On the ratification of amendments to article 1 of the Agreement Establishing the European Bank for Reconstruction and Development, allowing for a limited and gradual extension of the geographical coverage of the bank's operations to sub-Saharan Africa and Iraq
The Law of the Republic of Kazakhstan dated January 17, 2025 No. 159-VIII SAM
To ratify the amendments to article 1 of the Agreement Establishing the European Bank for Reconstruction and Development, allowing for a limited and gradual expansion of the geographical coverage of the bank's operations to sub-Saharan Africa and Iraq, approved by Resolution No. 259 of the Board of Governors of the European Bank for Reconstruction and Development dated May 18, 2023.
President
Republic of Kazakhstan
K. TOKAEV
Unofficial translation
RESOLUTION No. 259
AMENDMENTS TO ARTICLE 1 OF THE AGREEMENT ESTABLISHING THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT, ALLOWING FOR A LIMITED AND GRADUAL EXTENSION OF THE GEOGRAPHICAL COVERAGE OF THE BANK'S OPERATIONS TO SUB-SAHARAN AFRICA AND IRAQ
THE BOARD OF GOVERNORS,
Referring to Resolution No. 248, by which the Board of Governors approved in principle the limited and gradual extension of the geographical coverage of the Bank's operations to sub-Saharan Africa and Iraq;
Highlighting the importance of sub-Saharan Africa and Iraq for achieving the international community's geopolitical and development priorities, the growing links of many sub-Saharan Africa and Iraq countries with the EBRD's current countries of operations, as well as the relevance and applicability of the Bank's mandate, business model, private sector orientation, and competencies in Africa to sub-Saharan Africa and Iraq;
Emphasizing that the Bank's most urgent priority remains to support Ukraine and other countries of operations affected by the war against Ukraine.;
Recognizing that the war against Ukraine simultaneously increases the urgency of further achieving shareholder goals in sub-Saharan Africa and Iraq;
Emphasizing that any possible limited and gradual expansion of operations to new countries should not: weaken the Bank's ability to support its existing countries of operation, jeopardize the Bank's AAA credit rating, require additional capital contributions; allow deviations from the Bank's mandate to support the transition process and its operational principles of complementarity and sound banking;
Highlighting the importance of complementarity and cooperation between development partners already operating in sub-Saharan Africa and Iraq;
and having considered the report of the Board of Directors to the Board of Governors "On amendments to Article 1 of the Agreement Establishing the European Bank for Reconstruction and Development, allowing for a limited and gradual expansion of the geographical coverage of the Bank's operations to sub-Saharan Africa and Iraq" and agreeing with the conclusions contained therein, in particular that:
i. An analysis of the impact on the Bank's capital and financial condition confirms that any limited and gradual expansion of activities to sub-Saharan Africa and Iraq will not in itself reduce the Bank's ability to support existing countries of operations, will not jeopardize the Bank's AAA credit rating and will not require additional contributions to its capital;
ii. Such a limited and gradual extension of the geographical coverage of the Bank's operations to sub-Saharan Africa and Iraq should be authorized by amending article 1 of the Agreement Establishing the European Bank for Reconstruction and Development (the "Agreement"); and
iii. This expansion should be carried out in such a way as not to weaken the emphasis in the Bank's activities on supporting Ukraine and other countries of operations affected by the war against Ukraine.,
DECIDES:
1. Article 1 of the Agreement should be amended to read as follows:
"The EBRD's goal is to contribute to economic progress and reconstruction by facilitating the transition to an open, market-oriented economy, as well as the development of private and entrepreneurial initiatives in Central and Eastern European countries committed to and implementing the principles of multiparty democracy, pluralism and market economy. Subject to the same conditions, the Bank's objective may also be achieved in: i) Mongolia; (ii) The Bank's member countries in the Southern and Eastern Mediterranean, and (iii) a limited number of the Bank's member countries in sub–Saharan Africa, in each of the cases referred to in paragraphs (ii) and (iii), as decided by a majority vote of at least two thirds of the governors representing at least three-quarters of the the total number of votes held by the members of the Bank. In this regard, any reference in this Agreement and its annexes to "Central and Eastern European countries", "countries from Central and Eastern Europe", "recipient country (or recipient countries)" or "recipient country, member of the Bank (or recipient countries, members of the Bank)" refers to also to Mongolia and to each of these countries of the Southern and Eastern Mediterranean and sub-Saharan Africa."
a. The term "sub-Saharan Africa" contained in article 1 of the Agreement is understood to mean the region of sub-Saharan Africa in accordance with the definition adopted by the World Bank Group.
b. The limitation on the number of member countries in sub-Saharan Africa in which the Bank can carry out its tasks in accordance with Article 1 of the Agreement is understood to allow for a limited and gradual expansion of the geographical scope of the Bank's operations in accordance with the parameters and mechanisms set out in the report of the Board of Governors "On Amendments to Article 1 of the Agreement on the establishment of the European Bank for Reconstruction and Development, which will allow for a limited and gradual expansion of the geographical coverage of the Bank's operations to sub-Saharan Africa and Iraq. In this context, approval of further gradual expansion requires that at least three-quarters of the governors, who account for at least four-fifths of the total number of votes held by the members, vote for it.
c. Iraq is included in the Southern and Eastern Mediterranean region for the purposes of the Agreement, and therefore the term "Southern and Eastern Mediterranean" contained in article 1 of the Agreement is understood to mean a region consisting of countries with a coastline on the Mediterranean Sea, as well as Jordan and Iraq, which are closely integrated into the region.
2. Members will need to respond to the question of consent to the said amendments by a) filing and depositing with the Bank a document stating that such member agrees to make the said amendments in accordance with their legislation; and b) providing evidence, in form and content satisfactory to the Bank, that consent to the amendments has been obtained and that the consent document has been drawn up and deposited in accordance with the legislation of this member.
3. The said amendments shall enter into force 3 (three) months after the date on which the Bank officially confirmed to its members that the requirements for consent to make the said amendments provided for in Article 56 of the Agreement have been fulfilled.
(Adopted on May 18, 2023)
Vice Minister of Finance
Republic of Kazakhstan
D. Kenbeil
President
Republic of Kazakhstan
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