Article 3
1. In order to implement the lending operation referred to in Article 2, the Commission is hereby empowered to borrow, on behalf of the Community, the necessary resources on the capital markets, after consultation of the Monetary Committee. 2. The Commission, after consultation of the Monetary Committee, shall be empowered to negotiate with the Israeli authorities the arrangements for payment of the loan and the accompanying terms and conditions in order to ensure that the use of the product of this loan corresponds to the objectives of this operation, intended to reduce the adverse consequences of the Gulf conflict. The product of the loan made available to Israel shall be paid to the National Bank of Israel and only for the purposes referred to in the first subparagraph. 3. The Commission liaising with the Israeli authorities and after consultation of the Monetary Committee shall establish the arrangements for payment of the interest-rate subsidy referred to in Article 2 (2) and take the necessary implementing measures. 4. The borrowing and lending operations referred to in paragraph 1 shall be carried out using the same value date and must not involve the Community in the transformation of maturities, exchange or interest-rate risks or any other commercial risk. 5. The Commission shall take the necessary steps, if Israel so wishes, for inclusion in the terms and conditions of the loan and possible application of an early repayment clause. 6. At the request of Israel, and where circumstances permit an improvement in the interest rate on the loan, the Commission may refinance all or part of its initial borrowings or restructure the corresponding financial terms. Refinancing or restructuring operations shall be carried out in accordance with the conditions set out in paragraph 4, and shall not have the effect of extending the average duration of the borrowings concerned or of increasing the amount of capital, expressed at the current exchange rate, outstanding at the date of these operations. 7. All costs incurred by the Community in concluding and executing the operation provided for in this Decision shall be borne by Israel. 8. The Monetary Committee shall be kept informed of the progress of the operations referred to in paragraphs 5 and 6.