97/472/EC: Council Decision of 22 July 1997 providing macro-financial assistance for Bulgaria

COUNCIL DECISION of 22 July 1997 providing macro-financial assistance for Bulgaria (97/472/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 of the Commission (1),
Having regard to the opinion of the European Parliament (2),
Whereas the Commission has consulted the Monetary Committee before submitting its proposal;
Whereas Bulgaria is undertaking fundamental economic reforms and is making strenuous efforts to implement a market economy model;
Whereas a Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other part (3) has been concluded;
Whereas, by Decision 91/311/EEC (4), the Council decided to grant Bulgaria medium-term financial assistance for an amount of ECU 290 million, to ensure a sustainable balance of payments by that country, and whereas, by Decision 92/511/EEC (5), the Council decided to grant Bulgaria further assistance for an amount of ECU 110 million;
Whereas however additional adjustment and reform measures are necessary in Bulgaria to strengthen the financial sector and to accelerate privatization;
Whereas Bulgaria has reached an agreement with the International Monetary Fund (IMF) in April 1997 on an economic programme which would be supported by a 'stand-by` arrangement;
Whereas the authorities of Bulgaria have requested financial assistance from the international financial institutions, the Community and other bilateral donors; whereas, over and above the estimated financing which could be provided from private sources and by the IMF and the World Bank, a residual financing gap of some US $ 550 million remains to be covered during the programme period in order to strengthen Bulgaria's reserve position and support the policy objectives attached to the government's economic programme;
Whereas the provision by the Community of a new long-term loan to Bulgaria 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,