Article 1 
1. The Community shall make available to the Serbia and Montenegro further macro-financial assistance in the form of a long-term loan and a straight grant with a view to ensuring a sustainable balance-of-payments situation and strengthening the country's reserve position. 2. The loan component of this assistance shall amount to a maximum principal of EUR 80 million with a maximum maturity of 15 years. To this end, the Commission is empowered to borrow, on behalf of the Community, the necessary resources that will be placed at the disposal of Serbia and Montenegro in the form of a loan. 3. The grant component of this assistance shall amount to a maximum of EUR 120 million. 4. This Community financial assistance shall be managed by the Commission in close consultation with the Economic and Financial Committee and in a manner consistent with the agreements reached between the IMF and the Serbia and Montenegro .
Article 2 
1. The Commission is empowered to agree with the authorities of the Serbia and Montenegro , after consultation with the Economic and Financial Committee, the economic policy conditions attached to further Community macro-financial assistance. These conditions shall be consistent with the agreements referred to in Article 1(4). 2. The Commission shall verify at regular intervals, in collaboration with the Economic and Financial Committee and in coordination with the IMF, that economic policies in the Serbia and Montenegro are in accordance with the objectives of this macro-financial assistance and that its conditions are being fulfilled.
Article 3 
1. The loan and grant components of this assistance shall be made available to Serbia and Montenegro in at least three instalments. bject to Article 2, the first instalment is to be released on the basis of satisfactory implementation of the adjustment and reform programme of the Serbia and Montenegro under the present Extended Arrangement with the IMF. 2. Subject to Article 2, the second and any further instalments shall be released on the basis of a satisfactory track record on the Serbia and Montenegro 's adjustment and reform programme, and not before one quarter after the release of the previous instalment. 3. The funds shall be paid to the National Bank of the Serbia and Montenegro , and after the entry into force of a new Constitutional Charter, to the institution or institutions designated to take on the responsibilities of the National Bank of Yugoslavia for receiving funds in the context of this Decision.
Article 4 
1. The borrowing and lending operations referred to in Article 1 shall be carried out using the same value date and must not involve the Community in the transformation of maturities, in any exchange or interest rate risks, or in any other commercial risk. 2. The Commission shall take the necessary steps, if the Serbia and Montenegro so requests, to ensure that an early repayment clause is included in the loan terms and conditions and that it may be exercised. 3. At the request of the Serbia and Montenegro , and where circumstances permit an improvement in the loan's interest rate, the Commission may refinance all or part of its initial borrowings or restructure the corresponding financial conditions. Refinancing or restructuring operations shall be carried out in accordance with the conditions set out in paragraph 1 and shall not have the effect of extending the average maturity of the borrowing concerned or increasing the amount, expressed at the current exchange rate, of capital outstanding at the date of the refinancing or restructuring. 4. All related costs incurred by the Community in concluding and carrying out the operation under this Decision shall be borne by the Serbia and Montenegro , if appropriate. 5. The Economic and Financial Committee shall be kept informed of developments in the operations referred to in paragraph 2 and 3 at least once a year.
Article 5 
At least once a year, and before September, the Commission shall address to the European Parliament and to the Council a report, which will include an evaluation on the implementation of this Decision in the previous year.
Article 6 
This Decision shall take effect on the day of its publication in the Official Journal of the European Communities . It shall apply as of 8 November 2004 and until 30 June 2006. ( 1 ) Proposal of 27 August 2002 (not yet published in the Official Journal). ( 2 ) Opinion delivered on 10 October 2002 (not yet published in the Official Journal). ( 3 ) Opinion delivered on 17 October 2002 (not yet published in the Official Journal). ( 4 ) Decision 2001/549/EC (OJ L 197, 21.7.2001, p. 38), Decision as amended by Decision 2001/901/EC (OJ L 334, 18.12.2001, p. 30).