Development Act (Amendment of Schedule) Regulations, 2012

L.N. 68 of 2012

MALTA MEMBERSHIP OF THE EUROPEAN BANK FOR

RECONSTRUCTION AND DEVELOPMENT ACT

(CAP. 347)

Malta Membership of the European Bank for Reconstruction and

Development Act (Amendment of Schedule) Regulations, 2012

IN exercise of the powers conferred by article 6 of the Malta

Membership of the European Bank for Reconstruction and

Development Act, the Minister of Finance has made the following

regulations:-

The title of these regulations is the Malta Membership of Citation.

the European Bank for Reconstruction and Development Act

(Amendment of Schedule) Regulations, 2012, and these regulations

shall be read and construed as one with the Schedule of the Malta Cap. 347.

Membership of the European Bank for Reconstruction and

Development Act, hereinafter referred to as "the Schedule".

Article 1 of the Schedule shall be substituted by the Substitutes

Article 1 of the

following

Schedule.

"Article 1

PURPOSE

In contributing to economic progress and reconstruction, the

purpose of the Bank shall be to foster the transition towards open

market-oriented economies and to promote private and

entrepreneurial initiative in the Central and Eastern European

countries committed to and applying the principles of multiparty

democracy, pluralism and market economics.

Subject to the same conditions, the purpose of the Bank may

also be carried out in Mongolia and in member countries of the

Southern and Eastern Mediterranean as determined by the Bank upon

the affirmative vote of not less than two-thirds of the Governors,

representing not less than three-fourths of the total voting power of

the members. Accordingly, any reference in this Agreement and its

annexes to "Central and Eastern European countries", "countries from

Central and Eastern Europe", "recipient country (or countries)" or

"recipient member country (or countries)" shall refer to Mongolia and

each of such countries of the Southern and Eastern Mediterranean as

well.".

Article 18 of the Schedule shall be substituted by the

following

"ARTICLE 18

SPECIAL FUNDS

1. (i)

The Bank may accept the administration of Special

Funds which are designed to serve the purpose and come within the

functions of the Bank in its recipient countries and potential recipient

countries. The full cost of administering any such Special Fund shall

be charged to that Special Fund.

(ii) For the purposes of subparagraph (i), the Board of

Governors may, at the request of a member which is not a recipient

country, decide that such member qualifies as a potential recipient

country for such limited period and under such terms as may seem

advisable. Such decision shall be taken by the affirmative vote of not

less than two-thirds of the Governors, representing not less than

three-fourths of the total voting power of the members.

(iii) The decision to allow a member to qualify as a potential

recipient country can only be made if such member is able to meet the

requirements for becoming a recipient country. Such requirements are

those set out in Article 1 of this Agreement, as it reads at the time of

such decision or as it will read upon the entry into force of an

amendment that has already been approved by the Board of

Governors at the time of such decision.

(iv) If a potential recipient country has not become a recipient

country at the end of the period referred to in subparagraph (ii), the

Bank shall forthwith cease any special operations in that country,

except those incident to the orderly realization, conservation and

preservation of the assets of the Special Fund and settlement of

obligations that have arisen in connection therewith.

2. Special Funds accepted by the Bank may be used in its

recipient countries and potential recipient countries in any manner

and on any terms and conditions consistent with the purpose and

functions of the Bank, with the other applicable provisions of this

Agreement, and with the agreement or agreements relating to such

Funds.

3. The Bank shall adopt such rules and regulations as may be

required for the establishment, administration and use of each Special

Fund. Such rules and regulations shall be consistent with the

provisions of this Agreement, except for those provisions expressly

applicable only to ordinary operations of the Bank.".

€0.18