ACT No. I or 1991 AN ACT 10 pro~'idt for Malla's Membership of the European Bank fo r Reconstruction and [Hw!lopmmt BE IT ENACTED by the President , by and with the advice and consent of the House of R epresentative~. in Ihis present Parliament

(L.S.)

CENSU T ASONE

President

25th J;rnuary, 1991

ACT No. I or 1991

AN ACT 10 pro~'idt for Malla's Membership of the European Bank fo r

Reconstruction and [Hw!lopmmt

BE IT ENACTED by the President , by and with the advice and

consent of the House of R epresentative~. in Ihis present Parliament

assembled. and by the autlwrity of the same. as follows:-

Thi~ Act may be cited a~ the Malta MembeJ>hip of the SIoon,;ll.,

European Bank for Reconstruction and Development Act. 1991.

In this Act. unles!; the context othel""ise req uires-

""Bank"" means the European Ban k for Reronstruction and

Development

" Agreement" means the Agreement ~igned in Pari$ on the

29th May. 1990 establishingthe European Bank for Reconstruction

and Development . as set out in the Schedule tothis ACt, and forthe

purposes of sections 4 and 6 of this Act, as from time to time

amended;

" Minister" means the Minister responsible for finance.

J. In virtue of this Act. and in compliance with the provisions of "u,l>oriAtiDn

the Ratification of Treatie~ Act. 1983. the Government of Malta is lot oa:ewol !O

hereby authorised to ratify the Agreement.

(I) The re shall be paid out of the Consolidated Fund. on the Finaocjll

warrant of the Minister. all sums required for the purpose of making all 1"0";"""

pay ment;; required 10 be made from time IOlime under the provisions of membership.

the Agreement.

(2) Tile Min iSle r may. if he . hinks fil. "rcate ~ n.J Mue. or

tlir~ct Ihe CCnlral l3an~ "f Malla (as the depository fo r thcc;o..'crnmc nI

"f Mallil for the purposc~ of Article 34 ofi he Agrcemc:nl) to ereal" and

;"''''C", to the Bank non-inter"'SI hearing and oon-...,gOliablc: 001(:$ or

(,. h~r obligJlions as arc pnl"idcd ro, hy Ar,idc 6(2) of the Agreen,,,nl

"nd the sums pa)'ahlc under such nOlCS Or obligalions "" crea ted and

i, .. u~d shall be a charge Oil the Co"wlidatc<i Fund

I' ro"idcd Iha!. where the Mini •• ". has directed Ihe Ccn lral

13;0111. uf Maha 10 ercnl" and issue notes or other obligations as :,fnr<:,;uid.

Ih." ,\ Iinistcr sh all also und<: rla kc to repay to Ihe Ccmralllank of ~f3lt a

"!Ch amounl or amounts of root"S or OIher obligations as may be ca lkd

rn, payment by the Bank. such repaymcms to be made as 5<lOn as

I"",ibl." and in no ClIiC later Ihan a month after the date of payment tQ

th .. Blink : and in rCSfJCCt of ony such pa)"mcnl all repapl1cnts due as

"fmc'said shall be a ~hargc on the Consolida ted Fund and the sums

r~'lu;r~d for such repayments are hereby appropriated for that purpo!ioC.

Any in~'O",c or other sums allocated and distributed \0

(3)

th .. G,,,"~rnm<'nt of MHh a. Or to th ... Central Bank of Malta. from the

B""k 11)' "irtue of th~ Sut>scriplion by t.lalta to th~ sbares of the capital

,t<ld Ih~r~of sha ll he p~id into Ihe Consolidated Fund.

c ....... ___

S.

The provisions o f Articles.15 to 53 inclusive of Ihe Agreement

t!.:7"" _hall ha'-e the force of I~w in Malta. SO however . that nothing in ,\Tlide

1 uf Ihe Agreemenl shall he con$trued as enlilling the Bank 10 imporl

!:!uods free of ~IIStomS duty ... ·ithotJtany restriction on their $1Ib>cqu Cnt

,_:tic in /o.l al to .

The Minister may by order make such provisions as ar~

Ii.

necessary for car!)'ing into effect any of the pro,·is;""" of the Agree·

m~nt_

Shares of stock shall no t be pledged or enc\rOlbered In

any .. ""ner what soever. and t hey Sh 811 not be trMl sferable eKcept

to the B"" k in a ccordance wi th Chftpt"r VII of thh Ag r eement .

A ,

The Schedule 10 thi, Act shall be in the English language only.

ilnd such text shall apply also to the Mahe .... text of the Act,

A ,

SC H ED U LE

(Section 2)

ACAF.EIttfIT ES'TABl I SUINCI

TIlE ElJIIOPEAN BM'X F'OA REaJf;S'mI/CT I OH

AND DEVELOPMENT

Coe. ltte d to the rund ... " "tel pri nciples o f eultipe .. t,)'

deeo(:rft c )' , th e rule o f la", ~"3peCt f ot" hu."" dCllte ....t •• rke t

"cono.l""

nee elllne the Final Act o f the Helsink i Con f " r ence on

Security and CoolHllret1on In Eu rope . and I n pe r Ucuh .. H "

DechrllttO<1 on Principle.

Weleo.lng the Intent o f Cent ..... l """ EA"te rn European

CDuntrl,,~

t o f urthe r the prac ti ca l l"pleaentatlon o f .... ltJp.rty

d C!-o<:racy. It .. e"I'then inll" deM>C rll t!c Ins titu ti ons . the ruh o f la"

and resJ)e'Ct for h"eM r l l'hts and thelr .. UlIngn .... to hp luen t

r" ro ..... , In orde r to evo l ve towards • • rket-or l ented 8cono"le.

Constderinp; the teportance o f d os.. Md coordinated

cooper. tlon In ord" .. to pro-o te the eeonOlllc progr" .. of Ce nt .. el

E ... tern European countries t o he lp th ei r econo e i 81 beca • •

And

aGre internationally ca-pe UUve and assist the- i n th eir

reconstr uct i Ol'l

!lid develop.ent !lid

thus

to

r toduce,

"here

apprOpriate.

!IIy risks r eh t e d to

the

fin!llc i ng o f

t heir

econOOlies 1

Convinced

that

tha

es t a bltsh Olent

of

a

.ultl1et.rel

f ln!llc:la l inltitution which 15 Europf!!II in it s bastc charact.r IlIld

broadly International i n It. .ellber5h1 p would help ,erve th ....

e nds and wou ld co nstitute a new and un1'1U. ItM.lctUNI o f

COOpe rati o n in Europe ;

nave ag reed t o e . tablhh he reby the Eu rope ... n a.nJ< f o r

necons truction ""d Dttveiop.enl (here i nafter called • the 90l'Il<" )

wh ic h sh all oper at" i n a cco rdllllc l! .. Hh the f ollow i n g ,

Ch.pl~"

PURPOSE, rtItICTtONS AND KDGERSIII P

Article 1

In contr i buting to aco".".,1<; pI"OIr,," ."d r econstruction,

the purpose o f tll" BllIIk .h"ll be to roner the tr&nsi ti en t<>verd"

• • r k et o rJ. ~ted e<:onotIles and to proeote pr i vete .,.,d

o~n

ent .. epnmeurlal ini t iative in the Cent ... l and Ea.tern European

countriu <:o-elttPd t o and .pplying the principles o f aultlp"rt)'

d"eoc r ac), . "lu .. "11",, &/'Id .... kat econoa l ca.

Ar Ucle 2

f'1JHCT IONS

1. To f ulUl on .. l ong-te'" buts t u purpose of foatering

trane l tlo n of Central and Eastern Europe." count ri es t ov"ni.

tl>e

open ."net-oriented " " ....... , ... and t .... p ro-oUon o f p r i v e te and

ent r epreneu rial initiative. the Bank shell .. ,ilt the recipient

to lapi,,"nt strocturd and ."ctorel econOllJ<

-eaber countries

.. "ror....

including

d"aon.opol1 zlItion.

de ce ntralization

and

privath.ti o n. to help their IIcono"tu beCO" fully integrated

into th" Intemll. t1 onlll II<:onOllY by .e"surea

(1) to pTOClote.

th ....... 'h prlnt" and other interuted

inv .. s t o r a.

the ntablhhaent .

hpf"O\l..aen t

and expansion o f

productive . .:o.petIU ve and pri va te sector ettivity . in partttul"r

•• ,,11 and -.d I u. sized .. nt .. rprl, ... ;

.: apital

to mobiliz .. do ... sti.: and fordrn

(11)

.. ~ p .. rl .. nc .. d .anagement to the end des.:r l bed ln (1)

(111) to r o.ter produ.:Uve I nvu t .ent. l ndudlnl\" 1n th •

... .."Ice and rlnanc1al s .. c tou. and I n relsted Infustn;c t ur. "here

is nec .. uery t o ,uppor t

and entrepr .. n .. urial

that

pri vate

in itiati v .. , ther .. by asshti nc in .alt:1nC " cOllpetlt1v" "nv l ron •• nt

and ralsln, produ.: t l vlty. th .. Itand .. rd of 11 v1n. and condition, of

labour

(1v) t o provid" t .. thnlc al "uistanc e f or the prep"r"t1on,

finan cin !!, and i.ple."nt.Uon or relevant p ro J"cts,

wheth.r

Indivlduel Or In the con text o f "pec1f1c I nveltaent p r o.r . .. ..

t o I U .ulate and e n cou u . .. the d.v.lope .. n t of capf Ul

(v)

.arket.

(vi) to .ive ,u!,po r t t o sound and .. conoll l c .. 11 y

v ll b l ..

proj .. ctl lnvo l v l n. mora t han onl reci pJ "n t .... b .. r .:oun t ry

1t~

(v11) to

pTOIIote

in th" f u ll r an.e o f

".:t1vttiel

~d

env i ron .... ntall y sound and lu,utnabl" d .. velQf1l1ent

(vU!) to 1,1nd"rtllc. ,"ch oth .. r . ctivIU .. and p r ov Jde .uch

o t her .eTV1c . . . . . ay rurth.r thes .. r unctlon".

A

2 . In <: "" ",),1"1 out the func tion. referred to In p .. r"creph 1

o f tl>l " Ar tic l e. the Bank " hall work In cIa . .. <;oope ratlon wi th .11

it1 .... ben and. In . uc h ........... liS It .ey dee- epPl"Opriete within

tl>" le .... o f thl" AlrH ..... t . "Hh the Inte ..... tion al Mo netary Fund ,

the I ntern"t l on al Bank f or Re<:onstnJction and ~" .. lop .. ent. the

Internat l ond Ft"""ce Corporation, the Multlht e ral In,,,,u..,nt

(lu"ran t ,.., "Ienc)"

and the 0"Ian I511.t l on for EconOll l c Cooperation

and s hdl coopet'llt .. with th" United lIeUo ne and

and DevelOp.ent,

Its Speci"ll,,,d "Ienc l ... and othe r .. "lated hod!" •• and any "ntlty,

" he the .. public or private, concerned .. Hh th" e<:onOlll c de",e lOfJOlent

of . and Invest "ent In . Ce ntral and East e .. n European <:ount rie ••

Article )

IIDIIlfJISlllP

I . Meeber.hlp In the D .... k "h .. ll be Open

(0 to (1) European countries and 1.2 ) n.on - European

count r l"s whi ch .. r . __ ben o f the InternaU onal Moneta~)' Fund

~,

(11) t o the European Eco n.,.lc Com .. unity

and the

European Invest.ent !lank.

2. Count ~i e. ellslble fo ~ .e.,be ~5hlp unde r pa~"gr" ph 1 o f

thi s A~t icle. wh ich do not bec~e .. ".,beu in a ccord ance .. ith

Article 61 o f th is A,~eellent. lily be IdTIIHted. under such teres

and conditions It S the Ban k .ay de te~.,.lne . to .e.benhl p in tile

Bnnk upon the .rf l rll ~tlve vote o f not l ess than two-thi rd , o f the

Governor • . rep re sent i ns not le .. than th ree- r ourth. o r the t o tal

voting power o f the . e.bers .

Chapter 11

CAP ITAL

Article .1\

AUTlIOR IZED CAPITAL STOCK

L The ori g inal a u tho rhed c apital stock s hell be ten

t hou.llnd sUBon (1 0.000. 000 .000) EGU. It shall be tUvlded I nto

one a lll10n ( 1 .000.000 ) . hare • . h . v in g a pa~ v.lu e o r ten thousand

(10.000) [cU n Ch . wh i ch sh.ll bit a vaUable f o r subacripUon on ly

by ...... bers in ac cordance wit h the provl s lona o f Arti c l e 5 o f this

Agreellent .

2. the o r Iginal cap i tal .tock shall be d iv Ide d Into paid-in

shares and call"ble share •. The Int tlal tota l aggregate par v .lue

o r paid-in sh a re s Ih all be three thousand .1111on (3. 000.000.000 )

"'" .

3. The au thorhed capltal stoc k .ay be Increased at l uch

t lae and unde~ luch le . . . . . . . a)' . ..... advisab le. by " vo te o f oo t

I .... than two-third. o f the Governo r •. repres .. n ti n g no t le •• than

th ree- f ou rths o r the t ot.1 vot log POW" " o f the ... .,bers.

A

,

Article 5

SUBSCRIPTION or SHARES

1. Each .. ""ber shllll 5ub~crlbo! to ~h"r" g o f the "apltd

s t ock of the Bank, subjec t t o fulfll .. "nt of the lIuber's 10'11"81

r e 'lUlre llent! . Each subscriP tion to the original authorlu.d "apital

stock shall be f o r paid-in shares and cal hble Shares in the

properUon o f three 0) to se v"n (7). The initial numb" .. of sh ll nos

.. " .. nable t o be subscribed to by Signatories to th is Agreeae nt

which bee.,.,e .... .,bers In lIccordance "ith Article 61 of this

Agree Dent shall be th8t s et forth in Annex A. No lIe .. ber s hell have

"" inHiII.l subscription of 1",." th"" one hur>dred (100) ah .. res .

Z. The inithI n""ber of shares to be su bscribed to by

coun trie s which 11 .. " eddtte d t o ." .. bers h1" in IIcco rdance with

pBrll grsph Z of Article 3 of this Agree."nt shllll be determined by

the BOllrd of Governors

provided. however . th"t no such

subscri pti on s hd l be authorized whic h would have the effect of

r e ducin g the percents ge of cepiUI s t oc k he ld by countries whi ch

"re .. e~bers o f the Europeen Eco"otIJc Couu nity. t o gethe r with the

Europeoll Econo .. ic Co .... unity ""d the Europ"Ml l"v"st~e"t B!lnk,

below the ~eJo rHy of the t ot al s ubscribed c"pHd stock .

3. The Board of Gove rnor s shall at Intervels o f not .ore

thMl flv" (5) y" .. rs r eview the capital s t ock o f the BMlk . In c ase

o f !In Increase in t he authoriz ed capit al stock. esch be libe l' sh all

h a "e a r e as o nabl e opportun ity to sub s c ribe . und e r such unHoI'1ll

t " r ... and conditions ft S th e BO!l rd o f Gove rnors s hall de teulne. to

" proportion of the Incre"s" i n stock equivalent t o the proportion

wh ich Its stoc k sub s c ri be d be"r" to the t o ts l subs cribed cepiUl

s tock h ""ed l .. tely prior to such Jnc r e u e. No .ellbe r shall be

obli ged to s ubsc r ibe to any p .. rt of an ! nc r eas e o f capital s tock.

~ .

Subj " c t to th e provhions of p"r~gr .. ph 3 of thh

Articl e . the Bosrd of Governo rs lIay. a t th e r e quest o f 11 .. ember.

!ncreese the subscri pti on o f th" t me .. be r. or allocate "h"r"" t o

that 1I" .. ber wit hin th" "uthorized capital stock whi ch ar" not

token up by oth"r .. e"bers ; prov i d"d. howe ve r. that such incre .. se

sh811 not h8ve th e ef fec t of r " ductng the percentsge of cap itd

stoc k held by ~ountries whi ~h ar" ~e .. bers of the European lcono.,!c

COII. Unity . togethe r "I th the European Econo.,ic Co .... unity and the

European Invest .. en t Bank. below the .. s jority of the totd

subscribed capi t sl stock.

5. Shares o f stock Initls ll y subsc ribed t o by .,e .. bers shall

be issue d a t par . Other shares shall be issued a t pa r unless the

Bosrd o f Governors . by a vo te o f not less than two· thirds of the

Governors. representing not l e ss than two-third s o f the to t sl

vottng powe r of the lIIellbers . decid es to issue thelll in sp@chl

ci r cUllstanc es o n other terms.

