World Bank Article of Agreement

The ICSID Convention was established by a multilateral agreement and entered into force on October 14, 1966. Each member may only do business with the bank through its treasury, central bank, stabilization fund or other similar tax authority, and the bank will only negotiate with its members through or through the same agencies. (a) Each Member shall designate its central bank as the depositary of all the Bank`s assets in its currency or, if it does not have a central bank, designate the other institution acceptable to the Bank; (i) Where the member in whose territory the project is located is not itself the borrower, the member or the central bank or a comparable body of the member acceptable to the Bank, it guarantees in full the repayment of the principal and the payment of interest and other charges on the loan. (ii) The Bank is satisfied that, under prevailing market conditions, the Borrower would not be able to obtain the Loan otherwise on such terms as it deems appropriate for the Borrower. (iii) a committee responsible referred to in Article V, Section 7, after careful consideration of the merits of the proposal, has submitted a written report recommending the draft; (iv) The Bank considers that the interest rate and other costs are reasonable and correspond to the project, the costs and the schedule for repayment of the principal; (v) when granting or guaranteeing a loan, the Bank shall take due account of the prospects that the borrower and, if the borrower is not a member, the guarantor will be able to meet its obligations under the loan; and the Bank shall act prudently both in the interest of the member in whose territory the project is located and in the interest of all members. (vi) By guaranteeing a loan from other investors, the bank receives adequate compensation for its risk. (vii) Loans granted or guaranteed by the Bank shall, except in special circumstances, be used for certain reconstruction or development projects. You clicked on a link to a page that is not part of the beta version of the new worldbank.org. Before we leave, we`d love to hear your feedback about your experience while you`re here.

Do you take two minutes to complete a short survey that will help us improve our website? Thank you for agreeing to provide us with your comments on the new version of worldbank.org; Your response will help us improve our website. Thank you for participating in this survey! Your feedback is very helpful to us as we work to improve the functionality of the website on worldbank.org. (i) Any amount due to the Government for its shares shall be retained for as long as the Government, its central bank or any of its agencies remains liable to the Bank as a borrower or guarantor and such amount may be applied to such liability at maturity, at the option of the Bank. No amount may be withheld because of the Government`s liability arising from its subscription of shares in accordance with Article II, Section 5 (ii). In any event, no amount due to a member for his shares shall be paid until six months after the day on which the Government ceases to be a member. (b) All loan agreements shall indicate the currency(ies) in which payments are to be made to the Bank under the contract. However, at the choice of the borrowers, such payments may be made in gold or, subject to the consent of the bank, in the currency of a member not provided for in the contract. Each of the World Bank Group organizations operates according to the procedures set out in its Articles of Association or equivalent government document. These documents describe the conditions of membership and the general principles of organization, management and operation. (a) An Advisory Board of at least seven persons, chosen by the Board of Governors, comprising representatives of banking, commercial, industrial, labour and agricultural interests, shall be established and represented with the widest possible level of national representation. In areas where there are specialized international organizations, the members of the Council representative of those fields shall be chosen in agreement with those organizations. The Board advises the Bank on policy issues.

The Board shall meet annually and on such other occasions as the Bank may request. (d) The quorum at each meeting of the Governing Council shall be a majority of governors exercising at least two-thirds of the total voting rights. (i) be immune from prosecution for acts which they perform in their official capacity, unless the Bank waives such immunity;. .