Following recent regional discussion and our consultation with The Bulgarite, we are happy to re-instate our proposal of creating the Balkan Bank for Reconstruction and Development.

From previous posts, we have taken the initial thouths about this initiative:

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initial statement:

Tolomakia is proposing the formation of the Balkan Bank for Reconstruction and Development. This should be a financial institution similar to EBRD, IBR or WB aiming to provide long term low interest loans for the less fortunate zones of The Balkans in exchange of the political commitment for democracy and free market.

The BBRD will be administrated by a Board in which each participating nation would be represented according to its participation to the Bank’s capital.

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the last discussion:

We are happy to see such interest towards BBRD. Before drafting the first sketch of the treaty, let's discuss a few principals:

1. Initial commitment. We proposed 1 billion euros to be committed by the founding members. The sum may seem high but this will ensure that only nations with strong economies will be the backbone of BBRD.

2. New members. Any nation may join BBRD at later stage, with a minimum commitment of 100 millions euros and maximum 1 billion euros.

3. Annual contribution. Each founding member will contribute each year with 21% of its initial commitment and each regular member will contribute 20% of its initial commitment.

4. Voting rights. 20% of the votes in the Council of Administration will be divided equally between the founding members. The remaining 80% will be distributed proportionally with the percent of the total BBRD capital committed (initially) by the members (both founding and regulars). The structure of the 80% is subject to changes whenever a new member joins.

5. Decisions. Any decision to grant a loan will be taken with at least 60% of the votes.

6. Criteria for loaning. We should decide if we include both economical (free market, foreign investments) and political (democracy) criteria. We should also decide at what level of economy a nation qualifies for loaning (no use to help strong economies).

7. Should we link BBRD to BFTA (i.e. only BFTA members to qualify as BBRD clients)?

8. The aprticipation of non-democratic and/or non-free-market nations, with the specific case of Daimyo Oda Nobunaga.

We would like to once more declare our full support of the creation of the Balkan Bank for Reconstruction and Development. We also ask all members of the BFTA to consider participating in this venture.

For this bank to be effective we may need a CEO who is good at calculating and accounting.

Slavpo is a devout non-mathematic nation. However, we do a relatively stable economy and will tribute to the Balkan Bank

We would like to show our full support for this bank by making donations once it is in service.

OOC: I would volunteer for the accountant part, but I am afraid that I might be too busy with school...but if no one else would like to do it, just count me in.

Excellencies: Zahumlje would like to participate, I already know that Her Majesty's Government has no inclination to join BFTA and this is a matter of prefering to keep the Zahumljani Ducat as the National currency. We fought so hard for all those things to do with being a Nation that it simply represents an unacceptable form of Globalization. We think that such a bank is very needed in the region and feel the Zahumljani economy is strong enough to participate at the minimal level.
Imam Hodza Nsrudin
Foreign Minister Zahumlje

Dear Mr. Imam Hodza Nsrudin, participating in BFTA doesn't require to change your currency, only to abolish custom taxes.

We are happy to sea so many nations ready to join the BBRD. Mr. Valentin Niculae, our Ministry of Finance could assume the position of CEO. As you may see from our economic results, he is very good in his business.

Regarding the other points in discussion, mentioned in our prevoius posts, we propose to discuss at least some of them, which may be more controversial:

4. Voting rights. 20% of the votes in the Council of Administration will be divided equally between the founding members. The remaining 80% will be distributed proportionally with the percent of the total BBRD capital committed (initially) by the members (both founding and regulars). The structure of the 80% is subject to changes whenever a new member joins.

6. Criteria for loaning. We should decide if we include both economical (free market, foreign investments) and political (democracy) criteria. We should also decide at what level of economy a nation qualifies for loaning (no use to help strong economies).

7. Should we link BBRD to BFTA (i.e. only BFTA members to qualify as BBRD clients)?

8. The aprticipation of non-democratic and/or non-free-market nations, with the specific case of Daimyo Oda Nobunaga.

Well, does this mean that Yugoslovenia will not be allowed to participate as well? Our economy is not free-market, nor are we a democratic country. We just want to help the region and the people living in it.

I more or less support the running-conditions of a Balkan bank

Excellencies: Point 7. is a little bit of a problem, for two reasons, any nation may at times have a need to protect some vital induasty or other by means of protective customs taxes. I can think of one prime industry in Zahumlje which could need protection, that of wine. Last year this industry would not have needed protection, because the production of wine is very steady ordinarily, and of very high quality, but we've had a volcanic eruption and the region most affected was our greatest region for wine production! We don't want the farmers who produce wine ruined, and we also don't want to subsidize that industry. As you know Zahumlje may be Socialist but that actually has led to LESS not more governtment subsidy because whether people voluntarily form family collectives 'zadruga', under our Customary Law or they form them under Socialist auspices, the need for subsidy is a bit less.

the other thing with Point 7 is that Customs Regulation, including Customs Taxes are an issue of National Sovreignty. Decisions on these matters are serious for any Nation. Zahumlje tends to make that decision on a Nation by Nation level to further treaties.

