Communication from the Ministry of Foreign Affairs No. 250 / 1994 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 18.02.1993
Text versions:
30.12.1994
250
COMMUNICATION
Ministry of Foreign Affairs
The Ministry of Foreign Affairs announces that on 18 February 1993 the Framework Agreement on Financial Cooperation between the Czech Republic and the European Investment Bank was signed in Prague, which was amended by an exchange of notes of 8 and 28 July 1994.
The Agreement entered into force on the date of signature, i.e. 18 February 1993, following an amendment to Article 15 of the Agreement negotiated by that Exchange.
The Czech translation of the agreement is announced simultaneously. The English version, which is decisive for its interpretation, can be consulted by the Ministry of Foreign Affairs and the Ministry of Finance.
FRAMEWORK AGREEMENT
on financial cooperation
between
Czech Republic
and
European Investment Bank
This Agreement shall be concluded between:
by the Government of the Czech Republic, represented by the Ministry of Finance, acting through the Minister of Finance, Mr Ivan Končárník,
continue to be referred to as "the Czech Republic 'on the one hand, and
The European Investment Bank (EIB) with its headquarters at 100 Boulevard Konrad Adenauer, Luxembourg-Kirchberg, Grand Duchy of Luxembourg, represented by Hans Duborg, Vice President,
continued to be referred to as "Bank 'on the other hand.
Recall that:
(A) Under the Action Plan for the European Community's Assistance to the CSFR in its efforts to implement political and economic reform and under the Decision of the Governing Council of the European Investment Bank (hereinafter referred to as the Bank) of 18 April 1991 authorising loans from its own resources in the CSFR. The Bank will participate in financing investment projects that meet the normal criteria of the Bank for lending from its own resources, and
(B) After the disappearance of ČSFR and its legal successor by the Czech Republic (Czech Republic) and the Slovak Republic (SR), with effect from 1 January 1993, Banka will continue to participate in the financing of investment projects in the Czech Republic and the Slovak Republic, in accordance with the above-mentioned action plan and decision, and
(C) For the purposes referred to in points (A and B) above, the aggregate amount of up to ECU 700 million may be granted to the CSFR, replaced with effect from 1 January 1993 by the Czech Republic and the Slovak Republic, Bulgaria and Romania without splitting this amount in the form of loans from the European Investment Bank granted from its own resources.
The Bank will participate in the PHARE Action Plan to support the efforts of the CSFR, replaced with effect from 1 January 1993 by the Czech Republic and the Slovak Republic, to undertake political and economic reform and, by decision of the Board of Governors, to grant loans from its own resources in the CSFR and to finance investment projects that meet the normal criteria of the Bank for lending from its own resources.
2.1 For the purposes specified in Article 1, an aggregate amount of up to ECU 700 million may be granted to CSFR, replaced with effect from 1 January 1993 by the Czech Republic and the Slovak Republic, Bulgaria and Romania in the form of loans from the European Investment Bank, provided from its own resources.
2.2 The amount set out in paragraph 1 of this Article will be used to co-finance specific capital investment projects that satisfy the normal criteria of the Bank for lending from its own resources and submitted to the Bank by the competent authorities of the Czech Republic or with their consent.
2.3 The suitability of the projects will be examined and the loans will be granted in accordance with the detailed rules, conditions and procedures laid down in the Bank Statute.
The loans granted by the Bank will be subject to the terms and conditions of the period of the economic and financial nature of the projects, the interest rate will be determined by the Bank in accordance with its practice.
Bank loans for project implementation can take the form of co-financing, in particular involving Czech banks and credit institutions and institutions of Member States or other countries or international financial organisations.
The Czech Republic and any private, partially or totally state-owned undertaking established in accordance with the law of the Czech Republic, or with the participation of foreign investors in the form of a joint venture, will have access to financing for financial cooperation under the same conditions.
The implementation, management and maintenance of projects financed under financial cooperation between the Czech Republic and the Bank will be the responsibility of the final borrowers.
7.01 Participation in tenders and other contracts will be in line with the Bank's normal practice.
7.02 The Czech Republic will apply tax and customs rules at least as favourable as those applicable to other international financial organisations to contracts awarded for the implementation of projects financed under financial cooperation.
