With Russia is working on developing more trade with the ruble, the Dominance of US Dollar will be reduced

With Russia is working on developing more trade with the ruble, the Dominance of US Dollar will be reduced

    Friday, April 01, 2022   No comments

With Russia is working on developing more trade with the ruble, together with sanctions, all that will Reduce Dominance of US Dollar.

The US-led Western sanctions campaign against Russia threatens to chip away at the US dollar’s dominance as the world’s reserve currency, a top IMF official told The Financial Times.

Gita Gopinath, the IMF’s first deputy managing director, said the sweeping sanctions against Russia will lead to more countries making transactions in other currencies.

“The dollar would remain the major global currency even in that landscape but fragmentation at a smaller level is certainly quite possible,” she said. “We are already seeing that with some countries renegotiating the currency in which they get paid for trade.”

Since the sanctions campaign began, Russian President Vladimir Putin has taken steps to increase trade with the ruble. He said that Russia will stop selling gas to “unfriendly” nations unless they pay in the Russian currency. Moscow has also proposed to India to make deals in ruble-rupee-denominated payments.

Full text and summary of the 25-year China-Iran deal covering Trade and Military Collaboration

Full text and summary of the 25-year China-Iran deal covering Trade and Military Collaboration

    Friday, July 17, 2020   No comments

Media review: Iran replaces its nuclear deal with the P5+1 with one with China

China and Iran are reported to have quietly drafted a comprehensive military and trade partnership. The deal would make way for about $400 billion worth of Chinese investments into Iran’s key sectors, such as energy and infrastructure, over the next 25 years.

The deal:

An 18-page draft of the proposed agreement, the Persian version of it available at the end of this summary,
talks about expanding Chinese presence in Iran’s “banking, telecommunications, ports, railways and dozens of other projects”. In return, Iran is to provide regular and “heavily discounted” supply of oil to China for 25 years.

In the strategic realm, the proposed draft talks about deepening military cooperation, with “joint training and exercises”, “joint research and weapons development”, and intelligence sharing.

This deepening military cooperation would be intended to fight the “the lopsided battle with terrorism, drug and human trafficking and cross-border crimes”.

The deal is reported to have been first proposed by Chinese President Xi Jinping during his 2016 visit to Tehran, and the proposed draft was approved by Iranian President Hassan Rouhani and Foreign Minister Mohammad Javad Zarif over the last couple of weeks.

These moves come at a time when the Iranian economy has been crippled by sweeping US sanctions, which have ensured that any company in the world that deals with Iran would be cut off from the global financial system.

The deal has not been presented to the Iranian parliament yet, and Beijing is still to disclose the terms of the deal, though Iranian officials have publicly acknowledged that there is a “pending agreement with China”.

What does it entail?
The opening sentence of the proposed draft says: “Two ancient Asian cultures, two partners in the sectors of trade, economy, politics, culture and security with a similar outlook and many mutual bilateral and multilateral interests will consider one another strategic partners.”

There are nearly 100 projects cited in the document that would have Chinese investments, and are expected to be a part of Xi’s ambitious Belt and Road Initiative (BRI), which aims to extend China’s strategic influence across Eurasia.

These 100 projects include “airports, high-speed railways and subways”, effectively touching the lives of most Iranian citizens.

“China would (also) develop free-trade zones in Maku, in northwestern Iran; in Abadan, where the Shatt al-Arab river flows into the Persian Gulf, and on the gulf island Qeshm,” notes the NYT report.

The draft agreement also talks about China building infrastructure for 5G telecommunications network in Iran. This would see Chinese telecommunications giant Huawei — a company that has come under severe US sanctions and been banned by many countries across the world such as the United Kingdom and Australia — enter the Iranian market.

Chinese global positioning system BeiDou is also proposed to assist Iran’s cyber authorities in regulating what is shared in the country’s cyberspace, potentially paving the way for Iran to develop a China-like “great firewall”.

US ‘pushed’ Iran into China’s arms
Since coming to power in 2017, US President Donald Trump has withdrawn from the 2015 Iran nuclear deal, which froze the country’s nuclear programme, and enforced comprehensive sanctions on Iran, devastating its economy. Now “Tehran’s desperation has pushed it into the arms of China”, remarks the NYT report.

“Iran and China both view this deal as a strategic partnership in not just expanding their own interests but confronting the US. It is the first of its kind for Iran, keen on having a world power as an ally,” said Ali Gholizadeh, who works at University of Science and Technology of China in Beijing.

Until now, Iran used to seek European cooperation for trade and investment, but it has reportedly grown increasingly frustrated with it.

“The draft agreement with Iran shows that unlike most countries, China feels it is in a position to defy the United States, powerful enough to withstand American penalties, as it has in the trade war waged by President Trump,” said the NYT report.

The US State Department spokesperson said the US would continue to “impose costs on Chinese companies that aid Iran”.

Middle East geopolitics

For decades now, the US forces have dominated the Middle East’s security paradigm, but this agreement could now provide China with a foothold in the region, according to unnamed US officials in the NYT report.

Analysts contend that when China develops strategic ports in various countries, there is a possibility that it might militarise them at some point.

In the proposed draft, China plans to build several ports in Iran, one of them at Jask, just outside the Gulf of Hormuz, which is the entrance to the Persian Gulf.

The Gulf of Hormuz is among the nine key maritime chokepoints across the world. All of these chokepoints are controlled by the US, which many security analysts believe is a marker of US strategic hegemony over the world.

Now, a Chinese port at Jask “would give the Chinese a strategic vantage point on the waters through which much of the world’s oil transits. The passage is of critical strategic importance to the United States, whose Navy’s Fifth Fleet is headquartered in Bahrain in the gulf,” the NYT report states.

____________

Unverified copy of the Agreement Between Iran and China:

German Foreign Minister calls for economic system independent of US: Maas wants EU own SWIFT system

German Foreign Minister calls for economic system independent of US: Maas wants EU own SWIFT system

    Wednesday, August 22, 2018   No comments

...

It is also important to correct fake news because it can quickly result in the wrong policies. As Europeans, we have made it clear to the Americans that we consider the withdrawal from the nuclear agreement with Iran to be a mistake. Meanwhile, the first US sanctions have come back into force.

In this situation, it is of strategic importance that we make it clear to Washington that we want to work together. But also: That we will not allow you to go over our heads, and at our expense. That is why it was right to protect European companies legally from sanctions. It is therefore essential that we strengthen European autonomy by establishing payment channels independent of the US, a European monetary fund and an independent SWIFT [payments] system. The devil is in thousands of details. But every day that the Iran agreement lasts, is better than the potentially explosive crisis that threatens the Middle East otherwise.



A balanced partnership also means that, as Europeans, we bring more weight to bear when the US withdraws. We are concerned about Washington’s withdrawal of affection, in financial and other terms, from the UN — and not only because we will soon be on the Security Council. Of course we can’ t fill all the gaps. But together with others, we can cushion the most damaging consequences of the thinking that says success is measured in dollars saved. That is why we have increased funding for relief organizations working with Palestinian refugees and sought support from Arab states.

We are striving for a multilateral alliance, a network of partners who, like us, are committed to sticking to the rules and to fair competition. I have made my first appointments with Japan, Canada and South Korea; more are to follow. This alliance is not a rigid, exclusive club for those with good intentions. What I have in mind is an association of states convinced of the benefits of multilateralism, who believe in international cooperation and the rule of the law. It is not directed against anyone, but sees itself as an alliance that supports and enhances a global, multilateral order. The door is wide open — above all to the US. The aim is to tackle the problems that none of us can tackle on our own, together — from climate change to fair trade.

I have no illusions that such an alliance can solve all the world’s problems. But it is not enough just to complain about the destruction of the multilateral order. We have to fight for it, especially because of the current trans-Atlantic situation.

source: handelsblatt.com

For self-proclaimed "servant" the Saudi King, Salman, will be spending lavishly living large in Malaysia, Indonesia, Brunei, Japan, China, the Maldives and Jordan

For self-proclaimed "servant" the Saudi King, Salman, will be spending lavishly living large in Malaysia, Indonesia, Brunei, Japan, China, the Maldives and Jordan

    Sunday, February 26, 2017   No comments

ISR Comment: Saudi rulers have always treated the public treasure as their personal. Therefore,

spending unlimited amounts of money on personal vacations rarely registered in public perception in the kingdom. However, the combination of economic hardships that forced the rulers to cut benefits, salary, and spending on social programs in the last two years, and the extreme lavishness of the current king may start to raise concerns. Since his rise to power, King Salman undertook some of the most expensive trips, taking with him thousands of family members, personal cars, and blocking access to hotels and resorts where he and his entourage stay. The image they are trying to portray as simple servants of religious places and the reality of being a family-run operation with little regard to public interest and citizens' welfare is threatening their grip on power.


_________
Saudi King kicks of a month long trip to East Asia
...

Besides traveling with his own private escalator, King Salman has also flown in two personal cars. His entourage has also completely booked out three luxury hotels in Kuala Lumpur for the duration of the visit.

After Malaysia, the King is expected to travel to Jakarta and Bali in Indonesia from March 1-9 with an even larger entourage of 1,500 people, followed by a trip to Japan from March 12 to 14, officials in those countries said.

Source: http://www.reuters.com/article/us-saudi-asia-malaysia-idUSKBN16505A

#MuslimBan could cost Boeing $20 billion, 100,000 U.S. jobs lost

#MuslimBan could cost Boeing $20 billion, 100,000 U.S. jobs lost

    Wednesday, February 08, 2017   No comments

 

Around $20 billion worth of Boeing commercial aircraft orders to foreign countries could be at risk due to President Donald Trump's immigration action targeting countries such as Iran and Iraq.

