EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT 1990 No. 129, 1990
EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT 1990 No. 129 of 1990 - LONG TITLE
An Act relating to the European Bank for Reconstruction and Development EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT 1990 No. 129 of 1990 - SECT 1 Short title
(Assented to 28 December 1990) 1. This Act may be cited as the European Bank for Reconstruction and Development Act 1990. (Minister's second reading speech made in House of Representatives on 12 September 1990 Senate on 7 November 1990) EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT 1990 No. 129 of 1990 - SECT 2 Commencement
2. This Act commences on the day on which it receives the Royal Assent. EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT 1990 No. 129 of 1990 - SECT 3 Definitions
3. In this Act: "Agreement" means the Agreement establishing the European Bank for Reconstruction and Development, a copy of the English text of which is set out in the Schedule to this Act; "Bank" means the European Bank for Reconstruction and Development. EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT 1990 No. 129 of 1990 - SECT 4 Appropriation
4. There may be paid out of the Consolidated Revenue Fund, which is appropriated accordingly, money for the purpose of: (a) making any payment that Australia is required to make (whether or not Australia may make the payment in a form other than money) to the Bank under the Agreement; or (b) redeeming a security issued under subsection 5 (1). EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT 1990 No. 129 of 1990 - SECT 5 Issue of securities
5. (1) To the extent to which the Bank is prepared to accept from Australia, in lieu of any payment that Australia is required to make to the Bank, promissory notes or other obligations issued by Australia, the Treasurer may authorise the issue of securities. (2) Securities issued under subsection (1): (a) must be payable to the Bank; and (b) must be non-negotiable and non-interest-bearing; and (c) must be payable at their par value on demand. EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT ACT 1990 No. 129 of 1990 - SCHEDULE
SCHEDULE Section 3 AGREEMENT ESTABLISHING THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT The contracting parties, Committed to the fundamental principles of multiparty democracy, the rule of law, respect for human rights and market economics; Recalling the Final Act of the Helsinki Conference on Security and Cooperation in Europe, and in particular its Declaration on Principles; Welcoming the intent of Central and Eastern European countries to further the practical implementation of multiparty democracy, strengthening democratic institutions, the rule of law and respect for human rights and their willingness to implement reforms in order to evolve towards market-oriented economies; Considering the importance of close and coordinated cooperation in order to promote the economic progress of Central and Eastern European countries to help their economies become more internationally competitive and assist them in their reconstruction and development and thus to reduce, where appropriate, any risks related to the financing of their economies; Convinced that the establishment of a multilateral financial institution which is European in its basic character and broadly international in its membership would help serve these ends and would constitute a new and unique structure of cooperation in Europe; Have agreed to establish hereby the European Bank for Reconstruction and Development (hereinafter called "the Bank") which shall operate in
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accordance with the following: Chapter I PURPOSE, FUNCTIONS AND MEMBERSHIP 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. Article 2 FUNCTIONS 1. To fulfil on a long-term basis its purpose of fostering the transition of Central and Eastern European countries towards open market-oriented economies and the promotion of private and entrepreneurial initiative, the Bank shall assist the recipient member countries to implement structural and sectoral economic reforms, including demonopolization, decentralization and privatization, to help their economies become fully integrated into the international economy by measures: (i) to promote, through private and other interested investors, the establishment, improvement and expansion of productive, competitive and private sector activity, in particular small and medium sized enterprises; (ii) to mobilize domestic and foreign capital and experienced management to the end described in (i); (iii) to foster productive investment, including in the service and financial sectors, and in related infrastructure where that is necessary to support private and entrepreneurial initiative, thereby assisting in making a competitive environment and raising productivity, the standard of living and conditions of labour; (iv) to provide technical assistance for the preparation, financing and implementation of relevant projects, whether individual or in the context of specific investment programmes; (v) to stimulate and encourage the development of capital markets; (vi) to give support to sound and economically viable projects involving more than one recipient member country; (vii) to promote in the full range of its activities environmentally sound and sustainable development; and (viii) to undertake such other activities and provide such other services as may further these functions. 