Decision 1999/731 - 1999/731/EC: Council Decision of 8 November 1999 providing supplementary macro-financial assistance to Bulgaria - Main contents

official title

 

Legal instrument	Decision
Number legal act	Decision 1999/731
Original proposal	COM(1999)403
CELEX number i	31999D0731

Avis juridique important

|

1999/731/EC: Council Decision of 8 November 1999 providing supplementary macro-financial assistance to Bulgaria

Official Journal L 294 , 16/11/1999 P. 0027 - 0028

COUNCIL DECISION

of 8 November 1999

providing supplementary macro-financial assistance to Bulgaria

(1999/731/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 308 thereof,

Having regard to the proposal of the Commission(1),

Having regard to the opinion of the European Parliament(2),

Whereas:

• (1) 

  The Commission has consulted the Economic and Financial Committee before submitting its proposal;

• (2) 

  Bulgaria is undertaking fundamental economic reforms and is making substantial efforts to establish a well-functioning market economy with a view to increasing employment and living standards;

• (3) 

  Bulgaria and the European Union have signed a Europe Agreement establishing a relationship of association(3);

• (4) 

  The European Council at its meeting in Luxembourg in December 1997 decided to launch an accession process comprising Bulgaria along with the other Central and East European applicant countries and Cyprus;

• (5) 

  Bulgaria reached an agreement with the International Monetary Fund (IMF) in September 1998 on an arrangement under the Extended Fund Facility (EFF) in support of the authorities' adjustment and reform programme;

• (6) 

  The World Bank adopted a three-year Country Assistance Strategy for Bulgaria in April 1998, which envisages substantial adjustment and investment financing in support of Bulgaria's reform efforts in priority areas;

• (7) 

  The authorities of Bulgaria have requested financial assistance from the international financial institutions, the Community and other bilateral donors; over and above the estimated financing which could be provided by the IMF and the World Bank, an important residual financing gap remains to be covered during the programme period in order to strengthen the country's reserve position and support the policy objectives attached to the government's reform programme;

• (8) 

  A Community long-term loan to Bulgaria is an appropriate measure to help ease the country's external financial constraints, supporting the balance of payments and strengthening the reserve position and comforting the implementation of the necessary structural reforms;

• (9) 

  The Community loan should be managed by the Commission in accordance with the principles of sound financial management;

• (10) 

  The Treaty does not provide, for the adoption of this Decision, powers other than those of Article 308,

HAS DECIDED AS FOLLOWS:

Article 1

• 1. 

  The Community shall make available to Bulgaria a long-term loan facility of a maximum principal amount of EUR 100 million with a maximum maturity of 10 years, with a view to ensuring a sustainable balance of payments situation.

• 2. 

  To this end, the Commission is empowered to borrow, on behalf of the European Community, the necessary resources that will be placed at the disposal of Bulgaria in the form of a loan.

• 3. 

  This loan will be managed by the Commission in close consultation with the Economic and Financial Committee and in a manner consistent with any agreement reached between the IMF and Bulgaria.

Article 2

• 1. 

  The Commission is empowered to agree with the authorities of Bulgaria, after consultation with the Economic and Financial Committee, the economic policy conditions attached to the loan. These conditions shall be consistent with the agreements referred to in Article 1(3).

• 2. 

  The Commission shall verify at regular intervals, in collaboration with the Economic and Financial Committee and in coordination with the IMF, that the economic policy in Bulgaria is in accordance with...

This text has been adopted from EUR-Lex.

This page is also available in a full version containing the legal context, de Europese rechtsgrond, other dossiers related to the dossier at hand and the related cases of the European Court of Justice.