"We think the president's travel ban could have negative implications for orders from Iran and Iraq," said James Corridore, an aerospace analyst at CFRA Research. "We see these contracts as vulnerable to cancellation, though we also think it possible that the current injunction against the travel ban will be upheld, which could lessen the impact."

In announcing the Boeing deal on Dec. 11, Boeing said the new orders will support nearly 100,000 new jobs. Boeing is in the midst of cost-cutting in its commercial aircraft division and is facing tough competition from Airbus.

In December, Boeing announced a $16.6 billion agreement for the state-owned Iran Air to buy 50 of its narrow-body 737 passenger jets and 30 of the wide-body 777 aircraft. Separately, Iraq has firm orders to buy 10 of Boeing's 787 Dreamliner wide-body aircraft and another 18 of the 737s.

Corridore noted that list prices value the combined contracts at about $20 billion. source

Saudi Arabia is no state at all: Preparing for its Collapse

Saudi Arabia is no state at all: Preparing for its Collapse

    Thursday, February 18, 2016   No comments

The Saudi ruling elite is operating something like a sophisticated criminal enterprise
For half a century, the Kingdom of Saudi Arabia has been the linchpin of U.S. Mideast policy. A guaranteed supply of oil has bought a guaranteed supply of security. Ignoring autocratic practices and the export of Wahhabi extremism, Washington stubbornly dubs its ally “moderate.” So tight is the trust that U.S. special operators dip into Saudi petrodollars as a counterterrorism slush fund without a second thought. In a sea of chaos, goes the refrain, the kingdom is one state that’s stable.

But is it?

In fact, Saudi Arabia is no state at all. There are two ways to describe it: as a political enterprise with a clever but ultimately unsustainable business model, or as an entity so corrupt as to resemble a vertically and horizontally integrated criminal organization. Either way, it can’t last. It’s past time U.S. decision-makers began planning for the collapse of the Saudi kingdom... read more, see

source: https://www.theatlantic.com/international/archive/2016/02/saudi-arabia-collapse/463212/

Richest 1% will own more than all the rest of humanity by 2016

Richest 1% will own more than all the rest of humanity by 2016

    Monday, January 18, 2016   No comments

The combined wealth of the richest 1 percent will overtake that of the other 99 percent of people next year unless the current trend of rising inequality is checked, Oxfam warned today ahead of the annual World Economic Forum meeting in Davos.

The international agency, whose executive director Winnie Byanyima will co-chair the Davos event, warned that the explosion in inequality is holding back the fight against global poverty at a time when 1 in 9 people do not have enough to eat and more than a billion people still live on less than $1.25-a-day.

Byanyima will use her position at Davos to call for urgent action to stem this rising tide of inequality, starting with a crackdown on tax dodging by corporations, and to push for progress towards a global deal on climate change.

Wealth: Having It All and Wanting More, a research paper published today by Oxfam, shows that the richest 1 percent have seen their share of global wealth increase from 44 percent in 2009 to 48 percent in 2014 and at this rate will be more than 50 percent in 2016. Members of this global elite had an average wealth of $2.7 million per adult in 2014.

Of the remaining 52 percent of global wealth, almost all (46 percent) is owned by the rest of the richest fifth of the world’s population. The other 80 percent share just 5.5 percent and had an average wealth of $3,851 per adult – that’s 1/700th of the average wealth of the 1 percent.

Staggering inequality

Winnie Byanyima, Executive Director of Oxfam International, said: “Do we really want to live in a world where the one percent own more than the rest of us combined? The scale of global inequality is quite simply staggering and despite the issues shooting up the global agenda, the gap between the richest and the rest is widening fast.

“In the past 12 months we have seen world leaders from President Obama to Christine Lagarde talk more about tackling extreme inequality but we are still waiting for many of them to walk the walk. It is time our leaders took on the powerful vested interests that stand in the way of a fairer and more prosperous world. 

“Business as usual for the elite isn’t a cost free option – failure to tackle inequality will set the fight against poverty back decades. The poor are hurt twice by rising inequality – they get a smaller share of the economic pie and because extreme inequality hurts growth, there is less pie to be shared around.”

Business must act

Lady Lynn Forester de Rothschild, Chief Executive Officer of E.L. Rothschild and chairman of the Coalition for Inclusive Capitalism, who is speaking at a joint Oxfam-University of Oxford event on inequality today, called on business leaders meeting in Davos to play their part in tackling extreme inequality.

She said: “Oxfam’s report is just the latest evidence that inequality has reached shocking extremes, and continues to grow. It is time for the global leaders of modern capitalism, in addition to our politicians, to work to change the system to make it more inclusive, more equitable and more sustainable. 

“Extreme inequality isn't just a moral wrong. It undermines economic growth and it threatens the private sector's bottom line.  All those gathering at Davos who want a stable and prosperous world should make tackling inequality a top priority."

Oxfam made headlines at Davos last year with the revelation that the 85 richest people on the planet have the same wealth as the poorest 50 percent (3.5 billion people). That figure is now 80 – a dramatic fall from 388 people in 2010. The wealth of the richest 80 doubled in cash terms between 2009-14.

The international agency is calling on government to adopt a seven point plan to tackle inequality:

•     Clamp down on tax dodging by corporations and rich individuals
•     Invest in universal, free public services such as health and education
•     Share the tax burden fairly, shifting taxation from labour and consumption towards    capital and wealth
•     Introduce minimum wages and move towards a living wage for all workers
•     Introduce equal pay legislation and promote economic policies to give women a fair deal
•     Ensure adequate safety-nets for the poorest, including a minimum income guarantee
•     Agree a global goal to tackle inequality.

Today’s research paper, which follows the October launch of Oxfam’s global Even It Up campaign, shines a light on the way extreme wealth is passed down the generations and how elite groups mobilise their vast resources to ensure global rules are favourable towards their interests. More than a third of the 1645 billionaires listed by Forbes inherited some or all of their riches.

Twenty percent of billionaires have interests in the financial and insurance sectors, a group which saw their cash wealth increase by 11 percent in the 12 months to March 2014. These sectors spent $550 million lobbying policy makers in Washington and Brussels during 2013. During the 2012 US election cycle alone, the financial sector provided $571 million in campaign contributions.

Billionaires listed as having interests in the pharmaceutical and healthcare sectors saw their collective net worth increase by 47 percent. During 2013, they spent more than $500 million lobbying policy makers in Washington and Brussels.

Oxfam is concerned that the lobbying power of these sectors is a major barrier in the way of reforming the global tax system and of ensuring intellectual property rules do not lead to the world’s poorest being denied life saving medicines.

There is increasing evidence from the International Monetary Fund, among others, that extreme inequality is not just bad news for those at the bottom but also damages economic growth.

Oxfam will today hold a joint symposium Rising Inequality in the Global South with Oxford University. Speakers include Donald Kaberuka, President of the African Development Bank and Lady Lynn Forester de Rothschild.

source

Global Islamic Economy Summit 2015

Global Islamic Economy Summit 2015

    Saturday, October 03, 2015   No comments

The inaugural Global Islamic Economy Summit in 2013 introduced to the world the idea of a cohesive global Islamic Economy. This year we build on that palpable momentum to go beyond delivering on ‘what’ this market is to showing ‘how’ we can all benefit from it.

This year’s Summit will be the platform for over 2,000 policymakers and business leaders to connect from across the Islamic world and beyond. The Summit will discuss critical issues affecting the Islamic Economy, including those related to: business and investment opportunities in Islamic finance and insurance; the full Halal food value chain from manufacturing to logistics; Halal products manufacturing; Tourism; and small- to medium-sized enterprises (SMEs).

Held under the patronage of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, we welcome you to the Global Islamic Economy Summit 2015 at Madinat Jumeirah, Dubai, UAE on October 5th and 6th 2015. Organised by Dubai Chamber of Commerce & Industry and Thomson Reuters, the 2015 Summit will not just match the success of the inaugural 2013 Summit but surpass it.

What is the Global Islamic Economy?

The Islamic Economy affects the lives of more than just the 1.7 billion Muslims worldwide. It is open to all discerning consumers, citizens, and businesses from Australia to Alaska who understand the need to improve the way we consume, produce and work with one another. The Islamic Economy is a way of living - through products, experiences, services, processes and relationships - that is halal, ethical, wholesome and family-friendly. The Global Islamic Economy portal is your central resource to learn about, connect, and engage with the rapidly-growing global Islamic economy.

More information >>

European companies beat US to Iran business after nuclear deal reached

European companies beat US to Iran business after nuclear deal reached

    Wednesday, August 26, 2015   No comments

The ink was barely dry on the agreement with Iran to limit its nuclear programme before a German government plane packed with the nation’s economic elite touched down in Tehran.

The trip was the first in a rush of European ministers and business people flocking to a market poised to reopen after years of grinding sanctions. Upscale Tehran hotels are packed and tables at trendy restaurants are scarce as foreigners jostle for bargains, even amid uncertainty over whether President Obama can overcome US congressional opposition to the deal.

The stream of visitors to Tehran is the latest sign of the Atlantic-wide divide between the US and Europe, where there is scant opposition to the pact that aims to crimp Iran’s nuclear ambitions. Barack Obama and secretary of state John Kerry have warned detractors that they would be unable to reimpose a multinational trade embargo if congress rejects the plans. The other five countries that helped broker the deal have also told congress they will not return to the negotiating table. The trips show that US leaders can’t keep Europeans from flying to Tehran ahead of the congressional vote, which must take place by 17 September.

