Notice specifying the entry into force of resolution 137 of the board of governors of the bank

Overview

The European Bank for Reconstruction and Development Regulation 2012 was enacted to facilitate Australia's participation in the European Bank for Reconstruction and Development (EBRD) and to provide a legal framework for Australia's obligations and entitlements under the Agreement Establishing the EBRD. The regulation was introduced to address the need for a formal mechanism through which Australia could engage with the EBRD, which is an international financial institution focused on supporting the transition to market economies in Eastern Europe, the Eurasian countries, and Central Asia. The regulation was enacted by the Australian Government, and the policy objective was to ensure that Australia could effectively contribute to and benefit from the EBRD's development activities in its region of operations. The regulation provides the legal basis for Australia's involvement in the EBRD, including the implementation of resolutions and amendments adopted by the Board of Governors of the Bank.

Scope and Application

The European Bank for Reconstruction and Development Regulation 2012 applies to the Australian jurisdiction in respect of the provisions and amendments made by the Board of Governors of the European Bank for Reconstruction and Development. Specifically, this regulation facilitates the implementation of Resolution 137 within Australia, ensuring that Australian participants and entities abide by the updated terms and conditions set forth by the Bank's Board of Governors. The legislation marks the entry into force of Resolution 137 on 12 September 2013, thereby extending the regulatory scope to encompass any conduct, transactions, or operations involving the European Bank for Reconstruction and Development as amended by the resolution. This regulation applies nationally across Australia, impacting financial entities, investors, and other stakeholders who engage with the European Bank for Reconstruction and Development. The regulation does not specify any exclusions, exemptions, or thresholds, but the scope of its application may be further defined or clarified through subordinate instruments or subsequent legislative actions.

Key Provisions

The European Bank for Reconstruction and Development Regulation 2012, as amended by Resolution 137 of the Board of Governors of the Bank, governs the entry into force of certain resolutions and amendments for Australia. Specifically, section 2(2) of the Regulation specifies the effective date of Resolution 137, which is 12 September 2013 (section 2(2)). This means that from this date, Australia recognises and is legally bound by the changes introduced by Resolution 137 in relation to the Agreement Establishing the European Bank for Reconstruction and Development. Under the Regulation, Australian entities that engage with the European Bank for Reconstruction and Development (EBRD) must comply with the terms set out in the Agreement, as amended by Resolution 137. This includes adhering to the new provisions related to governance, financial management, and operational procedures established by the Board of Governors (section 2(1)). Entities involved in projects funded by the EBRD must ensure their activities align with these updated standards, including any changes to reporting requirements, environmental and social assessments, and financial accountability mechanisms. Failure to comply with the requirements set forth in the Regulation and the amended Agreement can lead to various consequences. The specific penalties and sanctions for non-compliance are not detailed in the Regulation itself but would generally depend on the nature of the breach and the applicable domestic laws. In the context of international agreements, non-compliance might also result in diplomatic repercussions or the withdrawal of certain privileges or funding from the EBRD. The severity of penalties could range from administrative fines to legal actions, depending on the jurisdiction and the extent of the violation. Overall, the Regulation ensures that Australian entities participating in EBRD activities are held to the highest standards of governance and compliance. It imposes a clear obligation on these entities to stay updated with the Bank's resolutions and to integrate any changes into their operations promptly. The potential for both civil and criminal consequences underscores the importance of strict adherence to the terms of the amended Agreement.