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Proposal for a Council Decision on the position to be adopted by the Community within the ACP-EC Council of Ministers on a decision to increase the Structural Adjustment Facility. COM (99) 647 final, 30 November 1999

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Disciplines
  • Communication
  • Political Science

Abstract

Microsoft Word - en.doc COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 30.11.1999 COM(1999) 647 final Proposal for a COUNCIL DECISION on the position to be adopted by the Community within the ACP-EC Council of Ministers on a decision to increase the Structural Adjustment Facility (presented by the Commission) 2 EXPLANATORY MEMORANDUM At the G7 Summit in Cologne in June 1999, it was proposed that the initiative for heavily indebted poor countries agreed in 1996 be expanded to provide faster, deeper and broader external debt relief. The proposals were ratified at the World Bank and IMF annual meetings in Washington in September, and an ambitious set of political decisions was taken that closely linked poverty alleviation strategies, structural adjustment programmes and the debt reduction initiative. On 26 October 1999, the Commission adopted a communication addressing the issues raised by the enhancement of the HIPC initiative (COM(1999) 518). The ECOFIN Council of 8 November 1999 proposed that the Commission start negotiating with the ACP countries on the basis of a Community contribution of the order of magnitude of EUR 1 billion. The money was to cover, on the one hand, the Community’s contribution as creditor of the first ACP countries to qualify for the initiative (estimated at EUR 320-380 million), and on the other hand a contribution to the HIPC Trust Fund managed by the World Bank, which would be both sufficient and commensurate with a fair burden sharing between donors. The ACP countries gave their views in a meeting in Accra on 13 November between the ministerial Development Finance Cooperation Committee and the Commission. In particular, their agreement to the proposed approach was conditional on an immediate increase in the Structural Adjustment Facility of at least EUR 250 million. The Community contributions for the non-ACP countries would be financed, up to a maximum of EUR 54 million over 3 years, on the relevant budget lines. These contributions would b

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