2. In carrying out the functions referred to in paragraph 1 of this Article, the Bank shall work in close cooperation with all its members and, in such manner as it may deem appropriate within the terms of this Agreement, with the International Monetary Fund, the International Bank for Reconstruction and Development, the International Finance Corporation, the Multilateral Investment Guarantee Agency, and the Organisation for Economic Cooperation and Development, and shall cooperate with the United Nations and its Specialised Agencies and other related bodies, and any entity, whether public or private, concerned with the economic development of, and investment in, Central and Eastern European countries. Article 3 MEMBERSHIP 1. Membership in the Bank shall be open: (i) to (1) European countries and (2) non-European countries which are members of the International Monetary Fund; and (ii) to the European Economic Community and the European Investment Bank. 2. Countries eligible for membership under paragraph 1 of this Article, which do not become
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members in accordance with Article 61 of this Agreement, may be admitted, under such terms and conditions as the Bank may determine, to membership in 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. Chapter II CAPITAL Article 4 AUTHORIZED CAPITAL STOCK 1. The original authorized capital stock shall be ten thousand million (10,000,000,000) ECU. It shall be divided into one million (1,000,000) shares, having a par value of ten thousand (10,000) ECU each, which shall be available for subscription only by members in accordance with the provisions of Article 5 of this Agreement. 2. The original capital stock shall be divided into paid-in shares and callable shares. The initial total aggregate par value of paid-in shares shall be three thousand million (3,000,000,000) ECU. 3. The authorized capital stock may be increased at such time and under such terms as may seem advisable, by a vote of not less than two-thirds of the Governors, representing not less than threefourths of the total voting power of the members. Article 5 SUBSCRIPTION OF SHARES 1. Each member shall subscribe to shares of the capital stock of the Bank, subject to fulfilment of the member's legal requirements. Each subscription to the original authorized capital stock shall be for paid-in shares and callable shares in the proportion of three (3) to seven (7). The initial number of shares available to be subscribed to by Signatories to this Agreement which become members in accordance with Article 61 of this Agreement shall be that set forth in Annex A. No member shall have an initial subscription of less than one hundred (100) shares. 2. The initial number of shares to be subscribed to by countries which are admitted to membership in accordance with paragraph 2 of Article 3 of this Agreement shall be determined by the Board of Governors; provided, however, that no such subscription shall be authorized which would have the effect of reducing the percentage of capital stock held by countries which are members of the European Economic Community, together with the European Economic Community and the European Investment Bank, below the majority of the total subscribed capital stock. 3. The Board of Governors shall at intervals of not more than five (5) years review the capital stock of the Bank. In case of an increase in the authorized capital stock, each member shall have a reasonable opportunity to subscribe, under such uniform terms and conditions as the Board of Governors shall determine, to a proportion of the increase in stock equivalent to the proportion which its stock subscribed bears to the total subscribed capital stock immediately prior to such increase. No member shall be obliged to subscribe to any part of an increase of capital stock. 4. Subject to the provisions of paragraph 3 of this Article, the Board of Governors may, at the request of a member, increase the subscription of that member, or allocate shares to that member within the authorized capital stock which are not taken up by other members; provided, however, that such increase shall not have the effect of reducing the percentage of capital stock held by countries which are members of the European Economic Community, together with the European Economic Community and the European Investment Bank, below the majority of the total subscribed capital stock. 5. Shares of stock initially subscribed to by members shall be issued at par. Other shares shall
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be issued at par unless the Board of Governors, by a vote of not less than two-thirds of the Governors, representing not less than two-thirds of the total voting power of the members, decides to issue them in special circumstances on other terms. 6. Shares of stock shall not be pledged or encumbered in any manner whatsoever, and they shall not be transferable except to the Bank in accordance with Chapter VII of this Agreement. 7. The liability of the members on shares shall be limited to the unpaid portion of their issue price. No member shall be liable, by reason of its membership, for obligations of the Bank. Article 6 PAYMENT OF SUBSCRIPTIONS 1. Payment of the paid-in shares of the amount initially subscribed to by each Signatory to this Agreement, which becomes a member in accordance with Article 61 of this Agreement, shall be made in five (5) instalments of twenty (20) per cent each of such amount. The first instalment shall be paid by each member within sixty (60) days after the date of the entry into force of this Agreement, or after the date of deposit of its instrument of ratification, acceptance or approval in accordance with Article 61, if this latter is later than the date of the