91/384/EEC: Council Decision of 22 July 1991 providing medium-term financial assistance for Romania

COUNCIL DECISION  of 22 July 1991  providing medium-term financial assistance for Romania  (91/384/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 within the Monetary Committee,
Having regard to the opinion of the European Parliament (2),
Whereas Romania is undertaking fundamental political and economic reforms and has decided to adopt a market economy model;
Whereas the said reforms are already under implementation and their financial support from the Community will strengthen mutual confidence and bring Romania closer to the Community;
Whereas, following the changes in the international environment, the Romanian economy is in deep recession and facing external shocks which might sharply deteriorate its balance of payments and weaken its precarious reserve position;
Whereas the Romanian authorities have requested financial assistance from the International Monetary Fund (IMF), the Group of 24 Industrial Countries and the Community; whereas, over and above the estimated financing which could be provided by the IMF  and the World Bank, a financial gap of some ECU 750 million remains to be covered in 1991, in order to prevent a further erosion of Romania'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 Commission, as coordinator of assistance from the Group of 24, has invited them and other third countries to provide medium-term financial assistance to Romania;
Whereas the grant by the Community of a medium-term loan to Romania is an appropriate measure to support that country's balance of payments and strengthen its 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,