95/442/EC: Council Decision of 23 October 1995 providing further macro-financial assistance for Ukraine

COUNCIL DECISION of 23 October 1995 providing further macro-financial  assistance for Ukraine (95/442/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 after consulting the Monetary  Committee,
Having regard to the opinion of the European Parliament  (2),
Whereas Ukraine is undertaking fundamental political and economic reforms and is making substantial  efforts to implement a market economy model;
Whereas Ukraine and the European Union have signed a Partnership and Cooperation Agreement which  will help the development of a full cooperation relationship;
Whereas the authorities of Ukraine have requested financial assistance from the International  Financial Institutions, the Community and other bilateral donors;
Whereas Ukraine has agreed with the International Monetary Fund (IMF) on a 'stand-by arrangement`  and a second purchase under the 'systemic transformation facility` supporting Ukraine's  comprehensive stabilization and reform programme; whereas these facilities amounting to  approximately US $ 1,9 billion were approved by the IMF Board on 7 April 1995; whereas policy based  loans to Ukraine of approximately US $ 600 million are also expected from the World Bank in 1995;
Whereas, over and above the estimated financing which could be provided by the IMF and the World  Bank, a residual financing gap of US $ 3,4 billion remains to be covered in 1995 in order to  support the policy objectives attached to the government's reform effort; whereas after  rescheduling of Ukrainian debts towards Russia and Turkmenistan, this gap is reduced to US $ 900  million; whereas substantial contributions are also expected from the United States and Japan;
Whereas by Decision 94/940/EC  (3), the Council approved macro-financial assistance for Ukraine of  up to ECU 85 million; whereas, however, further official support is required in order to support  the balance of payments, consolidate the reserve position and facilitate the necessary structural  adjustment of that country;
Whereas the Ukrainian authorities are committed to pursuing the prompt implementation of the plan  for the closure of the Chernobyl nuclear power plant by the year 2000, in accordance with the  modalities supported by the Group of Seven and the European Union;
Whereas an additional Community long-term loan to Ukraine is an appropriate measure to help easing  the country's external financial constraints;
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,