L 308/28 Official Journal of the European Communities 9.11.2002 COUNCIL DECISION of 5 November 2002 providing further macro-financial assistance to Bosnia and Herzegovina (2002/883[EC) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Commu- nity, and in particular Article 308 thereof, Having regard to the proposal of the Commission (%), Having regard to the opinion of the European Parliament (%), Having regard to the opinion of the Economic and Financial Committee (°), Whereas: (1)  The Bosnia and Herzegovina authorities re-established links with international organisations and, in particular, made progress towards normalising that country's finan- cial relations with multilateral creditors, including the European Investment Bank, and with official bilateral creditors. (2)  Since October 2000, Bosnia and Herzegovina has achieved substantial progress in economic stabilisation and reform and has made important steps towards a well-functioning market economy. (3)  Within the Stabilisation and Association process, which is the framework for the European Union's (EU) relations with the region, it is desirable to support efforts to sustain political and economic stabilisation in Bosnia and Herzegovina, with a view to evolving towards the development of a full cooperation relationship with the Community. (4)  Financial assistance from the Community should be instrumental in bringing Bosnia and Herzegovina closer to the Community. (5)  The Community already provided in 1999 macro-finan- cial assistance of EUR 60 million to Bosnia and Herze- govina. The International Monetary Fund (IMF) approved on [...] a 15-month ‘Stand-by Arrangement’ for Bosnia and Herzegovina of about USD 89 million to support the authorities' economic programme in 2002 to 2003. (6)  The World Bank Group has committed broadly USD 900 m in support of 42 IDA credits/Trust Funds, and has disbursed broadly USD 670 m since 1996. In addition broadly USD 45 m of IFC loans have been (") Proposal of 27 August 2002 (not yet published in the Official Journal). (*) Opinion delivered on 10 October 2002 (not yet published in the Official Journal). (*) Opinion delivered on 17 October 2002 (not yet published in the Official Journal). (11) (12) (14) committed with USD 37 m disbursed, as of February 2002. A second Public Finance Structural Adjustment Credit (PFSAC 1I) is being implemented. An Enterprise and Bank Privatisation Adjustment Credit (EBPAC) has just been completed and a labour market reform and social protection operation was completed last year. An operation aimed at improving and enabling the business environment was also recently agreed. The Members of the Paris Club agreed, in October 1998, on debt relief in favour of Bosnia and Herzegovina, already alleviating the balance of payments situation. The authorities of Bosnia and Herzegovina have requested financial assistance from the international financial institutions, the Community, and other bilateral donors. Over and above the estimated financing which could be provided by the IMF and the World Bank, an important residual financing gap remains to be covered to support the policy objectives attached to the authorities' reform efforts. Community macro-financial assistance to Bosnia and Herzegovina is an appropriate measure to help ease that country's external financial constraints, supporting the balance of payments and securing the reserve position. Financial assistance from the Community in the form of a combination of a long-term loan and a straight grant is an appropriate measure to support the sustainability of Bosnia and Herzegovina's external financial position, given its limited borrowing capacity. This Community financial assistance should be effective and properly implemented. The inclusion of a grant component in this assistance is without prejudice to the powers of the Community budgetary authority. This assistance should be managed by the Commission, in consultation with the Economic and Financial Committee. The Treaty does not provide, for the adoption of this Decision, powers other than those of Article 308,