6. Shares of stock shall no t be pledged or enc\rOlbered In

any .. ""ner what soever. and t hey Sh 811 not be trMl sferable eKcept

to the B"" k in a ccordance wi th Chftpt"r VII of thh Ag r eement .

A ,

7. The liability o f the e"bers on sh"res shall be Ih1ted

to the u"plltd portion of their tnlle pri c e. 1'10 le-bel' .hall be

liable. by reason of Its le.bershlp, (or ohlll_tions of the Bank.

Artide 6

PAYMENT or SUBSCRIPTIONS

1. PS)'D"nt of th .. ""Id-in sharea of the asount inlHally

subscribed to by each $lsnlltory to till. Alreeaent. whfch beco.es •

~lIIber in accordance wHh ArU cle 61 of this Alree-ent. sha ll be

lade In five IS) instal.ent. of t~nty (20) per cent each of such

.... ount. The first instlll.en t .1111.11 be "lid by .. "ch a@lber .. ithin

shty (60) days

after tile dale of th .. entry Into force of thh

.rt" .. the date of depOlit of its instruaent of

Al reeaent, o r

ratl rt cnlon. accep tance or approval in accordanc e w'th "rtiele

61, if tht, letter Is later than th" date of the entry fnto (o~ ...

(~)

Instal-ents Ihall "'"ch beea.", due

The <'"ulnl"« four

succentvely one yu.. f<'Oll the date on which th.. pN!cedins-

lnstd ... nt bec,,", due Ilnd shall uch. subject to the les- ishUve

r'"'<!ul ....... nts of .... c h _.ber . b .. p .. ld.

2. FHty {50) per cent o f p .. y ... nt of .... ch in~tal.ent

pursU3l1t t o par/lgrnph 1 of this Article, Or by " .... .,ber "d.it~ed

in accordMCe with par"gr"ph 2 o f Artl e l e 1 o f thi,. A,:r ....... nt .

",.y be .~dfl in p<'Oll lssory not ..... Or othe .. oblig .. Uons issued by

such ... mber and d .. no.in .. ted in ECU . in United Stat .. s dollars 0" in

Japanes .. ~en. to be drawn down a s the Bank needs funds fo ..

disburse.ent .. s a r .. sul t of its operations. Such note. 0 ..

ob ligat ions shall be non-negoUab le. non-inte .... st-beadng and

pa~able to the Bank at pBr value upon d .... and. Oeallnds upon such

no t .. s o r Obllgationl shall. over reuonablll pedods of tille . be

.ade so that th .. vdue of s uch dc-and, in ECU at th" till" of

de_snd r<'Oll n c h .ellber is proportional to the nu_be .. of paid-In

sh"re, .ubae ribed to and h .. ld by each such eeebe .. depositing such

not .. s o r Obli."tionl.

3. All pey.ent obligations of a .... be .. In ..... p .. ct o f

shues:ln the {nHial capital stock shall be

subsc .. lption to

s .. ttled eithe .. :In ECIl . :In United States dolla .. s 0 .. in Japanese ~en

on the basis o f th .. av .... ag" .. "chang" rat .. o f the relevant curr .. ncy

in te n. o f th .. [eU f or th .. pedod fro. 30 SeptelOber 1989 t o 31

Marc h 1990 inclusive.

~. Payaent of th .. ...aunt subSCribed to th .. call able caplUI

s t ock of the Bank .hell be subject to c flll. t&king accOW'Ot of

Articles 17 and ~2 o f this Ag~ ... nt. OI\ly U &rid when .. '"'<!ulN!d

by the Bank to .eet tta Uab:llHil'S.

5. In th e event o r a call N!ferred to in pueg ~aph 4 of

this Artlcl ... pey.ent shall be ud .. by the .ellber :In EeU, in

Jepan .. se yen. Such calls shsn be

Un ited S ta tu doll us or in

uniro", In EClI value upon .. ach callable ! ha .... calculated et the

till" o f th .. c RIl .

,\

6. The Bftnk sh~l l deter-ine the pl~ce for any payment unde r

thl~ ~rticle

not later thftn One .onth after the inaUlUral -eetln«

of

of

provided

that ,

be f ore

.uch

it,.

Bo .. n!

Gov"rnor~,

dete ... ln~t1on, the p~ y ... nt of the fint In"tal_ent r eferred to i n

par~,r .. ph

1 o f this ~rtlcl" sh~l l be .ade to the European

In"e~t ... nt Bftnk, a s trunee for the Bank.

7. For .ubserlp tlons oth".. thftn thOle dnedbed in

para,raphs 1. Z and J of this "nleie, pa.)'toenu by I .... ber In

re s pect o f subst rlptlon to pdd-In "hHrea In t he autl>orhed

eepltal .toc k "h.ll be .ade In £CU, In United States dol l.r. or In

Japftnese yen whether I n cash Or In p<""Oll1l10r), I>Ote. o r in ott>er

obH,atlon~ .

For the purpos"s of thh ~rtl c le , pa~ent or

denOlllnat1on In ECU shall Includ" payaent or d ........ lnation In any

fully convertible cu rr"ncy which Is ",!ulva len t on the date of

pay.ent o r encashaent to the va l ue o r th" .... levftnt obU,ation I n

=.

"rUcle 7

OfUllNARY CAPIT"L RESOIIJICES

"J used In thts "I;reeDent, the ter.. -ordln.ry c.pl tal

re"ources~

of the Bank shall Include the followln«

( I) authorl.ed capital s tock o f th .. Bank, Includln,

both ,..Id-in ftnd call .. ble shares, subscdbed to pur.uant to

"rtlcle 5 o f this "«reeaent

(11) f unds raised by borrow!n,s o f the Bank by

"I r t~ o f pow" r ,. conf"rred by '"ubp. r . g .... ph (t) o f Article 20 o f

this AB re-elllCnt, t o which the cOII.,lt .. en t to cells p.-oyided for I n

per.,raph 4 or "rtlcle 6 o f this A,ree.ent I. applicable

(ut) fund s received in repey .. ent of 10lllls or

,,'~rlllltees

Illld proceed s from the disposal of equity inyest.ent

.ade with the resources Indi ca ted in sub-pera,reph. (1) ftnd (Ill

o f thlll Article

(IY~

derl~

Incolle

fro..

loftna

and

",!uity

Inve~t. e "t.

lIade fro. the reSourCes Indi cBted in Bub- para, raphll

(I) fttld (11) of thl. Article, and incoooe deri,·ed f...,. I(USrMtees

ftnd und~rwdt1nl!" not for .. lnl!" part of the special ope rati ons o f the

Blink : Md

(y) ftny other funds o r Inco .. e N!celved by the !ank

which do not for .. part o f Its Special Fund. N!sourCel re f erred to

in Arti cle 19 o f th18 A,ree.ent.

A

"

OPERATIONS

Article 6

or RESOURCES

RECIPIEtfT COUNTRIES AND US E

I. The ",sou r ces and hciliU es o f the Bank shall be used

exclusively t o h,p lellent tke purpose an d carry out the func tions

set forth . respectively. in Articles 1 and 2 of th is Ag [," ""t.

2. The Sank lIey conduct its operlltions in cQuntries froll

Cen t ral and Eas t e rn Europe whi c h 01 .. " proceeding ste adUy ln the

t r""slUon tov"rd!l 1I .... ket orien t ed e(:ono.iu and the proeotion o f

privII.te and ent .... preneurll1l inith.t1ve. anel .. M et>. apply. by

conc .... t e steps and othe .... ls" . the prin ciples •• •• t f o rth in

Article 1 of thi s Agree..,nt.

':I'S'" ..

3. I n

he .... " _ ... _ber 81ght be t aplellenti nl!" po li Ci es

which lire inconsistent .. hI> Ar U cle 1 o f this Alreeaent, o r in

,,"ceptional eire ... s tance .. . thl! Board o f Directors "h all cons ide ..

whether accen by 11 lI ... aber to Slink r esou r ce s s hould be lIuspend"d

Or othe noise aod tfied and .ay .pe r.COII.endat1on~ .ccordingly to

the Board o f Governo r s. Any deddon on the~" .att"r, ,hd l be

taken by the Board o f Go"ernor~ by • • ,jor1 ty of not 1."" th.,.

two-thtrds o f the Governo rs. representing not le .. th"" th r ee-

four th s o f the tot"l vo tt ng power of the .... ber •.

~.

(11 My potential recipient country . ay requnt that

the Bank provide accesS to its resources for Haited purpose, over

a period of thr .... 131 yeus t.o.ginning aft er the ent r y into f o r ce

o f this Agree ... nt. Any such request ,hall be attached as ....

inte,rd pa r t of this "Aree-ent as soon as it i • • ade.

(if I Du ri ng s uc h a period

(al th" Bank shall prov i de t o ~uch • country,

and to enterprises In it. territo ry, upon the i r r equest , t echnic,l

ns!stance and o ther types of usistance dlreeted to rt nance i ts

private sector. t o f ec1 l1 tete the transition o f nate-OWM!d

enterprises to privete ownership and control, and to help

en terpri ses Ope rating coape titi ve iy and .ov t n, to parti c ipati o n in

the . uket o ri en t e d e<:onoooy , sub j ect t o the propo r tion n t f o rth

in pa r ag r aph 3 o f Article 11 o f this Agree,ent

(bl the t ota l uount o f any usl"tan-;e thul

prov i ded Shllll not exceed the t o tal &ItOIII\t o f cash dhburaed and

proe1ssory notes i ... ued by that count ry f or i ta .. ha .... a.

( 11il At the end of this pe r iod. the decll i on t o

all ...... " ch a coun try a ccen beyond the natt s spec ifi ed 1n "ub-

pu .. g .... ph . (a) and (b ) s hall be taken by the Bo .. n! o f Governor .

by a a"jo rH y o f not l e s s thM three- f ou rths o f the Governor.

r e presenting no t less t h"" ei",hty-five (851 pe r cent o f the toul

vo ting power of t he ,eabers.

A

ArUd e 9

OfIll I HAAY AllO Si"EClAL OPERATIONS

The ope r ation' Of the Bank shall consist o f ordina r y

operlltions rinanced r ...,. the o rdinary c apital U.D\lrce. or the

Banlc referred to in Ar t Id . 7 of thi. A,ree."nt and .pecia l

operlltion. rtnllnce d r ..... the Sp.cial Funds re.ource. referred t o

In Artl cl" to) of this A,r""II"nt. The twtl tyPOl~ of operat i on. lIay

be COllbined .

Ar t 1<' h

S£J>AIVITlOH or OPERATIONS

1 . The ontinary capUIII r e.ou r ce. and the SJ>II"Ctd Fund.

r-e.ources o f the Bank IIhllll lit dl U .... and In 1111 re.pecta be

held. uSed . coellltted. in"",st'l'd or othe~1se dillPOsed o f enUrely

sepllrately frOll e .. ch other. rh" f inancial IIt ll tellentll of th .. Bank

shllll .how the re"erve. of the Bank. to,,,t he r with it, o r dinary

oper.t10ns, and. sep" r "t"ly , It, SPOlc1al OPOlra tlon •.

2. n", ordinary capital resourCes o f the B&nk ~hllll under

no c !rcuntances be cha r t'l'd with. Or u.'I'd to di.charge. l one. o r

HabUit le. arhint out of spechl operations Or o th"r a ctJv ttiu

f or whi ch Special Funds reaoul"Cel we r e orllf1na11y u l'l'd o r

cOlllllned.

J. E><pensell apper t ain!nr direct l y to ordinary ope rati ons

shdl be ch a rred to the ordinary capital reSOUrCeS o f the Bank.

Expenses Ippertainin, directly to spec h l operations .hall be

charged t o Special Fund s reSOurCe •. Any oth"r e " pense, .hall ,

subject to paragraph 1 of ArtIcle 18 o f th i s Agre eaent. be charted

as the Blink shall determ i ne.

Artic le 11

MEJ1IODS or oPOtAT I OH

J. The Bank shl1 carry out its ope rati on. in furthe r anc"

o f tta purpOle and

f unctiona as set DIlt in Articles I and 2 o r

this Ag re.,."nt in any o r all o r the r ol l owing ways

by lIaking.

or

co ti nanclng

together wit h

(I)

lIultiJaterll.\ Institutions . cOal .. ercial b link. Or oth er int.ern ted

sources . 01' p art t cipatlnlf tn, loans to p r ivate .ector en t e r p r ises,

lo~n. to any Slate-owned en terp ri." operatlnS comp"t!tlvely and

moving to part i cipation i n the market o r iented economy, and loanl

to any state - owned entel"flrlse to facilitat e its trandtion t o

prtvate o_erlhip and

control; in particular to facilltSle Or

enhance the p artiCipation of private and/o r forel", capite! In

such enterprise.

A

"

(11)

,.)

by I nvestaent In the equity ( .pital of

pr i va te secto r enterpr i se s

(bl by Invell ... "t ln the equity e ~p1t1ll o f

MY s tDl,, - owne <l enterpri s e operftt ln g competi ti vely Md IOOvln& t o

p .... t l<: lp~tl on In the ./lr k" t o rient e d e cOfIOII)" and I nve.tlen t I n

the "'lUny cnplt ll l o f any I tll te-ovned enterprhe t o 'ac lllt"t .. it s

trllnsl tt on 10 pri vate _"raMp AI'" "ont r ol

I n parti cu l a .. t o

r"cll1U u. o r "nh"...,,, the partldpatlon o f pd " .te ..... d/ot' f orel&"

e, plt s l In s uch enterprl . ". ; and

( e ) by und" .... dUnl!". ..h" .. " other ."MS of

rin llnC ln, nre not appropriate. the equity I ...... of sec;urlU ... by

bot h rrivale .ec t o r e nte rprise. and such .t.te-owned IInterp r h".

r e r e rred

to In

(bl

a bove r o r

t he ends -entJooed In that sub-

pllregreph

to d o.n Uc

(H I )

by

rac llltaUnl IIcteu

and

Int"mll l l on"\ e8 pl tl l ..... kets by p d""t .. I""to r enterpriRes or by

o the r en~erl'rhes r e r " rrl!'d t o in subpllrllllrsph (1) o f thll

pllugrllph f o r ~he end~ .en H oned In thllt a ubpllragra ph, throullh the

I' .. ov l don o f gull .. ""tees, where o ther 8e ... ,s o f Un""cl n« are not

1I1'proprlllte, ""d t h rough nnMc ld advi c e ""d other f orlD!! o f

auht""c e ;

by

Funds

~ep l oy lng

S~dal

(iv)

nccordllnce with the agree.ents de t e ... lnlnll t hei r Us"

(v)

by . &klng o r

pnrticJpaHng in 10 """ and

providing

t "c hnic d

lI!1sl5tllnce

for

the

reconstruction

or

de"e l oplD!!nt

of

I n frn t Mlc ture,

I ncl ud ln«

envIron.entd

pl"Ogrll_S, necessnry f o r pri vate s ec t or deve !opllent Md t he

trllns lt ion lo a .1Irket·oden~e-d ecOflOllY,

for

the

p u r pose!! of

tt.i!!

p .. ragr .. ph,

a

s t a te· owned

en t erp ri se !! hAII not be r ell:lIrded li S opers t l nll: cOllpe titi vely unless

It OperAtes lIutono-oudy In 11 eOllpetitlve .srk" t "nviron.ent and

unless It Is 5ubJ"c t to bankMlptey 11".,

(1) n o" BOllrd o f DI""ctors . hllll review st l osst

2,

Annually the Blink'. operstl ons and l e ndIng strate .. y in ellc h

recipient c<>untry to en~Ure th/lt t he purpose and t h e f unc ti ons o f

the Bnnk, "" set out In ArtJclell I and 2 o f t hb Al f'f!eMm t , sre

f ully served, Any d ec ision pUUU""l to suc h /I r evIew sha ll be

tnken by 11 II II Jority o f not le's th Dn two· thi rds or the Di rectors,

representing not leu t hBn

three· fourths of the t otd " otin«

<>OVf! r o f the lIe.be n ,

( 11) The sll ld rev i ew sh a l l I nvo l ve the considerstion

o r,

1 .. lcr r o!f", e nc h recJplent coun try 's p rogren lIade o n

decentrllll'!ltion, dellonopol in th", and pri vll ths tion

and

the

r e lallve s hore!! o r the Bank' , lendlns t o pri vll te enterp ri se"

to

sute·ow"e<I

ente r prises

In

the

pr oceu

or

transitIon

to

pa r t i c ip at i on In the .~rket·o rl en ted ~OIlOIDy or p ri vatizat i on , r o r

I n frs ~truc tu re, f o r tcrchnlc, l us ht ... ,ce, end r o r other purpo8es,

A

"

).

