90/83/EEC: Council Decision of 22 February 1990 providing medium-term financial assistance for Hungary

COUNCIL  DECISION
of 22 February 1990
providing medium-term financial assistance for Hungary
(90/83/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 from the Commission (1), submitted following consultation with the Monetary Committee,
Having regard to the opinion of the European Parliament (2),
Whereas the European Council of 8 and 9 December 1989 referred to the need to grant Hungary, after agreement with the International Monetary Fund (IMF), an adjustment loan of an amount of US $ 1 000 million; whereas this amount is the equivalent of ECU 870 million;
Whereas the people of Hungary have close historic relationships with the people of the Community, and whereas that country is undertaking fundamental political and economic reforms and has decided to adopt a market economy model;
Whereas the said reforms will strengthen mutual confidence and bring Hungary closer to the Community;
Whereas the granting of the medium-term loan is an appropriate measure to facilitate the adjustment of the Hungarian economy in order to reap the full benefits of an economy based on market principles; whereas the terms and conditions of the loan should emphasise necessary structural adjustment, with due regard for social stability, as well as being consistent with the terms and conditions put forward by the IMF, whereas an agreement with the IMF on a stabilisation programme is necessary and should be concluded quickly; whereas assurances should be secured that Hungary has negotiated satisfactory terms with its private creditors to ensure their continued participation;
Whereas the economic reforms will contribute to mutually beneficial economic and commercial relationships between Hungary and the Community; whereas these relationships will promote, throughout the Community, a harmonious development of economic activities;
Whereas examination by the Commission, in collaboration with the Monetary Committee, has shown a marked deterioration in Hungary's economic situation;
Whereas the Hungarian Government has applied to the Community for a medium-term loan;
Whereas it is appropriate to associate other G24 countries with this loan operation;
Whereas this action is urgent and the first tranche should consequently be implented rapidly;
Whereas the Treaty does not provide, for the adoption of this Decision, powers other than those of Article 235,