Key Benefits:
President of the Republic,
On the report of the Prime Minister and the Minister for Foreign Affairs and International Development,
Considering the Constitution and in particular its articles 52 to 55;
Vu le Decree No. 53-192 of 14 March 1953 amended on the ratification and publication of international commitments undertaken by France,
Decrete:
The framework agreement between the Government of the French Republic and the Government of the Republic of Ecuador on the establishment and activities of the French Development Agency in Ecuador, signed in Quito on 17 December 2014, will be published in the Official Journal of the French Republic.
The Prime Minister and the Minister for Foreign Affairs and International Development are responsible, each with respect to him, for the execution of this decree, which will be published in the Official Journal of the French Republic.
AGREEMENT-CADRE
ENTER THE GOVERNMENT OF THE FRANÇAISE REPUBLIC AND THE GOVERNMENT OF THE REPUBLIC OF EQUALITY RELATING TO THE DEVELOPMENT AND ACTIVITIES OF THE FRANÇAISE OF DEVELOPMENT, SIGNED TO WHOLE 17 DECEMBER 2014
Framework Agreement
Come on.
The Government of the French Republic,
(hereinafter referred to as "France")
And
Government of Ecuador
(hereinafter referred to as the "Ecuador")
France and Ecuador, as referred to in this Agreement, the "Parties".
Preamble
A. France and Ecuador are motivated by the desire to strengthen their friendship and to expand their economic and financial cooperation.
B. France, through the Agence Française de Développement (hereinafter the "AFD"), plans to develop its activities in Ecuador.
C. Public institution and specialized financial institution, AFD:
- combating poverty, supporting economic growth and participating in the preservation of global public goods in developing countries, emerging countries and the French overseas country;
- is governed by Articles R. 516-3 to R. 516-20 of the French Monetary and Financial Code and placed under the supervision of the Ministry of Foreign Affairs, the Ministry of Economy and Finance, the Ministry of Overseas and the French Ministry of Interior; it acts under the control and in close collaboration with these departments;
- intervenes mainly within the framework of the priority investment programme of the host State by means of subsidies, long-term loans and guarantees granted to the State, local authorities and public or private financial institutions or in the form of participation;
- also provides advice, training and technical assistance.
D. AFD is at the heart of the French public aid system for developing countries and operates in more than 80 countries through its network of some 60 local representations.
E. The Government of Ecuador and the Government of France consider it of their common interest to conclude this Agreement (hereinafter the "Agreement") in order to allow AFD to propose and provide its financial and technical assistance in Ecuador, in accordance with Ecuador's economic, political and social development objectives. To this end, Ecuador wishes to grant certain privileges and exemptions to AFD in order to facilitate the implementation of its mission as part of the Ecuadorian development financing policy.
IN CONSEQUENCE, on the basis of respect for the principles of independence, sovereignty, non-interference in internal affairs and legal equality, France and Ecuador agreed that:
Article 1
Purpose of the Agreement
AFD is authorized to provide financial and technical assistance to Ecuador in accordance with this Agreement.
The purpose of this Agreement is to specify the rules applicable to the establishment and to the activities of the AFD in Ecuador. It includes legal, fiscal, financial and other conditions applicable to the status and activities of AFD in Ecuador.
Article 2
Legal status of AFD
AFD enjoys the personality and legal capacity needed to carry out their activities in Ecuador.
AFD can include:
(a) carry out any activity necessary for the fulfilment of its mission as described in the Agreement;
(b) Acquire and dispose of all types of real estate and furniture (share, rent, mortgage, garden, give, guarantee) in accordance with Ecuadorian legislation;
(c) Negotiate and conclude any type of contracts, conventions or agreements;
(d) Accept any type of guarantees or security rights granted by Ecuador or by public entities;
(e) Use both Ecuadorian and French or other personnel;
(f) Appear in court, as an applicant or defendant, before any jurisdiction, arbitral tribunal or Ecuadorian authority and assist, promote or participate in any administrative proceedings with any Ecuadorian institution or authority.