(11 Hot 110"' th"" for ty 1_0) per c e nt o f the aaount

""t",,&

and ~ulty

o f the B""k ' . t o tsl eo..1tted 10 ...... ru_ ..

Inv .. 9tllents. ", Ithou t prej ud i ce to tu ot"" .. oper.U ona ... f e .... ed CD

I n thh AHld .. , s hell be I)rovld"d to t he atate lec t or, Such

pe rc~t"le

lislt s"el1 apply 1nltially Qve .. 11 t ... " (2) y ..... period,

r roe th" date o f co.-encellel'lt o f the Bank'" operll.t1ona , tal< lnl o ne

yea .. .. 1th another, III>d there.fte .. 1n re,peet o f u c h subsequent

Unanch l yeer.

(H) Fo!" any coun try, no t -ore t han f o rty (110) per

cent of the amount of th" Bank', total coa-Itt"d l oan •• fUerantees

and equity In~.t . .. nt. ove .. 11 period of flvlI (S) yea .. a . taking on ..

ye ... wi th &nOth"r , atKI withou t prejudIce to the Bank'. oth"r

OPf'r.t1ona ref"rred to I n this Article, sh.ll be prodded to the

atll te aecto r.

UH) _For the purposes of th h

pUllluph ,

( e ) the I tate sec t o .. includea nationlll

their allJ:endu. and enterp .. h... owned

l oed

, ov"...,lIenU.

contro ll ed by any of tt.e.

(b' a loan o r IIJ:UBrant.... to, 0 .. equity

l nv"u • • mt I n. a a tat a-owned e n ter-pdse wh i c h 15 i. p l"."nting a

prog r ..... e to achi e ... e pri vate ownership and con trol aha ll not be

cont id ered at aada t o the I lata tec t a ..

(e) l oans t o a financ ial int" ..... l1ary for

onlend i"3 to the pri ... a te lee tor thllll not b<I considered u aade to

t he .ute aecto ...

Article 12

LIMITATI ONS ON ORD iNARY OP ERATIONS

I.

The

t o tal

a.oun t

of

outl t anding

l oana .

equity

invest •• mtl and lIJ:Ua .. anteel .ade by the Bank in ita o rdina ry

ope .. a ti on. t hall not be i ncreased at any ti.e. i f by auch increate

the t otal • ..,un t of H, uni.paired .ub,crJbed c.pit. l. res erve.

and turp lusea included in Ha o rdinary capital retou .. c ... would be

eJ<ceeded.

2. Tha ftJOOtlnt pf any aqu Hy t nveataent ,hllll not nor .. ally

e J<ceed auch pe .. cen ta,e of the equity Clpit.l o f the enterprise

concerned as shdl be deta ... ined, by • I"ne .. a! ru l e, to be

appropri.te by t he Board o f Di rectors. Tha Bank shsll not seek to

ob t.in by such an in ... e.ttllen t a cont ro ll ing intere st i n the

enterp .. lse concerned and sh.ll not e " ., r che such cont r ol o r IIQsuee

dl~t responllbllHy f o r .ana,ing any entarpr1se i n whi ch it hu

an in ... en.ent. e" c"pt 1n the event of a c t u al o r thre.tened de fault

on any of H, inves tll"ntl, . c tual 0 .. threatened Inlloh'ency o f the

en terpri se in whi ch such investaent shall h . ... a been .~e. 0 .. othe ..

li tuations .. h l ch. In the o pinion of the B""k . th re aten t o

Jeopardh e luch invest_ent. In whi ch c ,,,e th" Bank .ay take such

.ction and eJ<ercise such r1lhts u i t .ay d" ". nece . .... y f o .. th ..

pro t ection or lts i nterests.

A

IS

]. The ... oun t or th " a&nk's di s bursed equity i nvel t'en t .

,hel l no t et any tts" I!~CI!~ an amount corr"sPOndl"S to its total

""I_pai red pdd-ln .u\>.cr1~ "apital , surplus". and , ene .. lll

... I.I'V".

_ . The Bank ~h.ll not b.ue KUarantees f or . " POr t e r.,diU

no r undertake insurance acti v iUes.

Arti c h

OPERATl NO PRINCIPLES

in accord""" . . . ith ch rollowinS

The Bank shdl ope rate

pri nc iples

the Bank shall apply sound bankins princi pl es

( 1)

to III it. operations ;

(H) the ope rations o r t he lIank III .. U p rovid e fo r

the flnancinl o f speci fi c proJe<:t", " hethe .. , indi vidual or In the

and tor te"hni ce l

COllt " " t o f specific Invest_nt p rol r _ s ,

lIuhtan"" . de si gned to f ul fll it, pu r PO'. and func tions . . let

out In Ar ti cle. 1 and 2 of this "I reelen t ;

(Hi) the 9&nk s hell not fl nan"e any undenakt n« In

the

territo ry

of " aellber I t that .... ber ob j ects to such

H nancl".

(Iv) the Bank sh "l1 not .1Iow • dJ.proportionat.

a.ount of itl re sources to be us ed for tile benefit o f any _be r ;

(v) the Bank s ll&1 1 seek

to

lIatnte1n

reasonable

d1 verll fl ca t1on 1n all its 1nves tgen ts

('If ) before a loan. gusrtllltee o r equity ln vu tg ent

Js granted. tile applicant 511811 lIave sublDit led an adequate

proposal and tile Presldent o f t ile Bank ,h,,11 lIeve presented to tile

Board o f Dl recto rs " .,ri tten report r egerding tile propasd.

t ogether .,lth rec09a1!Adetlons. on t ile b.,i, o f • st eff . tudy

(vH ) tile flank sll all no t undertake any financ lng . Or

provide any facilities • .men the appli cant 1. abll1

to obtl1n

luf flclent financing o r

f acU Lties ellewllere on te ns and

cond ltions thllt tile Bank eonsiderl reuotl abte

( vl 11 J In prov i ding o r gullranteeing r1 nanclng. tile

Bank sllall pay d ue n'gero to tile prospect that the bor."..er and

iU JUllrantor. i f any. "ut be i n 11 polition t o lIeet the i r

oblJgati ons unde r the financing contuct ;

(ix) 1n case o f III di rec t l oan .ade by the Bank. the

borrower shall b" p"r.!tte<l by t he 8ank to du., iU fundll on ly to

geet e xpenditu re liS i t Is actulllly ineurred

(x) th" BlLllk sh"ll I""k to revolve In f undi by

sel11ng H s 1nv""t."nts to p r !vste !nvelto rl "hen""lI r it can

sppropri ately do so On satisfactory teres

A

(xlI i n its i nves t.en t . in inclivldu lll e nt"""rh" ...

tM Bank shall undenllk. its rt nllncin& On t erlls and condition.

it

" hich

condela ....

appropr iste,

uJdn&

into

account

the

requl r e_ntl o f the enterp rise. the rilk, belnl undert aken by the

Bank. and the t e .... ""d condltio"s noraalIy obt ai ned by pdvste

i nve.tors for ,t,11s .. fi nanc i ng

(d1) the Bank , hell plac e no rnt ri c tion upon the

proo:urea"nt o f l oods and .e ..... l ces rroll .., y country frOll ehe

Pf"OCee(is o f any l oan. invest-ent or other fi n/lllc: lnp; undertake n in

the o rdinary Or speeie l operat l ona o f the Bank. and Iha l 1, 1n all

appro pr i a te c ase • . sake ita l oan. and other oper ati on. condit i onal

on Int e rn a ti onal InvHeU oNl to t ender being arranged: and

( .. tU) th .. Bank I II.lt tllk. the note ..... r)' _sstn'.,1 to

enlu r e

th a t

the proceed. of any 1o "" aed e. IJUlranteed Or

parti c ipated in by t he Bank, o r any e qui ty I nves t aen t. are used

onl y f o .. the pUrposes f o r -" hleh the 10lUl or the equity lnveltlent

"as ,ranted and " ith due .ttention to condderationl or e e _ y

and e rncieney.

1~

Arti cle

TEMS AND CONDIT IONS f"OIl LOANS AND 0UAIl"'-'I'TUS

1. In the e ase o r l oans eed e .

participat ed in. 0 ..

guaranteed by the Bank. t he contr.ct sh.l l estlblish the t erl' and

cond ition s f o r the l oan 0 .. the gu ... ."tee concerned. lneludln,

those r elaUn g to pay .. en t o f pr inci pal . interest and o thf! .. f ees.

charles.

.atur-lUel Md dates o f pay.ent in "espect o f the loan

0 .. the guaran t ee. ..es pec t ively.

In se tt in, such te",s and

conditions . the Bank shall take fully into I CCoun t the I)<!ed to

laf"ruard l t s inCODe.

2 . Whe re the recipi en t o f l oans o r guarantHs o f l oanl is

not it se l f " lIell be r , but is a I tat e-owned e nte .. prise. th" Bank

IIIIY . .. hen i t appears df!li ra ble. beadng in alnd the di ff eren t

IIpproaches app .. o pd ate to publt c and Itlta - owned ente rpri ses ln

tr,,,, , lti on t o pr i vll te owne r sh i p and control . require the ...... bflr Or

...... bflr. ln whos .. te rr itory the pro ject co nc .. rned is to be c, .. ried

out. o r 11 pub li c II,ency o r any i nstrullent, Hty o f such IIe.bar 0 ..

~Ibarl acceptlOb l e to the Bank. t o SUlrantOM! the replya.en t o f the

p .. i nci pal and the paya .. nt o f i nterest and othar fee a and ch .... ' es

o f t he l o an i n a cco rdance .. i th the t.", s thereof. Th e Boa rd of

Pil'fl:t ors s h.ll review annually the Bank's p rac tl ce in thls

lIatte" , p By1n, due "ttenU on t o t he SIIIllI'. creditwo r th l .......

3. The l o an or gu aran tee cont ~ac t ,ha ll exp ress l y et.t. the

cur r tncy or cur rencJ"~. o r ECU. in wh i ch II I p.y.ent. t o tha Bank

thereunder . hall be SBd".

A

ArUcle 15

CDI'Il SS IOH AND FttS

1. The Ban k IhalI e har«". 1n add ition to inter-ut, I

COMIhdon On l oans sad!! or partie i pated 1n a s part o f t tl

ordinary opt!nUons. The teras and concHU"". o f thil (:00I11 . . i o n

shall be deteMllned by the Board of Dlreeto ....

2. I n ...,aranteeinl" • loan all par t

o f 1 tI or-dinsr),

0" i n unde ...... it1nl the . . le o f secur iU es. the Banlc

operations,

shall <;h uge r~s. plYlble at rates and tt-el de t" nolned by the

Board of [l1reeto... . to provide suitable COIIpen. lt1on f or its

riskl .

). The Boa rd o f Directors I.,)' dllt ..... !n" any o tM .. ell_ran

of the Blmlc in its onllnuy operations and any e _ i . . ton, ' eel or

oth"r c hirp. in itl spedd o peraUons.

ArtiCle 16

SPECIAL RESERVE

1. The aaount o f c_tntons and fees recei ved by the Benk

pursuant to ".,tiel" 15 of tht. Agt'fl! ... nt shdl be .et • • td .. • • •

spec ial re slrve which ahal l be kept for see tin, th" 10 ..... of the

Bank in accordance wi th Article 17 ot thls A,~ee-ent. The specl.1

fIl.,

Nlse~ve 511.11 be lIeld 11\ such liquid t ono IS the Bank

decide.

l. Ir t h" Board or 01recto~s dete.nolrti!s tllat the she of

the spec tel Nls,,<ve il adequne, i t .sy decJde tllet sll or p ut or

the .. id cooodss lon or rees Ihall hencero r th f or. part of th"

1n<::01. o f the B""k.

Article 17

mITHOOS or IlE£T I NO THE LOSSES or THE IWfX

I . I n the B""k'. ord1n.~y oper.Uonl. 1n cs •• s o r .r .... rs

or default o n l oans lad". perticlpsted ln, or «ua r"" teed by tile

BMk, Md 1n Call" o f 10.... on unde ~r1t lnl and 1n equity

the Bank sh"ll take luch . ction . 1 i t d ...... s

invest s ent,

spp~opr1l1te .

Th" Bank IhsU

sainta in appropriate proytelons

s,sinst poss i ble l osses .

l. Loss"s .ril i n, ln tile Bank'S ordinary ope rstions lhell

charged

be

",

proviilons

t!rst .

""

pars,raph I o f tllte A~t1cle

(11 J second . to net incoee

(11t) third. a&e.inst tile special reserve provided

for ln Arti cle 16 o r tilts AgNlellent

A

(ly)

fourth.

llIaillSt

lurpluses

(v) (Hth, II.ldnat the un l,pair&<! pdd-in capitd

(v, fUth , 1I.,I1 n.t th" unilpdred paid-in capitel

(Yil Int . 1I.,11"lt an IPJlroprhte a.ount o f the

uncalled lublC ribf!d calhb l " capitel ..nich ,hall be called in

accordance with the prov1donl o f parallUph, 4 and 5 of ArUcle 6

of this "'Sree-ent..

Article 18

SPECIAL nmDS

1. The Bank .. y accept. the edatnhtratton of Special Fund.

which are de"i",ed to .,,",e the purpoltl and c:a-e vlthtn tM!

f unctions of the Bank. The full cost o f adlllnlatertnl t.n¥ .uch

Spechl Fund 11".11 be ch ... pd to that 5peod &l Fund.

2. Special Fundi accepted by tM Bank I .. Y be uled In any

_ann"r and o n any te ..... and condit i on. con.lItent with the purpose

e.nd the

function" o f the Bank, .. Hh the other applicable

p...,,,1.IOOI o f this Asreuent. and ltith the .I~nt or .,f'ee"nts

relatin, to such Fund,.

."y

J. The Bank ,hall adopt !luch rules and .... guhtion. u

be req ui red f or the eatablhha"nt, adainhtraUon and ule of ellch

SpeeJioI Fund. Such ruIn and r"guht i ona 'hall ~ condltent with

the prov iaion s o f thiS A' ......... nt . except f or thoa. proviliOlll

expre,l l y applicable only to ordinary OPe rations of the Bank.

1,

ArUcle

SPECIAL fUNDS IIESOVRCES

"',

t e ... "Special FundI resourcn" shsll

The

resO\lrcel of any Special FUnd and ahall inClude

( 1 ) fund, accepted by ths Bank f or lnc lulion in any

$pec h.l Fund

(11 ) fund , repaid in respect o f l oans or CUllrantees,

and

the proceed.

o f equity {nvenaentl,

financed froa the

rnourcn' of 1U1). $peci lll FWld .. htch, under the rules snd

re",lationa s ove rnin, that Special FwwI, are recdved by luch

S~la l Fund

; and

(111)

1ncOlle

derived

froa

Inveltaenl

of

Spechl

FWldl resources.

A

a.ap ter IV

BORROWI NG AND OTHER l'ItSCEl.l.A.NEOt/S POWERS

Art.Jcle 20

I. The BAnk shdl h.",,.. in II.ddition to the pow., ... Ilpee1fled

elsewhere in th is A, reeeent, the POWer to

borrow t unds in _be .. eountrle1 or ehewhue,

(t )

provided al .. s),s that

Ce ' before _akinl 11. Illl" o f tu ob l1,lIUon s

i n the terrttoty o f

count ry,

the B .... k sh"ll have obtaine d its

approval : .... d

( b ) whe .... the obH,atlonll o r the a .... k .... to

be denOllin/lted i n the currency or 11 "'Mber. the Bank shall have

obtained it. approval ;

( H)

invest o r

deposit

f undi

not

ne&ded

in

its

OPerations

( Ul) buy 8Jld sell securtHes, in t he Ie(:ondllry

.arket. whic h the Bllt'Ik hu Issued Or lUaranteed o r in .. 1\1<:h i t h,..

invested ;

(1v) ",a .. ant •• le<:uri U •• In .. h ieh i t ha. { nvelted

in orde r to f"ciHtate the i .. sale

(v) unde .... rite. or partic i pate in th" unde ..... rttinl

of , secu rtU es hsued by any enterpr ise t or purposes cond_tent

.. ith the purpose and r ""cUons of the flank

(yl) provi de technical advice &nd a .. 1It.,.ce "hich

serve it s purpos e and ca-e " i thin it , funct i ons

( vH ) eJ<erclle suc h other powers and adopt .uch

ruin and .... It\Ilatton. as aa)' be necenary or appropri ate in

f urthe r """e o f Hs purpose and f unction. , consistent "Hh the

provis i ons o f this Agree-ent : &nd

(vUi) conclude .g .... e-enta o f COOPe r ation "ith any

publi c o r priy.te entit)' o r en t i t iel .

