Nations of The Balkans,

As some of you may know, in connection with their territorial requests, the East Roman Empire and Byzantinople have each offered to donate a significant amount of money for relief agencies and other humanitarian initiatives in our region.

The East Roman Empire has offered to donate 1.000.000 golden nomismas.

Byzantinople has pledged 9,158,170,594 byzants drawn from that country's budget surplus.

[ According to the NS-economy website at
http://www.thirdgeek.com/nseconomy.php?region=the_balkans
1 byzant = $1. 8164 and
1 nomisma = $1.0918
Of course, these exchange rates are not official and may be inaccurate]

Therefore, our region will soon have a huge amount of money available for humanitarian projects and initiatives.

Thracia proposes that this money be used to establish a
Balkan Bank for Development and Prosperity.
The bank's mission would be to give loans (including micro-loans), with very low interest rates, to individuals, organizations and governments for projects that would improve the social, economic and cultural level of communities and areas in our region that are lagging behind or are in disarray due to government-collapse.

Once the bank is established, other nations, particularly the rich nations of our region, may "chip in" and increase the amount of money available for such projects.

This bank, of course, would not be a purely humanitarian institution. The projects that would be financed, should, after all, make some profit so they could pay back the loan with the interest.

But the money that would paid back would not go to the "pockets" of the rich countries. Instead, it would be used to finance further socio-economic projects and initiatives that would imporve the living conditions of worse-off parts of our region.

Other details about this bank and where its headquarters would be located could be decided at a later stage.

Right now, our government would like to know if there is enough interest and support in The Balkans for the proposed bank.

Excellencies: Since Zahumlje doe snot participate in any form of banking which involves interest (this is different from dividends!) Her Majesty's Government will abstain from participation.
This opposition comes from the deep traditons of Zahumlje, and from the observatio that the interest system is the plague of the West.
No true Socialist deals in interest,
No true Catholic Christian deals in interest,
No true OrthodoxChristian deals in interest,
No true Jew deals in interest.
It runs counter to the doctrines of Modern Feudalism, the guiding principal of our Nation.
if it turns out to be an interest free from of bank of course Zahumlje will join in.
Imam Hodza Nasrudin
Foreign Minister Zahumlje

The Republic of Srpska Kosovo does not have an interest in participating in the proposed Balkan Bank for Development and Prosperity. The Balkans Relief Fund provides many of the services that the proposed bank will provide. It is the position of this government that the region would be better served by renewed contributions to the Balkans Relief Fund instead of inventing new institutions. We oppose in principle the concept of charging struggling nations interest as a means of assisting them. Has not international debt crippled developing nations instead of helping them? While opposed to the proposal, we will not interfere with its implementation and will continue to work with any nation that chooses to participate.

Sincerely,
Branko Halilovic, Minister of International Economic Relations

Excellencies: Her Majesty's Government endorses the alternate proposal of Srpsa Kosovo. It is a good proposal.
Imam Hodza Nasrudin
Foreign Minister Zahumlje

King Peter I and parliament fully endorse the idea. viva thracia!

The Bank is an interesting proposal and it may be a valuable one. However, before endorsing such proposal we shall wait and see what are the procedures involved. For example, who is going to control the funds?

It is also interesting how Byzantinople can spare more than 5 billions US$ just from the "country's budget surplus". We are circumspect about this promise ever being fulfiled.

The donation of -Byzantium-- this IS the name listed on NationStates, this is the name we will be using) should probably go to the Balkan Relief Fund, as there are a few regions on the map that need such intervention (of course, unless Tediad-B is not going to offer them to other expansionist nations in the near future, as we see it is the new cartographic policy).

(BTW Tolomakia has the strongest coin around. I have almost 1 nomisma = 1 dollar)

We support this great ide.

Byzantinople has actualy promised to donate 16.6 billion USD.

As for the Balkans Relief Fund, it only provides money for the relief efforts in collapsed nations. This bank if created will provide loans for any nations that might need funds to, for example, strengthen their economy. And without interest on the loans how does anyone expect that this bank will survive? With donations from nations? I certainly don't intend to waste money on this institution every year so that the more unfortunte nations will benefit. I ask Zahumlje and Srupska Kosovo if they would throw away money like that? Would you pump billions of dolars in a nation, that in the end does nothing to better their economy because next year they will once more recieve funds from the bank, without the need to returne anything? If you are, than be my guest, I would like to see how long your economy lasts.

