30. 1. 93 Official Journal of the European Communities No L 22/121 (Acts whose publication is not obligatory) COUNCIL COUNCIL DECISION of 18 January 1993 concerning a Community loan in favour of the Italian‘Republic (93/67/BEC) THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, ‘ Having regard to Council Regulation (EEC) No 1969/88 of 24 June 1988 establishing a single facility providing - medium-term financial assistance for Member States’ balances of payments('), and in particular Article 1 thereof, , Having regard to the proposal from the Commission, submitted after consultation of the Monetary Committee, Whereas the Italian Republic has applied for medium- term financial assistance to support its balance of payments and its economic programme of adjustment and reform ; . Whereas the total amount outstanding under previous loans granted to the Member States is within the ceiling specified in Regulation (EEC) No 1969/88 ; Whereas in addition to the immediate problems in the balance of payments arising from the substantial capital outflows which occurred during the recent period of currency turbulence, the consequent reduction in official reserves and increase in short-term indebtedness, the Italian economy exhibits serious structural imbalances, in particular in the public finance domain, affecting the stability of its external position; whereas a balance of payments loan disbursed in tranches if justified while () OJ No L 178, 8. 7. 1988, p. 1. measures of consolidation and adjustment are under- taken ; whereas the proceeds of the loan will be used to strenghten the Italian official reserves; Whereas it is the intention of the Italian Government to re-enter the exchange rate mechanism (ERM) of the Euro- pean Monetary System ; whereas making such an ERM re-entry sustainable requires the implementation of a programme which will achieve further progress in redu- cing inflation and an improvement in the structure of the public finances; whereas such objectives of improved convergence with the best-performing Community economies will only be met by a substantial reduction in public sector deficits leading to a declining trend in the public debt/GDP ratio, by reforms of the organisation of the public sector, by a tight monetary policy and by a firm exchange rate policy; Whereas the Italian Government is pursuing a three-year programme of budgetary adjustment aimed at substan- tially reducing deficits so that the public debt ratio is first stabilized and then put on a downward trend, and has presented this programme on which its application for a loan is based; whereas the Italian Government will implement fully its programme of budgetary adjustment and reform over a three-year period from 1993 to 1995 so as to achieve the targets and introduce the specific measures indicated in its programme agreed as follows : 1. The budgetary targets for 1993, 1994 and 1995 are set in order to achieve the stabilization of the public debt ratio by 1995. On the basis of a projected GDP growth of 1,5% in 1993, 2,4 % in 1994 and 2,6 % in 1995 they are :