94/346/EC: Council Decision of 13 June 1994 providing macro-financial assistance for Moldova

COUNCIL DECISION of 13 June 1994 providing macro-financial assistance for Moldova (94/346/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 Moldova is undertaking fundamental political and economic reforms and has decided to adopt a market economy model;
Whereas Moldova and the Community have expressed their readiness to enter into negotiations for the conclusion of a partnership and cooperation agreement;
Whereas the financial support of the reforms from the Community will strengthen mutual confidence and will bring Moldova closer to the Community;
Whereas Moldova has agreed with the International Monetary Fund (IMF) on a stand-by arrangement in support of the country's economic programme; whereas this arrangement was approved by the IMF Board on 17 December 1993;
Whereas the authorities of Moldova 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 by the IMF and the  World Bank, a residual financing gap of some US $ 155 million remains to be covered in 1994, in order to strengthen Moldova's reserve position and avoid an additional degree of import compression which could seriously jeopardize the achievement of the  policy objectives underlying the Government's reform effort;
Whereas the grant by the Community of a long-term loan to Moldova 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 the Treaty does not provide, for the adoption of this Decision, powers other than those of Article 235,