2.La loan application meets the criteria set out in paragraph 1 and, after the adoption of the Article 17 decision, paragraph 2, the Commission enters into a loan agreement with the Member State concerned. In addition to the elements defined in Article 220, paragraph 5 of the Financial Regulation, the loan agreement contains the following elements: in order to monitor the performance of the instrument defined by this Regulation in the achievement of its objectives, the Commission has identified some key performance indicators and will regularly collect relevant data. A number of indicators need to be defined, in agreement with the Member State concerned, at the level of individual recovery and resilience plans of member states; these indicators refer to appropriate microdata, which must be aggregated when needed, and other relevant data. The payment of the financial contribution is made following the completion of the steps and objectives agreed with the Member State concerned. This relevant data must be integrated into a specific monitoring instrument by Member State and policy area. 1.Before entering into a loan agreement with the Member State concerned, the Commission considers whether it is necessary: (28) to provide financial support to a Member State`s plan in the form of a loan, subject to the conclusion of a loan contract with the Commission on the basis of a duly reasoned request from the Member State concerned. Loans to support the implementation of national recovery and resilience plans should be granted at maturities that reflect the long-term nature of these expenditures. These maturities may differ from the maturities of the resources the EU borrows to finance loans on the capital markets. It is therefore possible to depart from the principle set out in Article 220, paragraph 2 of the Financial Settlement, that loan maturities for grants should not be converted. An unrelated facility is an agreement between a lender and a borrower, in which the lender agrees to provide short-term financing to the borrower.
This differs from a linked facility that contains clearly defined terms, established by the lender and imposed on the borrower. Unrelated facilities are used to finance the seasonal or temporary needs of businesses with variable incomes, for example. B creditors pay to earn commercial discounts, one-off or one-time transactions and the performance of wage obligations. For reasons of usefulness and in order to reach agreement as quickly as possible between the co-legislators, this draft regulation is based on the most recent text discussed by the co-legislators on the proposal to create a programme to support reforms 1, adopted by the Commission on 31 May 2018 as part of the Multi-Year Financial Framework (PSC) for the period 2021-2027. and makes appropriate changes to reflect the revised objectives and the appropriate delivery method of the new instrument. That is why this proposal replaces the Commission`s proposal for a programme of support for reform, which is being withdrawn. Therefore, the european Parliament and Council`s proposal for a regulation establishing a governance framework for the Convergence and Competitiveness Instrument for the Euro Area 2 is also withdrawn.