No L 366/30 Official Journal of the European Communities 31.12.94 COUNCIL DECISION ' >of 22 December 1994 providing further macrofinancial assistance for Slovak Republic (94/939/EC) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 235 thereof, " Having regard to the proposal from the Commission (1), submitted after consulting the Monetary Committee, Having regard to the oplmon of the European Parlia- " ment (3), Whereas the people of the Slovak Republic has close historic relationships with the peoples of the Com- munity, whereas that country has undertaken fundamen- tal political and economic reforms and is making substantial efforts to consolidate a market economy model; Whereas, on 4 October 1994, the Slovak Republik and the Community signed an Association Agreement replacing that signed between the Czech and Slovak - Federal Republic on 14 December 1991; Whereas the dissolution of the Czech and Slovak Federal Republic has had negative implications for the Slovak economy at a time when it was still suffering from the external shock associated with the dismantlément of the Council of Mutual Economic Assistance trade system and from the difficulties accompanylng the transntlon to a market economy; Whereas the financial support of the reforms from the Community will strengthen mutual confidence and will bring the Slovak Republic closer to the Community; Whereas the Slovak Republic has agreed with the International Monetary Fund (IMF) on a ‘stand-by arrangement’ and a new purchase under the ‘systemic transformation facility’ supporting the country’s econ- omic programme for 1994 to 1995; whereas these facilities were approved by the IMF Board on 22 July 1994; (1) O] No C 302, 28. 10. 1994, p. 11. *) Opinion dcl:vercd on 15 December 1994 (not yet pubhshed in the Official Journal). Whereas the authorities of the Slovak Republic have ‘requested financial assistance from the international financial institutions, the Community and other bilateral donors; whereas, over and above the estimated financing which could be provided by the IMF and the World Bank, a residual financing gap of some US $ 300 million remains to be covered in the remainder of 1994 and 1995 in order to strengthen the Slovak Republic’s reserve position and support the policy objectives attacked to the government’s reform effort; Whereas the grand by the Community of 2 medium-term loan to the Slovak Republic is an appropriate measure to support the balance of payments and to strengthen the country’s reserve position; 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 the Slovak Republic a medium-term loan facility of a maximum amount of ECU 130 million in principal with a maximum maturity - of seven years, with a view to ensuring a sustainable balance-of-payments situation and strengthening the . reserve position. 2. To this end the Commission is empowered to borrow, on behalf of the Community, the necessary resources that will be placed at the disposal of the Slovak Republic in the form of a loan. 3. This loan will be managed by the Commission in close consultation with the Monetary Committee and in a manner consistent with any agreement reached between the IMF and the Slovak Republic. Article 2 1. The Commission is empowered to negotiate with the Slovak authorities, after consultation with the Monetary Committee, the economic policy conditions