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Law Of Creation Of The Andorran National Institute Of Finance, From 12-6-89

Original Language Title: Llei de creació de l'Institut Nacional Andorrà de Finances, de 12-6-89

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Law of creation of the Institut Nacional Andorrà de Finances approved by the Hon. General Council at its regular session of the 12th of June 1989 exhibition of illustrations and the General Law on public finance, of December 2, 1983, in its Chapter VII, regulates the regime of the public Treasury and establishes, in particular, in article 60, paragraph 3 , that "financial services of Treasury may be made through a public financial institution or savings and credit institutions of the Principality, as determined by the regulations".

The aim of this law is to create that financial institution of public character, which will be called "Institut Nacional Andorrà de Finances" (INAF for short) and that will take the form of an entity of public law with its own legal personality and an autonomous organization.

The creation of this Institute will come to fill a lacuna in the administrative structure of the Principality. Justified in the first place to the importance of public funds to administer in general interest, while respecting the criteria of efficiency, profitability and safety.

In addition, in the perspective of the creation of a European financial area, the Institute will be called upon to provide technical support to the authorities in the elaboration of measures eventually required to safeguard the interests of the Andorran economy and in particular its financial sector. On the other hand, the field of activities of the Institute will be able to expand in the future, if it is thought necessary, to include the fundraising and the granting of mortgage credit.

The credibility of the Institute, particularly at the international level, will be ensured by the involvement of financial allocations and the granting of the guarantee of the Government.

The provisions of this law are inspired by, on the one hand, in a number of studies carried out previously in this optics, and in another hand, the statutes of public financial bodies in other economic areas of comparable size.

For the reasons already mentioned, the General Council has adopted the following general provisions chapter I Article 1, Act Will create an entity of public law called "Institut Nacional Andorrà de Finances" (INAF for short).

Article 2 the Institut Nacional Andorrà de Finances has its own legal personality and full autonomy for the realization of its purposes. You can acquire rights and contract obligations, and has full capacity to act judicially and out of court.

Article 3 the obligations contracted by the Institute are guaranteed by the Government, to the extent that their own media using this insufficient to deal with.

Article 4 the Head Office of the Institute is established in Andorra la Vella. You will be able to open offices and agencies throughout the territory of the Principality.

Chapter II. Object and functions Article 5 the Institute aims to: a) to provide, directly or indirectly, the financing of the public sector b) helping the Government to meet their social and economic objectives, particularly in terms of infrastructure, housing and agriculture c) to assist the authorities in the management of financial and economic policy, in order to face the economic mutations Article 6 the Institute progressively assume the following functions : a) the management of public funds, in particular:-by centralizing banking and financial operations of the services and the public sector and parapúblics-promoting, by means of credit operations and the granting of guarantees, the execution of the budgets of Commons-providing loans and credit facilities to public authorities and parapúblics or guaranteeing this kind of operations-channelling the grant of the aid granted by the Government and overseeing the use-broadcasting obligations cash, bonds, certificates of deposit and other securities, within the limits set by the Government-investing the funds available so you get the best performance, while observing the rules of prudence appropriate – paying your competition for the administration of the borrowing and loans for the services and the public sector-picking up the deposits and bonds constituted in application of the legislation and judicial decisions b) the promotion of investments of general interest both public and private, especially in the medium and long term, in the geographical areas and economic sectors requiring priority attention, and especially in the area of housing, infrastructure and agriculture, within the framework of the guidelines given by the Government.

c) the promotion of financial activities, in particular:-proceeding to the study, in coordination with the banking sector, legal and technical provisions designed to promote and defend the good reputation and competitiveness of Andorran banks – offering the interbank services useful for the exercise of the profession-proposing appropriate measures to the Government to promote national savings-instituting and organizing the technical-financial cooperation with European and international financial agencies , central banks and public financial bodies from other countries chapter III. Article 7 financial resources the Government put at the disposal of the Institute an endowment capital, fixed by the General Council. This capital will be initially of two billion pesetas, which is desemborsaran in three years, at a rate of one billion pesetas, the first, and five hundred million pesetas, the following two.

The Endowment capital will be paid by deduction of the net profit, in accordance with article 31.

Article 8 the Institute will be able to complete your permanent financial resources with the issuance of bonds, cash bonds, certificates of deposit and other securities, under the conditions determined in accordance with the Government, and with the authorization of the General Council.

Article 9 will create a rainy day fund that will be powered by deduction of the net profit, in accordance with article 31.

Chapter IV. Organs Article 10 the governing bodies of the Institute are:-the Board of Directors-the Advisory Committee – the management and staff Section 1a. The Board of Directors Article 11 the Institute is managed by a Board of Directors composed by the President and three to five members.

Article 12 the President and the members of the Board of Directors are appointed by the Government, one of them on the proposal of the Minister of finance. Their appointment must be ratified by the General Council.

The Director General is part of Office of the Board of Directors, with voice but without vote.

The President and the members of the Board of Directors will be of Andorran nationality. Exceptionally, it


You can resort to Andorran not personalities, by reason of their particular skills.

The appointments will be for a period of four years, renewable indefinitely. Should proceed as soon as possible to replace any dimissionaris members or traded. The replacements will be appointed for the remainder of the term of Office of those who substitute.

The Government will fix the bonus of the President and of the members of the Board of Directors.

Article 13 The Board of Directors shall be convened by the President, who will be able to do it as long as you think appropriate. You'll have to call it also at the request of the Director-General or of at least two of its members.

