2,12, 92 Official Jdumal of the European Communities No L 351/29 COUNCIL DECISION of 23 November 1992 providing medium-term financial assistance for Estonia, Latvia and Lithuania (92/542/BEC) 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 Par- liament (%), Whereas Estonia, Latvia and Lithuania are undertaking fundamental political and economic reforms and have decided to adopt a market economy model ; Whereas the financial support of the reforms from the Community will strengthen mutual confidence and bring Estonia, Latvia and Lithuania closer to the Community ; ~ Whereas trade, commercial and economic links between the Community and Estonia, Latvia and Lithuania are expected to develop within the framcwork of the 1992 Cooperatxon Agreements ; Whereas in Atrticle 1 thereof these Agreements make express reference to the observance of the principles set out in the Final Declaration of Helsinki and in the Paris Charter, which provide for the observance of human rights and minority rights ; Whereas Estonia, Latvia and Lithuania have requested financial assistance from the International Monetary Fund (IMF), the Group of 24 industrial countries (G-24) and the Community, and whereas, over and above the overall es- timated financing which could be provided by the IMF and the World Bank to these countries, a global residual financial gap of some US$ 600 million remains to be covered, in order to provide the necessary financing as- surances to the stand-by arrangements that these coun- tries are expected to conclude with the IMF on the basis of their economic adjustment and reform programmes ; Whereas the financial gap estimates have been provided by the IMF in close consultation with the Commission and the G-24; ) OJ No C 266, 15. 10. 1992, p. 8. Oplmon delivered on 30 October 1992 (not yet published in the Official Journal). Whereas the Commission as co-ordinator of assistance from G-24 has invited them to provide medium-term financial assitance to Estonia, Latvia and Lithuania; Whereas the grant by the Community of medium-term loans to Estonia, Latvia and Lithuania are appropriate measures to support their balances of payments and to strengthen those countries’ reserve positions ; Whereas the question of the risks associated with guaran- tees from the general budget of the European Commun- ities 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 Estonia, Latvia and Lithuania medium-term loan facilities of a maximum amount of ECU 40 million, 80 million and 100 million respectively in principal, with a maximum duration of seven years, with a view to ensuring sustainable balance- of-payments situations and strengthening the reserve positions. 2. To this end the Commission is empowered to borrow, on behalf of the Community, the necessary ressources that will be placed at the disposal of Estonia, Latvia and Lithuania in the form of loans. 3.  These loans will be managed by the Commission in full consultation with the Monetary Committee and in a manner consistent with any Agreements reached between ‘the IMF and Estonia, Latvia and Lithuania. Article 2 1. The Commission is empowered to negotiate with the Estonian, Latvian and Lithuanian 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 G-24.