94/369/EC: Council Decision of 20 June 1994 providing further macro-financial assistance for Romania

COUNCIL DECISION of 20 June 1994 providing further macro-financial assistance for Romania (94/369/EC)
THE COUNCIL OF THE EUROPEAN UNION
,
Having regard to the Treaty establishing the European Community, and in particular Article 235 thereof,
Having regard to the proposal from the Commission (1) submitted following consultation with the Monetary Committee,
Having regard to the opinion of the European Parliament (2),
Whereas Romania is undertaking fundamental political and economic reforms and has decided to adopt a market economy model;
Whereas Romania and the Community have concluded a Europe Agreement establishing a relationship of association;
Whereas, by Decision 91/384/EEC (3), the Council decided to grant Romania medium-term financial assistance for an amount of ECU 375 million, to ensure a sustainable balance of payments by that country, and whereas, by Decision 92/551/EEC (4), the  Council decided to grant Romania further assistance for an amount of ECU 80 million;
Whereas however additional adjustment and reform measures are necessary in Romania to reduce the inflation rate, to liberalize the exchange rate regime, to strengthen financial discipline of the enterprises and to accelerate privatization;
Whereas Romania has reached an agreement in principle with the International Monetary Fund (IMF) in December 1993 on a new economic programme which would be supported by a stand-by arrangement with the IMF;
Whereas the authorities of Romania have requested financial assistance from the International financial institutions, the Community and other bilateral donors, and whereas, over and above the estimated financing which could be provided by the IMF and  the World Bank, a residual financing gap of some US $ 275 million remains to be covered during the programme period, in order to strengthen Romania's reserve position and avoid exchange rate instability and further import reductions which could  seriously jeopardize the achievement of the policy objectives attached to the government's new economic programme;
Whereas the grant by the Community of a new medium-term loan to Romania is an appropriate measure to support the balance of payments and to strengthen the country's reserve position;
Whereas the Community loan should be managed by the Commission;
Whereas, for the adoption of this Decision, the Treaty does not provide for powers to act other than those of Article 235,