2, EVil!")' secur ity tuued o r ",arentee<! by t he Bank shall

bear on iu face a ct'OlP l cuOUI stateaent t o the eHect that it is

no t an obltlation of any Goyemaent o r aeaber, unleu i t i. in

fact the ob lllation o f a pa rti cul ar Governme nt o r member , in ~hi ch

ca se it Shal l so st ate.

a..ph .. V

ctIlUIENC l £S

Article 21

or CI.IRIII1iCIES

O£TEJIMIHATlotl AND USE

1. wt.enever i t ,hell becoee necelS BrY und . .. thi s Af!:tee.ent

t o del .... in. "h"ther any curren cy h fully convtlrtihle f o r the

purpOs es o f th h A.iJre ••• nt • • ..,eh d.t .... l n. t1on _hell be .ade by

th .. eMk , tall i n, into a CCOUM the pe r ll80Unl need to prel."'. t u

own rin""e hl i nteN!sU, .rt"r consultation. if ft4'Ce ... "l' . .. ith

the I nternational Monetary F\ .nd .

,. Keoobeu shall not i.pos. any restrictions on

holding . use or trans f e r by the Bank of the f ol low!ns

~eeipt .

(1) currencle. or ECU received by the Bank in

peyaent o f lubsc riptions t o tu capital nock , I n e ccord arw:e "ith

Arti cle 6 of this Alre.-ent

( 11)

"utrend . . obtained by th" BMk by borrowing

(Ul ) currenc i es and othe ..... Ioun:.' .dAtni.tered by

cont r ibu tion. to Special Fund, : and

the Bank n

(iv ) currenele. re<:eived by t he Bank l n p~ent on

a ceount o f pr i ncipal. inte r • • t, d iv i dendi or othe r charles in

r espect of l oans or investaent. , o r the procee ds of dhpo!lal o f

such inve staenes eade out o f any of thl f und s referre d t o 1n lub·

PI Ul raphs (il t o (11(1 o f thil parlllraph, o r in p lI)' lIe"t of

cOllll i u l on, f eel Or o t her <:ha r&es.

a..pter VI

OIlGr\N JZATJOO .\NU IWIAODU:tIT

Ar ti c le 22

STRUCTtJRE

The Bank, shall have e Eknrd of Governor., a Bo a rd or

Directo r s. a Prel1dent. one or .ore Vi ce 'P re,ldents and .ut h o the r

o rf1 ceu and st a f t as lay be considered necellary.

Article 23

80AIlD OF OOV£RHORS , COU'OSJT I ON

I . Each lellbe r shall be rep resented on t h.. So. rd of

Covenlol"S Md shall IIppai nt one Covernor and one Altern.te. Each

Coverno r Md Alte rnat e shall serve at the pleasure of the

appo l nl1ng a"aber. No Alt .. rnate a'y vote e ll cept ln th" Iblencll o r

hll or her principal. At each qr tts annual aeeUngl, tha Boll rd

shlll "lec t on .. o r tt.e Cavemeu .. Chaln1an "ho sheU hol d o ffl c ..

until th .. electi on o f the nell t Chlln1"'.

A

."ch witnout

2. OOv"'"'o ....... d Alternatea ,h,U le.-ve n

re.un"nUon fro. the Bank.

ArUch 2~

1. All the powe~. o f the 8."k ,h,ll boo VI.led in the Boud

2. 'the Bo.rd o f Oov",rno... -ay delegate

to t ile Boud of

Directors any or ,11 of tu poo.oera. u.cept the power to

(1) .datt new -eaber. and detel'tltne the condition.

of their ,d,t.,ton

(11)

{ nc!"ellSe or d&Creue

the

Clplttl

.uthorized

.tock of the a ... k

decide

appeal .

interpntt.tiortS

(iv)

f.....

appli cation. of thil Asree."nt given by th" Baud o f Director.

(v) autnorize th" coneludon of ~nerd qt'1!elenu

for co - oper'tion .. ith othe .. lnt"m'tlon.l o rganl~.t1on.

(v1) "le<;t the DJn!<:tor. and th" Preddent of the

(v1 1 ) deteraine the retlLlller.t1on o f the Director,

Di r ector. and the . . hr), and other ten'" of the

and Alternate

contrect o f lervice of the Pre.ldent ;

(,,1U)

.Her .. Iv!e .. i ns

thl

approve.

lIudito ... •

report. the ,anerai balanc • • hee t and th • • tllte •• nt of profit and

Ion of the Bank

(hi det" ... I ... the "U".-vU end th" allocation and

dl.t .. lbutlon o f the net profit. o f th. Sank

(ltl) decide to te ... lnllte tke operetlon. of the Bank

and to dl.trlbute It ••••• t . ; and

(,,11) e"e.-cile .uch oth.r P'O""" • . . .... • "P ..... 1y

... Ipe<! to the Do.rd of Governo ... In tht. Allrel!llent.

3. The Doll rd of Gov"rno r~ ' hill .. etain full powe .. t o

exercise .uthorlty CM! .. any •• tte .. dele.ete<! 0 .. e .. J."ed to th.

I!Ollrd of Direc t o r. unde .. p ..... raph 2 of thh A .. t1cl., 0" .hewh" ...

In this A.~."nt.

A

Article 25

or 00VERN0ftS : PhOCWURE

90ARD

1. The Board o f Governon s" dl hold an .."nud . . etinS' and

s uc h oth"r .... U nl . u •• y be provided f Or by the SoaNl Or called

by the Board o f Directo rs. M"etlns e of the Board o f Oovernors

shall be cdled, by the Board of DirectOr ... , .. !>enewtr requested by

no t le n th." rt v. (5) _bers o f the Bank o r seabers hold i ng not

le •• than one quarter o f the totel yot fnl POWer of the e •• bers.

2 . Two-thirds o f the eov"rno .. s , hall <;on. Utute • quoMlOl

f o .. any -ea U n .. of the 90ard o f Gov"'rno"s , prov ided luch "Jority

~presents nOl leas U.1In tvo-thln1a of the total vot1~ power of

the .... ber •.

Bo,,"" o f Gove rnors ."Y by r e",bUon estllb l h h

3 . The

•

htte ..

procedure "hereby

t he Bond o f

Direc t ors .ay . . . hen

th ..

d e ",s. lueh a c Uon advisable. a butn • vote o f the Governors On •

,pecl rJ c question

without

c;dl1nl"

. . . . . Unl

of

t he

Board

of

GovernorJI.

_ . The IIoIIrd o f Govemorl , and the Doa Nl o f Directors to

t he ",,,tent autho r h " d, . . y adopt such ..... les and ~C\llations and

a.y be nec e • •• ry or

lu Ublll h suc h lubstdiary bodies a .

a ppropril te to conduct the business o t the Bank .

Article 26

BONlD or DII1ECTOflS : COI'IPOSlTION

1. The eoerd o f [Ilrec t ors Shall be c ompos ed o f twenty-three

(23) .e.be rs who shdl not be ae.bers ot the Board ot Govemo rs,

and ot who.

( 1) Eleven ( 11) shell be el ec ted by th .. Governor.

Belliua, Denmark, Fran ce, the Federal l1epubU c ot

rep~se ntlng

Geraany , Creece, Ireland. Ital y , Lux"abou rg, the .... et herlands.

Portugal , Spllln,

the Un i ted Klnldooo , the European Ec:O<\OIIic

Co . . uni tyand the European lnve. taent Bank: and

Twelve . (12) s hall be elected by the Govarnor.

(H)

represent i n g o the r -eaber!, 'ot vhoa

,., t ou r (Ii) , by the eoverno ... reprelentlng

tho.e countries lis ted In Annex A as Central and Eastern European

count ri es eligible t o r a ssistance fr o. the Bank

(b l f ou r (~ ) , by the eovernors r e prese nti n,

thole eoun tri e . lhted 1n Annex A as ot her European coun tries

(~),

(c)

fou r

by the Governors r epresentins

tho." countri es l l lted in Anne x A a l non -Eu ropean countri.s,

Director ... BB .. all as representl", aeabers .. ho se Go"erno ...

h.ve e l"cted th"a . •• y .tso .... pre lent -eabe ..... ho . u ign thei ..

vote. to th"lI,

A 2J

2. Directors

,h.an

persons

be

o f h i lt. competenc" in

Icon ... l.: and flnlUlcte.l •• ttoln and shall be elected I n ,ccordance

.. Hh "nnex B.

3. The Board of Governors say Inc:: ....... or d&<: .... as. the

. h .. , o r revl,." th .. ""'POsitlon, of the 80,1"11 o f Dl ree~o ... , In

order to take Into account c han,,,. In the nu_be .. o f _bot ... of the

8.ruc . by an .fn .... t1". vote o f not le . . than t",,·third, o f the

Governo ... , repres en tin, not I"n than th ..... · fourth. o f the total

votinl pOWer of the .ullen. Without prej ud ice t o the . " <!reile of

the ... powers for subsequent ",If,etion,., the nUllbfl r and eo.po.ltion

o f th" aecond Board of DI .... ctors ,hall 'Dol all let out In para,nph

1 o f this Ar tlcl ...

[o,c h Director ,hdl .ppoInt an Altemate .. ith ru ll powtt r

t o act for hla.or he r .. hen he or she 11 not p .... sen t . Directors ItI'd

Aite m et ... e .. aU be n.t1onets o f _ber COIlIIt rt" •. Ho _be .. ,hall

be .... pre •• nted by -ore than one Di.-.eto... An Al ternate .~

partl c lplte In leelln,. of the Board but • • , vot .. o nly whe n he o r

alle t. acUn, i n ptece of hll Or lIer pri ncipel.

5. Directo~1 ,111111 hold orriclI fo~ e ter" of three !))

yean and uy bf! ree l ected ; prov i ded that the U rlt 110 ... ..:1 o f

Direc to r l Ih all be elected by the Bollrd o f Governors li t ttl

inaulUul eeetinll .

and Ihall hold ofUce untU the next

i ..ediltely f o llowln& annual ... ttn& of the Bo.rd o f Governor. or.

H th,t Board .hall 10 d'!cide .t thlt annud ....... Un' . unUl Ha

~xt lubsequen t annu,l ",Itin,. They Ihll l conUnue in o rr ic.

until the ir suCCenOrl ahlll h"ve been cl'lOlen end . s.uaed o rri c".

I f tile of fi ce of • Director becOllea vacant .ani than one hund....:!

ind el,hty (180) daya befo re the end o f his Or he r t er .. . ,

IUCC""Or shall be cholen in accordance with Annex 11 . f o r the

re.alnder o f the le",. by the Oovernorl wl>o elected the ro",er

Direclor. A .ljorHy o f the votel cut by luch Oovernorl ,hill be

required f o r such elec ti on. It the o f fic. of e Dl~ctor bece-ea

v.ca.nt one hundred and eJ&hty ( 180) days o r lell be fo~ the end of

ht. or he r te .... e IIKcellO r eey d.Harty be chosen f o r the

...... lnder of the te .... by the vo tea cut by luch (laveme", who

elected the fo",er Directo r . in which eI&ett on I .a jo rHy of the

,·ote. Cllt by such Coyernor, 'h"ll be requJred. While the oruce

re-ain. Yacant. the Altern.te o f the fo",er Director . hall

exerci se the po><ers o f the litte r . except that o f appo i nUn& an

Alternlte.

ArUd e 27

BOARD or DI RECroRS , POWERS

lIi thout prejudice to the ~"' of the IIoerd o f Governorl

prov i ded 1n Arttc:le 211 of t his It&",","ent. t he Bo,rd o r

It

Direc:tor. Ihlll be responsible for the d i rec ti on o f t he lIeneral

ope rlti ons o f the Bank and. f or this purpose . shall. 1n sdd iti on

to the po"",ra lIulk1)ed t o It express l y by tht. Allreellent. exerehe

all the power. delegated t o i t by t he Board o f Oovernorl . and i n

parUc: uilr ,

(i ) prepare the IOOrk o f the Board of Governor .

A "

(H) In confor-Hr .. Hh the &t'ne~e1 direc tions o r

Governors . ""tabU"h po li c i"s and talc.. dec idona

the

Board o r

"t.

l oan •• cuaranteeJl. Invest . .

In equity Cllpitlll.

concernin~

bor row l"s by the Bank. the f urnish ln .. or te<:hn t e al s aslll can.:e, and

o ther operations o r the Bank ;

(111) ubsn the audited IIccoun u tor ellc h r! nanchl

yellr for approvlll of the Board of Ooven><>rs at ellch ..-"\ld

... eU ng ; ""d

(1 .. ) .ppnlve the InJdpt or the Bank.

Ar t! ,,!. 28

IIOAAD or DlRE.Ct'Cl\S

PIIOCiDURE

I . The Bo u d o r DI.....,tOrl .hall nors&l l y function et the

pr i ncipal o U i ce of the Bank and .han ..... t IQ oft ...... the

business or the Bank lIay ",qui r e.

2. A ."Jor-ity of the Directors Ihllll consUtute 11 quoru ..

for any _ tl n r of the ao .. nt o r Director., p rovided such .",1odey

rep","""t" no t le . . than two-third . or the t otal VOU"I power of

the _"bers.

3. The Board o f Governor. she ll adopt recuhtion'll under

.. hlell, If th"re 11 nO Di rector o r H s netionll l1ty. 11 ae.be .. allY

send a "epresentlltive to sttend. without rigllt to \IOte. any

Deeting o f the Board of Directors wllen a . stter pa .. ticu larly

sffe c ting tllllt .e.ber I S unde .. con_iduaUon.

Ar ticle 29

1. The vottng _ e r o f .... c h _ber I hall be I!'qual t o the

nUBbe .. of iU s ubscribe<! ,h llre , I n the capital Itock of the Bank.

In the event o f any .... ber failtng to pay any pa .. t o f the IIIIOUnt

due in respect of Hs obH.at1onl in r e lation to pa id·!n s h,ru

under ..... Ucle 6 of this "',"HDent . such . e.be r _h" l1 be unable f or

so l ong .. Iuch f.ilu .... con t1nllfls to e Kerc! a e that percentage o f

i U YOUng _ e .. whi ch corresponds t o the percent'." which tha

a.ount due bu t unpllid be .... to the total IlIDDUnt o f pl'l1d·in shun

.ub.c r ibed to by that aeaber in the cSpitd stock Of the Bank.

2. In \IOt i n . in the Bo.rd of Governors . • ach Gove rno .. shal l

be entttled to cast the votn o f the .e.ber he o r sh" represent •.

E!<cept U otherwise e Kpr ..... ly provided I n thll .... reeaent. all

.. atters before t he Bosrd o f Governors . hdl be d ... c1ded by 11

majority o f the votin. power o f the aeaberl voting.

A "

3. In votin, I n t~ Board o f Dlrectora .ach Director s hall

be entitled to "a.t tke nUlbe r of yotes to ~hleh the Oovernorl who

hava elected

hi' Or her are entitled and thee. to which 1111)'

.. ho have as.lrn.,d tkel .. votes to hi' or 1>11', pursuant to

Oo~rnou

Section 0 of Annex B. are entitled. A Director repr1ltentinc -0 ...

than one aeebf.r .ey c •• t l,pa .. " t"l,. the vot •• o f tt.. ~r. he or

a he ""pr.,entl. E>ccept as olhe .... he .x" ..... l y provided In thh

,_,.11

"1 .. le_IIt. and e:<cept for

poIte,. dechlona In which cu ••

not lesi

luc k pOllt)' decision. Ihe ll be tl'ken by. ..Jorlty o f

tl>&I'I two-thirds of the t otal vo ti n!!' power of the ..,.bers votinl'.

ell . . tters before the Board o f Dl",,,torl Ihdl be deCided by •

" Jo r-it), o f the yoUn. pOol"" o f the .... be ... VDU"'.

Article 30

n tE PRESIDENT

I . The aollrd of Gov.rno.... by • vote of • "Jority o f the

lot"l n .... ber o f Gove ......... , reprel"ntinl not 1 ... than • • eJority

of the total VDUnl powe r or the _Ibe ..... &h,ll elect , Pre,1dant

of the Bank. The President. while hold!nl ofrica. 11'1,11 not be ,

o r , Director o r an Altemate for either.

