No L 366/28 Official Journal of the European Communities 31.12.94 COUNCIL DECISION of 22 December 1994 providing further macrofinancial assistance for Algeria (94/938/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 opinion of the European Parlia- ment (2), Whereas Algcria has undertaken, since 1989, political and economic reforms and has decided to adopt a market economy model; Whereas the Community and Algeria traditionally maintain close economic, political and cultural links which have been developed within the framework of the 1978 Cooperation Agreement; Whereas, by Decision 91/510/EEC(3), the Council . decided to grant Algeria a medium-term loan for an amount of ECU 400 million in support of the government’s adjustment and reform programme agreed with the International Monetary Fund (IMF) in 1991; Whereas a first tranche of ECU 250 million of this loan was effectively disbursed in January 1992, and whereas the release of the second tranche of ECU 150 million has been delayed owing to slippages with respect fo macroeconomic performances and structural reform progress; Whereas Algeria has reached an agreement with its Paris Club creditors on a comprehensive rescheduling of its official debt and whereas a similar agreement is under negotiation with Algeria’s commercial bank creditors; Whereas the Algerian authorities have requested comp- lementary financial assistance from the European Union in support of the 1994 to 1995 economic programme; whereas, after taking into account assistance which could be provided through debt rescheduling, IMF and (1) O] No C 299, 27. 10. 1994, p. 16. 3 Opxmon delivered on 15 December 1994 (not yet published in the Official Journal). (3) OJ No L 272, 28.9. 1991, p. 90. World Bank financing and financial support from other donors, aresidual financing gap of some US $ 400 million remains to be covered during the programme period; Whereas, in the context of this programme, the Com- mission has released the remaining tranche of ECU 150 million under the loan facility provided by Decision 91/510/EEC and whereas the grant by the Community of a further loan facility to Algeria is an appropriate measure to ease the country’s external financial con- straints and support the policy objectives attached to the government’s reform effort; Whereas, while supporting the process for the economic reforms of Algeria, this assistance should in addition have the effect of facilitating the solution of the social and political problems of this country; 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 Algeria a medium- term loan facility of a maximum amount of ECU 200 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 European Community, the necessary resources that will be placed at the disposal of Algeria 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 Algeria. Article 2 1. The Commission is empowered to negotiate with the Algerian authorities, after consultation with the Monetary Committee, the economic policy conditions