2000/452/EC: Council Decision of 10 July 2000 providing supplementary macrofinancial assistance to Moldova

Council Decision
of 10 July 2000
providing supplementary macrofinancial assistance to Moldova
(2000/452/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(1),
Having regard to the opinion of the European Parliament(2),
Whereas:
(1) The Commission consulted the Economic and Financial Committee before submitting its proposal.
(2) Moldova is undertaking fundamental political and economic reforms and is making substantial efforts to establish a market economy.
(3) Moldova, on the one hand, and the European Communities and their Member States on the other hand, have signed a Partnership and Cooperation Agreement, which entered into force on 1 July 1998.
(4) The authorities of Moldova have agreed with the IMF on a macroeconomic programme supported by a three-year extended fund facility, approved in May 1996 and have expressed their intention to continue this programme subsequently in the context of a new fund facility.
(5) The Moldovan authorities have requested financial assistance from the international financial institutions, the Community and other bilateral donors. Over and above the extended financing by the IMF and the World Bank, a substantial residual financing gap remains to be covered in the coming months to strengthen the country's reserve position and support the policy objectives attached to the authorities' reform efforts.
(6) Moldova has been particularly affected by the Russian financial crisis and is presently facing particularly difficult economic and social circumstances.
(7) Financial assistance from the Community in the form of a long-term loan with a substantial grace period is an appropriate measure to support the balance of payments and help ease the country's external financial constraints in the current exceptionally difficult circumstances.
(8) This assistance should be managed by the Commission.
(9) The Treaty does not provide, for the adoption of this Decision, powers other than those of Article 308,