On the ratification of amendments to paragraph 1 of Article 12 of the Agreement on the Establishment of the European Bank for Reconstruction and Development in order to lift the authorized capital restrictions on ordinary operations

Home / RLA / On the ratification of amendments to paragraph 1 of Article 12 of the Agreement on the Establishment of the European Bank for Reconstruction and Development in order to lift the authorized capital restrictions on ordinary operations

On the ratification of amendments to paragraph 1 of Article 12 of the Agreement on the Establishment of the European Bank for Reconstruction and Development in order to lift the authorized capital restrictions on ordinary operations

The Law of the Republic of Kazakhstan dated January 17, 2025 No. 158-VIII SAM.

To ratify the amendments to paragraph 1 of Article 12 of the Agreement on the Establishment of the European Bank for Reconstruction and Development in order to lift the authorized capital restriction on ordinary operations, approved by Resolution No. 260 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. 260

AMENDMENT OF PARAGRAPH 1 OF ARTICLE 12 OF THE AGREEMENT ON THE ESTABLISHMENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT IN ORDER TO LIFT THE STATUTORY CAPITAL RESTRICTIONS ON ORDINARY OPERATIONS

THE BOARD OF GOVERNORS,

Recognizing the primary role of multilateral development banks (MDBs) in solving numerous pressing global problems;

Noting significant changes in capital management practices in the financial sector since the Agreement entered into force on March 28, 1991;

Desiring to create conditions for optimal use of the Bank's capital capabilities while achieving maximum potential impact in recipient countries;

Welcoming the recommendation made following the Independent Review of the Group of Twenty's capital Adequacy standards and their careful consideration by the Bank, including, in particular, the recommendation to modernize the MDB's approach to capital adequacy regulation by transferring specific leverage limits from the MDB's statutory documents to the MDB's capital adequacy standards by mutual agreement between the MDBs;

Having considered the report of the Board of Directors "On Amendments to paragraph 1 of Article 12 of the Agreement Establishing the European Bank for Reconstruction and Development in order to lift the authorized capital restrictions on Ordinary Operations" and its recommendation to approve amendments to paragraph 1 of Article 12 of the Agreement in order to lift the authorized capital restrictions on ordinary operations, and agreeing with them; and based on the assumption that the Board of Directors will maintain the appropriate nominal leverage limit for ordinary operations, set taking into account the relevant capital parameters, in the Bank's capital adequacy ratios as part of its responsibility to protect the Bank's financial health and sustainability.,

DECIDES:

1. Paragraph 1 of Article 12 of the Agreement is amended by deleting it in its current version and introducing it in the following new version:

"1. The Board of Directors sets and maintains appropriate limits on capital adequacy parameters to protect the financial health and sustainability of the Bank."

2. The members of the Bank will need to answer the question of consent to make the said amendments by a) issuing and depositing with the Bank a document stating the consent of such member to make the said amendments in accordance with its legislation and b) providing evidence, in form and content satisfying the Bank, that consent to make the amendments has been received. and that the consent document is executed 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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