No L 174/34 Official Journal of the European Communities 3.7.91 (Acts whose publication is not obligatory) COUNCIL COUNCIL DECISION of 24 June 1991 providing further medium-term financial assistance for Hungary (91/310/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 from the Commission (), submitted following consultation with the Monetary Committee, Having regard to the opinion of the European Par- liament (%), } Whereas Hungary is undertaking fundamental political and economic reforms and has decided to adopt a market economy model ; Whereas the said reforms are already under implementa- tion with the financial support from the Community and will strengthen mutual confidence and bring Hungary closer to the Community ; Whereas Hungary and the Community have entered into negotiations for the conclusion of European Agreements establishing a relationship of association ; ' Whereas, by Decision 90/83/EEC (%), the Council decided to grant Hungary a medium-term loan facility of a maximum amount of ECU 870 million in order to permit that country to overcome the difficulties of structural adjustment of its economy ; () OJ No C 97, 13. 4. 1991, p. 8. () OJ No C 158, 17. 6. 1991. () OJ No L 58, 7. 3. 1990, p. 7. Whereas, however, following the changes in the interna- tional environment, Hungary, like other Central and Eastern European countries is now facing additional external shocks which might jeopardize its financial stabi- lity and cause its balance of payments to deteriorate sharply ; Whereas the Hungarian authorities have requested finan- cial assistance from the International Monetary Fund (IMF), the Group of 24 industrial countries and the Community ; whereas, over and above the estimated financing which could be provided by the IMF, the World Bank and official bilateral creditors, a financial gap of some ECU 360 million remains to be covered in 1991, in order to prevent a further erosion of Hungary’s reserve position and avoid an additional degree of import compression, which could seriously jeopardize the achievement of the policy objectives underlying the Government’s reform effort ; Whereas the Commission, as coordinator of assistance from the Group of 24 has invited them and other third countries to provide medium-term financial assistance to Hungary to support that country’s balance of payments and strengthen its reserve position ; Whereas the question of the risks associated with guaran- tees from the general budget of the European Communi- ties 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 thqse of Article 235, ‘ |