“We are talking here about 80 million people who need energy supplies, who naturally also need healthcare, who want to get back off their knees in the oil and gas businesses. There are opportunities and chances,” Joe Kaeser, chief executive of Siemens, the German industrial conglomerate, told German television last month.

Siemens sent a top official to Tehran with the German vice chancellor, Sigmar Gabriel, last month. Their government plane touched down at the Imam Khomeini international airport five days after world powers agreed on the nuclear deal on 14 July. “The agreement reached between the E3/EU+3 and Iran in Vienna has laid the foundations for a normalisation of economic relations with Iran,” Gabriel said, using another term for the group of six world powers that negotiated the deal. The vice chancellor was accompanied by a delegation of top officials from some of Germany’s largest companies, including Daimler, Volkswagen and ThyssenKrupp.

Since Gabriel’s visit, top ministers from France and Italy have visited Tehran. British foreign secretary Philip Hammond was there last weekend to reopen his nation’s embassy. Spain, Sweden and Poland plan to follow in the autumn. Next month Austrian president Heinz Fischer plans to be the first European head of state to visit Tehran since 2004. Vienna hosted an EU-Iran trade conference just a week after the deal was signed.

read more >>

Seattle mayor proposes sharia-compliant loans for Muslim home buyers

Seattle mayor proposes sharia-compliant loans for Muslim home buyers

    Tuesday, July 28, 2015   No comments

The mayor of Seattle and his housing committee are exploring options to make home loans accessible to Muslims who are unable to participate in standard mortgage programs due to religious prohibitions.

In an effort to address housing affordability in Seattle, Mayor Ed Murray has released a proposal which calls for community leaders and lenders to collaborate on exploring different options.

Among the ideas suggested to make housing more affordable for Seattle residents is a segment that will allow Muslims to obtain home loans that are compliant with sharia law.

“For our low- and moderate-income Muslim neighbors who follow Sharia law – which prohibits the payment of interest or fees for loans of money – there are limited options for financing a home,” the proposed plan reads. “Some Muslims are unable to use conventional mortgage products due to religious convictions.”

“The City will convene lenders, housing nonprofits and community leaders to explore the best options for increasing access to Sharia-compliant loan products to help these residents become homeowners in Seattle,” it says.

Under Sharia law, Muslims are prohibited from paying interest on loans. So traditional mortgages are out of reach for people who adhere strictly to Sharia law.

read more >>

The Warming World: Is Capitalism Destroying Our Planet?

The Warming World: Is Capitalism Destroying Our Planet?

    Monday, March 02, 2015   No comments

World leaders decided in Copenhagen that global warming should be limited to 2 degrees Celsius. Achieving that target, though, would take nothing less than a miracle. With another round of climate negotiations approaching, it is becoming increasingly clear that mankind has failed to address its most daunting problem.
Humans are full of contradictions, including the urge to destroy things they love. Like our planet. Take Australian Prime Minister Tony Abbott. Like everyone living Down Under, he's extremely proud of his country's wonder of the world, the Great Barrier Reef. At the same time, though, Abbott believes that burning coal is "good for humanity," even though it produces greenhouse gases that ultimately make our world's oceans warmer, stormier and more acidic. In recent years, Australia has exported more coal than any other country in the world. And the reef, the largest living organism on the planet, is dying. Half of the corals that make up the reef are, in fact, already dead.

Indian Prime Minister Narendra Modi also wants the best for his country and is loathe to see it damaged by droughts, cyclones and storm surges. Nevertheless, he is planning on doubling India's coal production by 2019 in addition to importing more coal from Australia. It is necessary to do so, he says, to help his country's poor. India is already the third largest producer of greenhouse gases, behind China and the United States. But climate change is altering the monsoon season, with both flooding and drought becoming more common.

And who would accuse the majority of US Senators of being insensitive to the extreme shortage of water afflicting California? Yet the law-making body recently brushed aside everything science has learned about global warming and voted down two measures that attributed the phenomenon to human activity. For Americans and foreign tourists alike, California is a magical place, famous for Yosemite National Park, its Pacific coastline, its golden light. The state also grows around a third of all US produce. For now. An historic drought that has been ongoing for over three years has forced farmers to abandon their fields and to slaughter their animals.

Since 1880, when global temperatures began to be systematically collected, no year has been warmer than 2014. The 15 warmest years, with one single exception, have come during the first 15 years of the new millennium. Indeed, it has become an open question as to whether global warming can be stopped anymore -- or at least limited as policymakers have called for. Is capitalism ultimately responsible for the problem, or could it actually help to solve it?

At the end of November, political leaders from around the world will gather in Paris to once again address the problem of global warming, just as they did five years ago in Copenhagen. Back then, a deep chasm opened up between the rich countries that want to protect the climate and the poor countries who are demanding that the rich countries pay for measures to combat climate change. Participants were hopelessly at loggerheads and proved unable to reach an agreement. The only product of the long days and nights of negotiation was a single number: 2 degrees Celsius.

Since then, politicians around the world have repeated the number like a mantra: Average global temperatures should not be allowed to increase by more than 2 degrees Celsius (3.6 degrees Fahrenheit) relative to pre-industrial times. A "dangerous anthropogenic interference with the climate system" is to be prevented, reads the United Nations Framework Convention on Climate Change.

The choice of 2 degrees Celsius as the maximum limit was largely an arbitrary one. Indeed, the 44 members of the Alliance of Small Island States (AOSIS) believe that, in a world that is 2 degrees warmer, many of their islands would disappear. They are demanding that the upper target limit be reduced to 1.5 degrees Celsius. But as things currently look, the 2-degree target is hopelessly utopian. It is supposed to sound reassuring, but it is little more than hot air. Since 1880, average global temperatures have already increased by 0.8 degrees Celsius, and the consequences have become widely evident.

At the Paris climate summit, leaders will have to reach agreement on questions that led to bitter disagreement five years ago in Copenhagen. Which countries have to reduce greenhouse gas emissions and by how much? What does it cost? And most importantly: Who pays? The goal is that of coming up with a successor treaty to the 1997 Kyoto Protocol, the first international agreement aimed at protecting the climate.

Should greenhouse gas emissions continue as they are today, the world will likely reach the 2 degree Celsius maximum within 30 years. Indeed, in order to have any chance at all of stopping global warming at 2 degrees Celsius, emissions would have to fall by 10 percent per year starting in 2017 at the latest, says Fatih Birol, head of the International Energy Agency.

But is that even possible? In 2014, around 60 percent more greenhouse gases were pumped into the atmosphere than in 1990, the year against which most reduction targets are measured. There is little to indicate that the trend might soon change. And if it doesn't, if emissions continue at today's rate, the World Bank calculates that average global temperatures will increase by 4 degrees Celsius by the end of the century. The consequences of so much warming, the World Bank says, would be "extreme heat-waves, declining global food stocks, loss of ecosystems and biodiversity, and life-threatening sea level rise."

The sheer scope of the destructive effect the production of fossil fuels already has today is visible when you visit places that provide the world with its supplies of coal, oil and natural gas. Louisiana, for example, an oil-rich US state whose coast is sinking into the sea and which is threatened by hurricanes. Or the Chinese coal province Hebei, whose 70 million inhabitants would be better advised not to leave their homes on many days of the year because levels of fine particulate matter go far beyond those considered to be safe.

Is Capitalism the Problem?

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Erdoğan wants more power, so he asks for 400 deputies for his former AKP at Turkish elections -- Fethullah Gulen: Turkey’s Eroding Democracy

Erdoğan wants more power, so he asks for 400 deputies for his former AKP at Turkish elections -- Fethullah Gulen: Turkey’s Eroding Democracy

    Friday, February 06, 2015   No comments

Erdoğan wants 400 deputies for his former AKP at Turkish elections
Disregarding opposition criticism of his direct involvement in politics, President Recep Tayyip Erdoğan once again appealed for votes for his former Justice and Development Party (AKP) without explicitly giving the party’s name, declaring that “400 lawmakers” are needed for a “new Turkey.” 

“If we want a new Turkey at the June 7 elections, we will give it 400 lawmakers,” Erdoğan said, speaking at a public rally in the northwestern province of Bursa on Feb. 6.

He linked several key issues to this newly set goal, including his desired shift to the presidential system.

“What we say is that if we want a new constitution, we have to reach 400 lawmakers,” he said.
At least 330 deputies in parliament are needed to change the constitution.

“If we want the presidential system, then we have to give 400 lawmakers. If we want the resolution process to continue, we have to give 400 lawmakers so that a strong party can come to power to realize it,” Erdoğan added, referring to the ongoing talks to find a peaceful solution to the Kurdish issue.

read more >>

____________
Fethullah Gulen: Turkey’s Eroding Democracy
By FETHULLAH GULEN

SAYLORSBURG, Pa. — It is deeply disappointing to see what has become of Turkey in the last few years. Not long ago, it was the envy of Muslim-majority countries: a viable candidate for the European Union on its path to becoming a functioning democracy that upholds universal human rights, gender equality, the rule of law and the rights of Kurdish and non-Muslim citizens. This historic opportunity now appears to have been squandered as Turkey’s ruling party, known as the A.K.P., reverses that progress and clamps down on civil society, media, the judiciary and free enterprise.