The deliberations will be valid if a majority of members are present. The decisions will be taken by a majority of the members present, and the vote of the Chairman will be ruling.

The Board of Directors will provide a regulation of order inside. Shall appoint, at the same time, from among the staff of the Institute, a Secretary who shall assist in its meetings.

The deliberations and decisions of the Board of Directors shall be the relevant record, which will be signed by the Chairman and the Secretary. The certificates of the agreements adopted by the Council will be given by the Secretary, with the approval of the President.

Article 14 corresponds to the Board of Directors of the definition of the general policy of the Institute. In addition, you will have the following skills:-submit to the Government the annual accounts and profit and loss account, with their proposals relating to the impact of net profit-examine the report of the auditor and to send it to the Government accompanied, where appropriate, of your comments-appoint, on the proposal of the Director General, and fix their remuneration-set the General rules of contract and remuneration of the staff-set internal regulations and especially the delegations to be able to determine the level of credits from which you will need your prior authorization, and take periodic knowledge of credits awarded and of investments made-authorize the investment the cost of which exceeds the level that the Council determines-decide on the creation of agencies-will be able to proceed at all times to the controls they believe necessary Article 15 Out of communications that the Board of Directors decides to make the officers Members are required to maintain the secrecy of the deliberations.

Section 2a. The Consultative Committee Article 16 The Board of Directors is assisted by an Advisory Committee that will be able to ask for advice on any financial or economic matter contained within the framework of the activities of the Institute. The Advisory Committee may on the other hand, by their own initiative, submit to the Board of Directors in matters of financial policy advice and observations on the impact of the activities of the Institute.

Article 17 the Advisory Committee has the following composition:-two members appointed by the General Council-two members appointed by the Government-two members appointed by the Common-two members appointed by the private banks Article 18 meetings of the Consultative Committee will be presided over by the President of the Institute. There will also be attended by the Director General and the other members of the Board of directors who wish to do so.

Article 19 the members of the Advisory Committee shall be appointed for a period of two years. Half of the mandates will be renewable each year. Exceptionally, the half of the members appointed to constitute the first Committee will have a term of three years. The mandates are extendable indefinitely.

Article 20 The term of Office of the members of the Advisory Committee is not remunerated. The Board of Directors shall determine, however, a diet for attendance at meetings.

Section 3a. The management and staff Article 21 the Government shall appoint the Director-General of the Institute and determine the terms of his employment contract.

Article 22 the Director General will deal with the general management and the technical organization of the Institute. Prepare reports and proposals to the Board of Directors and execute its decisions. Will organize the functions, rights and obligations of staff, in accordance with the internal regulations established by the Board of Directors.

Article 23 the Director General will propose to the Board of Directors the appointment of panels of the Institute, and will engage and dismissed the remaining staff.

Article 24 the Director General and the tiles will be hired full-time, and are only allowed to accept economic and technical functions or mandates with the agreement of the Board of Directors.

Article 25 the members of the staff and management are bound to discretion more strict about the Affairs of the Institute. This obligation continues after the termination of the service relationship.

Chapter V Article 26 Surveillance The internal financial control of the activities of the Institute will be exercised, within the framework of the General Law on public finance, by a member of the Board of directors appointed at the proposal of the Minister of finance.

The Institute's annual accounts must be submitted to the General Council for their consideration and approval.

Article 27 the external audit of the accounts of the Institute will be conducted by an auditor appointed by the General Council, on the recommendation of the Commission of economy and finance. This auditor must meet the qualifications usually required within the international banking sector for the exercise of the profession of independent accounting expert.

The appointment will be for one year, and is renewable indefinitely. Its remuneration will be in charge of the Institute.

Article 28 the auditor has the mission to verify and certify the true picture of the accounts of the Institute.

Shall, by presenting the Board of Directors, to the Government and to the General Council, a detailed report of the accounts of the Institute at the time of the closing of the financial year. Also you will be able to take you to specific checks.

Chapter VI. Article 29 annual accounts the accounts will be closed at the end of each calendar year.

Article 30 at the latest on 31 March, the direction will be submitted to the Board of Directors the balance sheet and the profit and loss account for the year ended, accompanied by the report of activities and the report of the auditor, and the proposed involvement of the benefit.

The annual accounts and reports, once approved by the Board of Directors, will be transferred to the Government to submit to the General Council.

After the approval by the General Council, the annual accounts will be published in the official bulletin of the Principality.

Article 31 The net profit will be used first of all for the


remuneration of the capital providing, on the basis of a rate of interest that will fix the Government, but in no case does not ultrapassarà the interest rates applied to the operations of short-term liabilities of the Institute.

The rest will be integrated in a rainy day fund that can only be used for the coverage of possible losses.

Transitional provisions First in accordance with the provisions of article 7 above, and in order to establish the capital of staffing the Organization, approve the following assignments: 1. Billion pesetas will be funded through a special credit, as has the subsequent article.

2. Five-hundred million pesetas in charge of the budget for the financial year 1990.

3. Five hundred million pesetas to be included in the budget for the financial year of 1991.

Second according to the provisions of point 1 of the previous article, approves an extraordinary credit of one billion pesetas, which will form part of the Endowment capital of the entity.

The mentioned extraordinary credit will be funded, such as article 25 of the law on public finance, flocking to the indebtedness.

Final provision Unica bustle to the Government the adoption of the provisions that allow for the instrumentation and the organic development of the Andorran National Institute of public finance.

Casa de la Vall, 12 June 1989 the Sub-Syndic General