The Articles of Agreement of the Council of Europe Development Bank (CEB) serve as the legal framework for its operations. The CEB was established in 1956 to promote social and economic development in its member states, which currently number 41.
Article 1 of the agreement states that the bank`s objective is to “contribute to facilitating the economic development of the member countries, in particular the less favoured regions thereof, and to promoting the economic integration of Europe.” It also specifies that the bank is allowed to grant loans, make investments, and carry out other financial operations.
Article 2 establishes the bank`s governing structure, which includes a Board of Governors, a Board of Directors, a President, and a Management Committee. The Board of Governors is made up of the finance ministers of the member states and is responsible for approving the bank`s overall strategy and budget. The Board of Directors is responsible for overseeing the bank`s day-to-day operations.
Article 3 outlines the bank`s financial resources, which include paid-in capital from member states, loans raised on capital markets, and retained earnings. The bank is also allowed to borrow from other sources with the approval of its Board of Governors.
Article 4 establishes the bank`s lending operations, emphasizing that loans should be made “on terms which are reasonable, taking into account the basic financial conditions prevailing on the money and capital markets.” The bank is also required to ensure that its loans contribute to the economic development of the borrowing country and to the overall objectives of the bank.
Article 5 addresses the issue of member states` liability for the bank`s obligations. It specifies that each member is liable for a share of the bank`s capital based on its economic size and that this liability cannot be transferred or pledged.
Article 6 establishes the bank`s relationship with other organizations and institutions. The bank is allowed to cooperate with other international organizations and may participate in joint ventures with private entities. However, it is required to seek the approval of its Board of Governors before engaging in any significant activities outside its mandate.
Article 7 specifies the bank`s staff regulations and the procedures for selecting and appointing its employees. The bank is allowed to recruit staff from any member state, but its workforce should reflect the diversity of the bank`s membership.
Finally, Article 8 outlines the process for amending the Articles of Agreement. Any proposed amendments must be approved by the Board of Governors and ratified by two-thirds of the member states.
In conclusion, the Articles of Agreement of the Council of Europe Development Bank provide a clear legal framework for the bank`s operations and its relationship with member states and other organizations. As the CEB continues to support economic development in Europe, these articles will remain a vital guide for its activities.