Turkey’s current leaders seem to claim an absolute mandate by virtue of winning elections. But victory doesn’t grant them permission to ignore the Constitution or suppress dissent, especially when election victories are built on crony capitalism and media subservience. The A.K.P.’s leaders now depict every democratic criticism of them as an attack on the state. By viewing every critical voice as an enemy — or worse, a traitor — they are leading the country toward totalitarianism.

The latest victims of the clampdown are the staff, executives and editors of independent media organizations who were detained and are now facing charges made possible by recent changes to the laws and the court system. The director of one of the most popular TV channels, arrested in December, is still behind bars. Public officials investigating corruption charges have also been purged and jailed for simply doing their jobs. An independent judiciary, a functioning civil society and media are checks and balances against government transgressions. Such harassment sends the message that whoever stands in the way of the ruling party’s agenda will be targeted by slander, sanctions and even trumped-up charges.

Turkey’s rulers have not only alienated the West, they are also now losing credibility in the Middle East. Turkey’s ability to assert positive influence in the region depends not only on its economy but also on the health of its own democracy.

read more >>

Recep Tayyip Erdoğan's "White Palace" is more than 1/2 billion US dollars and his jet is $185 million

Recep Tayyip Erdoğan's "White Palace" is more than 1/2 billion US dollars and his jet is $185 million

    Tuesday, November 04, 2014   No comments

Ak Saray (white palace), which President Recep Tayyip Erdoğan will use as his new presidential building, cost more than TL 1 billion, Finance Minister Mehmet Şimşek has announced.

Responding to questions by opposition lawmakers during budget talks in Parliament late on Monday, Şimşek said the new building cost TL 1.37 billion ($615 million). Stating that TL 964 million has already been spent on Ak Saray, Şimşek said the government allocated TL 300 million for the building from the 2015 budget.

Constructed inside the Atatürk Forest Farm (AOÇ) on an area of 300,000 square meters in Ankara, Ak Saray has been at the center of strong criticism for being oversized for the presidential post, which is symbolic in Turkey.


Ak Saray may even be touted as the world's largest residential palace. The Guinness World Records currently lists the Istana Nurul Iman palace of the sultan of Brunei, in Bandar Seri Begawan, as the world's largest residential palace with 200,000 square meters of floor space. Completed in 1984, the Brunei sultan's palace cost 300 million pounds, which was equivalent to $422 million at the time, or $970 million today.

The word “Ak” in the name Ak Saray also refers to the name of the ruling Justice and Development Party (AK Party).

Şimşek also announced the cost of the new presidential jet, an Airbus A330-200 Prestige, during the budget talks, saying the jet cost $185 million. Noting that the government has not yet paid for the jet, which was purchased by Turkish Airlines (THY), Şimşek said the Prime Ministry will pay THY this year.
Erdoğan's discretionary fund 20.5 times higher than last 3 PMs'

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Another "Islamic bank" is declared bankrupt; Erdoğan declares Bank Asya 'bankrupt' amid stock exchange chaos

Another "Islamic bank" is declared bankrupt; Erdoğan declares Bank Asya 'bankrupt' amid stock exchange chaos

    Thursday, September 18, 2014   No comments

“They say there are efforts being made to sink a bank. There is no work being done to sink a bank. This bank is already bankrupt. But they are trying to keep it afloat with a few buckets of water,” Erdoğan told a meeting of Turkey's largest business group, the Turkish Industrialists and Businessmen's Association (TÜSİAD), in İstanbul.

Bank Asya's shares were suspended twice on Thursday afternoon after shares rose as much as 11 percent in the morning. Trading on Bank Asya shares resumed on Monday -- following a five-week suspension -- and has decreased by more than 40 percent since then. The shares rose for the first time since the trading resumed this week, increasing by 7.8 percent to TL 0.69.

“They say there are efforts being made to sink a bank. There is no work being done to sink a bank. This bank is already bankrupt. But they are trying to keep it afloat with a few buckets of water,” Erdoğan told a meeting of Turkey's largest business group, the Turkish Industrialists and Businessmen's Association (TÜSİAD), in İstanbul.

Bank Asya's shares were suspended twice on Thursday afternoon after shares rose as much as 11 percent in the morning. Trading on Bank Asya shares resumed on Monday -- following a five-week suspension -- and has decreased by more than 40 percent since then. The shares rose for the first time since the trading resumed this week, increasing by 7.8 percent to TL 0.69.

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Brazil Condemns Israel Offensive in Gaza, Recalls Ambassador

Brazil Condemns Israel Offensive in Gaza, Recalls Ambassador

    Thursday, July 24, 2014   No comments

On July 10th, just two days after Israel launched Operation Protective Edge (the largest attack on Gaza in several years) President Obama released a statement in which he “reaffirmed Israel’s right to defend itself.” With a death toll now over 550, it is important to look beyond U.S. government sources for information and perspective. Foreign policy among the countries in Latin America conforms to the long-standing, overwhelming international consensus that opposes Israeli aggression and occupation, but it also reflects the region’s “second independence.” Over the last 15 years, most countries in Latin America have increased their ability to pursue a foreign policy agenda separate from the goals of the U.S. State Department. In the vast majority of cases, reactions to the latest hostilities are fundamentally at odds with the U.S. position, but they are also varied: many governments directly criticize Israel, using words like “crimes against humanity” and “genocide” to describe recent events; other official statements limit themselves to calling for a ceasefire and a peaceful resolution to the conflict.

Some of the strongest statements were issued by left-leaning governments in South America, including those of Argentina, Bolivia, Brazil, Chile, Ecuador, Uruguay and Venezuela. The government of Argentina issued a statement “strongly condemn[ing] that Israel -- defying calls by the Security County, by the Secretary General and by the many voices of the international community – has decided to escalate the crisis by launching a ground offensive.” President Evo Morales of Bolivia announced that he had petitioned the United Nations High Commissioner for Human Rights (UNCHR) to consider a case against Israel at the International Court of Justice (ICJ) for “crimes against humanity” and “genocide.” (Bolivia broke diplomatic relations with Israel in 2009 over Israel’s Operation Cast Lead assault on Gaza.) The statement from Brazil reads in part:[1]

The Brazilian Government vehemently condemns the Israeli bombardment of Gaza, with disproportionate use of force, which resulted in more than 230 Palestinians dead, many of them unarmed civilians and children. It equally condemns the firing of rockets and mortars from Gaza into Israel.

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BRICS' Agreement on the New Development Bank

BRICS' Agreement on the New Development Bank

    Thursday, July 17, 2014   No comments

Agreement on the New Development Bank – Fortaleza, July 15

 Agreement on the New Development Bank

The Governments of the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China and the Republic of South Africa, collectively the BRICS countries,

RECALLING the decision taken in the fourth BRICS Summit in New Delhi in 2012 and subsequently announced in the fifth BRICS Summit in Durban in 2013 to establish a development bank;

RECOGNIZING the work undertaken by the respective finance ministries;

CONVINCED that the establishment of such a Bank would reflect the close relations among the BRICS countries, while providing a powerful instrument for increasing their economic cooperation;

MINDFUL of a context where emerging market economies and developing countries continue to face significant financing constraints to address infrastructure gaps and sustainable development needs;

Have agreed on the establishment of the New Development Bank (NDB), hereinafter referred to as the Bank, which shall operate in accordance with the provisions of the annexed Articles of Agreement, that constitute an integral part of this Agreement. 

Article 1

Purpose and Functions

The Bank shall mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development.

To fulfill its purpose, the Bank shall support public or private projects through loans, guarantees, equity participation and other financial instruments. It shall also cooperate with international organizations and other financial entities, and provide technical assistance for projects to be supported by the Bank.

Article 2

Membership, Voting, Capital and Shares

The founding members of the Bank are the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China and the Republic of South Africa.

The membership shall be open to members of the United Nations, in accordance with the provisions of the Articles of Agreement of the New Development Bank. It shall be open to borrowing and non-borrowing members.

The New Development Bank shall have an initial subscribed capital of US$ 50 billion and an initial authorized capital of US$ 100 billion. The initial subscribed capital shall be equally distributed amongst the founding members. The voting power of each member shall equal its subscribed shares in the capital stock of the Bank.

Article 3

Headquarters, Organization and Management

The Bank will have its Headquarters in Shanghai.

The Bank shall have a Board of Governors, a Board of Directors, a President and Vice-Presidents. The President of the Bank shall be elected from one of the founding members on a rotational basis, and there shall be at least one Vice President from each of the other founding members.

The operations of the Bank shall be conducted in accordance with sound banking principles.

Article 4

Entry into force

This Agreement with its Annex shall enter into force when the instruments of acceptance, ratification or approval have been deposited by all BRICS countries, in accordance with the provisions set forth in the Articles of Agreement of the New Development Bank.

Done in the city of Fortaleza, on the 15th of July of 2014, in a single original in the English language.

ANNEX

ARTICLES OF AGREEMENT OF THE NEW DEVELOPMENT BANK

The Governments of the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China, and the Republic of South Africa (collectively the BRICS countries):

CONSIDERING the importance of closer economic cooperation among the BRICS countries;

RECOGNIZING the importance of providing resources for projects for the promotion of infrastructure and sustainable development in the BRICS countries and other emerging economies and developing countries;

CONVINCED of the necessity of creating a new international financial institution in order to intermediate resources for the above mentioned purposes;

DESIROUS to contribute to an international financial system conducive to economic and social development respectful of the global environment;

HAVE AGREED as follows:

 

Chapter I- Establishment, Purposes, Functions and Headquarters

Article 1 – Establishment

The New Development Bank (hereinafter “the Bank”), established by this Agreement, shall operate in accordance with the following provisions.