Go~rnor

2. nle te ... or of rI ce o f the Preddent shell be f our I~I

yeau. Ile Or she lay be re-elected. lie Or 11'11 11'1111. hooHI""r.

cease to ho ld o f nee when the Board of Governorl 10 dlddes by an

afrI"'atlve vote of not leu than tvo- thirds o r the Governor •.

representln, not lesl than two-thtrds of the tota l vottn, pOWer of

the De.ben. If tt.e of fi ce of the Prel1dent for any reuon bttcOlel

vacant. the Board of Governo .... In accordance w1th the provhlonl

of paralraph 1 of thi. Ar t i cle. ,1'1.11 e lec t , luccallOr f or u p to

four III I yean.

). The Pre.ident shall not vote. axcept that he Or ehe lay

cast a deddinl vote In casa of an equal divh i on. He o r ,he IIY

participate In _RUnes o f the Board o f aovernors and .h.ll chill"

the aeetin,l o f tha Board of Director •.

~.

The Pre&ldent shall be the 110,.1 representative o f the

'''''' .

5. The P .... iden t sh all be Chi, f o f the starr o f the Bank.

He or she ,h, l1 be res ponsible for the or,aniSltton. ,ppoJnU,ent

Md disltsul o r the office....,. and .t.rr In ,ccordance .. 1th

t'el"lation' to be adapted by the Board o f birecto....,.. In appa tntin,

o Hic .. rs and lta rr . he o r she IhlU, lubJect to the pa r aeount

I _pa rtance o f effldency and technical cOlpetenee. p~ due ""e,ard

to recruit.ent on ,wide li!Oluphtcal basil

III"Onl lelber. o f

the Bank.

6. The Pr .. ide nt shall conduc t . under the dl.-eeUon o f the

Board of D1rectorl, the current bustneu of the Bank.

A

VICE PRESIDENT (SI

1. One or -ore Vlte-Prelldents .hall be appOinted by the

Boa rd of Dlre"tor~ on the ....:ooo..endation of the President. " Viee-

PreSident ahel1 hold orfl"e for luch tar., exerei ... such authority

.rnI perto ... such functions In the " d.,lnh tration. of tile Bank. u

-ay be deteretned by the Board o f DlrO!'Cto .... In the .blllne., or

tn e.pec it), o f the President. a Vi ce-President shell e><erd . . the

authority and perfo", the func tion' or the Prelldent.

2 . A Vice-Pn!lIdent .IY participate In meet1nr' of the

Board of Dlrec;tors but .1111.1 have nO vote at such .",etIn, •• except

that he Or she .ay " .. t the decldln~ yote when actins In place of

th., Prelldent.

Articl" 32

IN'TDlltATlONAL owtACTER OF TIlE BANK

1. The B&nk ,1>.,11 not accept Special Funch. o r other lOaM

or au1ltance that a,,), 1n any .. ay prejudice , d"flect Or othe",iae

alter it l purpOse or functions.

2. The Bank. itl Prel1dent , Vice-Presiden t (I) , ofticers

and suff Itlsll 11'1 tl'>fIlr dec1dons take i nto s ccoun t only

condderations Nt l avant to ttle DRnk'e purpose, f unctions and

operatione. as set out in

th.1e "',reeaent. Suctl con.idere ti ons

shell be we t,hed iapsrttally in order to sctlteve and csrry out ttle

purpoae and functions o r the BRnk.

3. The PreSident. Vica-President ( I), orrtcerl and staU or

ttle Bank. in ttle dhchu,a o f their oftices, Itllll ova their duty

e nUrely t o ttle Bank and to no other autho rity. Each _be l' o f the

Bank shell ..... pect ttla tnter-natlonel ch ancter or thll duty and

IhAl I refretn froe III Itteapts to influence any or the- 111 tl'>fI

dtechlr,e of their dutil'.

Article 33

LOCATION or orncES

....-. 1. The pr inc tpal o rrice o f the Bank ,hsll be located tn

2. The BILnk .ay .. tabl1.h I,ench, Or branch o ffices i n the

territory o f any aeaber o r the Bank.

DEPOSITORIES AND CIWlNELS or COHM1JNlCATIDN

1. Eac h . . aber 'hall deai",ata its central bank, or luch

other Institution I I say be. I,reed UI'O" with tha Bank, III •

deposito!')' ror sU the BRnk'. hold1n,s or t u cur .... ncy as well SI

ottler ... eta o f the Bank.

2. Each ... ber .hell dedgn'te an appropriat .. oHide!

enUty "Ith .. hlch the Benlc IIIIY c..-unlCllte ln connection "ith lIny

'IItt.r arlalnl under thh "Ir.,., • .,nt.

PU8L1CATlON or REI'OII IS NlO PROVISIOH or IHf'ORIIATIOH

I. Th .. Sank _hell publteh an annual ~port contai nlnl an

lIudit.,d .tat., • .,nt of its IICCOWlU and Ih'll circulat .. to .... be r.

lit lnterval!l of three (3) .onth_ Or 1 ..... a lu •• ary atate-en t of

HI Un anclal position and a prorit and Iou Itate.ent a...,.,l ... the

rlllllul t. o f i tl operation •. The rinanci el .cc;oun u ,hall be k ~t in

'-"'.

2. The 8ank .hll l r .. port annullly on the envlro"" .. ntal

hplc t o f it s acUviU ... and eay publhh .uch oUllt r report. all it

d ...... dellreble to advanc.. its purpo ....

3. Copi .. s o f ,11 report., Itllt ..... nt!l and pub liclltion ••• de

under thh "rcicle Ihall be dl at rlbu tad to J • • bera.

Article 36

ALLOC\TIOH !.NO DISTRIBUTION or NET ItfCClPIE

I. The Bollrd of Gov .. rnors sh,11 d .. t ..... in .. at least annually

what pllrt of thft Bank'l n .. t lnco''', eft .. r eakin, provision f or

.... se .... ·... and, i t nec .. ssa ry, e,atnn possible l ossee und .. r

pe r.lraph 1 o f Article 17 of this ",reeeent, shall be allocated to

surplus or oth .. r purposes and .. hit part. If any, Ihall be

distribut .. d.

Any .uc h d .. c hlon on th., alloclltl o n of th., Bank'.

net lncO<oIl to other purposu shell be tllk.,n by a aaJor! ty of not

l .. ss than t .. o-thlrd. o f th .. Governorl, .... p .... sentinl not less than

tMO -th ird s of th .. total voUn, power of the _be.... Ho auch

allocatt on. and no dhtrlbuUon, 'hllll be .,ad .. until the lten .. rll

....... r ve a.Dunts t o lit least t .. n (\0) per cent of the authorized

cap ital stock.

2. ,my distribution referred to tr> th .. preced inl p~r.,raph

Shall be aade In proporUon to the nu.ber o f peld -ln shllres h .. ld

by each ... .,ber ; provided thllt In cllculaUn, luch nu. ber account

s ha ll be taken only or p.yeentl ....,.lved in clISh end pn::.llaory

notu encashed In respect o f .uch .han'. on Or before th .... nd of

the r .. levllnt financilll Y .. lr

3. Pllyeents to ellch .e.b .. r ,hal l be .lId .. 1n lueh aanner el

the Board of oavernors shall deter.ine. Such pay .. nt. and their

us e by t he recelvlns coun try shall be .. ithout re stricUon by any

.... ber.

WlnlDAAWAL AHO SUSPDlSION OF MEKBERSHIP

ItIIPtlHART SUSPDlSI OH ANtI TERI'IlNATlON or OPERATIONS

Article 31

IUCHT Of' PIDm£RS TO WInrofIAW

1 . MY lIe-ber . . y wi thdraw r ...... the Bank at ... y U_ by

trana"nUn, " notice In .. dUng t o the Sank at it" prinCipal

o rri ce.

2. Withdrawal by 11 . ... ber " h"l1 be<:c-e effective, i-r>d itl

_ember_hip shell e""se . on the dete .pecified In i t " notice but ln

no "vent lell than d" (6) ..",thll "fte r luch noU e " h received hy

the Bank . Howe"e .. , et any the before th" .. ithdraw ll.l bec:oae.

finally affective . the ..... ber "..,. noti fy the Bank In .. ritinl <of

the C:lU\c"lhtion of it. notice of lntention to .. ith<k . ...

Arti c le ]8

SUSPDlSION or _WHIP

1. H .. -.ellbe .. b Jb to f u lfil any of iU obl1gll tlonll to

the Bank, tile 8""" . . y IUSpend it" ~be r.hJp by elechion of "

"JorH), o f

noc less than two-third" o f

the Governors,

rep r elent1nl not l ess t han two· third, o f the lot"l vot ing powe r of

the -eabe .. lI.

The a ... ber so suspended "hd l eut-a U c:e U ,. cease t o

be 11 ae.be .. on'" Y""'"

f<'Oll th'" dllte of iU suspet'\ston Wll",ss s

decision is tsk",n by not len than th'" sue .ajo ri ty t o restol'!!!

the .. ellber to good stand i ng.

2. While unde r suspension, a lIe.ber .hall not be en Utl ed

to e~erc1se !lilY right'! unde r this Agree ..... nt, e"cept the righ t of

withdrawal , bu t sh.l1 re.ain subject t o ell its obligat i ons,

SElTUXENT or ACCOUNTS Wl11l FOMER lIDIBERS

I . Arter to,e d. te on which a .ellber ce.ses t o be 11 lIellber,

.... ch fonoer lIellber sh.ll r e-atn H.ble for its direct obHgations

to the Bank and f o r ita eontin,ent lhbi li ties to the Bank so long

•• !lily part o f

the l oans , equ i ty investllents o r guarantees

cont ra cted before i t ceued t o be e Hllber are outstand t na : but

i t ah.ll ceas e to incur luch Ihb lliUes wtth I'!!!spect to l oans ,

equity Inv0!5t .. ents and gu.rantees entered into the ..... ft e r by the

Bank and to .h • ..., e ither i n the inco.e Or t he e"pense. of the

g!lllk ,

2 . At the U c:e • lIellbe r cellses to be 11 lIeaber, the Bank

sh all arrange for the r epu r c hue o r such f o ....,r lIellher's shsres as

s psrt of t he se tt le .. ent o f accounts wit h such f orller ...... be r I n

IIccor(\!IIlce with the provhions o f this ArUd e. f o r thh pu r pose,

the repurch.se price o f the Ih l re. shal l be the value s h~ by the

book s o f the B!IIlk on the dlte o f cell ati o n o f lIe.be r shl p , " ith th.

orl gl n sl purchase p ri ce o f each .hare being its .a.x l .u. vdu •.

3. The PllYIIent f or , hares rellU.-chased by the lank under thh

A<"tiele ,1>1111 be governed by the follow!n, conditions'

III any ...,.,nt due to ~he f o,""" a ... be r for i t .

sh"r"l shtI1 be withheld 10 Iona as the f or"1" a"lIbe ... it, cent .. al

b ",,1c or any o f its a,enc1es Or Inl tnoaentalH ies r etia 1nl HebIe.

borro>li!r or pnantor, to the Bank and such uount .ay, at the

(IS

option o f the Blink. be applied on My such ltabUity as i t

u.tures. ';0 aaount shall be wi tl\held on a ccount of the lhbility

o f th." forae r .al>er ..... ulUn .. t roll iU subscription f or shues in

accordance vi th psnllraphl ~. 5 and 7 o f Article 6 o f this

Agree"nt. In any event. no uount due to s ._bel:' for I U shares

shall be patd unti l ab (6) -onthl .fte .. the ,;ue upon which the

__ ber ce •••• to be • _be ..

(UI PIlY ..... U for ,lis ... , allY be •• d" fro- the to

tia .. , upon thd .. . .. rrender by th" fono ..... "be .. , to the ell tent by

whi ch th" ... ount due a~ the ",pUrt;h • • " price in act:ordlln<;:1I with

paragraph 2 o f th in Ar ticle eKcH'd. t he .. ggreg .. t" aaount of

11.btlHle. On IOMs. equity in ...... t_nt. Md gu.rante<l. In .ub-

para&rapll (i) o f tills paral"raph untU the ( o..-er lelber Ilas

received the full repurcllas" prl c"

(HI) ply_ntl Illell be IIde on IUeh condlUonl and

in fuell fully eonverUble currenciel. Or ECU. and on lucll detel.

as the Bank dete .... inet. ; and

( 1v) 1f lonel ne lu.tlll1ned by the BMk on lIny

guarantees .

pe "Uclpations

I n laM..

Or

10MI

which ... ere

outstanding On the date when the .""ber celled to be • ae.be r. 0 ..

i f .. net 1011 11 lust lll1ned by the Bank on equity i nvest.entl held

by it on euch date. and the . . aun t of e\>Ch 10llet exceed. the

aaount o f the r eSer'Yn provided e,elnlt l osses o n the date when

t he lelber ceesed to be I .... ber. eueh fonoel' -eoobe r ,hIll rt<PlY.

upOn d e-and. the lIa<Iunt by ... hl eh the «purchase price of itl

Illlres would hive been r educed it the l osses had been taken i nto

Iccount ... "en the r epurch .. se price "11 deteralned. In Iddition. the

ro .... er le.ber Ih.ll ..... aln li.ble on any cd! f or unpaid

eubscdpllon' under raragraph ~ of ArU cle 6 of till. Agree "ent. t o

the e "tent that i t would have bee n requl .. ed to "",pOnd i f the

11palrlent o f c apital had occuHed and the clll had been lade It

the tl.e the r e purc hase price of itl ."are . ..... deter.tned.

~.

I f the Bank terwin;uel it. open U on. puuuant to

AHicle ~I o f thiS Agre ... ent within 11" (6) _tlls of the dlte

upOn "hi ch any ..... be r ceases t o be I .... be ... . 11 I'lgh u of .uch

f o r.er .e.bar ." .. 11 be deterwine<l in IccordMce ... ith

the

provisions o f Articln ~1 to 43 of th1l Ag ...... " e nt.

JO

A

Article ~O

It:I'IPORARf SUSPENSION Of OPERATIONS

In an ,,_rlen<:), . th" Bo.rd of Dl .. ectD "~ •• Y suspend

le. po ..... ll)' op e r. tiDn~ 1n r es pec t o f new l oans , guarantee •.

und" ...... l t1nS. t echn i c al ... htance and equit)' i"v"'s tllents pending

an oppo rtunity f or f unh" .. con siderati on and a c ti o n by t he Board

o f GoveMlOrI.

ArU c: h

T'ERPlINATlON OF OPDtATIONS

The Bank ellY teMllnate its oper.tio ns by the .ffl ..... Uve

vote o f not le .. t han two · thi rds of ehe Governors,

rep~sent1ng

not I " ..

than three-fourth"

of

th" total \>O Unl power of the

lIeabeu . Upon luch te .... ln.Uon o f operati ons the Bank shall

f orthwllh cease .11 ectivlU"I . "Kc:ept those incident to the

orderly re .. liE. tion . conserv a tion and p .. ue ..... II. Uon o f its .. sets

and sett l e-ent o f its ob l1«eti o"l.

LIMI LlTY or I'!DIIIERS AND PAYMENT OF ClAIMS

I . In t he event of t" .... l". U o" of the operetio"s of the

BMk. the lif1bility o f 1111 Habera r o .. unclI.ll ed subscrip tions to

the c II"lt,,1 "too;k of the Bank shlll l con tinue unt11 1111 cl " las of

cudl to.... i nclud i ng ,,11 continlent chi... shall havll. been

dl ,cha"led.

2. C~ed lt ors on ord Jnny ope rations hold i nl direc t c l .ias

shsll be pllld fi rst out o f the assets o f the Blink, secondly out o f

the ,,,y_ents to be _&de to the Blink In relpect o r unpaid paid-In

sh ires, and then ou t o f payaents t o be aade t o the Bank In respect

o f c allable cap lt"l 'tock. Before _aklnl any p aysll.ntl to c~lto"5

holding d irect c 1ll1_s, t he Board o r Directors 'hall _lIIIe such

lI~r""Re_ent. liS are necessary, I n its J udpen t, t o eM u r e " pro

rota dtst~lbutlon II.IIOnI!l: holders o r direct end hol de rs of

con tlnl!l:ent cllll ••.

", .. U ele ~3

D1STR1Bttrl OH Of' ASSETS

I . No dbtribo.ltlon unde~ this Chapter s h"ll be sade t o

-a_be.., on account o r thel .. subS Cripti ons t o the capital stock o r

...

the Bank until

"

hllVe

{O

asbl 11 tie s

creditors

"

dtschar('ed 0 .. provided f o r ~ and

(11 ) the Board o f Ooverno~. hlls dec i ded by • yo te o r

not less than

t .... -thlrd. o r the Governo .... represen ti"l no t le51

the totd vo U,.. power of the _bers,

thlU'l. thf'<l'e- r oorth. o f

to

.Ilke .. distribution.