Article 3
Authorized activities of AFD in Ecuador
3.1. AFD is authorized under the terms of the Agreement:
(a) To grant financial contests, consisting of loans or grants, in euros, in US dollars or in any other currency, to Ecuador, public enterprises and public financial and banking institutions, as well as to national public associations or organizations;
(b) Provide advice, technical assistance, training or studies for public entities.
3.2. The activities listed in Article 3.1 above shall, for each, be subject to a specific contract or agreement defining the rights and obligations of the parties involved in the activity or operation. Each Party undertakes to make its best efforts to facilitate the completion of any formalities required to ensure the validity or entry into force of such contracts or conventions.
3.3. The exercise of the activities of the AFD as specified in Articles 2 (Legal Status of the AFD) and 3 (Ecuador Activities of the AFD) of the Agreement does not require any legislative, regulatory or administrative authorization, licence or licence.
3.4. The financing contracts concluded by AFD in the course of its activities, with Ecuador or an Ecuadorian public entity, may be signed in French or English and their validity and effectiveness are not conditioned by the execution of a sworn and/or notarial translation into another language.
3.5. The financing contracts concluded by AFD in the course of its activities, with Ecuador or an Ecuadorian public or private entity, may be subject to French law and the jurisdiction of a French court or an international arbitral tribunal chosen by a mutual agreement or other dispute settlement body, and the judgments or awards rendered shall be fully recognized and executed in Ecuadorian territory.
Article 4
Bank regulation
4.1. AFD's activities and operations are considered to be prepared, decided and implemented since its headquarters in France.
4.2. AFD and its Representation (as defined in Article 7 below) do not have the status of a bank or any other financial institution in Ecuador. They are therefore not subject to the provisions of banking regulations, or to the laws and regulations applicable to banks or financial institutions installed or operating in Ecuador's territory.
In particular, the AFD is exempted in Ecuadorian territory (i) of any reporting obligation, (ii) of any bank authorization or licence, (iii) of any risk management obligation, (iv) of any liability in respect of the management of risks to the exclusion of information on the credit register, (v) of any obligation to categorize claims and debts and any creation of reserves to meet these claims
4.3. AFD may request bank risk information from Ecuador's financial institutions in accordance with national legislation.
4.4. In the case that Ecuador would have or would adopt specific rules governing the credit, or any other procedure for recording or reporting foreign exchange, credit or financial transactions with the Central Bank of Ecuador, these rules and procedures would not apply to the exchange, credit or financial transactions implemented by the AFD.
Article 5
Convertibility and transfer
5.1. Ecuador authorizes:
(i) any beneficiary of an AFD funding or any guarantor of that funding (in the form of the guarantee or security concerned),
(ii) any Ecuadorian or foreign intermediary bank responsible for the transfer of funds, as well as
(iii) AFD,
to convert in a foreign currency, at the exchange rate agreed between a foreign exchange agency and the owner of the funds or published by the Central Bank of Ecuador at the date of conversion, and to transfer freely outside the territory of Ecuador without restriction or prior formality, all amounts due to the AFD, in particular (without limitation) the sums corresponding to the refund of the financing, both as principal and in interest, interest of delay, incidental costs
5.2. AAFD is also authorized to hold bank accounts in Ecuador in any currency, as well as to convert to foreign currency, at the rate of exchange agreed between a foreign exchange agency and the owner of the funds or published by the Central Bank of Ecuador on the date of conversion, and to transfer freely outside Ecuador's territory without restriction or prior formality, any amount arising from the sale of dividends or movable property
5.3. In addition, AFD is authorized, where applicable, to make, in the execution of loans or other financial, currency or credit transactions, direct payments to suppliers or contractors of the borrower or the beneficiary concerned, not established in Ecuador's territory, when used for the acquisition of goods and services not originating from Ecuador, as well as, if necessary, to benefit from the direct refund of their loans to Ecuador.