Point 8, Zahumlje is in some respects very democratic, at the local level, there are municipal elections. There are elections to the Dom Narodni, the Dom Nobilis is hereditary, much like Great Britain's House of Lords. The Head of State is our Queen, Her Majesty Katarina of Zahumlje. She selects from among Prime Ministerial candidates, and the Prime Minister may well NOT be of the majority in the Dom Narodni.

Zahumlje combines aspects of Feudalism and of Socialism in Government.

When a situation like the recent eruption occurs, it makes organizing a speedy evacuation much easier. The people in general like the system. Zahumlje is home to many refugees, and this has acutally proven to be a good system for helping in their settlement here, and their inclusion iinto our society.

Her Majesty's Government realize that the Government of Tolomakia has some serious concerns about authoritarian governments in the region. Her Majesty's Government shares these concerns. The Banking System may not or may not be the proper place to address this matter.

There are times like now when the international and internal conditions require a more centralized authority, and times when it may need to be loosened. This is for example the case in Zahumlje. Right now, there is a situation requireing more authority in government. That by no means makes Zahumlje a Police State. It can be done in a context allowing a good deal of personal autonomy.

There is a big difference between a government which has for example an 'Enemy of the State' act, and a government which simply has rather strong leadership at a time of emergency. It depends a great deal on how it is applied.

Her Majesty's Government basically agrees that membership or exclusion from an important Special Agency is a very important way of creating pressures for or against a given Course of Action for Nations. It is a perfectly legitimate way of exerting pressure too.

The question is more about where and how exactly the line is drawn.

The line needs to be drawn in a very objective manner, and with as little interference as possible. After all polical reform is not the business of banking.

Imam Hodza Nasrudin
Foreign Minister of Zahumlje

P.S. Her Majesty's Government is probably going to include an Economic Minister in these negotiations soon. The specific nominee to this post is nto known to me as yet. The reason for it beign that I am a Foreign Minister, not an Economic expert. Her Majesty wishes these discussions to be well served.
N

International Terrans is not interested in contributing to such an organisation: it is interested in recieving help from it. The short, yet devastating, Civil War destroyed much of the factories and production facilities, and has left much of the country in ruins. The economy is at approximately 38% of it's pre-war level.

Any assistance that could be rendered would be extremely helpful.

Sincerely,

Prime Minister F.I. Montgomery.

Just to make our position clear: Tolomakia is not going to provide any kind of help, directly or through institutions like BBRD, for nations that are not democratic and are not supporting the free market.

Dear Sovereign Nation of International Terrans,


It appears that the Balkan Bank will not go ahead or its creation is severely hindered by semantics. I, the King of Slavpo would like to take this opportunity to extend economic means to your nation from my nation.

We can be responsible for creating employment by installing and running factories from the Slavposki Model. This will be advantageous for both of us: the Slavposki government will buy materials and labour from Slavpoksi businesses who will build and export knowledge to International Terrans. Once the businesses are established and the factories are up and running; management will be handed over to International Terranian control and the Slavposki businesses will maintain 49% of ownership and profits for time to their discretion.

Essentially, International Terrans has nothing to lose, only gain from our generous
"jump-start" to your badly damaged economy.

We are willing to further explain and also the possibility of negotiation.

Sincerely,
King Mateh of Slavpo

Well...that is unsettling news. So that means that Daimyo Oda, Katja, and we are out...

We thank you for your assistance. Even if the BBRD is not created, the help of the Kingdom of Slavpo will not go unnoticed. We will be forever in your debt.

As it is, International Terrans is also attempting to push reforms through the dual North-South Parliament, but progress is slow. (OOC: In other words... the democracy issue hasn't come up in months.) However, our primary concern is reconstruction.

We would be more than willing to enter into negotiations.

I give you the first chance to negotiate the situation i proposed above, as i have no where to go from there really :)

In return for the establishment of businesses and factories in International Terrans for a period of two months, the government would be more than willing to pay back the assistance of the Kingdom of Slavpo with money, military equipment from divisions currently being demobilised, and veteran troops from the Civil War to act as military advisors.

After a period of two months, the factories are to be turned over to the government of the Democratic Federation of International Terrans, and repayment of the debt will begin.

We will handover the management of established businesses after two months of creation, in a most likely state of wellness. The Slavposki businesses will maintain 49% ownership and 49% profits for a period of twenty-two months after the handover to International Terrans.

This is acceptable to us. We shall endeavour to keep this treaty in mind throughout the difficult days ahead.

International Terrans,

this is indeed most acceptable and the beginning of a new day for your impoverished economy.