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NOTES FOR
EDITORS
- The TBI has been
established under Order Number 20 which is printed in full below:
COALITION PROVISIONAL AUTHORITY ORDER NUMBER 20
TRADE BANK OF IRAQ
Pursuant
to my authority as Administrator of the Coalition Provisional Authority
(CPA),
and
under the laws and usages of war, and consistent with relevant U.N. Security
Council
resolutions,
including Resolution 1483 (2003),
Noting
the letter of May 8, 2003, from Permanent Representatives of the United
States of
America
and the United Kingdom of Great Britain and Northern Ireland to the President
of
the United Nations Security Council (S/2003/538),
Underscoring
the requirement that the Development Fund for Iraq (DFI) must be used in
a
transparent manner to meet the humanitarian needs of the Iraqi people, for
the
economic
reconstruction and repair of Iraq's infrastructure, for the continued
disarmament
of Iraq, and for the costs of Iraqi civilian administration, and for other
purposes
benefiting the people of Iraq,
Reaffirming
the commitment of the CPA to using effectively the resources of the DFI for
the
aforementioned purposes,
..
Noting that Iraq currently lacks financial
institutions capable of facilitating imports and
exports
of goods and services to and from Iraq,
Noting
the importance of economic trade to revitalizing the Iraqi economy,
stimulating
economic
growth and providing employment for the Iraqi population in order to provide
for
sustainable development,
I
hereby promulgate th~ following:
Section 1
Establishment
There
is hereby established an institution to be known as the Trade Bank of Iraq
(TBI).
The TBI shall be an independent governmental entity, and is hereby
authorized
to perform such activities as are necessary to accomplish its purposes,
consistent
with the Charter of the TBI.
Section
2
Purpose
The
TBI shall provide financial and related services to facilitate the
importation
and
exportation ~of goods and services to and from Iraq in order to benefit the
CP
A/ORD/17 July 2003/20
economy
of Iraq. The Administrator may promulgate additional regulations,
orders,
memorartda or other documentation that further define the purpose of the
DFI.
Section
3
President, Charter and Board of Directors
The
Administrator shall appoint a President of the TBI. The President shall be
the
chief
executive officer of the TBI. The President, with concurrence of the CPA
Director,
Economic Development, shall issue a Charter for the TBI, effective upon
issuance,
which will specify, among other things, the functions, powers, financial
structure,
governance, and reporting requirements of the TBI. The Charter for the
TBI
shall establish a Board of Directors for the purpose of governing the
activities
of
the TBI.
~ Section 4
Initial Capitalization
The
authorized capital of the TBI is $100,000,000. The Administrator may
provide
initial paid-in capital for the TBI from the DFI, in an amount not to exceed
$5,000,000.
The remaining $95,000,000 will exist as callable capital only in the
event
the TBI is unable to meet its current obligations. The Administrator may
provide
any reqyired callable capital from the DFI.
Section 5
Contractual and Other Authorizations
In
general, the President, on behalf of the TBI, is authorized to hire and pay
the
salaries
of staff, procure goods and services, and enter into contracts and engage in
such
other acts as may be necessary or advisable to conduct the business of the
TBI.
In particular, the President, on behalf of the TBI, is authorized to enter
into a
short-term
contract with an Operating Consortium of financial institutions from
various
countries selected by the Administrator. Under this contract, the members
of
the Operating Consortium shall provide, for a limited period of time,
training,
operational
and technical support to the TBI and such other support as the
President
may deem advisable and necessary, including but not limited to,
advising,
issuing and confirming letters of credit on behalf of the TBI.
~
Section
6
Distribution
of Profits
Profits
generated by the operations of the TBI will be distributed to the DFI from
time
to time as determined by the President in consultation with the
Administrator.
J 2 CPA/ORD/17
July 2003/20
~
Section
7
Auditing
and Review of Operations ~
To
ensure that the TBI is managed transparently and for the benefit of the Iraqi
people,
the President may obtain the services of an independent certified public
accounting
firm for the purposes of auditing and publicly reporting on the TBI's
operations.
Section 8
Transition ~
The
TBI shall take appropriate steps to deal with issues relating to its
operations
that
are associated with the assumption of government responsibilities by an
internationally
recognized representative government of Iraq in accordance with
Resolution
1483.
Section
9
Entry
into Force
This
Order shall enter into force on the date of signature.
L. Pdt1'1 Administrator
Coalition Provisional Authority
LI'"'
~
17 July 2003/20
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