2 . An)' distribution of the uut. o f th" a.",k t o t he

ee-bers sh"ll be 1n proportion to the capital Itoek held by each

__ be l' III'Hi "hall be ef f ected lit auch Uen

and unde r such

conditions AS the Bank shall de ... f lllf' and equitable. The sh"re"

of lI.uets dbtrib\Jeed n .... d not be unitOMl U to type of ",,"tl. Ho

.".ber shall b" e n ti U e d to receivII it" "h a re 1n such 11

distribution of •• s .. t. until it ha .. "e tt led 1111 o f 1 ~ ob lll" l iona

to tll" Bank.

3. Any -ellber reeeiv in« anets distr i buted .,..."'UMt to thl.

Article sh"l1 enjoy the . _ rl,hts vilh re .peet t o auch . . . eu. lIS

t h" Bank enjoyed prior t o their dhtr1 buUon.

sYATlJS, l /'I'IUNIT1£S, PRIYILECES AND £XOO'TIONS

..... Ucle ~4

PUl1POSES or ClIAPTER

To enllble the Bank to r ulfU its pu .-pole atId t he f unc ti ons

vi tll vhi .. h It is entrult"d , the sta tus. 1 .. uni tla., pr l vil"l"a and

axe_ptions set forth 1n this ChBp~r shall be accorded t o the Sank

In the territ o ry o f each 'e-ber COUtItry.

Article ~ 5

or ntE IlAHK

STAT\IS

The SIUlk sh all pollen fuU

lele.!

p<tnoroal1ty

""d,

1ro

part icular , the fu ll le,a1 capacity

(1) to cont r act

(H) t o

a c quinl,

and

dispose

of ,

bllovabl"

and

-ovabh property: and

(Hi) t o i nstitut" lesal procHdlIlSS .

Artic le ~6

1'OS1TlOO or THE IWIl( Wirn IlEGAlUI TO JUDI CIAl. PROCESS

Actions aay be brouSht qdllst th" Sank only 111 • cou rt o r

cOOlpetellt Ju r isdiction ifl the te rritory o f e country 1f1 whi ch th,

Sank has IItl o f ri ce, ha. appo i nted M egellt ror the pUrpo", o f

aCceptifll serv ice o r flotlce o f process. or hu lasued or

(lJBrMteed securit i es . No actions ,hall, however. be broulh t by

lIe .. bers or persons actins f or or de.dv i nlr cldas frooo ae .. ber •. The

property IItld Bss"ts o f the. Bank ,hall. whereSQever l oca ted and by

who'IOOIver held. be J •• une f rooo III r o .... o f •• hu .... attlC"-en l

or ",ecution before the deHvlry o f final Judpent as,tn.t the

'oN<.

Article ~7

ItlMUN l TY OF ASSETS flIOIt SEIZURE

Property ""d IIlIsets of the Bank. wheresoeve r loc8ted and by

.. hOllsoever held . shllll be 1 •• une f ro. .earch .

...,quld Uon .

tonf1 1cat10n, expropriation or any other fora

of

taking

or

foreclo.ure by executive or legisllltive IIction.

Article ~8

1!!I'fUN ITY OF MCHlVES

The archives of

the BIUIlc.

and

i n ge ne ral

ell doculI"nt"

belonging to i t Or held by it. shal l

be inviolable .

..... title ~9

FREEDOM OF ASSETS f1IOK RESTR I CTIONS

To the exte nt neces sery to cllrry out the purpose and

functions of the Sank and subject to the p rovis ions or eMs

AgreeDene, .. 11 property Ilnd u sets of the Blink shall be fr e e froll

restrIctions, regulations. controls and lIorator111 of any natu..."

Article 50

PRIV ILEGE FOR COMMUN ICATIONS

The official ca.llluni"eUons of the BlIllk s hall be IIccordl!'d

by e ach lI<'!1IIber the SUe trea t ... me thet i t IICCO rd S to the official

ca8aunication s of any other ae"ber.

Article 51

H'il1UNITlES

OF OFFICDtS AND F.MPLOYEES

All

Gove rno r s .

Direc t or s.

Alte rnat es .

o r riceu

and

e"ployees or the Bank and experts pe rrordn g .isslons fo r the Bank

shsll be ( .... una fro" leglll process with N!sp<!(:t to aets perfonle<i

by the" in their offieial capaeity. except when the Bank wllive .

this i" " unity, and shall enjoy inviolabi li ty of all their official

papers and docuaents. This i" " unity shall not apply. ~ver, to

c i vil liability in the cue of d ... sge arising fl'Oll a rolld trllffic

accident caused by any such Governor. Di rector. Alternate.

officer. e"ploy .. e or expert.

A

l3

Article 5Z

PR I Ylu::cD OF OFrICflIS AND DU'LOYE£S

1. All Governors, Directors, Altematu , or ri ce .. , and

e"ployees of tile S""k .,..t ."pe r U of the SlU\k I"Ir(0 ... 1n« stllionl'

for the Bank

(1) not belM!!, lox:al nsdonah . ,hdl be accorded the

spe t •• "niti .. ,

fro- i"'lration N!.tricUon s . alien ",istr,Uon

reQulreeents and national ... rvice obll,'tion', and the .ue

r.c11itiu as re,.rds e"c h""~ "'lI"iations, as are accorded by

s .. aben

to

the

Nlp .... ,ent. U "". ,

errlei,l"

and

employee.

of

cOOIpar.ble rank o f other _ber, ; and

(U) ,lIdl be «['''''ted the .ue treat.ent in "",.pee t

h c t HUn

of

travelling

as

.ccorded

by

~.beu

to

is

representoUves. ofrtchh and eaployeu of COOIpa .. , ble n.nk o f

othe r seaber • .

2. The spouse. and le-edl .. t e dependants of those Directors ,

... lter-nste Dlreetorl. o rrice"l, e-ployeu ."d ""pert a of the Bank

who are res iden t in the country ln whi ch the princi pal orrice o r

the Bank i, l ocAted 'hell be eccorded opportunity to teke

eaployaent In that count r y . The 5pou~e~ ....t laaedi a te depe ndantll

o r tho,,, Di...,;torll .... ltemate Directors , o rf h:eu. eDployeea and

expere, of the BlUlk .. ha ..... resid"n t In e count ry In .. hlch any

.gency or branch o ffi c. o f the Bank h l oca ted ahou ld. whereve r

POulble . in eccordance .. ith the nati on al 111" o f that countl')', be

ecco r de<l .h,Uer opportunity In that country. The Bank .hall

negotiate ,pacific .gr"e.ent~ iapleaentlng eh" provhions of thl '

parasraph with th e country In which th e prinCipal of f ice of the

Bank la l oca ted and , a s appropdate. with the other cou'ltrlel

concerned.

Article 53

EXDII'TION fRO!'I TAXATI ON

1. With in th" scope of Its of rtc1al a ctivi ties the Bank.

It s allets . property. and incoa" shell be e.e-pt rf'Oll all di .... c t

taxee.

2. Wh e n pu..."hasea or services o f substantial value and

necea.ary for the exerc l a" o f the o fflc i"l actlvltie. of the Bank

lire .ad" Or used by the Bank and when th" pri ce o r auch purches.,.

Or . . rvlc"" includ"" tu", o r duUI!B. the se.ber that has levied

the taxes or duties Ihal l. If the, are Id"ntirtabIe. tak"

appro priste ."uurel to ,rant ex . . otlon f f'Oll luch tu •• o r duUel

or to provide f o r thei r r"lsbun .. ~.nt.

3. Goods imported by th e Bank and necessa ry f o r the

exercise of its official activities ,hIll be exeept ff'Oll ,11

laport

duties and taxes. Md fr oa all IlIIpor t prohlbitlonl and

restrictions. Slalllrly goods exported by the Bank and neeauary

for the exercise or Its o fficld .cHvlei", ,hall be e "eapt f roll

all ""port duties and taxes. and fro. ,11 e"port prohibition. and

r est r ictions.

Article 54

II'IPLfJ'lElITATlotf or QIAPTE/I

Eac h .e.ber . hall proaptly take luch Iction I . i~ nacel,ary

f o .. the purpOle of hpleaentinr t he prov isionl o f thh Chapter and

. hl ll infor. th. D.nk of the d.tailed Iction which it ha. taken.

Article 55

WAIVFJI or IPlMUNITIES. PRIVIlL(lES AND E'..'WU"JIONS

The h,.uniti ••• privtlere' and e"eaption~ con f . rred under

this Chapter are Iranted i n the inte r es t of the Bank. Th. Board of

I>irfl:tors aay .. dve t o auch e"tent and upon luc h condit i ons a a i t

aay dete ... tn. any o f the

t •• un iti el. pr ivlle ••• and e " ... pU".,.

conferred under thh Chapte r in c .... Woere .uch a ction would. In

t t. opi nion. be a pproprhta in the belt i ntere.ts o f the B ...... . Th.

Pr e. l dent Ihl ll have tha rlrht and tha duty tg " Iiv. any taaunlty.

p .. ivll ele Or exe."tion In ..... pect o r any off l c. r . esploy.", 0 ..

expe r t o f the Bank. othe .. than the President Or a Vi ce-Preddent •

.. here. In h h or her opinion. the iaaun ity. p riv lle,e 0 .. e" ... ption

...,u l d iapede the course of Jultice and Can be .. atved .. abou t

prejudice to the Inte r ests o f the Bank. In . t aUu c lN: .... stances

and under the .... e con.Utionl. the Board o f Dt~to ra Ih.U hIve

the .. Irht and the duty to .. dva any 1-unlty. prtv Uere or

e"eapti on in ~SPICt o f the President and each Vtc. Pre.ldent.

a.lpte .. IX

AKEM»lEHTS, JHT£IlPRETATI OH. ARBITRATl ON

A .. ticle 56

L Any proposal to ... end thla Arr_nt ... hethe .. eaana tlnt

fr Oll a .... ber, a Governor o r the Board o f 1>1 rectors , .han be

coouun l ca t ed to the Cha i t"tlan o f t he Board of Ooverno r s .. ho , h,n

brinr t he prnponl be f ore that Boud. If the proPOled . . endaent h

approved by the Bo ard the Dank Ihall. by any rapid aea~ o f

com.unlcation ..... k a ll aeabers whether they a ccept the p roPOled

.... end "en t . When not leu than three -four thl o f the .... berl

(indud1nr at lellst two countriel f roa Cantra l SIlo! Ea.tam Europe

I1sted in Mne " A). ha"lnr not lesl than fou r-fifth' of tha to UI

voting power o f the aeaber., ha ve a ccepted the prepoaed uend.ent ,

the Bank . hall certify th.t tact by for.aJ com.uniCllt i o n addres.ed

t o all aembers.

2 . No twithstandl n r paragraph 1 o f t h i, Ar ttele

i

(0 Dccep tSllce by all meaben Iha ll be r equired ln

the c ase o f any amendment acdlfyinc

(al th e rirht to .. 1tt.dra .. froa the Bank

A J6

(bl t he r llh t~ p er U in t n l

to p" .. c hue o f

capHal nDck pr-QV Id ...! f Or I n paug.-a pt> 3 o f Ar U el e 5 o f thh

Asreea"n l

(c) t he 1I.naU ons on l h b lU ty p rovided f or

In p .... « .... ph 7 o f At t i el" 5 o f thi s "'Iree~n t : and

Id)

the

purpose IUld

f unc ti ons o f

the

Bank

d"flned by Art i cles I and 2 o f t his Agree •• nt

( U ) a ""ePtance by no t 1",, 8 than t hree- f ourth s o f

the _.abe .. s h8., lnl no t 1,,81 thllJl ei ghty - fi ve (85) pe r cent o f the

total vo ti ng power o f t he ... ebers s hall be req Ui red in the e ll"e o f

any u", nd • ., n t eodify 1n s pare , reph ~ of Ar U c: le 8 o f

thh

Agree.en t.

"'hen t he requ l re."nU f o r " "ce pU na any .. "ch propOsed

uenda"nt h "". been _to the BlI1Ik s hall cert ify t h e t h ct by

fo .... l eo..unicaUon edd r eu e-d t o all __ ber s .

3. ADend..,nt!< sh d l e n te r I n to f o r c e f o r 1111 _" .. ber s th re e

(3) -onlhs e rlo:o r t he dst e o f t he fore"l co ... un IC ftti on provided f o r

In p aragrepll~ 1 and 2 o f ~ lI ls Article unleu tile Boon:! o f

Governo r s speci fies a d i f f e rent per i od .

Ar ti cl e 57

INTERPRETATI ON AND APPLICATION

1. Any qu .. stlon o f In t .. rpr .. tation Or &pp llcaUon o f t ile

Fr" visiD<'l5 of this Agr .. e.ent IIris i ng bet .... e n /lily . e .her and tile

S/lIlk. Or bet ...... n ""y . ... beu of t ile BlIllk . 511a\1 be aub.ltted t o

tll .. Boud o f Direc t ors f or Its d .. clsion . I f t ile re 1$ no Di re c tor

o f Its nationality I n t hllt BOllrd, " ..... b .. r p arUcuhrly ,ff .. ct .. d

by t hl! question und .. r conslderll tl on s ho ll be e n titled to d i rec t

repr .. s e nt!ltlon In th .. lIeetlng o f the Boa rd o f Dlrl!ctors during

such conside ra tion . The r e presentatlvfI of such IIf!IIbf! r shall ,

howeve r . h"ve no vote. Such right of n>pn>5 .. n t a Uon ,hdl be

regulated by the Boan! o f Govl!rnors.

2. In any e lls .. .. her .. tlM! Boa rd of Di rectors hn g iven ,

decisi on under paragraph I of tills Arti cle . IIllY lIe . he r ."y rl!qu l r e

thot the qUf!s tl on b .. n> f erre<\ t o till! Board o f Governors . .. hose

deetslon 5111111 be fi n al. Pendlnll' tile decision o f t he Bo ord o f

(;overnors . the B"nk II/lY . so far n It d .. e,"s i t neCl!SSlIry , act On

the bosh o f tho dcc1i!o.l on o f t he Bonrd of Di rectors.

Ar tl e h

AftBITflATlOH

I f a dhag r ee ..... t should arise be t ween t he B!II\lc IltId "

.e.be r which has ceased to be " • .,.be r. or be twee n the B"nk ""d

any _.,_ber IIfter adOption o f a dec15lon t o

t e r .. l n ll t e

t he

o"...ratfon~ of the Bank . 5uell dls/lg"""" en t shall be 5ubll lttl!d to

ftrblt r .. tlon by 11 tr 1 bund o f t h ree Of ar bltr"tor~ . o ne nppoln t .,d

by the (lank . a"othe r by the .. e " be r or f or_e r lIellOer

concerned .

IIlld the t h ird. un l eu the p"r t le~ othe .... Jse agree , by t he

A

Pre.ldent o r the Inte ..... tlonal CotIrt o f JusUce or suc h othe ,.

author ity 81 I"Y hIve been presc ribed by ",,,,laUonl adop t~ by

the Board o f Governo r s. " ' .Jo l"lty vo te o f t he erbl t nt o ... shell

be . urn c lent to relc h .. dec hl o n ... hi c h ,hail be U nal and bindin g

UPOn the pe .. tin. The third IIrb ltrllto r ,ha ll hive full _ e r t o

settl" all quest ion. of procedu re In any case .. h",.o the putlu

are In dl • •• re"."nt .. Ith .. ".peet thereto .

ARTI CLE 59

APPROVAl. DEnIm GIVEN

""ve,.

t he approval Or th" a cc;e pt .Lr,,;e o f any . ... ber :Is

Wh ..

'.l'

requ ired be f o re any IIct

be done by tI .. , Bank. ex cep t under

ArUcle 5 6 of tM. A,reelle"t, approval or I ccepta",:e .h1l11 be

deeaed to have been ,l ye" unl" •• t he I .. aber present. an objec ti on

.. I thin suc h n!!uon llble period . . the Bank .ay rix In noUryln&" the

~be .. o f the p ropOsed K t .

Chapter X

FI NAL PROVIS I ONS

Arti c le 60

SICNATUTIE AND DEPOS I T

1. Thi s Ag r eement , depoSited wi th the Cover""e nt of the

Fre ",;h Re pub l i c ( he relll8fte .. call ed" the Depos i to,y "I. shall

31 n."c e.~r 1990 f o r si g,ul.tu re by the

r e .... !n open until

pros pec tive .ea be r s whos e nlllles sre set f orth 1n Anne_ A to thiS

Agree .. ent.

2. Th e Deposito ry shllll c o.. .. unic llt e

c"r ti f1 " d copies o f

th i s Agree lent to a ll t he Sign lltorles.