The Czech Republic will take the necessary measures to ensure that interest and all other payments due to the Bank on the basis of loans granted in the context of financial cooperation are exempt from any taxes and charges.
If the loan is granted to the beneficiary under Article 2, the submission of the guarantee of the Czech Republic may be required by the Bank as a condition for granting the loan.
All loan agreements and guarantees under this financial cooperation will be subject to the jurisdiction of the European Court of Justice.
During the duration of the loans granted to the Czech Republic, it undertakes to take all necessary measures in accordance with its national legislation in order to enable borrowers benefiting from such loans and loan guarantees to access the foreign exchange necessary for the payment of interest, commission and other fees and repayment of loans.
The Czech Republic will make every effort to ensure that the projects financed are not treated less favourably than under existing national legislation or any bilateral investment agreement.
The representatives of the Bank will enjoy the usual privileges and benefits in the performance of their duties and travel to and from the place where such obligations are required.
The provisions of this Agreement shall remain in force until all amounts due under financial contracts concluded under this Agreement have been fully repaid.
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 Contracting Parties have concluded this Agreement in three originals in the English language.
This agreement was initialled on behalf of the Czech Republic by Mr J. Věrovský, Director of the Foreign Exchange Finance Department of the Ministry of Finance of the Czech Republic and on behalf of the Bank by Mr H.-J. Seeliger, Advisor to the management.
Done at Prague, 18 February 1993
Signed after and on behalf of:
Czech Government:
I. Carrier v. r.
Signed after and on behalf of:
European Investment Banks:
H. Duborg v. r.
No. 97.434 / 94-MPO
The Ministry of Foreign Affairs of the Czech Republic shows respect for the European Investment Bank and has the honour of saying the following:
On 18 February 1993, the Framework Agreement on Financial Cooperation between the Czech Republic and the European Investment Bank was signed in Prague, with the entry into force of the date of notification of the Czech Republic pursuant to Article 15, that the constitutional requirements of the entry into force of the Agreement were met. However, since this wording was amended by an oral agreement when signing this Agreement in the sense that the Agreement will enter into force on the date of signature, the Ministry of Foreign Affairs has the honour to propose, in order to maintain the legal certainty of both Contracting Parties, an amendment to Article 15 of the Framework Agreement on Financial Cooperation between the Czech Republic and the European Investment Bank, signed in Prague on 18 February 1993, as follows:
"This Agreement shall enter into force on the date of signature. '
The above-mentioned Framework Agreement will therefore apply to financing agreements signed from the date of signature of the Framework Agreement, i.e. from 18 February 1993.
The Ministry of Foreign Affairs of the Czech Republic has the honour to propose, provided that the content of this note is agreed by the European Investment Bank, that this note and the responsible note of the European Investment Bank, confirming this approval, should constitute an agreement to amend the Framework Agreement on Financial Cooperation between the Czech Republic and the European Investment Bank, which will be an integral part of it, by the date of the relevant note of the European Investment Bank.
The Ministry of Foreign Affairs is taking this opportunity to assure the European Investment Bank of its deepest respect.
In Prague, 8 July 1994
European Investment Bank
100, Boulevard Konrad Adenauer,
Luxembourg - Kirchberg,
Grand Spirits of Luxembourg
Luxembourg, 28 July 1994
JU / GH / mh 8575
Subject: Framework Agreement on financial cooperation between the Czech Republic and the European Investment Bank of 18 February 1993
Letter from the Ministry of Foreign Affairs dated 8 July 1994, No 97.434 / 94-MPO
Gentlemen,
We confirm receipt of the above letter.
We confirm our consent to the contents of this letter. First of all, we have taken note of the entry into force of the above-mentioned Framework Agreement since the date of signature, i.e. 18 February 1993, and its application in the context of financial contracts signed after that date.
This letter is also sent to the Ministry of Finance, representing the Czech Republic as signatory to the Framework Agreement.
Respectfully,
EUROPEAN INVESTMENT BANK
C. Knowles v. r.
H.-J. Seeliger v. r.
Ministry of Foreign Affairs
Loretan to us. 5
Prague 1
Czech Republic
Ministry of Finance
International Financial Department
Flight 15
Prague 1
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Regulation Information
| Citation | Communication from the Ministry of Foreign Affairs No. 250 / 1994 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 | 30.12.1994 |
|---|---|
| Effective from | 18.02.1993 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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