L 198/40 Official Journal of the European Communities 15.7.98 (Acts whose publication is not obligatory) COUNCIL COUNCIL DECISION of 6 July 1998 concerning exceptional assistance for the heavily indebted ACP countries (98/453/EC) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Internal Agreement on the financing and administration of Community aid within the framework of the fourth ACP-EC Convention, signed on 16 July 1990, hereinafter referred to as ‘the Internal Agreement’, and in particular Article 9 thereof (), Having regard to the proposal from the Commission, Whereas the Council on 12 February 1998 adopted the conclusions of the report to Coreper of 18 December 1997 on the European Community’s contribution to the debt initiative for the heavily indebted poor countries; Whereas a debt initiative for the heavily indebted poor countries (hereinafter referred to as the ‘HIPC Initiative’) was presented by the International Monetary Fund and the World Bank at their April 1996 meetings and sub- sequently endorsed in the autumn of 1996 by the Interim and Development Committees at the annual meetings of the International Monetary Fund and the World Bank; Whereas the Community and its Member States are firmly committed to participating in the HIPC Initiative by providing exceptional assistance to the countries which implement economic reform programmes and quality for this initiative; Whereas all the countries to which there is Community exposure eligible for HIPC debt relief are ACP States; Whereas the implementation of this Decision shall be in accordance with Financial Regulation 91/491/EEC of 29 July 1991 applicable to cooperation for the financing of () OJ L 229, 17. 8. 1991, p. 288. development according to the fourth ACP-EC Conven- tion (%), HAS DECIDED AS FOLLOWS: Article 1 The European Community shall fully participate in the HIPC Initiative by assisting the countries which will qualify for this initiative, with a view to helping them reduce the net present value of their external financial obligations towards the Community. For this purpose, the Community shall make available grant resources to be utilised by the eligible countries to meet outstanding debt and debt service obligations towards the Community. This assistance, together with resources provided by other creditors, shall allow the eligible countries to achieve their country-specific debt sustainability target agreed within the framework of the HIPC Initiative. Article 2 The assistance referred to in Article 1 shall primarily be used by the beneficiary countries to pre-pay outstanding special loans on a net present value basis. If such action is not sufficient to attain the agreed level of net present value debt reduction, the beneficiary country shall use the allocated grant to meet any outstanding risk capital ob- ligations towards the Community. () OJ L 266, 21. 9. 1991, p. 1.