Arti c l e 61

RATI FICATION. ACCEMAHCE OR A.l'rnOVAJ..

to.. subje c t to rati fl clltion.

I . TI' e Ag r e e.ent shllll

IIcc<l pt,m ce o r

IIppro vll1 by

the Slgnllto rJes.

in s tru.e n18 o f

rlltlfl ClIll o n, II cceplanc e o r II pprov lIl s hllll. subj e ct to pll rllgrllph Z

o f this Arti cl e. be deposited with the Depodto r y not !IIter t han

3 1 Hllrc h 199 1. The De pOs i t o ry shall d uly no tify the other

Slgnato r lc s o f cac h deposi t IInd the dllte th"reof.

Z ..... ,y Signa tory .IIY heeo.e 11 pllrty t o tM." Ag~.ent by

depos iting an in s trulll!nt o f ratifi c ati on. a cc cptance o r 8ppt"'OvIIl

un til o ne yea r afte r the date o f Its entry Into f o ",e o r, H

"",c e ll llry . until such IIIter date n .... y be dec ided by 11 aa Jo rtty

o f Gove r llO rI. r eprese n tin, 11 aaJ o rlt y o f the total voting poIOer

o f the .e. be r s .

A J8

3. It S i,lUltOry .. hos. i n!tNaent ",ferred to In p.ral ~ aph 1

o f thts " rUel" is depod ted be f or. the o;I"tll On .. Meh thls

*0-8 "

"I!lre"a"n t "nun Into f o.-.: .. shall

a.aber of the 81111k 0<\

that date . Any other Simllary which co-p Ilei " It h the prov1,lons

of the prf!'cedl"," plI"&snph s ha ll be(:oee • "",.!>e .. o f the S-nk on

the datf! on wh ich tu In.t ...... e nt o f .. atHication. acceptanc e o r

111'1'...,.,.1 I,. deposited.

Article 62

DmlT llfI'O JllfIa

1. Th1l ASree .... nt , h,,1 1 ente r if ,t o f o ree when In struote nts

o f ratification. acce pt"""" o r "PPfovel heve been depol1ted by

SJ",,,to,.1,,s ,,1>01. inHiIll .ubscrlpU on s .... pr.lllent not l en t.h&n

two ~hlrds o f th e totd .... b.c .. iptl on. let f o rth 1n Annell A.

tndud!n, a t h u t two c:oun trle, t o;ooo Central and Eastem Europe

In Anne_ A.

IJ .t~

2. I f thh Agree""n t tu" not eI11",",d Into fo rce by 31 Ma rch

1991. t he Deposito r,. .ay eonvene I conre .... .,,,. of interelted

prospective .".be ... to det . .. ine the futu ~e c ......... o f ee U on and

dec i de e new dftt. by which i nstruaents o t ... et itie.C i on, e cceptance

o ~ approvel shall be deposited.

Artic le 63

I NAUGURAL MEETHIO " .... 0 COIflEHCEl1fNf Of OPERATI ONS

soon as thts Alreeaent enters into ( oree uncle!"

I.

As

A ~t1ele

o f thia Agreeae"c, ... e h .Hbe~ .hall appoint a

Governor. The Depollto~y sha ll c all the fi ut .. e etin S" o f th'" Board

o f Gov"' ~nou .. ithln Il"ty ( 60) dll.ys o f entry in to fon::e o f t h is

Agreeaent unde r "rtiele 62 or .. soon ... posllb le thereafte~.

2. At tu fiut .eetinl. the ao.rd of Gov.rnors

( t) .hall el"'ct th .. Presiden t

. r u ••

(11 ) _h llll .. Ie<:t th .. Ol.....,to.."

'"

IIcconianell .,ith A~tl ele 26 o f thts Ag ~""' .... nt

(ut) I h .. l l . lIk", IlrrMgeeen t s fo~ de t e reinlng the

dete 'o f th e coamenee .... nt of the Bank's opera ti ons: and

. ake such o ther a~ranl ..... n ts • • eppellr to

(1'1) .hall

p~epe...,

to

f or

the

c_n.ce.en t

of

the

Bank 's

it nece .. ary

ope .... tio n •.

3. Th.. Bank .... 11 not Hy

..... be ~_

itl

of

the

elste

of

co ... enc ..... nt o f le. operations.

Done at Perh on 29 May 1990 In .. 11nlle o ~l8'inel, whose

Enll:lts h. fren c h, ae"'l\fI and ~ulllan texts e re .. q u lllly a uthenti c.

whi ch shall be deposited in the ar ch i Ves o f the DepOs itory whi c h

she ll t rsnse1t 11 duly eerHried copy to neh of the other

proapectJvII • .,. bers .. ho • ., n . . .,a ere • ., t for th i n Ann .. " A.

INITIAL SUBSCRIPTIONS TO nlE Aun~IZED CAPITAL

STOCK FOR PROSPECT I VE _EllS IIIUClI MY BECXIKE

KEHlIERS IN ACCORO.o.tlCt WIll! ARTICLE 61

CAPITA L

NUHBE'JI

SUBSCRIPTION

OF SHARES

(In .tllion Etu.)

- Europ<:'an Co..unities

228.00

Belgi".

" 800

120.00

Den.mrk

"

651.75

Fr""""

65 175

c.. ... "ny. f ederal RepubUc of

851.75

65 175

, 500

65.00

(keecl!

]0.00

] 000

Irel and

651.75

85 115

It" ly

00

Lu.xHbour ..

2~8.00

" e the rlands

"800

~2.00

Portugal

340.00

J' • 000

Spftin

851 .75

65 175

United Kl ",da.

300.00

European Econo-Ic eo..un lty

]0 000

]00.00

]0 000

European InvU~.l!nt Bank

Other Eu .. ope"" Coun tri es

228.00

Austria

"

10.00

Cyprus

125.00

• 000

"500

Finl""d

10.00

Iceland

, • 500

65·00

h .... !!

Liechtenstein

Mill ta

' 00

125.00

" " 500

No rway

228.00

Sweden

228 .00

",..,

Swi t . e rloond

"

BOO

115· 00

Turk,,),

A .,

C - Recipient countrie s

79.00

7 900

9uI811 .. 1II.

,,900

128.00

Cz echoslov$ki ..

155.00

"""

GerllM DellQ<: ra Uc Republic

79.00

Hungary

12 800

128.00

Poland

• 900

00

ROIII!Ulla

600.00

60 000

Un i on o f Soviet

Socialist Republics

'''00

128 .00

Yugos lll.vill

D - Non-Europe"" Countries

100 .00

Austr"H ..

" 000

3~O . OO

Can lld "

" , 000

",'"

10 .00

85 175

651. 15

)111'''''

65 .00

Ko .. " ". Republic of

, 000

30.00

Me"ico

, 000

10.00

Morocco

, 000

10.00

New Zedllfld

100()'(YJ

Unit ed Stllte s of

'00 000

..... e['1""

E - Non allocated sha['~3

1.25

'"

, 000 000

1 (I()O() . 00

Cl Prospective members are listed under the ab ove categories only for the purpose

this Ag reement. Recipient cu ontries are referred to elsewhere in this Agreement

Central and Eastern European countries.

A "

A If H E X

SECTION A - EL.E.CTIotI 01' DIRtCTtlRS DY OOV£RNOI1S REPRESENT l NO

BEUlIUM. D£1iIW\K . FRANCE. TIlE r mERAL REPUBL I C or OEW!AHY.

CIlttcE. IfIl."tlD. ITALT, LUllEMOOUOO, TllE NETlIEIIlMOS. POAlUCIAL ,

srA I N. 11IE UHITm KINCDOf'I. n il:: EUROPEAN ECONOKIC alI9IIJN ln

11.'/0 TIrE EUROPEAN I NVESlMENf BANK ( HER£J NAFTEA REf'ERRm TO AS

SECT I ON A OO\IERtfOf\SJ .

1. The provisions ,et OIJt below in thts Section .h"l1

IIpply e~clu5Iv" l y to thi s Sec tion.

2 . Cftndl dete. f or the office of Dlr.ctor shd ! be

nos l nftte d by Secti o n 11 Cove r-no .. s. provided thst " GoveN>Or

no.inate only one per'Qn. The elec tion o f Dlrectorl "h,ll

.~y

be by ballot of SectIon" Governo r , .

3. Eflch Governor eUglbl .. to vato! . 1".11 "est f o r onll

per.on all o f the votu to "Met. the .~ber appointing hi. or

11" .. is "nUt1O!<! ur>d"r paugraph' 1 and 2 o f "nld, 29 Of

thh """,,,sent.

~. Subject to par.creph 10 of this Sec ti on. the 11

penon. receivin g the hilliest

nu.be .. o f vat"'. sh all be

Di r ecto r s, except tt. .. t no perlon who receives less than ~ .5

per ce nt of the total or the votes whic h Cln be cu t

(eligible vote!) In Section ~ shl ll be considered elec ted.

5. Subj e ct to parftgr~ph ID of this s.c tl on. If 11

persons "re not elected on th" first bdloe, " ."cond bdlot

sha ll be held In .. hlch, unless the r e were 1\0 lora th/lll 11

clllld l dlltes. the person who received the lowes t nuaber of

vo tes I n the first ballot a h"ll be Inel1, lble ror election

end In which there shall vote only

,.) tho se Governo rs " ho voted In ", rtnt

ba ll ot ror a person not elected ~d

(b)

thos e Governor! whose vo t es r o r a person

el"ct"d "r" d .... llId unde r p .... ,rsphs 6 end

7 below of this S"c U on to hllve rllled the

votea cut f or that person "bova 5,5 per

cen t o f the e U ,tble votea,

6. In d.Hen t n l ng whether the votes cut by , Governor

Ire deemed to hevlI raised the totd votes cast (or any pe r gon

a bove 5.5 per cent o r the el1,lble vote •. thll 5.5 per cent

shall be deeled to trlc1ude, first. the votes o f the Governor

cutlnlf the hrleat nUlber of vo tes fo r auc h person. then the

votes o f the Governo r cutin, the nelll hrseat nUlber and so

on . until 5.5 per cen t Is reached,

7. Any Governo r. part of whos e votes euat be counted

in o rde r t o raise t he totd o r ~..,tea c ast ror ""y penon

a bove ~.5 pe r cen t ehall be cone ide r ed ., ces t!n. all o f hi a

or her votee f o r such person, even if the t o tel votea f o r

5 .5 per cent and ,hell not be

s uc h person thereby e~cl!'ed

eUs i ble t o vote In a f u r ther ballot.

8. Subjec t to p&r",nph 10 o f this Section . H . "f ter

the sec ond b sllot. 11 pflraons heve not been elected. f urther

ball ot' sha ll be held In con f orel ty wtth the pdnc lples atId

p rocedu res leid dovn in t his Sect i on. until 11 persons have

bee n elected. provided that, i f a t any Ite,e 10 pe rsons e re

elec ted. notwHhstandln, the p rov i a l ons o f p era,raph " of

thi . Se-ctlon, the 11 t h . ay be elected by a st.ple "JorH),

of the ree lll!>i", votea cu t.

9. In the CUe o f An incre""e o r dec r elle in the

nu.ber o f Directo r' to be d ected b)' Sec tlon A Governora.

the .1nieu. and ... . d _ pe r centa, .s epec!tlfKl In p ara,rspha

~,

5, 6 atId 7 o f this Section

shall be app r O'p rls tei),

edJu.ted by the Board o f Governors.

, n>I'P

10. So 10<13" lIS at\)" SllJ11s t o ry, or

o f SI ",atorJea,

whose shsre o f the t o td amount Of capital subSC ri ptions

prov ided in Anne .. A Is .ore t hllll 2 .~ per cent. has no t

dep<l l itl'ld

iU

I nstrum" nt

or

th"l r

lnstru."nts

or

ratifi c ation . a pprovel o r acceptanc". t here shall be no

election fo r one Director In re'""t o f each suc h Sltn ato ry

or

, roup

of SI",ltorle, .

Tha Cove r nor

or

Gove rnors

,"" prasentl ng luc h e Sltnato ry Or ,roup o f Si",ato r h a ahal l

el ec t a DirectOr In re spflc t Of ea ch Signato ry o r , r oup o f

SllP\a tories. l . . e<llate l y afte r the SII"ato r y bee",""" a .... be r

Or t he ,roup o f SI",etori"s beCHfl . ".hera. Suc h Direc t o r

sh a ll be d~e .... d to hav" been elec t e d by the Boerd o f

Covernor~

ln ~u""rel

et i u

lI e<lt:lng. In a cco rdllllc e with

pe~agr aph 3 of Artic l e 26 o f this A,ree~en t. if he o r she is

e l ected du rln, the pI'lrlod In wh ich the f irst Boa rd o f

Directo r . ehall hol d o ffi ce.

SECTION D • El£CT I Otl o r DInEcrons DY GOVEIltlOOS REPflESEtlTlNO

o nlER COUtlTlU ES.

Sec tion B (1)

Ele c ti on o r

Directora

by Governors

re pr" sentin, t hos. count ri"s liste d In Anne~ A ss Cent ral and

Eest,,", EUl"'Opflllll Coun trl".( re cl pien t countrie s I (h ere i na fter

rer"rred t o &3 Sec tion B ( I) Oovernono) .

I . The p r Ovi s ions lit out b"l ov i n th l l Sectio n .hall

apply e xc lusively t o thh SactlOn.

2 . Catldldat ... f o r

t he of fi ce o f Dirl'lctor shell

""

, • r

by

Se-ction

B

(1) Gove r nors, prOv i ded t h at

n""i neted

Covernor .By n"" lna te only oM person. The e ll'lct1on

Director. , h all be by ball ot o f Section B li) Ooverno r~.

A "

). Eftch Governor .1I,ibl. t o vote s hell CUt for on ..

~rson

all o f the vo te s to wh ic h the lI .. eber appoint!nl hl. Or

"er is "nU t ied under " ... · ....... "h.

1 and 2 of Article 29 of

th ls AJrrftllflnt.

~ . Subject to pa"llral'll 10 o f this Section.

th" ~

persons receiving the hilliest

nOJtlber of votes she ll be

Directors. eKce pt thet no ""rlon ... ho recetv". le •• than 12

pe" cent o f the total o f the vot.. ..hieh can be " .. st

(eligible votes) in Section 8 (1) shall be c~ldered

elected.

5. Subj ec t to Plral .. "ph to of thh 5e<:tlon, tr "

persons are not ele<::te<f on the Hut baUot, .. second b.Uot

shell be held 1n .. hleh. unlll!u the .... ",..., no -.ore ch"" 4

candidate., the person .. ho ntClllved th" lowoest n_ber of

vOtes in the nrl t ballot shall be In"I1,1 ble for eleet t on

and in "hteh there ,hell vote only

,-)

".

Govitrnon who yote<! in

thal li

b.llot for . person not elected

"""

(h)

lhose Oovernors wIIol e yotes r o .. a pera on

elected are de .... ed under puagraphs 6 and

7 below o f thl , S .. ct l o n to have r .. lsed th ..

votes cast r or th .. t person ebov .. 13 per

cent o f . tha dlglbho vot ... .

6. In deter .. lnlng .. heth .. r th .. votel Clllt by 11 Govllrno ..

.. r e dee.ed to have .... lied the t o t .. l votel "ut f or any person

.. bove 13 p.er cen t of the eligible vo t .". the 13 per cent

shell be dee~ed to Includ .. . firs t. the vote, of th., Governo ..

clIs tlng the lergest number o f vot ... fnr lu ch perlon. then the

votes of the Governo r ca,t lng t he ne xt hrs e, t nu.ber and so

on. until 13 per cent la reeched.

7. Any Gove rnor. part o f whose votes .ua t be counted

In orde r t o r .. h., the t o llli o f vo l e. cu t for any perso n

above 12 per cent Ihall be con5l de~ III c .... tlng 1111 o f his

o r he r yotes f or such pe rson . even if the totlll yot.,s f or

such person thereby e"ceed 13 per cen t Md ahell not be

eligible to vote In a furthe r ballot.

8. Subject to p ... nlfnph 10 o f thJl Section, 1r. llreer

t he ~econd ballot , _ perlons hllye np t been elected. further

ballots shall be held in confol'lllty .. ith the principles and

"racedure, bid down In this Sec ti on, until ~ perl on s hllve

been elected. prov ided that, If et any sla, .. 3 persons are

elec t ed . notwithstandln, the prov ldo ns o f perllg raph 11 of

this Se<::Uon. the ~ th .ay be electtl' by a ,hpl . . . eJority of

'.he re ... l nln, votes cese .

