Agreement between Denmark, Finland, Iceland, Norway and Sweden on the Nordic Environment Finance Corporation

Filename: 1998-NordicEnvironmentalFinanceCompany.EN.txt

Agreement Between Denmark, Finland, Iceland, Norway And Sweden On The Establishment Of The Nordic Environmental Finance Corporation (NEFCO)

Source:, downloaded 20070610

The Governments of Denmark, Finland, Iceland, Norway and Sweden, seeking through Nordic environmental cooperation to promote Nordic investment for environmental projects in Eastern Europe and to strengthen and further develop Nordic assistance co-operation through the Nordic Environmental Finance Corporation as a common multilateral financial institution equal before the law to other legal entities performing similar activities in and outside the Nordic countries, have agreed as follows:

Article 1

The goal of the Nordic Environmental Finance Corporation (NEFCO), hereinafter referred to as "the Corporation", is to promote Nordic investment for environmental projects in Eastern Europe through the financing of activities in those countries.

The Corporation shall have the status of an international body corporate with full legal personality and shall be entitled to conclude agreements, conduct business or dispose of real and movable property, as well as bring cases before the courts or other authorities.

Article 2

The Corporation shall be governed by Statutes laid down by the Nordic Council of Ministers. The Statutes may be amended by the Nordic Council of Ministers upon the recommendation of, or in consultation with, the Board of the Corporation. Recommendations on amendments to the Statutes which significantly affect the objectives, work and operations of the Corporation shall be submitted for consideration by the Nordic Council.

Article 3

The capital of the Corporation shall be contributed by the contracting States. The capital may be increased by a decision of the Nordic Council of Ministers upon the recommendation of the Board.

The size of the capital, the possibility of increasing the capital and apportionment among the contracting States shall be dealt with in the Statutes.

Article 4

The head office of the Corporation shall be located at the headquarters of the Nordic Investment Bank.

Article 5

Legal proceedings against the Corporation may be brought only before a competent court within the territory of a country where the Corporation has established an office or has designated a representative to receive a writ of summons, and before a court expressly approved by the Corporation. A contracting State or persons representing a contracting State or with claim arising from a contracting State may, however, bring an action against the Corporation, if the Corporation consents.

A decision by a judicial or administrative authority, insofar as the Corporation's property or assets are concerned, may not be executed until the decision is final.

Article 6

The property and assets of the Corporation shall enjoy protection against search, requisitioning, confiscation and expropriation.

The Corporation, as well as its property and assets, may not be subject to procedural warrants such as seizure.

Article 7

The premises of the Corporation, its archives and documents belonging to it or in its possession shall be inviolable.

Article 8

Official mailings from the Corporation shall be handled in each contracting State in a manner similar to that in which mailings from any other contracting State are handled.

Article 9

The assets, revenue and property of the Corporation shall be exempt from taxation of any kind, subject to the specifications outlined in this article.

The Corporation shall be exempt from taxation on the acquisition of real property or securities for the official use of the Corporation, and from taxation on the disposal thereof.

The financing activities of the Corporation and increase of its capital shall be exempt from all taxes or similar duties.

In the event that the Corporation, or funds earmarked for the Corporation's work and directly administered by it, pay for goods or services of significant value which are required for the conduct of official business, if the cost of such purchases of goods and services includes taxes or customs duties, to the extent that these may be calculated, the contracting State which imposed such taxes or duties shall take appropriate measures to grant exemption or make provision for reimbursement of such charges.

The provisions of this article do not apply to taxes or duties that only relate to payment for services that the society provides.

Article 10

All members of the Corporation's Board or their alternates, and staff or experts designated by the Corporation shall, regardless of nationality, enjoy protection against prosecution with regard to activities conducted in an official capacity. The Corporation may, however, waive such immunity pursuant to article 14. Protection provided under the present article shall not include liability for damages arising from traffic accidents caused by the above-mentioned persons.

Article 11

All members of the Board and their alternates, and staff or experts designated by the Corporation performing the official business of the Corporation,

Shall be exempt from immigration restrictions: spouses and dependent relatives of the above-mentioned persons shall be similarly exempt;

May, under special circumstances, be granted travel facilities in accordance with the current practice for institutions conducting similar business.

Article 12

The Corporation may receive or hold funds in any form of currency, and may have ac-counts in any form of currency. Likewise, the Corporation may freely transfer its funds and foreign currency to or from a contracting State, and within a contracting State, and change any foreign currency in its possession into any other foreign currency.

Article 13

The Corporation shall be exempted from payment restrictions and credit policy measures which would impede or present difficulties for the fulfilment of its obligations, or for the receipt or granting of loans.

Article 14

Privileges and immunities granted under this Agreement are bestowed only for the purpose of enhancing the work of the Corporation and are not intended to be used for the benefit of others.

The Board may, at its discretion, waive immunity or privileges granted under this Agreement, if the Board determines that it is in the interest of the Corporation to do so.

Article 15

The Nordic Council of Ministers may decide that the Corporation shall be liquidated in accordance with the regulations set forth in the Statutes.

Article 16

This Agreement shall be subject to ratification. It shall enter into force thirty days after the date on which all the contracting States have deposited their instruments of ratification with the Finnish Ministry of Foreign Affairs, and the provisions of article 9 shall be applicable from 1 January 1998. The Finnish Ministry of Foreign Affairs shall inform all other contracting States of the deposit of instruments of ratification, and of the date of entry into force of the Agreement.

The Agreement shall be deposited with the Finnish Ministry of Foreign Affairs, which shall transmit certified copies thereof to the other contracting States.

The Agreement on the establishment of the Nordic Environmental Finance Corporation of 3 March 1990 shall cease to have effect when the present Agreement enters into force.

Article 17

A contracting State may denounce the Agreement through a written declaration to that effect submitted to the Government of Finland, which shall immediately notify the other contracting States, the Nordic Council of Ministers and the Board of the Corporation.

Denunciation shall take effect, at the earliest, at the end of the financial year following the year in which the denunciation took place.

If, after a contracting State has denounced the Agreement, the Nordic Council of Ministers decides that the Corporation shall not be liquidated, it shall determine before denunciation takes effect how the relationship between the Corporation and the withdrawing State is to be discontinued. In such event, it shall be guaranteed that the withdrawing State continues to be equally liable with the other parties for the obligations of the Corporation existing at the time of the withdrawal.

IN WITNESS WHEREOF, the five contracting States through their accredited representatives have signed this Agreement.

DONE at Helsinki on 6 November 1998, in one copy in the Danish, Finnish, Icelandic, Norwegian and Swedish languages, all texts being equally authentic.

For the Government of Denmark:


For the Government of Finland:


For the Government of Iceland:


For the Government of Norway:


For the Government of Sweden: