No L 353/30 Official Journal of the European Communities 3.12. 92 COUNCIL DECISION of 27 November 1992 providing further medium-term financial assistance for Romania (92/551/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 of the Commission ('), submitted following consultation with the Monetary Committee, Having regard to the opinion of the European Parlia- ment (3, Whereas Romania is undertaking fundamental political and economic reforms and has decided to adopt a market economy model ; Whereas the said reforms are under implementation with the financial support from the Community and whereas the reform process needs to the strengthened and broadened ; Whereas the financial support of the reforms from the Community will strengthen mutual confidence and bring Romania closer to the Community ; Whereas Romania and the Community have entered into negotiations for the conclusion of a European Agreement establishing a relationship of association ; Whereas, by Decision 91/384/EEC(®), the Council decided to grant Romania a medium-term financial assis- tance of a maximum amount of ECU 375 million, with a view to ensuring a sustainable balance-of-payments situa- tion in that country; Whereas, however, despite the government of Romania’s courageous implementation of adjustment measures and structural reforms, the stabilisation phase of the Roma- nian economy is still under way and whereas additional official support is required in order to support the balance of payments and consolidate the reserve position ; Whereas the Romanian authorities have requested finan- cial assistance from the International Monetary Fund (IMF), the Group of 24 industrial countries (G-24) and the Community, and whereas, over and above the estimated financing which could be provided by the IMF and the World Bank and the carryover of financial assistance provided by the G-24 for 1991, a residual financial gap of some US $ 180 million remains to be covered in 1992, in order to avoid an additional degree of import compression which could seriously jeopardise the achievement of the policy objectives underlying the government’s reform effort ; () OJ No C 164, 1. 7. 1992, p. 30. () Opinion delivered on 17 November 1992 (not yet published in the Official Journal). () OJ No L 208, 30. 7. 1991, p. 64. Whereas the Commission as coordinator of assistance from the G-24 industrial countries has invited them 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 the balance of payments and to strengthen that country’s reserve position ; Whereas the question of the risks linked to guarantees taken from the general budget of the European Commu- nities 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, HAS DECIDED AS FOLLOWS: Article 1 1. The Community shall grant to Romania a medium- term loan facility of a maximum amount of ECU 80 million in principal, with a maximum duration of seven years, with a view to ensuring a sustainable balance-of- payments situation and strengthening the reserve posi- tion. 2. 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 Romania in the form of a loan. 3. This loan will be managed by the Commission in full consultation with the Monetary Committee and in a manner consistent with any Agreement reached between the IMF and Romania. Article 2 1. The Commission is empowered to negotiate with the Romanian authorities, after consultation with the Monetary Committee, the economic policy conditions attached to the loan. These conditions shall be consistent _ with the agreements referred to in Article 1 (3) and with arrangements made by the G-24. 2. The Commission shall verify at regular intervals, in collaboration with the Monetary Committee and in close coordination with G-24 and the IMF, that the economic policy in Romania is in accordance with the objectives of this loan and that its conditions are being fulfilled.