16.11.1999 Official Journal of the European Communities L 294/29 COUNCIL DECISION of 8 November 1999 providing supplementary macro-financial assistance to Romania (1999/732/EC) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 308 thereof, Having regard to the proposal of the Commission (!), Having regard to the opinion of the European Parliament (%), Whereas: (1)  The Commission has consulted the Economic and Finan- cial Committee before submitting its proposal; (2)  Romania is undertaking fundamental economic reforms and is making substantial efforts to establish a well-func- tioning market economy with a view to increasing employment and living standards; (3)  Romania and the European Union have signed a Europe Agreement establishing a relationship of association (3); (4)  The European Council at its meeting in Luxembourg in December 1997 decided to launch an accession process comprising Romania along with the other Central and East European applicant countries and Cyprus; (5)  Romania reached an agreement with the International Monetary Fund (IMF) on a stand-by arrangement (SBA) in support of the authorities' adjustment and reform programme; (6)  The World Bank has approved a new Private Sector Adjustment Loan, which envisages substantial adjust- ment and investment financing in support of Romania's reform efforts in the enterprise and financial sectors; (7 The authorities of Romania 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 during the programme period in order to strengthen the country's reserve position and support the policy objectives attached to the government's reform programme; (8) A Community long-term loan to Romania is an appro- priate measure to help ease the country's external finan- cial constraints, supporting the balance of payments and () O] C 307 E, 26.10.1999, p. 40. (*) Opinion delivered on 6 October 1999 (not yet published in the Official Journal). () O] L 357, 31.12.1994, p. 2. strengthening the reserve positions and comforting the implementation of the necessary structural reforms; (9  The Community loan should be managed by the Commission in accordance with the principles of sound financial management; (10)  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 Romania a long- term loan facility of a maximum principal amount of EUR 200 million with a maximum maturity of 10 years, with a view to ensuring a sustainable balance of payments situation. 2. To this end, the Commission is empowered to borrow, on behalf of the European Community, the necessary resources that will be placed at the disposal of Romania in the form of a loan. 3. This loan referred to in paragraph 2 shall be managed by the Commission in close consultation with the Economic and Financial Committee and in a manner consistent with any agreement reached between the IMF and Romania. Article 2 1. The Commission is empowered to agree with the author- ities of Romania, after consultation with the Economic and Financial Committee, the economic policy conditions attached to the loan. These conditions shall be consistent with the agreements referred to in Article 1(3). 2. The Commission shall verify at regular intervals, in collaboration with the Economic and Financial Committee and in coordination with the IMF, that the economic policy in Romania is in accordance with the objectives of this loan and that its conditions are being fulfilled. Article 3 1. The loan shall be made available to Romania in two instalments. Subject to Article 2, the first instalment is to be released on the basis of a satisfactory track record of Romania's macroeconomic programme in the context of the SBA agreed with the IMF.