92/542/EEC: Council Decision of 23 November 1992 providing medium-term financial assistance for Estonia, Latvia and Lithuania

COUNCIL DECISION  of 23 November 1992  providing medium-term financial assistance for Estonia, Latvia and Lithuania  (92/542/EEC)
THE COUNCIL OF THE EUROPEAN COMMUNITIES
,
Having regard to the Treaty establishing the European Economic Community, and in particular Article 235 thereof,
Having regard to the proposal of the Commission (1) submitted following consultation with the Monetary Committee,
Having regard to the opinion of the European Parliament (2),
Whereas Estonia, Latvia and Lithuania are undertaking fundamental political and economic reforms and have decided to adopt a market economy model;
Whereas the financial support of the reforms from the Community will strengthen mutual confidence and bring Estonia, Latvia and Lithuania closer to the Community;
Whereas trade, commercial and economic links between the Community and Estonia, Latvia and Lithuania are expected to develop within the framework of the 1992 Cooperation Agreements;
Whereas in Article 1 thereof these Agreements make express reference to the observance of the principles set out in the Final Declaration of Helsinki and in the Paris Charter, which provide for the observance of human rights and minority rights;
Whereas Estonia, Latvia and Lithuania have requested financial assistance from the International Monetary Fund (IMF), the Group of 24 industrial countries (G-24) and the Community, and whereas, over and above the overall estimated financing which could  be provided by the IMF and the World Bank to these countries, a global residual financial gap of some US$ 600 million remains to be covered, in order to provide the necessary financing assurances to the stand-by arrangements that these countries are  expected to conclude with the IMF on the basis of their economic adjustment and reform programmes;
Whereas the financial gap estimates have been provided by the IMF in close consultation with the Commission and the G-24;
Whereas the Commission as co-ordinator of assistance from G-24 has invited them to provide medium-term financial assitance to Estonia, Latvia and Lithuania;
Whereas the grant by the Community of medium-term loans to Estonia, Latvia and Lithuania are appropriate measures to support their balances of payments and to strengthen those countries' reserve positions;
Whereas the question of the risks associated with guarantees from the general budget of the European Communities will be examined in the context of the renewal in 1992 of the Interinstitutional Agreement on budgetary discipline and improvement of the  budgetary procedure;
Whereas the Community loan should be managed by the Commission;
Whereas the Treaty does not provide for the adoption of this Decision, powers other than those of Article 235,