shall be kept informed
of developments in the operations referred to in para­
graphs 2 and 3 at least once a year.
                            Article 5                             Unchanged
At least once a year the Commission shall address to the
European Parliament and to the Council a report, which
will include an evaluation, on the implementation of this
Decision .
              Proposal for a Council Directive amending Directive 75/273/EEC concerning the Community
                  list of less-favoured farming areas within the meaning of Directive 75/268/EEC (Italy)
                                                        (92/C 225 /04)
                                                      COM(92) 349 final
                                        (Submitted by the Commission on 24 July 1992)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                          Having regard to the proposal from the Commission,
Having regard to the Treaty establishing the European
Economic Community,
                                                                  Having regard to the opinion of the European
                                                                  Parliament,
Having regard to Council Directive 75/268 /EEC of 28
April 1975 on mountain and hill farming and farming in
certain less-favoured areas ('), as last amended by Regu­
lation (EEC) No 2328 /91 (2), and in particular Article 2
(2) thereof,                                                      Whereas Council Directive 75/273/EEC concerning the
                                                                  Community list of less-favoured farming areas within the
                                                                  meaning of Directive 75 /268 /EEC (3), as last
O OJ No L 128 , 19. 5 . 1975, p. 1 .
O OJ No L 218 , 15 . 7. 1991 , p. 1 .                             (J) OJ No L 128 , 19. 5 . 1975 , p. 72 .