29.10.2013 Official Journal of the European Union L 286/1 II (Non-legislative acts) DECISIONS COUNCIL DECISION of 22 October 2013 providing precautionary Union medium-term financial assistance to Romania (2013/531/EV) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, high negative net investment position, and spill-overs from adverse developments in the euro area. In such a stress scenario, the residual financing needs may have to be covered from activating the precautionary medium- term financial assistance. Having regard to Council Regulation (EC) No 332/2002 of (4)  Itis appropriate to provide Union support to Romania of 18 February 2002 establishing a facility providing medium- up to EUR 2000 Ip11110n on a precautionary bas1s. under term financial assistance for Member States’ balances of the facility providing medium-term financial assistance payments (') and in particular Article 3(2) thereof, for Member States” balance of payments established in Regulation (EC) No 332/2002. That assistance should be provided in conjunction with support from the Inter- Having regard to the proposal from the European Commission national Monetary Fund (IMF)  through a Staqd.—by made after consulting the Economic and Financial Committee Arrangement in the amount of SDR 1 751,34 million ’ (about EUR 2 000 million, 170 % of Romania’s IMF quota), approved on 27 September 2013, which the authorities are also to treat as precautionary medium- Whereas: term financial assistance. The World Bank has made EUR 1000 million available under a Development Policy Loan with a deferred drawdown option valid (1) By Decision 2013/532/EU (3), the Council has decided to through December 2015. In addition, the World Bank grant mutual assistance to Romania. is to continue to provide earlier committed support of EUR 891 million, of which EUR 514 million is still to be disbursed. (2)  Precautionary medium-term financial assistance for Romania under the balance-of-payments facility for Member States is appropriate under the current circum- (5)  The precautionary medium-term financial assistance stances of unstable capital flows affecting in particular should be managed by the Commission which is to emerging markets, risks to the macroeconomic agree with the authorities of Romania, after consulting scenario, and remaining vulnerabilities in the banking the Economic and Financial Committee (EFC), on the sector. While under present market conditions Romania specific economic policy conditions attached to that does not intend to request the disbursement of any assistance. Those conditions should be laid down in a instalment, the precautionary assistance can be expected Memorandum of Understanding. to help consolidate macroeconomic, budgetary and financial stability and, through the pursuit of structural reforms, increase the resilience and the growth potential (6)  In view of the precautionary nature of the medium-term of the Romanian economy. If negative risks materialise, Romania may not be able to cover its external financing needs from available funding resources. These risks are associated with, among others, important external debt and financial sector roll-overs, a () OJ L 53, 23.2.2002, p. 1. (3) See page 4 of this Official Journal. financial assistance, Romania will not request the disbursement of any instalment under the Union loan, unless difficulties as regards its balance of current payments or capital movements emerge. If Romania makes a request for funding to the Commission, the latter is to decide, after having consulted the EFC, on the activation of the programme and on the amount and timing of such instalments. The detailed financial terms related to possible disbursements is to be laid down in a Precautionary Loan Facility Agreement (PLFA).