Article 2 – Purposes

The purpose of the Bank shall be to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries to complement the existing efforts of multilateral and regional financial institutions for global growth and development.

Article 3 – Functions

To fulfill its purpose, the Bank is authorized to exercise the following functions:

(i)               to utilize resources at its disposal to support infrastructure and sustainable development projects,  public or private, in the BRICS and other emerging market economies and developing countries, through the provision of loans, guarantees, equity participation and other financial instruments;

(ii)             to cooperate as the Bank may deem appropriate, within its mandate, with international organizations, as well as national entities whether public or private, in particular with international financial institutions and national development banks;

(iii)           to provide technical assistance for the preparation and implementation of infrastructure and sustainable development projects to be  supported by the Bank;

(iv)           to support infrastructure and sustainable development projects involving more than one country;

(v)             to establish, or be entrusted with the administration, of Special Funds which are designed to serve its purpose.

Article 4 – Headquarters

a)      The Bank has its headquarters in Shanghai.
b)      The Bank may establish offices necessary for the performance of its functions. The first regional office shall be in Johannesburg.

Chapter II- Membership, Voting, Capital and Shares

Article 5 – Membership

a)     The founding members of the Bank are the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China, and the Republic of South Africa.

b)     Membership shall be open to members of the United Nations at such times and in accordance with such terms and conditions as the Bank shall determine by a special majority at the Board of Governors.

c)     Membership of the Bank shall be open to borrowing and non-borrowing members.

d)    The Bank may accept, as decided by the Board of Governors, International Financial Institutions as observers at the meetings of the Board of Governors. Countries interested in becoming members may also be invited as observers to these meetings.

Article 6 – Voting

a)     The voting power of each member shall be equal to the number of its subscribed shares in the capital stock of the Bank. In the event of any member failing to pay any part of the amount due in respect of its obligations in relation to paid-in shares under Article 7 of this Agreement, such member shall be unable, for so long as such failure continues, to exercise that percentage of its voting power which corresponds to the percentage which the amount due but unpaid bears to the total amount of paid-in shares subscribed to by that member in the capital stock of the Bank.

b)     Except as otherwise specifically provided for in this Agreement, all matters before the Bank shall be decided by a simple majority of the votes cast. Where provided for in this Agreement, a qualified majority shall be understood as an affirmative vote of two thirds of the total voting power of the members. Where provided for in this Agreement, a special majority shall be understood as an affirmative vote of four of the founding members concurrent with an affirmative vote of two thirds of the total voting power of the members.

c)     In voting in the Board of Governors, each governor shall be entitled to cast the votes of the member country which he represents.

d)    In voting in the Board of Directors each director shall be entitled to cast the number of votes that counted toward his election, which votes need not be cast as a unit.

Article 7 – Authorized and Subscribed Capital

a)     The initial authorized capital of the Bank shall be one hundred billion dollars (US$100,000,000,000). The dollar wherever referred to in this Agreement shall be understood as being the official currency of payment of the United States of America.

b)     The initial authorized capital of the Bank shall be divided into 1,000,000 (one million) shares, having a par value of one hundred thousand dollars (US$ 100,000) each, which shall be available for subscription only by members in accordance with the provisions of this Agreement. The value of 1 (one) share, will also be the minimum amount to be subscribed for participation by a single country.

c)     The initial subscribed capital of the Bank shall be fifty billion dollars (US$50,000,000,000). The subscribed capital stock shall be divided into paid-in shares and callable shares. Shares having an aggregate par value of ten billion dollars (US$10,000,000,000) shall be paid-in shares, and shares having an aggregate par value of forty billion dollars (US$40,000,000,000) shall be callable shares.

d)    An increase of the authorized and subscribed capital stock of the Bank, as well as the proportion between the paid in shares and the callable shares may be decided by the Board of Governors at such time and under such terms and conditions as it may deem advisable, by a special majority of the Board of Governors. In such case, each member shall have a reasonable opportunity to subscribe, under the conditions established in Article 8 and under such other conditions as the Board of Governors shall decide. No member, however, shall be obligated to subscribe to any part of such increased capital.

e)     The Board of Governors shall at intervals of not more than 5 (five) years review the capital stock of the Bank.

 

Article 8 – Subscription of Shares

a)     Each member shall subscribe to shares of the capital stock of the Bank. The number of shares to be initially subscribed by the founding members shall be those set forth in Attachment 1 of this Agreement, which specifies the obligation of each member as to both paid-in and callable capital. The number of shares to be initially subscribed by other members shall be determined by the Board of Governors by special majority on the occasion of the acceptance of their accession.

b)     Shares of stock initially subscribed by founding members shall be issued at par. Other shares shall be issued at par unless the Board of Governors decides in special circumstances to issue them on other terms.

c)     No increase in the subscription of any member to the capital stock shall become effective, and any right to subscribe thereto is hereby waived, which would have the effect of:

(i)    reducing the voting power of the founding members below 55 (fifty-five) per cent of the total voting power;

(ii)   increasing the voting power of the non-borrowing member countries above 20 (twenty) per cent of the total voting power;

(iii)increasing the voting power of a non-founding member country above 7 (seven) per cent of total voting power.

d)    The liability of the members on shares shall be limited to the unpaid portion of their issue price.

e)     No member shall be liable, by reason of its membership, for obligations of the Bank.

f)      Shares shall not be pledged nor encumbered in any manner. They shall be transferable only to the Bank.

Article 9 – Payment of Subscriptions

a)     On entry into force of this Agreement, payment of the amount initially subscribed by each founding member to the paid-in capital stock of the Bank shall be made in dollars in 7 (seven) installments as provided for in Attachment 2. The first installment shall be paid by each member within 6 (six) months after entry into force of this Agreement. The second installment shall become due 18 (eighteen) months from the entry into force of this Agreement. The remaining 5 (five) installments shall each become due successively 1 (one) year from the date on which the preceding installment becomes due.

b)     The Board of Governors shall determine the dates for the payment of amounts subscribed by the members of the Bank to the paid-in capital stock to which the provisions of paragraph (a) of this article do not apply.

c)     Payment of the amounts subscribed to the callable capital stock of the Bank shall be subject to call only as and when required by the Bank to meet its obligations incurred on borrowing of funds for inclusion in its ordinary capital resources or guarantees chargeable to such resources. In the event of such calls, payment may be made at the option of the member concerned in convertible currency or in the currency required to discharge the obligation of the Bank for the purpose of which the call is made.

d)    Calls on unpaid subscriptions shall be uniform in percentage on all callable shares.

Chapter III- Organization and Management

Article 10 – Structure

The Bank shall have a Board of Governors, a Board of Directors, a President, Vice-Presidents as decided by the Board of Governors, and such other officers and staff as may be considered necessary.

Article 11 – Board of Governors: composition and powers

a)     All the powers of the Bank shall be vested in the Board of Governors consisting of one governor and one alternate appointed by each member in such manner as it may determine. Governors shall be at ministerial level, and may be replaced subject to the pleasure of the member appointing him. No alternate may vote except in the absence of his principal. The Board shall on an annual basis select one of the governors as chairperson.
b)     The Board of Governors may delegate to the Directors authority to exercise any powers of the Board, except the power to:
(i)               admit new members and determine the conditions of their admission;
(ii)             increase or decrease the capital stock;
(iii)           suspend a member;
(iv)           amend this Agreement;
(v)             decide appeals from interpretations of this agreement given by the Directors;
(vi)           authorize the conclusion of general agreements for cooperation with other international organizations;
(vii)         determine the distribution of the net income of the Bank;
(viii)       decide to terminate the operations of the Bank and to distribute its assets;
(ix)           decide on the number of additional Vice-Presidents;
(x)             elect the President of the Bank;
(xi)           approve a proposal by the Board of Directors to call capital;
(xii)         approve the General Strategy of the Bank every 5 (five) years.
c)     The Board of Governors shall hold an annual meeting and such other meetings as may be provided for by the Board or called by the Directors. Meetings of the Board shall be called by the Directors whenever requested by members, the number of which shall be determined by the Board of Governors from time to time.
d)    A quorum for any meeting of the Board of Governors shall be a majority of the Governors, exercising not less than two thirds of the total voting power.
e)     The Board of Governors may by regulation establish a procedure whereby the Directors, when they deem such action to be in the best interests of the Bank, may obtain a vote of the Governors on a specific question without calling a meeting of the Board.
f)      The Board of Governors, and the Directors to the extent authorized, may adopt such rules and regulations as may be necessary or appropriate to conduct the business of the Bank.
g)     Governors and alternates shall serve as such without compensation from the Bank.
h)     The Board of Governors shall determine the salary and terms of the contract of service of the President.
i)       The Board of Governors shall retain full power to exercise authority over any matter delegated to the Board of Directors under paragraph (a) of Article 12.