5.4. Banks approved and operating in Ecuador are authorized:
(a) To convert the amounts received from AFD debtors to any foreign currency, at the agreed exchange rate between a foreign exchange agency and the owner of the funds or published by the Central Bank of Ecuador on the date of conversion, and
(b) To transfer these foreign currencies to AFD's bank accounts abroad (especially in France and the United States of America).
5.5. In the case that Ecuadorian banks would refuse to make, or would not have enough foreign currency to make a conversion or transfer, or if for any reason, a conversion or transfer is not carried out by Ecuadorian banks as they are not allowed to convert the amounts of the AFD and to make their transfer to the foreigner, Ecuador (through the Central Bank of Ecuador)
Article 6
Tax, parafiscal and customs benefits
6.1. In order to achieve its objectives, AFD, its assets, revenues, activities, transactions and transactions in Ecuador are exempted from all duties and taxes, direct or indirect, from any contribution of any kind, from all deductions to the source or from any charge of any kind, national or local, regional or international, for their financial, investment or other activities in Ecuador.
6.2. The exemptions referred to in section 6.1 above shall apply, inter alia:
(a) To products (such as interest, commissions, possible compensations, dividends, remuneration earned as a corporation leader or surplus-value resulting from the assignment of shares or shares) collected by AFD in respect of its competitions (to private or public entities), whether it be credits (including sub-participations at risk) or competitions made in the form of equity or quasi-capital holdings
(b) To customs duties or any direct or indirect taxes that may be paid by the AFD in respect of its activities or in respect of the acquisition of goods and services required for its activities and/or operation, including, without limitation, contracts for work and advisory services;
(c) A any tax, right and tax arising from the conclusion and execution of the agreements signed in the context of the activities of the AFD;
(d) Salaries and all types of emoluments paid by AFD to employees who are not nationals or residents of Ecuador.
6.3. Real or personal and other security rights, taken in favour of the AFD, and the realization of these security rights, as well as leases, leases, leases, securities leases entered into by the AFD, and transfers of real property carried out by the AFD are exempt from taxes, stamp duties, registration fees and other taxes, commissions payable to the Ecuadorian authorities, including the Ecuadorian registers,
6.4. No public or private corporation or undertaking, which would pay interest, dividends, commissions, fees or any other amounts to the AFD, shall be required to deduct or deduct any tax or any amount on the amounts due to the AFD Group.
6.5. AFD is exempted from any tax or parafiscal declarative obligation as well as from record retention obligations vis-à-vis tax or other Ecuadorian authorities.
Article 7
AFD Local Representation - Employee Status
7.1. AFD representation in Ecuador
(a) AFD is authorized to open a representation in Quito or in any other place of Ecuador (hereinafter referred to as the "Local Representation of AFD in Ecuador") in order to carry out the activities described herein, without being subject to any formality, including registration with the national or local authorities of Ecuador or to obtain permits, licences, certificates or other authorization. However, AFD will be responsible in solidarity with the obligations of its branch or representation office established in Ecuador.
(b) AFD and any affiliated agency or entity created by AFD in Ecuador have the capacity to operate through the Representation in accordance with the Agreement.
(c) Ecuador facilitates the opening and operation of the Representation in accordance with the terms of the Agreement.
(d) AFD's Equator Representation is responsible for the identification of projects that AFD could implement in Ecuador, for the preparation and negotiation of documents related to these projects, as well as for the monitoring of their implementation.
It is specified that only AFD's head office in France is in charge and responsible (i) of the project instruction procedure, (ii) of their evaluation, (iii) of the funding decisions, (iv) of the remittance and (v) of the reimbursement follow-up.
Accordingly, as specified in Article 4 (Bank regulation) above, the Representation activities are not subject to the laws and regulations applicable to commercial banks or financial institutions operating in Ecuador, the Representation does not have the status of a stable establishment in Ecuador and the AFD is not considered to have a permanent establishment in Ecuador within the meaning of tax regulations.
