Romanian President Klaus Iohannis promulgated on November 21 the laws denouncing the intergovernmental agreement on the establishment of the International Investment Bank (IIB) and its Statute (signed in 1970), as well as the intergovernmental agreement on the establishment of the International Bank for Economic Cooperation (IBEC), signed in 1963, Agerpres reported.

The latter includes an arrangement for multilateral settlements in transferable rubles.

Under the laws, Romania will send notifications of renunciation of membership to the Boards of Governors of the IIB and IBEC. Terminating the membership as a shareholder will take effect six months after the notifications are sent.

The Government is mandated to undertake the necessary steps for Romania's withdrawal from the two banks. The expenses caused by the withdrawal from the banks' shareholding, as well as those related to technical and legal assistance, will be provided from the state budget through the Ministry of Finance.

The Ministry of Foreign Affairs (MAE) will announce, by order published in the Official Gazette, the date on which the agreements cease to be valid in relation to Romania.

According to the agreement on establishing IIB, the Bank and the Withdrawing Member shall agree on a fair and equitable method for calculating the mutual obligations in connection with such withdrawal and settling said obligations. The IIB's Board of Governors shall approve the withdrawal procedure of a member of the Bank and the mechanism for calculating mutual claims between the Bank and a Withdrawing Member.

A Withdrawing Member shall remain liable for direct obligations to the Bank incurred on or before the date on which its membership terminates. It shall also remain liable for its contingent liabilities to the Bank so long as any part of the loans, equity investments, or guarantees, which were entered into before it ceases to be a member, is outstanding; however, it shall not incur liabilities with respect to loans and guarantees entered into thereafter by the Bank, nor share in the income or the expenses of the Bank.

The Withdrawing Member's interest in the paid-up portion of the Bank's charter capital shall be considered for the purposes of the settling process.

andrei@romania-insider.com

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