2008/784/EC: Council Decision of 2 October 2008 establishing a separate liability of Montenegro and reducing proportionately the liability of Serbia with regard to the long-term loans granted by the Community to the State Union of Serbia and Montenegro (formerly the Federal Republic of Yugoslavia) pursuant to Decisions 2001/549/EC and 2002/882/EC

• Articles: 4

Article 1

1.   Montenegro shall assume separate liability for the payments of principal and interest, as well as all and any costs and expenses related to the servicing of EUR 6 703 388,62 out of the Community long-term loans of in total EUR 280 million paid to the State Union of Serbia and Montenegro (the former Federal Republic of Yugoslavia) pursuant to Decisions 2001/549/EC and 2002/882/EC.

2.   To this end, the Commission is authorised to sign, after consultation of the Economic and Financial Committee, a separate loan agreement with the authorities of Montenegro for the amounts attributed to Montenegro and essentially on the terms and conditions set out in the:

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Loan Agreement of 17 September 2001 between the European Community and the Federal Republic of Yugoslavia,

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Loan Agreement of 13 December 2002 between the European Community and the Federal Republic of Yugoslavia,

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Supplemental Loan Agreement of 25 July 2003 between the European Community and State Union of Serbia and Montenegro, and

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Supplemental Loan Agreement of 7 April 2005 between the European Community and State Union of Serbia and Montenegro.

In particular, the interest rate and the due dates for payment of interest and repayment of principal shall be the same as those set out in the borrowing contracts annexed to the agreements referred to in this paragraph.

3.   This Decision does not entitle Montenegro to any additional disbursement of macro-financial assistance from the Community.

Article 2

1.   Upon the signature of the separate loan agreement between the Community and Montenegro referred to in Article 1(2), Serbia’s liabilities to the Community in its capacity of successor state to the State Union of Serbia and Montenegro shall be reduced accordingly.

2.   The Commission is authorised to conclude with Serbia arrangements to amend the existing loan agreements referred to in Article 1(2).

3.   This Decision does not entitle Serbia to any additional disbursement of macro-financial assistance from the Community.

Article 3

1.   All related costs and expenses incurred by the Community in concluding and carrying out the arrangements provided for by Article 1 shall be borne by Montenegro.

2.   All related costs and expenses incurred by the Community in concluding and carrying out the arrangements provided for by Article 2 shall be borne by Serbia.

Article 4

This Decision shall take effect on the third day following its publication in the Official Journal of the European Union .