(e) Representation benefits from the following facilities, privileges and immunities:
- exemption from customs duties, taxes and the obligation to collect or pay such customs duties or taxes on the equipment necessary for the activity of the Representation and on the renewal of such equipment, including motor vehicles, as well as on their subsequent export;
- exemption from all taxes, including, where applicable, the value added tax (or its equivalent) on the equipment of the Representation and motor vehicles acquired in Ecuador;
- no tax, tax, charge of any kind shall be due (due) for salaries and emoluments paid by the AFD to its employees who are not nationals or residents in Ecuador;
- the Representation, its property, its liquidity, its funds and assets, wherever they are located and whatever the form of possession or property, shall enjoy immunity from any form of legal, judicial or administrative proceedings, unless expressly notified in writing to the Ecuadorian;
- the premises, records, records, archives, means of communication, regardless of their support, and all other assets or assets (such as capital, income, dividends, surplus-values, participations, receivables) of AFD are inviolable; they benefit, wherever they are located and whatever the form of their detention, from immunity against any form of search, requisition, confiscation, seizure, forced enforcement, or intervention of any kind committed against AFD or its Representation;
- debts, receivables or other obligations arising from credit contracts, grants or guarantees granted or managed by AFD shall be granted immunity against any form of confiscation, seizure or enforcement of any kind committed against AFD or its Representation.
(f) The Ecuador undertakes not to nationalize or expropriate, or to do any act that results in the impossibility of enjoyment, nationalization or expropriation of any property, assets or funds of the AFD or the Representation. If for reasons of general interest, such a measure is taken or such act is done, then adequate compensation must be given to AFD, without delay and in a freely convertible currency. Financial compensation will be agreed by mutual agreement, at the market price determined independently and accepted by the Parties.
7.2. AFD foreign staff domiciled in Ecuador
(a) The AFD determines the number and functions of its staff members who do not have Ecuadorian nationality and who do not have a resident visa in Ecuador (hereinafter referred to as the "Foreign Employees") that it considers necessary for the proper functioning of its Representation.
(b) AFD supports the total cost of wages, allowances and transportation of Foreign Employees. These employees benefit from the French social security and pension plan and are therefore not subject to the same provisions that could apply in Ecuador. In particular, AFD does not have to pay contributions or social security expenses normally borne by the employer under Ecuadorian social plans.
(c) Ecuador facilitates entry, stay, residence, freedom of movement and exit procedures for Foreign Employees and for their spouse, companion/companion, children and any member of their families.
(d) The Ecuador grants to Foreign Employees in its territory exemptions, benefits and privileges relating to taxes, imports and others that are no less favourable than those granted to officials of diplomatic missions or representatives of international organizations.
In particular, the following benefits and privileges are granted to Foreign Employees and their spouses, companions/company, children and any member of their families:
- issuance of multi-entry visa and entry permits and issuance of residence permits in Ecuadorian territory;
- exemption from customs duties and taxes on their personal effects, including on a vehicle for personal use and household appliances;
- exemption from income tax or any similar tax relating to emoluments and allowances that would be paid to them in relation to their activity for AFD in Ecuador;
- issuance of any authorization necessary for the free transfer of personal effects to or outside Ecuador;
- the issuance of a valid work permit to the spouse or partner/companion of the Expatriated Employer for the same period as the visa or entry permit of the respective Expatriated Employer, allowing him to work in Ecuador;
- granting immunity from jurisdiction and enforcement immunity identical to those granted to officials of diplomatic missions or representatives of international organizations, except for the acquisition of shares (as well as the cases provided for in the Vienna Convention on Diplomatic Relations).
(e) AFD undertakes to hand over to the Dirección de Ceremonial y Protocolo del Ministerio de Relaciones Exteriores y Movilidad Humana de l'Equateur, the list of Foreign Employees and to inform this direction of the termination of their duties, of their departure from the country, for the purpose of cancelling the visa of the holder and his dependants, and to proceed with the return of their leave.