Article 12 – Board of Directors

(a)   The Board of Directors shall be responsible for the conduct of the general operations of the Bank, and for this purpose, shall exercise all the powers delegated to them by the Board of Governors, and in particular:
(i)        in conformity with the general directions of the Board of Governors, take decisions concerning business strategies, country strategies, loans, guarantees, equity investments, borrowing by the Bank, setting basic operational procedures and charges, furnishing of technical assistance and other operations of the Bank;
(ii)      submit the accounts for each financial year for approval of the Board of Governors at each annual meeting; and
(iii)    approve the budget of the Bank.
(b)  Each of the founding members shall appoint 1 (one) Director and 1 (one) alternate. The Board of Governors shall establish by special majority the methodology by which additional Directors and alternates shall be elected, so that the total number of Directors shall be no more than 10 (ten).
(c)   Directors shall serve a term of 2 (two) years and may be re-elected. A Director shall continue in office until his successor has been chosen and qualified. Alternates shall have full power to act for the respective Director when he is not present.
(d)  The Board of Directors shall appoint a non-executive chairperson from among the Directors for a mandate of 4 (four) years. If the Director does not serve a full mandate or if he is not re-elected for a second term, the Director that replaces him will serve as chairperson for the remainder of the term.
(e)   The Board of Directors shall approve the basic organization of the Bank upon proposal by the President, including the number and general responsibilities of the chief administrative and professional positions of the staff.
(f)   The Board of Directors shall appoint a Credit and Investment Committee and may appoint such other committees as it deems advisable. Membership of such committees need not be limited to Governors, Directors, or alternates.
(g)  The Board of Directors shall function as a non-resident body, which will meet quarterly, unless the Board of Governors decides otherwise by a qualified majority. If the Board of Governors decides to make the Board of Directors a resident body, the President of the Bank will become henceforth the chairperson of the Board of Directors.
(h)  A quorum for any meeting of the Directors shall be a majority of the Directors, exercising not less than two-thirds of the total voting power.
(i)    A member of the Bank may send a representative to attend any meeting of the Board of Directors when a matter especially affecting that member is under consideration. Such right of representation shall be regulated by the Board of Governors.

Article 13 – President and Staff

a)     The Board of Governors shall elect a President from one of the founding members on a rotational basis, who shall not be a Governor or a Director or an alternate for either. The President shall be a member of the Board of Directors, but shall have no vote except a deciding vote in case of an equal division. The President may participate in meetings of the Board of Governors, but shall not vote at such meetings. Without prejudice to the mandate established in item (d) below, the President shall cease to hold office should the Board of Governors so decide by a special majority.
b)     The President shall be chief of the operating staff of the Bank and shall conduct, under the direction of the Directors, the ordinary business of the Bank, and in particular:
(i)        being, on this, accountable to the Directors, the President shall be responsible for the organization, appointment and dismissal of the officers and staff, and recommendation of admission and dismissal of Vice Presidents to the Board of Governors;
(ii)      the President shall head the credit and investment committee, composed also by the Vice-Presidents, that will be responsible for decisions on loans, guarantees, equity investments and technical assistance of no more than  a limit amount to be established by the Board of Directors, provided that no objection is raised by any member of Board of Directors within 30 (thirty) days since such project is submitted to the Board.
c)     There shall be at least 1 (one) Vice-President from each founding member except the country represented by the President. Vice-Presidents shall be appointed by the Board of Governors on the recommendation of the President. Vice-Presidents shall exercise such authority and perform such functions in the administration of the Bank, as may be determined by the Board of Directors.
d)    The President and each Vice-President shall serve for a 5 (five) year term, non renewable, except for the first term of the first Vice-Presidents, whose mandate shall be for 6 (six) years.
e)     The Bank, its officers and employees shall not interfere in the political affairs of any member, nor shall they be influenced in their decisions by the political character of the member or members concerned. Only economic considerations shall be relevant to their decisions, and these considerations shall be weighed impartially in order to achieve the purpose and functions stated in Articles 2 and 3.
f)      The President, Vice-Presidents, officers and staff of the Bank, in the discharge of their offices, owe their duty entirely to the Bank and to no other authority. Each member of the Bank shall respect the international character of this duty and shall refrain from all attempts to influence any of them in the discharge of their duties.

Article 14- Publication of Reports and Provision of Information

a)     The Bank shall publish an annual report containing an audited statement of the accounts. It shall also transmit quarterly to the members a summary statement of the financial position and a profit-and-loss statement showing the results of its ordinary operations.

b)     The Bank may also publish such other reports as it deems desirable to carry out its purpose and functions.

Article 15- Transparency and Accountability

The Bank shall ensure that its proceedings are transparent and shall elaborate in its own Rules of Procedure specific provisions regarding access to its documents.

 

Chapter IV - Operations

Article 16 – Use of Resources

The resources and facilities of the Bank shall be used exclusively to implement the purpose and functions set forth respectively in Articles 2 and 3 of this Agreement.

Article 17 – Depositories

Each member shall designate its central bank as a depository in which the Bank may keep its holdings of such member's currency and other assets of the Bank. If a member has no central bank, it shall, in agreement with the Bank, designate another institution for such purpose.

Article 18 – Categories of Operations

a)     The operations of the Bank shall consist of ordinary operations and special operations. Ordinary operations shall be those financed from the ordinary capital resources of the Bank. Special operations shall be those financed from the Special Funds resources.

b)     The ordinary capital of the Bank shall include the following:

(i)               subscribed capital stock of the Bank, including both paid-in and callable shares, except such part thereof as may be set aside into one or more Special Funds;

(ii)             funds raised by borrowings of the Bank by virtue of powers conferred by Chapter 5 of this Agreement, to which the commitment to calls provided for in item (c) of Article 9 is applicable;

(iii)           funds received in repayment of loans or guarantees and proceeds from the disposal of equity investments made with the resources indicated in (i) and (ii) of this paragraph;

(iv)           income derived from loans and equity investments made from the aforementioned funds or from guarantees to which the commitment to calls set forth in item (c) of Article 9 of this Agreement is applicable; and

(v)             any other funds or income received by the Bank which do not form part of its Special Funds resources.

c)     The ordinary capital resources and the Special Funds resources of the Bank shall at all times and in all respects be held, used, committed, invested or otherwise disposed of entirely separate from each other. The financial statements of the Bank shall show the ordinary operations and special operations separately.

d)    The ordinary capital resources of the Bank shall, under no circumstances, be charged with, or used to discharge, losses or liabilities arising out of special operations or other activities for which Special Fund resources were originally used or committed.

e)     Expenses appertaining directly to ordinary operations shall be charged to the ordinary capital resources of the Bank. Expenses appertaining directly to the special operations shall be charged to Special Funds resources.

Article 19 – Methods of Operation

a)     The Bank may guarantee, participate in, make loans or support through any other financial instrument, public or private projects, including public-private partnerships, in any borrowing member country, as well as invest in the equity, underwrite the equity issue of securities, or facilitate the access of international capital markets of any business, industrial, agricultural or services enterprise with projects in the territories of borrowing member countries.

b)     The Bank may co-finance, guarantee or co-guarantee, together with international financial institutions, commercial banks or other suitable entities, projects within its mandate.

c)     The Bank may provide technical assistance for the preparation and implementation of projects to be supported by the Bank.

d)     The Board of Governors, by special majority, may approve a general policy under which the Bank is authorized to develop the operations described in the previous items of this article in relation to public or private projects in a non-member emerging economy or developing country, subject to the condition that it involves a material interest of a member, as defined by such policy.

e)     The Board of Directors, by special majority, may exceptionally approve a specific public or private project in a non-member emerging economy or developing country involving the operations described in the previous items of this article. Sovereign guaranteed operations in non-members will be priced in full consideration of the sovereign risks involved, given the risk mitigators offered, and any other conditions established as the Board of Directors may decide.

Article 20 – Limitations on Operations

a)     The total amount outstanding in respect of the ordinary operations of the Bank shall not at any time exceed the total amount of its unimpaired subscribed capital, reserves and surplus included in its ordinary capital resources.

b)     The total amount outstanding in respect of the special operations of the Bank relating to any Special Fund shall not at any time exceed the total amount prescribed in the regulations of that Special Fund.

c)     The Bank shall seek to maintain reasonable diversification in its investments in equity capital. It shall not assume responsibility for managing any entity or enterprise in which it has an investment, except where necessary to safeguard its investments.

Article 21 – Operational Principles

The operations of the Bank shall be conducted in accordance with the following principles:

(i)               the Bank shall apply sound banking principles to all its operations, ensure adequate remuneration and have in due regard the risks involved;

(ii)             the Bank shall not finance any undertaking in the territory of a member if that member objects to such financing;

(iii)           in preparing any country program or strategy, financing any project or by making designation or reference to a particular territory, or geographic area in its documents, the Bank will not deem to have intended to make any judgment as to the legal or other status of any territory or area;

(iv)           the Bank shall not allow a disproportionate amount of its resources to be used for the benefit of any member. The Bank shall seek to maintain reasonable diversification in all of its investments;

(v)             the Bank shall place no restriction upon the procurement of goods and services from any country member from the proceeds of any loan, investment or other financing undertaken in the ordinary or special operations of the Banks, and shall, in all appropriate cases, make its loans and other operations conditional on invitations to all member countries to tender being arranged;

(vi)           the proceeds of any loan, investment or other financing undertaken in the ordinary operations of the Bank or with Special Funds established by the Bank shall be used only for procurement in member countries of goods and services produced in member countries, except in any case in which the Board of Directors determines to permit procurement in a non-member country of goods and services produced in a non-member country in special circumstances making such procurement appropriate;

(vii)         the Bank shall take the necessary measures to ensure that the proceeds of any loan made, guaranteed or participated in by the Bank, or any equity investment, are used only for the purposes for which the loan or the equity investment was granted and with due attention to considerations of economy and efficiency.

Article 22 – Terms and Conditions

a)     In the case of loans made, participated in, or guaranteed by the Bank and equity investments, the contract shall establish the terms and conditions for the loan, guarantee or equity investment concerned in accordance with the policies established by the Board of Directors, including, as the case may be, those relating to payment of principal, interest and other fees, charges, commissions, maturities, currency and dates of payment in respect of the loan, guarantee or equity investment, in accordance with the policies of the Bank. In setting such policies, the Board of Directors shall take fully into account the need to safeguard its income.

b)     In underwriting the sale of securities, the Bank shall charge fees under the terms and conditions established in the policies of the Bank.

