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1. A precondition for granting the MFA Loan shall be that Ukraine continue to uphold and respect effective democratic mechanisms, including a multi-party parliamentary system and the rule of law, and to guarantee respect for human rights, including the rights of persons belonging to minorities.

2. The Commission services and the European External Action Service shall monitor the fulfilment of the precondition set out in paragraph 1, in particular before the instalment is released and tranches are disbursed, taking, as appropriate, duly into account the Commission’s regular enlargement report. The Commission shall take into account the relevant recommendations of international bodies, such as the Council of Europe and its Venice Commission, in that process. The Commission shall inform the Council of the fulfilment of the precondition set out in paragraph 1 before the instalment is released and before tranches are disbursed to Ukraine.

3. Paragraphs 1 and 2 of this Article shall apply in accordance with Decision 2010/427/EU.

4. The assessment referred to in paragraph 2 of this Article shall be conducted together with the assessment provided for in Article 5(2) of Regulation (EU) 2024/792.

5. Where the Commission finds that the precondition set out in paragraph 1 of this Article has not been met or is no longer met, it shall suspend disbursements of the MFA Loan and the release of non-repayable support under the Mechanism referred to in Article 8 as it pertains to the MFA Loan.