Legal provisions of COM(2009)580 - Macro-financial assistance to Ukraine (SEC(2009)1428) - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
dossier | COM(2009)580 - Macro-financial assistance to Ukraine (SEC(2009)1428). |
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document | COM(2009)580 |
date | July 7, 2010 |
Article 1
2. To this end, the Commission shall be empowered to borrow the necessary resources on behalf of the Union.
3. The release of the Union macrofinancial assistance shall be managed by the Commission in a manner consistent with the agreements or understandings reached between the IMF and Ukraine and with the key principles and objectives of economic reform set out in the EU-Ukraine Association Agenda. The Commission shall regularly inform the European Parliament and the Economic and Financial Committee of developments in the management of the assistance and provide them with relevant documents.
4. The Union macrofinancial assistance shall be made available for two years and six months starting from the first day after the entry into force of the Memorandum of Understanding referred to in Article 2(1).
Article 2
2. During the implementation of the Union macrofinancial assistance, the Commission shall monitor the soundness of Ukraine’s financial arrangements, administrative procedures, internal and external control mechanisms which are relevant to such assistance and the adherence to the agreed timeframe.
3. The Commission shall verify at regular intervals that Ukraine’s economic policies are in accordance with the objectives of the Union macrofinancial assistance and that the agreed economic policy conditions are being satisfactorily fulfilled. In doing so, the Commission shall coordinate closely with the IMF and the World Bank, and, when required, with the Economic and Financial Committee.
Article 3
2. The Commission shall decide on the release of the instalments subject to satisfactory implementation of the economic policy conditions agreed in the Memorandum of Understanding. The disbursement of the second instalment shall not take place earlier than three months after the release of the first instalment.
3. The Union funds shall be paid to the National Bank of Ukraine. Subject to provisions to be agreed in the Memorandum of Understanding, including a confirmation of residual budgetary financing needs, the Union funds may be transferred to the Treasury of Ukraine as the final beneficiary.
Article 4
2. The Commission shall take the necessary steps, if Ukraine so requests, to ensure that an early repayment clause is included in the loan’s terms and conditions and that it is matched by a corresponding clause in the terms and conditions of the borrowing operations.
3. At the request of Ukraine, and where circumstances permit an improvement of the interest rate of the loan, the Commission may refinance all or part of its initial borrowings or restructure the corresponding financial conditions. Refinancing or restructuring operations shall be carried out in accordance with the conditions set out in paragraph 1 and shall not have the effect of extending the average maturity of the borrowing concerned or increasing the amount of capital outstanding at the date of the refinancing or restructuring.
4. All costs incurred by the Union which are related to the borrowing and lending operations under this Decision shall be borne by Ukraine.
5. The European Parliament and the Economic and Financial Committee shall be kept informed of developments in the operations referred to in paragraphs 2 and 3.
Article 5
Article 6
2. Where reference is made to this paragraph, Articles 3 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.
Article 7
No later than two years after the expiry of the availability period referred to in Article 1(4), the Commission shall submit to the European Parliament and to the Council an ex post evaluation report.