Decision 2009/102 - 2009/102/EC: Council Decision of 4 November 2008 providing Community medium-term financial assistance for Hungary

Please note

This page contains a limited version of this dossier in the EU Monitor.

Contents

  1. Current status
  2. Key information
  3. Key dates
  4. Legislative text
  5. Original proposal
  6. Sources and disclaimer
  7. Full version
  8. EU Monitor

1.

Current status

This decision has been published on February  6, 2009 and should have been implemented in national regulation on November  5, 2008 at the latest.

2.

Key information

official title

2009/102/EC: Council Decision of 4 November 2008 providing Community medium-term financial assistance for Hungary
 
Legal instrument Decision
Number legal act Decision 2009/102
Original proposal COM(2008)716 EN
CELEX number i 32009D0102

3.

Key dates

Document 04-11-2008; Date of adoption
Publication in Official Journal 06-02-2009; OJ L 37 p. 5-6
Effect 05-11-2008; Takes effect Date notif.
End of validity 31-12-9999
Notification 05-11-2008

4.

Legislative text

6.2.2009   

EN

Official Journal of the European Union

L 37/5
 

COUNCIL DECISION

of 4 November 2008

providing Community medium-term financial assistance for Hungary

(2009/102/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 332/2002 of 18 February 2002 establishing a facility providing medium-term financial assistance for Member States' balance of payments (1), and in particular Article 3(2) thereof,

Having regard to the proposal from the Commission made after consulting the Economic and Financial Committee (EFC),

Whereas:

 

(1)

By Decision 2009/103/EC (2), the Council decided to grant mutual assistance to Hungary.
 

(2)

Despite the expected improvement in the current account, Hungary’s external financing needs in 2008 and 2009 are estimated at EUR 20 billion as, in view of the recent developments on the financial market, the capital and financial account could substantially deteriorate, with the acceleration of net portfolio outflows.
 

(3)

It is appropriate to provide Community support to Hungary of up to EUR 6,5 billion under the Facility providing medium-term financial assistance for Member States' balance of payments which was established by Regulation (EC) No 332/2002. That assistance should be provided in conjunction with a loan from the International Monetary Fund of SDR 10,5 billion (around EUR 12,5 billion) under a Stand-by arrangement expected to be approved on 6 November 2008. The World Bank has also agreed to provide a loan to Hungary of EUR 1 billion.
 

(4)

The assistance should be managed by the Commission which, after consulting the EFC, should agree with the authorities of Hungary the specific economic policy conditions attached to the financial assistance. Those conditions should be laid down in a Memorandum of Understanding. The detailed financial terms should be laid down by the Commission in the Loan Agreement.
 

(5)

The assistance should be provided with a view to supporting balance of payments sustainability in Hungary and, in this way, contributing to the successful implementation of the Government’s economic policy programme under current economic and financial conditions,

HAS DECIDED AS FOLLOWS:

Article 1

  • 1. 
    The Community shall make available to Hungary a medium-term loan amounting to a maximum of EUR 6,5 billion, with a maximum average maturity of five years.
  • 2. 
    This Community financial assistance shall be made available during a period of two years starting from the first day after the entry into force of this Decision.

Article 2

  • 1. 
    The Commission shall manage the assistance in a manner consistent with Hungary’s undertakings and with recommendations by the Council, in particular in the context of the implementation of the National Reform Programme as well as of the convergence programme and the excessive deficit procedure.
  • 2. 
    The Commission shall agree with the authorities of Hungary, after consulting the EFC, the specific economic policy conditions attached to the financial assistance as laid down in Article 3(4). Those conditions shall be laid down in a Memorandum of Understanding consistent with the undertakings and recommendations referred to in paragraph 1 of this Article. The detailed financial terms shall be laid down by the Commission in the Loan Agreement.
  • 3. 
    The Commission shall, in collaboration with the EFC, verify at regular intervals that the economic policy conditions attached to the assistance are fulfilled. The Commission shall keep the EFC informed of possible refinancing of the borrowings or restructuring of the financial conditions.

Article 3

  • 1. 
    The Community financial assistance shall be made available by the Commission to Hungary in...

More

This text has been adopted from EUR-Lex.

5.

Original proposal

 

6.

Sources and disclaimer

For further information you may want to consult the following sources that have been used to compile this dossier:

This dossier is compiled each night drawing from aforementioned sources through automated processes. We have invested a great deal in optimising the programming underlying these processes. However, we cannot guarantee the sources we draw our information from nor the resulting dossier are without fault.

 

7.

Full version

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

The full version is available for registered users of the EU Monitor by ANP and PDC Informatie Architectuur.

8.

EU Monitor

The EU Monitor enables its users to keep track of the European process of lawmaking, focusing on the relevant dossiers. It automatically signals developments in your chosen topics of interest. Apologies to unregistered users, we can no longer add new users.This service will discontinue in the near future.