Excellencies: Interest free banking doee not mean non-profit banking, the profit in such banking is from dividends earned on investments in sound business ventures. This is a different concept, but it works.
In any economic system sometimes business is good, sometimes bad, based on natural factors such as drought, too much rain, or discoveries of new resources or new technologies. The interest system magnifies these rises and falls. The only artificial factor which affects the economic situation in Zahumlje is new technological innovation, since war is simply not part of the equation.
The Socialist and Modern Feudalist arguments against interest are almost the same as the various religious arguments against the interest system. 1. The very presence of money not earned by either hard work or investment in sound businesses is of itself corruptive of the human character. 2. Changes in interest rates do damage to poor people and elderly people especially, and it is damageing to people who make their living from the land. Some of the greatest empires of history were before interest was common and these were places of incrediable wealth. Therefore interest is not necessary to generation of wealth.
Zahumlje will not impede such a bank, but will nnot participate unless it is interest free banking system.
Zahumlje will continue to put both money and effort into such Regional initiatives as BAHHB.
Imam Hodza Nasrudin
Foreign Minister Zahumlje

But this bank will not be an investment bank, it would be an institution similar to the IBRD or the EBRD.

The interest on the loans will not be used to make the rich - richer and the poor - poorer but only to sustain the bank. The bank could also in some special cases provide interest-free credit.

The Balkan Relief Fund, which is now associated with BAHHB, is for providing money for immediate needs in a collapsed nation, like food, medication, maybe salaries for the most essential civil servants, etc.

While these most immediate needs are being taken care of, there is still a need for money to build a functioning economy, with businesses that provide employment, with manufacturers that produce goods and with firms that provide all sorts of services.

The bank we proposed would focus on this second need. And it would favor the small-scale enterprises over the big ones, the poor applicants over the rich ones.

As The Bulgarite has mentioned, this Bank must be self-sufficient and solvent. The only way this can be achieved is through interest. There is NO difference, morally-speaking, between profit and interest. Interest is just another form of profit. There is excessive profit, which is a form of theft, and there is excessive interest which is usury. This bank would be bound by its charter to provide loans with low interest. And not just to governments, but also to companies and individuals.

[And to those who invoke religion to oppose interest, we would like to say that religions never envisaged growing capitalistic economies and never encouraged people to strive for wealth, for worldly pleasures and for more comfort in their lives. If we had to abide by religious principles fully, then we would have to live a very simple life, with few luxuries -- no palaces ;-) -- avoiding worldly pleasures and viewing this life as "just a test" that would prepare us for the afterlife, where we would somehow be rewarded.
Fortunately or unfortunately, and because we are weak and maybe hedonistic beings, most of us have chosen to live a good and comfortable life in this world, and not to think too much about the afterlife. A good life requires more money and economic growth. The best and fairest way to achieve more money is by profit and, yes, by interest.
(There are other ways to obtain more money like theft, fraud, extorsion, blackmail, etc., but almost everybody condems these methods)]

Excellencies: Here is the usual compromise for those who must deal with the Capitalist system, that no interest rate go above5 and 1/2 % and that it be justified by greater . That no loan for example be taken for a trivial purpose, for xample a house or education, but not for a fancy car, being the every day examples. Thracia has actually defended greater need very well , therefore Her Majesty's Government placed the matter before Dom Narodni and Dom Nobili. The vote was a plurality in favor of participation, as long as the bank stays within the mission stated by Thracia, and keeps the interest both taken in and sent out at 5 and 1/2 % or lower.
Her Majesty felt that in light of the discussion and in light of the regional needs it was well to place it before the Assembly before taking a decision.
Incidentally Zahumlje does have a Resonable economy, ok it's not Powrhouse or Corporate Bordello, but it is Reasonable, people here are not in a state of suffering. things said about the economic stability of Zahumlje are really not correct.
In fact Zahumlje has had steady economic improvment over it's history, and has done so within the principles of non-interest banking.
Regards
Imam Hodza Nasrudin
Foreign Minister Zahumlje

The Thracian government would like to express its appreciation both to Her Majesty Katja, and to the Zahumljani Houses of Parliament for giving our Balkan Bank proposal serious consideration.

Naturally, we are very happy that Zahumlje decided to participate. Actually, because Zahumlje has a "reasonable" economy, this country would probably not be asked to contribute a great amount of money to the Bank. Its citizens and companies, on the other hand, would certainly be eligible to receive loans from the bank for projects to improve the economic situation, especially in the less developed districts of that country.

A 5 and 1/2 percent maximum interest rate seems reasonable, provided that the inflation rate is factored out, of course.

Excellencies: Zahumlje is not afraid to contribute to the stability of this regional bank. We as a part of our involvement SEPARATE from any monetary input would like to set up a free, totally voluntary course of instruction in money management, in how to have as an individual a good life on little money,how to manage for the good of a family, and oneself, and for companies how to manage money for the good of the company, it's employees and customer base.
We Zahumljani believe that correct financial decisions prevet debt, and that on a collective level, correct financial decisions at the individual, corporate and national level tend to prevent great swings of inflation-deflation.
We think this is as important to the region at large as the bank itself. AFter all our financial philosophy as a nation has helped our nation do well and we want the same for our neighbors of the Balkans! We believe as a nation that prosperity can be as catching as poverty and this is not the 'magical thinking' that has afflicted so much of the business world.
Best Wishes
Imam Hodza Nasrudin
Foreign Minister of Zahumlje