L 320/6 Official Journal of the European Union 5.12.2009 COUNCIL DECISION of 30 November 2009 providing macro-financial assistance to Bosnia and Herzegovina (2009/891EC) THE COUNCIL OF THE EUROPEAN UNION, (6) In order to ensure efficient protection of the Having regard to the Treaty establishing the European Community, and in particular Article 308 thereof, Having regard to the proposal from the Commission, Having regard to the Opinion of the European Parliament, After consulting the Economic and Financial Committee, Whereas: (1) Relations between Bosnia and Herzegovina and the European Union (EU) are developing within the framework of the Stabilisation and Association Process and the European Partnership; Bosnia and Herzegovina and the Commission signed on 16 June 2008 a Stabili- sation and Association Agreement and the Interim Agreement on Trade and Trade related Matters. (2)  The Bosnian economy has been increasingly hit by the international economic and financial crisis since the fourth quarter of 2008, with declining output and trade and falling fiscal revenues. (3)  Bosnia and Herzegovina's economic stabilisation and recovery are supported by financial assistance from the International Monetary Fund (IMF). In May 2009, the Bosnian authorities agreed with the IMF on a new disbursing programme of EUR 1,15 billion over a three-year period which was approved by the IMF Board in July 2009. (4)  Bosnia and Herzegovina has requested additional Community macro-financial assistance in view of the worsening economic situation and outlook. (5) Given that, following the assumptions of the IMF, a residual financing gap remains in the balance of payments in 2010, macro-financial assistance is considered an appropriate response to Bosnia and Herze- govina’s request under the current exceptional circum- stances to support economic stabilisation in conjunction with the current IMF programme. The present financial assistance is also expected to contribute to alleviate budgetary financing needs. Community’s financial interests linked to the present financial assistance, it is necessary to provide for appro- priate measures by Bosnia and Herzegovina related to the prevention of, and the fight against, fraud, corruption and any other irregularities linked to this assistance, as well as for controls by the Commission and audits by the Court of Auditors. (7)  The release of the Community financial assistance is without prejudice to the powers of the budgetary authority. (8)  This assistance should be managed by the Commission, in consultation with the Economic and Financial Committee. (9)  The Treaty does not provide, for the adoption of this Decision, powers other than those of Article 308, HAS DECIDED AS FOLLOWS: Article 1 1. The Community shall make available to Bosnia and Herze- govina macro-financial assistance in the form of a loan facility with a maximum principal amount of EUR 100 million and a maximum average maturity of 15 years with a view to supporting Bosnia and Herzegovina's economic stabilisation and alleviating its balance of payments and budgetary needs as identified in the current IMF programme. 2. To this end, the Commission is empowered to borrow on behalf of the Community the necessary resources. 3. The release of the Community financial assistance shall be managed by the Commission, in close cooperation with the Economic and Financial Committee, in a manner consistent with the agreements or understandings reached between the IMF and Bosnia and Herzegovina. 4. The Community financial assistance shall be made available for two years starting from the first day after the entry into force of the Memorandum of Understanding referred to in Article 2(1). However, if circumstances so require, the Commission, after consultation of the Economic and Financial Committee, may decide to extend the availability period by a maximum of one year.