2009/891/EC: Council Decision of 30 November 2009 providing macro-financial assistance to Bosnia and Herzegovina

5.12.2009 EN Official Journal of the European Union L 320/6
COUNCIL DECISION
of 30 November 2009
providing macro-financial assistance to Bosnia and Herzegovina
(2009/891/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 proposal from the Commission,
Having regard to the Opinion of the European Parliament,
After consulting the Economic and Financial Committee,
Whereas:
(1) Relations between Bosnia and Herzegovina and the European Union (EU) are developing within the framework of the Stabilisation and Association Process and the European Partnership; Bosnia and Herzegovina and the Commission signed on 16 June 2008 a Stabilisation and Association Agreement and the Interim Agreement on Trade and Trade related Matters.
(2) The Bosnian economy has been increasingly hit by the international economic and financial crisis since the fourth quarter of 2008, with declining output and trade and falling fiscal revenues.
(3) Bosnia and Herzegovina’s economic stabilisation and recovery are supported by financial assistance from the International Monetary Fund (IMF). In May 2009, the Bosnian authorities agreed with the IMF on a new disbursing programme of EUR 1,15 billion over a three-year period which was approved by the IMF Board in July 2009.
(4) Bosnia and Herzegovina has requested additional Community macro-financial assistance in view of the worsening economic situation and outlook.
(5) Given that, following the assumptions of the IMF, a residual financing gap remains in the balance of payments in 2010, macro-financial assistance is considered an appropriate response to Bosnia and Herzegovina’s request under the current exceptional circumstances to support economic stabilisation in conjunction with the current IMF programme. The present financial assistance is also expected to contribute to alleviate budgetary financing needs.
(6) In order to ensure efficient protection of the Community’s financial interests linked to the present financial assistance, it is necessary to provide for appropriate measures by Bosnia and Herzegovina related to the prevention of, and the fight against, fraud, corruption and any other irregularities linked to this assistance, as well as for controls by the Commission and audits by the Court of Auditors.
(7) The release of the Community financial assistance is without prejudice to the powers of the budgetary authority.
(8) This assistance should be managed by the Commission, in consultation with the Economic and Financial Committee.
(9) The Treaty does not provide, for the adoption of this Decision, powers other than those of Article 308,