Article 23 – Special Funds

a)     The establishment and administration of Special Funds by the Bank shall be approved by the Board of Governors by a qualified majority and shall follow the purposes set forth in Article 2 of this Agreement.

b)     Except when the Board of Governors specifies otherwise, the Special Funds shall be accountable and its operations subjected to the Board of Directors.

c)     The Bank may adopt such special rules and regulations as may be required for the establishment, administration and use of each Special Fund.

Article 24 – Provision of Currencies

The Bank in its operations may provide financing in the local currency of the country in which the operation takes place, provided that adequate policies are put in place to avoid significant currency mismatch.

Article 25 – Methods of Meeting the Losses of the Bank

a)     In cases of default on loans made, participated in or guaranteed by the Bank in its ordinary operations, the Bank shall take, firstly, all necessary actions as it deems appropriate in order to recover the loans made and, secondly, it may modify the terms of the loans, other than the currency of repayment.

b)    Losses arising in the Bank’s ordinary operation shall be charged:

(i)           first, to the provisions of the Bank;

(ii)               second, to net income;

(iii)             third, against the special reserve;

(iv)             fourth, against the general reserve and surpluses;

(v)               fifth, against the unimpaired paid-in capital, and

(vi)        last, against an appropriate amount of the uncalled subscribed callable capital which shall be called in accordance with the provisions of  paragraphs (c) and (d) of Article 9 of these Articles of Agreement.

c)     In deploying its efforts for credit recovery in case of default, the Bank shall seek the assistance of the authorities of the country where the operation takes place.

Chapter V - Borrowing and other Additional Powers

Article 26– General Powers

In addition to the powers specified elsewhere in this Agreement, the Bank shall have the power to:

(a)   borrow funds in member countries or elsewhere, and in this connection to furnish such collateral or other security therefore as the Bank shall determine, provided always that:

(i)    before making a sale of its obligations in the territory of a member country, the Bank shall have obtained its approval;

(ii)  where the obligations of the Bank are to be denominated in the currency of a member, the bank shall have obtained its approval;

(iii) the Bank shall obtain the approval of the countries referred to in sub-paragraphs (i) and (ii) of this paragraph that the proceeds may be exchanged without restriction for other currencies; and

(iv) before determining to sell its obligations in a particular country, the Bank shall consider the amount of previous borrowing, if any, in that country, the amount of previous borrowing in other countries, and the possible availability of funds in such other countries; and shall give due regard to the general principle that its borrowings should to the greatest extent possible be diversified as to country of borrowing.

(b)  buy and sell securities the Bank has issued or guaranteed or in which it has invested, provided always that it shall have obtained the approval of any country in whose territory the securities are to be bought or sold;

(c)   guarantee securities in which it has invested in order to facilitate their sale;

(d)  underwrite, or participate in the underwriting of, securities issued by any entity or enterprise for purposes consistent with the purpose of the Bank;

(e)   invest funds, not needed in its operations, in such obligations as it may determine, and invest funds held by the Bank for pensions or similar purposes in marketable securities. In doing so, the Bank shall give due consideration to invest such funds in the territories of members in obligations of members or nationals thereof;

(f)    exercise such other powers and establish such rules and regulations as may be necessary or appropriate in furtherance of its purpose and functions, consistent with the provisions of this Agreement.

Article 27 – Notice to be placed on Securities

Every security issued or guaranteed by the Bank shall bear on its face a conspicuous statement to the effect that it is not an obligation of any Government, unless it is in fact the obligation of a particular Government, in which case it shall so state.

Chapter VI - Status, Immunities and Privileges

Article 28– Purpose of the Chapter

To enable the Bank effectively to fulfill its purpose and carry out the functions entrusted to it, the status, immunities, exemptions and privileges set forth in this Chapter shall be accorded to the Bank in the territory of each member.

Article 29– Status

a) The Bank shall possess full international personality.

b) In the territory of each member the Bank shall possess full juridical personality and, in particular, full capacity to:

(i)    contract;

(ii)  acquire and dispose of immovable and movable property; and

(iii)institute legal proceedings

.

Article 30 – Position of the Bank with Regard to Judicial Process

a)     The Bank shall enjoy immunity from every form of legal process, except in cases arising out of or in connection with the exercise of its powers to borrow money, to guarantee obligations, or to buy and sell or underwrite the sale of securities, in which cases actions may be brought against the Bank in a court of competent jurisdiction in the territory of a country in which the Bank has its headquarters or offices, or has appointed an agent for the purpose of accepting service or notice of process, or has issued or guaranteed securities.

b)     Notwithstanding the provisions of paragraph (a) of this Article, no action shall be brought against the Bank by any member, or by any agency or instrumentality of a member, or by any entity or person directly or indirectly acting for or deriving claims from a member or from any agency or instrumentality of a member. Members shall have recourse to such special procedures for the settlement of controversies between the Bank and its members as may be prescribed in this Agreement, in the by-laws and regulations of the Bank, or in contracts entered into with the Bank.

c)     Property and assets of the Bank shall, wheresoever located and by whomsoever held, be immune from all forms of seizure, attachment or execution before the delivery of final judgment against the Bank.

Article 31 – Freedom and Immunity of Assets and Archives

a)     Property and assets of the Bank, wherever located and by whomsoever held, shall be immune from search, requisition, confiscation, expropriation or any other form of taking or foreclosure by executive or legislative action.

b)     The archives of the Bank and, in general, all documents belonging to it or held by it, shall be inviolable, wherever located.

c)     To the extent necessary to carry out the purpose and functions of the Bank and subject to the provisions of this Agreement, all property and other assets of the Bank shall be exempt from restrictions, regulations, controls and moratoria of any nature.

Article 32 – Privilege for Communications

The official communications of the Bank shall be accorded by each member the same treatment that it accords to the official communications of other members.

Article 33 – Personal Immunities and Privileges

All Governors, Directors, alternates, officers, and employees of the Bank shall have the following privileges and immunities:

(i)    immunity from legal process with respect to acts performed by them in their official capacity, except when the Bank waives this immunity;

(ii)  when not local nationals, the same immunities from immigration restrictions, alien registration requirements and national service obligations and the same facilities as regards exchange provisions as are accorded by members to the representatives, officials, and employees of comparable rank of other members;

(iii)the same privileges in respect of traveling facilities as are accorded by members to representatives, officials, and employees of comparable rank of other members.

Article 34 – Exemption from Taxation

a)     The Bank, its property, other assets, income, transfers and the operations and transactions it carries out pursuant to this Agreement, shall be immune from all taxation, from all restrictions and from all customs duties. The Bank shall also be immune from any obligation relating to the payment, withholding or collection of any tax, or duty.

b)     No tax shall be levied on or in respect of salaries and emoluments paid by the Bank to Directors, alternates, officers or employees of the Bank, including experts performing missions for the Bank, except where a member, notwithstanding Article 48(d), deposits with its instrument of ratification, acceptance, approval or accession a declaration that such member retains for itself and its political subdivisions the right to tax salaries and emoluments paid by the Bank to citizens or nationals of such member.

c)     No tax of any kind shall be levied on any obligation or security issued by the Bank, including any dividend or interest thereon, by whomsoever held:

(i)    which discriminates against such obligation or security solely because it is issued by the Bank; or

(ii)  if the sole jurisdictional basis for such taxation is the place or currency in which it is issued, made payable or paid, or the location of any office or place of business maintained by the Bank.

d)     No tax of any kind shall be levied on any obligation or security guaranteed by the Bank, including any dividend or interest thereon, by whomsoever held:

i) which discriminates against such obligation or security solely because it is guaranteed by the Bank; or

ii) if the sole jurisdictional basis for such taxation is the location of any office or place of business maintained by the Bank.

Article 35 – Implementation

Each member, in accordance with its juridical system, shall promptly take such action as is necessary to make effective in its own territory the provisions set forth in the Chapter and shall inform the Bank of the action which it has taken on the matter.

Article 36 – Waiver of Immunities, Privileges and Exemptions

The immunities, privileges and exemptions conferred under this Chapter are granted in the interest of the Bank. The Board of Directors may waive to such extent and upon such conditions as it may determine any of the immunities, privileges and exemptions conferred under this Chapter in cases where such action would, in its opinion, be appropriate in the best interests of the Bank. The President shall have the right and the duty to waive any immunity, privilege or exemption in respect of any officer, employee or expert of the Bank, other than the President and each Vice-President, where, in his or her opinion, the immunity, privilege or exemption would impede the course of justice and can be waived without prejudice to the interests of the Bank. In similar circumstances and under the same conditions, the Board of Directors shall have the right and the duty to waive any immunity, privilege or exemption in respect of the President and each Vice-President.

Chapter VII - Withdrawal and Suspension of Members, Temporary Suspension and Termination of Operations of the Bank

Article 37– Withdrawal

a)     Any member may withdraw from the Bank by delivering to the Bank at its headquarters written notice of its intention to do so. Such withdrawal shall become finally effective, and the membership shall cease, on the date specified in the notice but in no event less than 6 (six) months after the notice is delivered to the Bank. However, at any time before the withdrawal becomes finally effective, the member may notify the Bank in writing of the cancellation of its notice of intention to withdraw.

b)     After withdrawing, a member shall remain liable for all direct and contingent obligations to the Bank to which it was subject at the date of delivery of the withdrawal notice, including those specified in Article 39. However, if the withdrawal becomes finally effective, the member shall not incur any liability for obligations resulting from operations of the Bank effected after the date on which the withdrawal notice was received by the Bank.

c)     Upon receipt of a notice of withdrawal, the Board of Governors shall adopt procedures for settlement of accounts with the withdrawing Member country, no later than the date upon which the withdrawal becomes effective.