9. In the caSe o f AA incre ase or dec re .. s e In the

nu.ber of Direc t ors to be elected by

Section B (1)

Gove rnors. the .. Inl.u. and m""i.uII! percen tiles specified in

p~rlllr~phs

~.

shall be

S. 6 ru,d 1 of this Section

~ppropr1ately adjusted by the Bo~rd of Governo r s.

A ..

10. So Ion, Ba MY Slrnuory . o r s r oup o f Slgnatorte • .

w1lo8" share Of the t otd a-ount o f ",phd subscriptions

-are th"" 2.8 per cen t . ha. not

PI'O"lded ill " , - " A h

deposited

tu

Instru.ent

or

t hei r

!nstMl_eRt"

of

.. atHlcatlon , app roval or accep t ance. there sh all be no

elec ti on f or one DI .. e ctor In r es pect o f "ach • .,,,h SJ",aeory

Cova r nor.

Or

group

Of

Si gnA tories.

The

Governo r

Or

represe nting such . Signatory Or group o f Sl gna t o de . ahall

elect 11 Directo r in ",.peeL o f eac h Sign.tor,. or ,roup o f

Slcnatodes . le-e,Uate ly .fter the 51snatory becOll . . . . fI ... be ..

Or the IrouP o f Slrnuorl.,. beca.e .... be .... Such Direc t o r

ah'lI be deeHd to h.". been elected by th" So.reI o f

Qovernors at its Inaugurd . .... tin,.

In a "conl.""., with

paragraph 3 o f Articl e 26 o f this 1I, .... " •• nt , If he or Ih" Is

dected du rinl

th" pedod in .. hle h eh" fi rst 80a r d o f

Di .. ectora ah ,11 hold o ff Jce .

SecUon B (11 )

Ehe U.... or Oirec toMl by GQvernoMl

represenUng those <:OtJnt rles li sted In ...... ne" A as other

European count ries {hereln.ne .. re(er .. ed to as Section B (Ill

Govemortl) .

1 . The provlsJons 'fl t out below l n tht.. Sec Uon shall

app ly e"clusively to tht. Section.

2. Can<!ldlltes fo r tho! o rn ce o r Directo r .ha n

bfI

n .... inllted by Section B (iil ~crnors. prodded that 11

Ooverno r a~y no.lnllte onl y one pe r son. The election of

(H.-eetor. I hall be by ballot o r Se c ti on 9 (11) Ooverno n.

3. Each OoV1!!mor e lt ,ible t o vote shall cut r o r one

person all or the yote. to whi ch the .... ber appoint i ng hil Or

her is· entitled uncIer pll .... 'raphs I and 2 o f ArUcle 29 o r

thls A,reelent.

~. Subjec t to paragrllph 10 o r thJII Section . the ~

pe rsons r ecei ving tke hilhe s t

nUlbe r o f vote • • hall be

Directors. e.cept thlt no person wllo receive s !en than 20.5

per cen t o f the votes .. M ch cM be c lst (eHgible votes) i n

Section B (U) sh.n be considered elected.

5. Subject to paralrllph 10 o f this Section. 1r ~

perlon. are not elected on the fi rst ballot . 11 .econd bllllot

Ihall be held in which. unless there we,"e no lore tkan ~

candidate •• the perlon who received the lowe.t nUlber or

votes in the rlrs t b"llot 'hall be {neH,ible r o r elec ti on

an" ln " hich there Ihlll vote only

tllo.e Oovemorl who voted in the

f i rst

{Ill

ballot for a pe r lon not elected and

(bl

thole GovernDrtI .. ho .. e vote

f o r a perlon

e l ected are deeled unde r pllr8&r8phs 6 and

7 be l ow o r thh Sec ti on to have r aised tha

votes cast ror that pe,". on above 2 1. 5 per

cent or the ell& t ble votes .

A

6. In deter.lnln« .. 1I.tller ell .. votes CU t by .. Cov .. rnor

.. re dee •• d to h"ve r ... hed the totd votes cu t f o r ""y p ..... on

.. bove 21.5 per cent of the .11,lble votes. U>e 21.5 per cent

s h ... 11 be d"".l!d t o Incl ude. first. the votea of thl! COve ...... r

c"sUn, tile hrsut n_be .. of vo tl!S fo ... "ch pe .. son. then the

vote. of th<J Govl!rno" c .... tln' tile ne"t la"S.lt n"",ber "",:J ao

on. "ntll 21.5 per cent 11 reached .

7. Any Gove .... o .. , part of wh o"e vot ... ",u.t be counted

In orde .. to r"h" the t o td of vote" C"st fo r ""y pe ... on

above 20.5 pe .. cent shall be cons idered u ca. Un, 01.11 of

hh 0 .. he .. vote. for '"ch person, even if the tot"l vot",. for

21. 5 per cent and .hall not be

such person th e reby "Kceed

el/Slble to vote in a further ballot.

8. Subje<: t to parasup/'! 10 of thi . Section. if. aCte ..

tile .econd ballot , ~ per.on,. h .. ve not hoeen elected. Cu .. the ..

ballot. shall be held In con f or"' lty .. itll the p .. lncl"l"s and

proeeO" "e s 1.1d down In this Section. until 4 p .. r.on,. have

be"n "I ec ted. provided th ... t. H at MY .t.,e 3 per"ons are

elected. not .. tthstMdln!l' the pr'OVhlons of p""'lI'r.ph " of

this Section. the ~ th uy be elected boY • "1",,,le ",aj o rHy o f

the re . alnln, votes ca"t.

9. In the case o f an Inc rease 0" decreue In the

number of Directors t o be el.cted by

S"ction B (11)

Gov,,"'O .... th" .. Ini",,,. Md .... 1.". percent"le. IP.<:l fi.d In

p ..... S .. ""h. ". 5. 6 and 7 of thb Section

Ih"l1 be

~ pp rop dat ely "djusted by the Board of Cove",or •.

10. So 101'1 as ""y $Isn"tory. Or grou p o f SI",atorles •

.. h05e sh .. re of the tot'" IlIOOIInt of cep lt .. 1 Bub.<:rll't1on~

pro"lded In Annex A is more than 2.8 per Cl!l't. hu not

d e podted

it .

lnst"''''ent

or

thel..

Inst",..,nta

of

approval Or .. cceptance, there ,ha11 be 1'0

r~Uflcet1ol'.

election r o r on~ Director In respect o f eBch .uch Sl gn.tor)'

or 1 <"01.11'

or SIII"'"torie,.

Th.

Governo r

0..

Gove"l'ors

represellt!nl .0<:11 a SlsnBtory or ,roup of Slgnll.tories .hllll

ele<:t 11 Direc tor II' respect of each Slsnatory 0" If'OIJp of

Sign atories. la.edlll.tely efter the S I",atory beca.es " ae.ber

or the Iroup o f S lgn~torle8 becOIOe aeabers . S"ch Dlr.ctor

sl1a ll be dee."d to hll.ve hoeen el.<:ted by the Bollrd of

It" Ina"lI"r'" aeetJl'«. In "c co rdance .. ith

Governorll .. t

pllrnsrp"h 3 of Article 26 o f t hll "«ree_ent. if "'" or .he 1.11

elected d"rinll' the period In "M c h the first no_rd of

DJre<:toNl shall ho ld o fft <:e .

Se<: tl o n B (UI) - £l~ctJon of DI .. ecto .. ,. by eo" ... nOr.ll

representing those <:oont rles li.ted in Anne x A •• Non-

["ropean Countries (hereinafter rete .. nd t o as Section B

(il l ) Covernors).

1 . The provisions set ou t below In thi. Section .hell

eppiy e xcl " s l ve ly to this Sec tio n.

..

2. Candidate. fer th" or ri "e o f Director .1>.11 b ..

no.,tnat"d by Section B UHI Governors, provld&d th8t ..

Governor .ay n ... lnat .. only one ~r.on . The election of

Director .. "h,,11 be by ballot of Section B (tl1) Governor •.

3· £to c h Governor eUllbl" to vote "h"ll ".st f or on.

person ,,11 of the vot ... to vhich th" -eeber appoint!", hi" or

her ill entt tied under plI.uruphs 1 and 2 of .... rU cl" 29 of

this "Ire_nt.

~ . Subject to paragraph 10 Of this Section. th" ~

per"ons ntc",{y1nr the hirhest

nu_ber o f vote" shall be

Directors, ","cept thllt nO person who .. eceives le ss than 8 per

cent o f the total of the votes whi ch ,,,.n b,,· "Ilst (el1rlble

votea) In Section B (111) .h,,11 ha conatd"red elec ted.

5. Subject to p"""lrapll 10 of this Section. H ~

persona are not ele<:ted on the Hnt ballot ...... "on<! ballot

" hall be held In wht ch, unle . . ther" .... re no eo re th ... 11

candtdata., tha penon ....... r ec.ived the lowt>st nWlbe .. of

yotes in the nnt ballot . hall be ineU,ible fa .. election

and ln whi ch th.re .1'1,,11 vot. only ,

,.

)

those Governors .. ho yoted :In

r:Int

bsllot for " per,on not elected

(b)

tho •• Oo"erRon who.e yote. for a pen""

elected ant dee.ed uRder parqraphs 6 and

7 below of th1l Section to ha"e nhed the

vat". cast fo r that per.on above 9 pe ..

cent of the "H,lble VOte •.

6. In del .... lnln« .... ether the va t . , c a s t by 11 Governor

"re dee.ed to h,v, r.ised the latal vot", c .. st for ""y pe r s""

"bove 9 per c.nt of the eligible votes. thll 9 per cent ",1'1,11

be de"med to Include, first. thll vot .. , o f the Governor

castln« th .. IlIrgest nu~ber of vote. for lIuch person. then the

votes of thll Governor cu ting th .. next lergest number and 10

on, until 9 pa .. cent :I , rellched.

7. Any Govemor. par t of whose "Ot"" -u.t be counted

:I n order to r.he the total o f yote. c.st f or ""y person

.bove 8 ",,0' cent Ihall be considered . . c.,UfII 1111 of his

0 .. he .. votes

f o r luch person, even i f the total vot ... f o r

Such ""rson thereby e~ceed

9 ",,0' c"nt and Shall oot be

e l:ll"lble to "Ote In • fu rthe r bellot.

8. SubJ"ct to paragr"ph 10 o f this Sec tion , :If, after

the second ballot, ~ per'ons hllve not been lIIlected. further

bellots Sh llll be held In .. on foNllty with the principlea and

p rocedures laid down ln thh Section, untU ~ persons heve

been elected, provided that, I f et any Itll,e 3 persons an

elected, notw1thstanc!ln, the provisi onl of p .. rlllraph ~ of

this Section. the • th aay be elected by a , I.pl. aaJority of

the .... aainlng vole. c.st"

9. In th" ea,,, of an Jne .... " ,,, or deereue 1n the

nu.ber o f Direeto rs to be el ec ted by

s"etion B (111)

Go ..... rnor~. the .Inh,,,. and .... I.u. perc entalle, specified 1n

rnr"gnphs ~. 5. 6 and 7 o f thl, Section

Ihall be

npproprlately Idjusted by thl Board o f Governors.

10 . So 10nll lIa any SIII',atory. or group of Slgn"torJ.es.

"ho,e shire o f the total ,u.(>unt o f cllpHd subscrlptions

prov ided in Annex " la .Ore thfln 5 per cent. h"a not

dePO.!ted

inatru-ent

or

their

in atru.ents

of

it,

ratlflc .. Uon. "pprov"l or a cc"ptflnce. th"re shsll be no

"I"ctlon f or one Director In r es p"ct of ""ch such Slgnlltory

or

group

of

Sill""tor;les .

n ,a

Go ..... rnor

or

Gov1!rnon

~present1nll such a SllPIatory or g ...... p o f S.llI"ator.lea ahsU

elect s D1 rec t o r in ~spect of lIIach S.I&nat o ry o r croup of

SI&n"to rle • . 1 . . edll1tely after th" SilPl"tory tlecoae, " .~ber

or the croup of SIII""tories beCDs" _tiers. Such DI .... ctor

shall be dee.ed to hsve been elected by the Bollrd of

C'oOvernor" st its Inau&\Jral .eaUn,. In acco rdance "ith

par"craph 3 o f Article 26 o f this Alree.ent . if he or .he la

elactllld durlnc th" p"riod I n "hich th" tirlt Board of

Directorl shal l hold o r flce.

or

AflMr«lf7lFJlTS FOil nlE ELECTION

SECTIOr-! C

DIRECTORS

n£rn ES Etn"HID COUtfl11IES NQT LI STED I N AHNEX ".

If

t ha

Board of Gov"rnors deeldu. 1n a ccordSl'c" .. ith

p.rslr~ph

3 of ArUcle 26 of thh Alr"".ent. to inc .... a se Or

deer<!lU<!I th<!l .h<!l. Or r"vl~<!I th" coapetition. of th<!l Bosrd of

Di recto r s. In order to take into a ccoun t chanle. in the

nu_tier o f _tie rs o f the Bank. th" Board of Governo n .hall

fl ... t consider .. h<!lther IIny ... end."nt. are requ ired to thh

A"n<!lx. and eay anlce e ny such ... end_entl a. 1 t dee •• nece.aary

e. pert o f ,uch decision.

SECTION 0 - ASSl<lw.U:NT or VOTES.

Any Governor who doe s not psrti c ip"tll In votl nll for

th" eleetlon Or .. hos" vote does not contrJbut<!l to the

"l"ct!on of a Director under Section A Or Section 11 (1) or

Seetion 11 (11) or Section B (11i) of tllh Annfl x eay 8,.1J1T1

the vo t<!l ' t o "hi ch he or She is entitled to an elected

Di r"ctor . provided that such Gove rnor Ihdl fir. t have

obt~lned

tha "sree .. ent of all tho. e (Jovernorl whO have

eleet"d that Dire cter to such 8s,irnment.

" d<!lcll1on by any (Jov"rnor not to pllrUcipate In

vottnS for the election of e Director .ha n not IIrf"ct the

calculllti on o f th" <!IlIlIible vote. to be ""d" unde r S<!Ictlon A.

Section 11 (iJ, Sect i on B (H) or S"ction B (U t) o f thll

Anne ...

To the Chairman of the Conference

on the Establishment of the

European Bank for

Reconstruction and Development

M. Chairman.

As you know, the initiative of the President or France M. P. Mitterrand to establish the European Bank for

Reconstruction and Development for the purpose or facilitating the transition of Central and Eastern European countries

towards market-oriented economies has found understanding and support on behalf or the Soviet authorities. The Soviet

delegation participated in the sessions of talks on drafting the constituent documents of the Bank. As a result the constituent

countries have reached considerable progress in drawing up the Agreement establishing the European Bank for

Reconstruction and Development.

At the same time certain difficulties largely stem from fears of a number of countries that due to the size of its

economy the Soviet Union may become the principle recipient of credit of the Bank and therefore will narrow its capacity to

extend aid to other Central and Eastern European Countries.

In this connexion I would like to assure you, dear Mr. Chairman, that the intentions of the Soviet Union to become

an equal member of the Bank account primarily for its will to establish a new Institution of multilateral co-operation so as to

foster historical reforms on the European continent.

I would like to inform you that my government is prepared to limit its access in the Bank's resources, pursuant to

paragraph 4 of Article 8 or the Article of Agreement of the Bank, for a period of three years starting from the entry into

force of the Articles of Agreement of the Bank.

During that period, the Soviet Union wishes that the Bank will provide technical assistance and other types of

assistance directed to finance its private sector, to facilitate the transition of state-owned enterprises to private sector

ownership and control and to help enterprise operating competitively and moving to participation in the market-oriented

economy, subject to the proportion set forth in paragraph 3 of Article 11 of this Agreement. The total amount of any

assistance thus provided by the Bank would not exceed the total amount of the cash disbursed and the promissory notes

issued by the Soviet Union tor its shares.

I am confident, that continuing economic reforms in the Soviet Union will inevitably promote the expansion of the

Bank's activities into the territory of the Soviet Union. However, the USSR, being interested in securing the multilateral

character of the Bank, will not choose that at any time in future the Soviet borrowings will exceed an amount consistent

with maintaining the necessary diversity in the bank’s operations and prudent limits on its exposure.

Please accept, Mr. Chairman, the assurances of my highest consideration.

Passed by the House of Representatives at Sitting No. 467 of the 22nd January, 1991.

LAWRENCE GONZI

Speaker

P. MUSCAT TERRIBILE

Clerk to the House of Representatives.

II-I<wap<JIjO W-Go.,.

""'*<I. riot Go ... ,.,_,. ~ " ' -

t.t ;~

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