7.3. Ecuadorian AFD personnel in Ecuador
As part of its activities in Ecuador, AFD can employ employees of Ecuadorian nationality or residing in Ecuador in accordance with Ecuadorian laws and regulations concerning labour law and social security.
None of the exemptions and immunities stipulated in Article 7 (Local Representation of the AFD - Staff Regulations) is applicable to this AFD personnel, except for the immunities referred to in the last paragraph of Article 7.2 that are applicable to it for the performance of the missions entrusted to it by the AFD.
7.4. Temporary missions in Ecuador
In order to carry out its activities in Ecuador, AFD can send temporary missions to Ecuador or mandate consultants to gather the information necessary for the preparation and/or execution of projects.
Ecuador is implementing the necessary means to ensure that members of temporary missions obtain within short notice the authorizations necessary for their entry, stay and exit from Ecuadorian territory.
With regard to immigration regulations, members of these temporary missions benefit from the regulations applicable to personnel on mission of international development financial institutions that carry out activities in Ecuador.
Members of temporary missions do not enjoy the privileges and immunities enjoyed by Foreign Employees.
Article 8
Implementation of the Agreement
In order to facilitate the efforts of the AFD to implement its activities described in Article 3, Ecuador undertakes to facilitate the delivery of any information, not confidential, to the AFD authorities and to perform any act, take any action, any decision to permit the full implementation of the Agreement.
Article 9
Use of the Agreement
After the entry into force of this Agreement, AFD is authorized to produce it, either by reference or by a copy, to any authority, official or more generally to any public administration of Ecuador. In addition, in order to allow recipients of AFD funding or its partners to request the application of the rights contained in the Agreement, AFD is authorized to provide a copy of the Agreement to such beneficiaries or co-contractors in order to produce it before the authorities concerned.
No legislative, regulatory or other provision that would come into force after the entry into force of this Agreement shall affect the rights and privileges of AFD.
Article 10
Entry into force, duration, termination, modification
10.1. Entry into force
This Agreement shall enter into force when the Parties have completed all the internal procedures required for its entry into force. Each Party shall notify the other in writing of the performance of the said procedures as soon as they have been completed.
Immediately after the entry into force of this Agreement, France, pursuant to Article 102 of the Charter of the United Nations, will register the Agreement with the United Nations Secretariat. The Ecuadorian will be informed of the said registration by the transmission of the United Nations registration number, immediately received the confirmation from the United Nations Secretariat.
10.2. Amendments or amendments to the Agreement
Parties may, in common agreement, agree to amendments or amendments to this Agreement by additional protocols or notes exchange that will be an integral part of the Agreement. These amendments and amendments will come into force in the manner indicated for the entry into force of the Agreement.
10.3. Settlement of disputes
Any dispute between the Parties on the interpretation or application of this Agreement, its supplementary agreements or any matter relating to AFD, Representation or Relations between Ecuador and France in connection with this Agreement shall be resolved by negotiation through the diplomatic channel between the Parties.
10.4. Duration and denunciation
This Agreement shall be concluded for an indefinite period. It may be denounced at any time by one of the Parties by written notification sent by diplomatic means, with a notice of six months. The denunciation of this Agreement shall not affect the contracts or agreements in progress, concluded during the period of validity of this Agreement.
Done at Quito (Ecuador), on 17 December 2014, in two (2) copies in French, two (2) in Spanish, the two (2) versions being equally authentic.
For the Government of the French Republic: Mathias Fekl
Secretary of State to the Minister of Foreign Affairs and International Development, responsible for foreign trade, tourism promotion and foreign French
For the Government of the Republic of Ecuador: Leonardo Arizaga
Deputy Minister of External Relations and Human Mobility
Done on November 25, 2015.
François Hollande
By the President of the Republic:
The Prime Minister,
Manuel Valls
Minister for Foreign Affairs and International Development,
Laurent Fabius