Article 38 – Suspension of Membership

a)     If a member fails to fulfill any of its obligations to the Bank, the Bank may suspend its membership by decision of the Board of Governors by special majority.

b)     The member so suspended shall automatically cease to be a member of the Bank 1 (one) year from the date of its suspension unless the Board of Governors decides by the same majority to terminate the suspension.

c)     While under suspension, a member shall not be entitled to exercise any rights under this Agreement, except the right of withdrawal, but shall remain subject to all its obligations.

d)    The Board of Governors shall adopt regulations as may be necessary for the implementation of this article.

Article 39 – Settlement of Accounts

a)     After a country ceases to be a member, it no longer shall share in the profits or losses of the Bank, nor shall it incur any liability with respect to loans and guarantees entered into by the Bank thereafter. However, it shall remain liable for all amounts it owes the Bank and for its contingent liabilities to the Bank so long as any part of the loans or guarantees contracted by the Bank before the date on which the country ceased to be a member remains outstanding.

b)     When a country ceases to be a member, the Bank shall arrange for the repurchase of such country's capital stock as a part of the settlement of accounts pursuant to the provisions of this Article; but the country shall have no other rights under this Agreement except as provided in this Article and in Article 46.

c)     The Bank and the country ceasing to be a member may agree on the repurchase of the capital stock on such terms as are deemed appropriate in the circumstances, without regard to the provisions of the following paragraph. Such agreement may provide, among other things, for a final settlement of all obligations of the country to the Bank.

d)    If the agreement referred to in the preceding paragraph has not been consummated within 6 (six) months after the country ceases to be a member or such other time as the Bank and such country may agree upon, the repurchase price of such country's capital stock shall be its book value, according to the books of the Bank, on the date when the country ceased to be a member. Such repurchase shall be subject to the following conditions:

(i)    the payment may be made in such installments, at such times and in such available currencies as the Bank determines, taking into account the financial position of the Bank;

(ii)  any amount which the Bank owes the country for the repurchase of its capital stock shall be withheld to the extent that the country or any of its subdivisions or agencies remains liable to the Bank as a result of loan or guarantee operations. The amount withheld may, at the option of the Bank, be applied on any such liability as it matures. However, no amount shall be withheld on account of the country's contingent liability for future calls on its subscription pursuant to Article 9(c);

(iii) if the Bank sustains net losses on any loans or participations, or as a result of any guarantees, outstanding on the date the country ceased to be a member, and the amount of such losses exceeds the amount of the reserves provided therefore on such date, such country shall repay on demand the amount by which the repurchase price of its shares would have been reduced, if the losses had been taken into account when the book value of the shares, according to the books of the Bank, was determined. In addition, the former member shall remain liable on any call pursuant to Article 9(c), to the extent that it would have been required to respond if the impairment of capital had occurred and the call had been made at the time the repurchase price of its shares had been determined.

e)     In no event shall any amount due to a country for its shares under this section be paid until 12 (twelve) months after the date upon which the country ceases to be a member. If within that period the Bank terminates operations, all rights of such country shall be determined by the provisions of Articles 41 to 43, and such country shall be considered still a member of the Bank for the purposes of such articles except that it shall have no voting rights.

Article 40 – Temporary Suspension of Operations

In an emergency, the Board of Directors may suspend temporarily operations in respect of new loans, guarantees, underwriting, technical assistance and equity investments pending an opportunity for further consideration and action by the Board of Governors.

Article 41 – Termination of Operations

The Bank may terminate its operations as decided by the Board of Governors by special majority. Upon such termination of operations the Bank shall forthwith cease all activities, except those incidents to the orderly realization, conservation and preservation of its assets and settlement of its obligations.

Article 42 – Liability of Members and Payment of Claims

a)     The liability of all members arising from the subscriptions to the capital stock of the Bank and in respect to the depreciation of their currencies shall continue until all direct and contingent obligations shall have been discharged.

b)     All creditors holding direct claims shall be paid out of the assets of the Bank and then out of payments to the Bank on unpaid or callable subscriptions. Before making any payments to creditors holding direct claims, the Board of  Directors shall make such arrangements as are necessary, in its judgment, to ensure a pro rata distribution among holders of direct and contingent claims.

Article 43 – Distribution of Assets

a)     No distribution of assets shall be made to members on account of their subscriptions to the capital stock of the Bank until all liabilities to creditors chargeable to such capital stock shall have been discharged or provided for. Moreover, such distribution must be approved by a decision of the Board of Governors by special majority.

b)     Any distribution of the assets of the Bank to the members shall be in proportion to capital stock held by each member and shall be effected at such times and under such conditions, as the Bank shall deem fair and equitable. The shares of assets distributed need not be uniform as to type of assets. No member shall be entitled to receive its share in such a distribution of assets until it has settled all of its obligations to the Bank.

c)     Any member receiving assets distributed pursuant to this article shall enjoy the same rights with respect to such assets as the Bank enjoyed prior to their distribution.

Chapter VIII - Amendments, Interpretation and Arbitration

Article 44 – Amendments

a)     This Agreement may be amended only by decision of the Board of Governors by special majority.

b)     Any proposal to introduce modifications in this Agreement, whether emanating from a member, a Governor or the Board of Directors, shall be communicated to the chairperson of the Board of Governors who shall bring the proposal before the Board. If the proposed amendment is approved by the Board, the Bank shall ask all members whether they accept the proposed amendment. When the amendment is accepted, ratified or approved by 2/3 (two thirds) of the members, the Bank shall certify the fact by formal communication addressed to all members.

c)     The amendments shall enter into force for all members 3 (three) months after the date of the formal communication provided for in paragraph (b) of this article, unless the Board of Governors specify a different period.

Article 45 – Interpretation

a)     Any question of interpretation of the provisions of this Agreement arising between any member and the Bank or between any members of the Bank shall be submitted to the Board of Directors for decision.

b)     Members especially affected by the question under consideration shall be entitled to direct representation before the Board of Directors as provided in Article 12(i).

c)     In any case where the Board of Directors has given a decision under (a) above, any member may require that the question be submitted to the Board of Governors, whose decision shall be final. Pending the decision of the Board of Governors, the Bank may, so far as it deems it necessary, act on the basis of the decision of the Board of Directors.

Article 46 – Arbitration

a)      If a disagreement should arise between the Bank and a country which has ceased to be a member, or between the Bank and any member after adoption of a decision to terminate the operation of the Bank, such disagreement shall be submitted to arbitration by a tribunal of 3 (three) arbitrators. One of the arbitrators shall be appointed by the Bank, another by the country concerned, and the third, unless the parties otherwise agree, by an authority as may approved by the Board of Governors. If all efforts to reach a unanimous agreement fail, decisions shall be made by a majority vote of the 3 (three) arbitrators.

b)      The third arbitrator shall be empowered to settle all questions of procedure in any case where the parties are in disagreement with respect thereto.

c)      Any disagreement concerning a contract between the Bank and a borrowing country shall be settled according to the respective contract.

Article 47 – Approval deemed given

Whenever the approval of any member is required before any act may be done by the Bank, approval shall be deemed to have been given unless the member presents an objection within such reasonable period as the Bank may fix in notifying the member of the proposed act.

 

Chapter IX – Final Provisions

Article 48 –Acceptance

a)     Each signatory country shall deposit with the government of the Federative Republic of Brazil an instrument setting forth that it has accepted, ratified or approved this Agreement in accordance with its own laws.

b)     The Government of the Federative Republic of Brazil shall send certified copies of this Agreement to the signatories and duly notify them of each deposit of the instrument of acceptance, ratification or approval made pursuant to the foregoing paragraph, as well as the date thereof.

c)     After the date on which the Bank commences operations, the Government of the Federative Republic of Brazil may receive the instrument of accession to this Agreement from any country whose membership has been approved in accordance with Article 5(b).

d)    The acceptance, ratification or approval of the Agreement, or the accession thereto, shall not contain any objection or reservation.

Article 49 – Entry into Force

a)     This Agreement shall enter into force when instruments of acceptance, ratification or approval have been deposited, in accordance with Article 48 by all BRICS countries.

b)     BRICS countries whose instruments of acceptance, ratification or approval were deposited prior to the date on which the Agreement entered into force shall become members on the date it enters into force. Other countries shall become members on the dates on which their instruments of accession are deposited.

Article 50 – Commencement of Operations

The chair of the BRICS countries shall call the first meeting of the Board of Governors as soon as this Agreement enters into force under Article 49 of this Chapter, in order to take the necessary decisions for the initial operation of the Bank.

ATTACHMENT 1

Shares of Initial Subscribed Capital Stock of Founding Members

Each founding member shall initially subscribe 100,000 (one hundred thousand) shares, in a total of ten billion dollars (US$10,000,000,000), of which 20,000 (twenty thousand) shares correspond to paid in capital, in a total of two billion dollars (US$2,000,000,000) and 80,000 (eighty thousand) shares correspond to callable capital, in a total of eight billion dollars (US$8,000,000,000).

ATTACHMENT 2

Payment of Initial Subscriptions to the Paid in Capital by the Founding Members

Installment	Paid in capital per country in million dollars
1	150
2	250
3	300
4	300
5	300
6	350
7	350