Communication from the Ministry of Foreign Affairs No. 155 / 1999 Coll.
Communication from the Ministry of Foreign Affairs on the negotiation of the Framework Agreement on Financial Cooperation between the Czech Republic and the European Investment Bank
Valid
International Treaty
Effective from 30.11.1995
Text versions:
21.07.1999
155
COMMUNICATION
Ministry of Foreign Affairs
The Ministry of Foreign Affairs announces that the Framework Agreement on Financial Cooperation between the Czech Republic and the European Investment Bank was signed in Prague on 15 September 1994.
The Parliament of the Czech Republic has given its consent to the Agreement. The President of the Republic has ratified the Agreement.
The Agreement entered into force on 30 November 1995 on the basis of Article 16 thereof.
The Czech translation of the agreement is announced simultaneously. The English version of the Agreement can be consulted at the Ministry of Foreign Affairs and the Ministry of Finance.
FRAMEWORK AGREEMENT
on financial cooperation between the Czech Republic and the European Investment Bank
This agreement is concluded between the Czech Republic represented by the Ministry of Finance, having its registered office in Letenská 15, 118 10 Praha 1, Malá Strana, represented by the Minister of Finance, Mr Ivan Kočárník
of the one part, and
European Investment Bank with its head office at 100, Boulevard Konrad Adenauer, Luxembourg-Kirchberg, Grand Duchy of Luxembourg, represented by Vice-President of the European Investment Bank, Mr Wolfgang Roth
continued to be referred to as "BANKA"
on the other hand.
Whereas:
(A) In the framework of the Decision of the Council of the European Union of 13 December 1993 and Decision of the Governing Council of the BANK of 2 May 1994 (hereinafter referred to as the "Decision") to authorise the grant of loans from own resources to projects in Central and Eastern Europe (Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Bulgaria, Estonia, Lithuania, Latvia and Albania), the BANK is willing to participate in the financing of investment projects which meet the usual criteria of the BANK for lending from its own resources;
B) Pursuant to the Decision, the BANK is authorised to provide up to ECU 3 000 million for such projects in Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Bulgaria, Estonia, Lithuania, Latvia and Albania for a period of three years starting on 23 December 1993, without a pre-determined allocation of the said amount between these countries, in the form of loans from the Bank granted from its own resources. If, at the end of that period, the loans granted to BANKOU have not reached the above-mentioned total amount, the three-year period shall be automatically extended by six months; and
C) The further references made to "loans" and "funded projects" relate to loans granted and to projects financed by the Bank under this Agreement;
the Contracting Parties have now agreed on the following:
The loans will be used for the partial financing of special investment projects which meet the usual criteria of the BANK for borrowing from its own resources and which are submitted by the BANCE either by the competent authorities of the Czech Republic or with their consent.
The projects will be assessed for suitability and loans will be granted in accordance with the detailed rules, conditions and procedural management contained in the Statute of the BANK.
In determining the conditions for repayment of loans, the Bank will base itself on the economic and financial data of the project under consideration. The interest rates and the guarantee requirements will be determined by BANKO in accordance with its normal practice.
The loans granted to the BANK for the purpose of carrying out the projects may take the form of co-financing, which may include in particular credit and development institutions of the Czech Republic, Member States of the European Communities, other countries, the Commission of the European Communities and international financial institutions.
The Czech Republic and any private, semi-public or public legal person will have access to loans released under this Agreement.
The implementation, management and maintenance of projects which are the subject of funding under this Agreement shall be the responsibility of the end-users concerned.
Participation in selection procedures and other procedures to obtain contracts for financed projects or submitted by the Bank to finance them shall be based on competitiveness criteria, in line with the usual practice of the Bank.
The Czech Republic will apply to contracts intended to finance projects such fiscal and customs measures as would be at least as advantageous as those applied to contracts for projects financed by the most preferred state or international organisation.
The Czech Republic undertakes to exempt from taxation all payments of principal, interest and other amounts owed by the BANK in respect of loans or guarantees arising therefrom.
The Czech Republic undertakes to ensure, during the period of validity of the loans, that the beneficiaries of such loans and their guarantor have free access to the foreign currency necessary for repayment of principal, interest, agency and other charges.
The Czech Republic will make every effort to ensure that the projects financed by the BANK benefit from at least the treatment or privileges contained in any applicable legislation or bilateral investment agreement.
If the loan is granted to a beneficiary other than the Czech Republic, BANKA may require the Czech Republic to grant a guarantee as one of the conditions for granting the loan.
BANKA will enjoy full legal capacity in the Czech Republic granted to legal persons under the laws of the Czech Republic, in particular may participate in legal proceedings.
Representatives of the Bank, whose work will be linked to this Agreement, shall enjoy the following privileges and immunities:
(a) exemption from legal and administrative proceedings as regards official activities carried out by them, except where the BANK waives such immunity,
(b) exemption from immigration restrictions or formalities applicable to registration of aliens;
(c) the same travel opportunities as those granted to representatives and official representatives of similar status on diplomatic missions.
The provisions of this Agreement shall remain in force until all amounts due to finance contracts under this Agreement have been fully repaid.
Any dispute concerning this Agreement shall be brought before the Court of Justice of the European Communities.
Contracting Parties shall: The Agreements hereby waive any immunity or right to object to the jurisdiction of this Court. A decision given by the Court pursuant to this Article 15 shall be final and binding on the Contracting Parties, without limitation or reservation.
This Agreement shall enter into force on the date of notification by the Czech Republic that the constitutional requirements of the entry into force of the Agreement have been met. The Czech Republic shall deliver to the BANK a legal opinion on the proper entry into force of this Framework Agreement.
The initial provisions (A, B, C) form part of this Agreement.
In the light of the above, the Contracting Parties concluded this Agreement in three originals in the English language, each of which is initialled after the Bank of Germany Hütz, the lawyer of the European Investment Bank, and after the Czech Republic Jiří Věrovský, Director of the Foreign Exchange Financial Department of the Ministry of Finance of the Czech Republic.
Signed for and on behalf of the Czech Republic:
Ivan Kočárník v. r.
Deputy Prime Minister and Minister for Finance
Signed and on behalf of the European Investment Bank:
Wolfgang Roth v. r.
Vice-President of the European Investment Bank
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Regulation Information
| Citation | Communication from the Ministry of Foreign Affairs No. 155 / 1999 Coll., on the negotiation of the Framework Agreement on Financial Cooperation between the Czech Republic and the European Investment Bank |
|---|---|
| Regulation Type | International Treaty |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 21.07.1999 |
|---|---|
| Effective from | 30.11.1995 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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