Council Decision of 19 October 1992 providing further medium-term financial assistance for Bulgaria

COUNCIL DECISION  of 19 October 1992  providing further medium-term financial assistance for Bulgaria  (92/511/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 Bulgaria is undertaking fundamental political and economic reforms and has decided to adopt a market economy model;
Whereas the said reforms are under implementation with the financial support from the Community and whereas the reform process needs to be strengthened and broadened;
Whereas the financial support of the reforms from the Community will strengthen mutual confidence and bring Bulgaria closer to the Community;
Whereas, Bulgaria and the Community have entered into negotiations for the conclusion of a European Agreement establishing a relationship of association;
Whereas, by Decision 91/311/EEC (3), the Council decided to grant Bulgaria medium term financial assistance of a maximum amount of ECU 290 million, with a view to ensuring a sustainable balance of payments situation in that country;
Whereas, however, despite the government of Bulgaria's courageous implementation of adjustment measures and structural reforms, the stabilization phase of the Bulgarian economy is still under way and whereas additional official support is required in  order to support the balance of payments and consolidate the reserve position;
Whereas the Bulgarian authorities 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 estimated financing which could be provided  by the IMF and the World Bank and the carryover of financial assistance provided by G-24 for 1991, a residual financial gap of some US $ 240 million remains to be covered in 1992, in order to reconstitute Bulgaria'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 success of the reform process in Bulgaria will depend crucially on the solution of the acute debt problem which the country is facing and whereas the Community's financial assistance should be conditional upon decisive progress being made  towards setting up a comprehensive medium-term debt restructuring arrangement between Bulgaria and its commercial bank creditors;
Whereas the Commission as coordinator of assistance from the G-24 countries has invited them to provide medium-term financial assistance to Bulgaria;
Whereas the grant by the Community of a medium-term loan to Bulgaria is an appropriate measure to support the balance of payments and to strengthen that country's reserve position;
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,