Division Section 1

All amounts credited to the Special Action Account shall, in accordance with the EEC's requirements, be used by the administrator exclusively for the purpose of making Special Action Credits to low-income member countries of the Association with immediate needs, in particular among the least developed^f1 and the most seriously affected of the developing countries, whose prospects for development have been seriously curtailed by external factors and which are faced with general problems connected with the transfer of resources and which may, as a result thereof, be faced with debt service difficulties. In making such credits, the administrator shall, in accordance with the EEC's requirements, be guided by the following factors:

1. (i)

   the relative poverty of the developing country concerned and its long-term growth potential;

2. (ii)

   the extent to which the country concerned depends on official development assistance for its external capital resources;

3. (iii)

   the extent to which international economic factors contributed to the current and prospective economic problems of the country;

4. (iv)

   developments in and prospects for the country's export earnings;

5. (v)

   the capacity of the country to import goods essential to the development process;

6. (vi)

   the composition and the trend of the debt service obligations of the country and its capacity for any further borrowing upon non-concessional terms;

   and

7. (vii)

   the extent to which the problems of the countries concerned are likely to be met by contributions from other sources.