Article 3
1
The medium-term financial assistance facility may be implemented by the Council on the initiative of:
a
the Commission, acting pursuant to Article 119 of the Treaty in agreement with the Member State seeking Community financing;
b
a Member State experiencing, or seriously threatened with, difficulties as regards its balance of current payments or capital movements.
2
The Member State seeking medium-term financial assistance shall discuss with the Commission an assessment of its financial needs and submit a draft adjustment programme to the Commission and the Economic and Financial Committee. The Council, after examining the situation in the Member State concerned and the adjustment programme presented in support of its application, shall decide, as a rule during the same meeting:
a
whether to grant a loan or appropriate financing facility, its amount and its average duration;
b
the economic policy conditions attached to the medium-term financial assistance with a view to re-establishing or ensuring a sustainable balance of payments situation;
c
the techniques for disbursing the loan or financing facility, the release or drawing-down of which shall, as a rule, be by successive instalments, the release of each instalment being subject to verification of the results achieved in implementing the programme in terms of the objectives set.
Substituted by Council Regulation (EC) No 431/2009 of 18 May 2009 amending Regulation (EC) No 332/2002 establishing a facility providing medium-term financial assistance for Member States' balances of payments.