The Socialist People’s Republic of Sigeta has responded to the request of the Limboese Republic to submit new proposals regarding the Convention of Island Nations. Therefore, through the Ministry of Foreign Affairs, we would like to present the proposal of Sigeta.
We hope that, through this initiative, we can continue international cooperation.
[DRAFT] Treaty Establishing the Island Nations Development Bank
Treaty Establishing the Island Nations Development Bank
Rossio · 2026
PREAMBLE
The undersigned States,
RECOGNIZING the disproportionate impact of climate change on island nations,
RECOGNIZING the need for financial resources for the development of environmentally friendly infrastructure,
DETERMINED to continue cooperation for mutual progress,
AGREED as follows:
CHAPTER 1 - GENERAL PROVISIONS
Article 1 - Establishment of the Development Bank
(1) The signatory States hereby establish the Island Nations Development Bank as a development finance institution.
Article 2 - Definitions
For the purposes of this Treaty:
(1) “Convention” means the Convention of Island Nations, also referred to as “CIN”,
(2) “Bank” means the Island Nations Development Bank,
(3) “Member State” means any State that has signed this Treaty and has been admitted to the Bank by the Executive Board,
(4) “Observer State” or “Observer Organization” means any State or organization granted the right of presence to monitor the meetings of the Bank, without the right to vote.
CHAPTER 2 - EXECUTIVE BOARD
Article 1 - Appointment of members
(1) The members of the Executive Board shall be appointed by the Member States.
(2) In order for a person to be appointed to the Executive Board, they must:
a) have the necessary expertise and studies in the field of economics or finance,
b) not be a member of a political party or of the armed forces of a state,
c) not have been convicted of any criminal offence.
(3) The Member States may also elect an alternate member, who will replace the member of the Executive Board of the respective state if the latter is unable to attend the meetings of the Board.
(4) The persons appointed as alternate members of the Board shall meet the same conditions as those set out in paragraph 2.
5) Observer States and Organizations shall be able to appoint one member to the Executive Board, without having the right to vote in its meetings.
Article 2 - Powers
(1) The powers of the Board shall include:
a) proposing amendments to the Treaty,
b) approving the admission of new Member States,
c) authorising changes to the Bank’s capital stock,
d) winding up the Bank,
e) approving the annual report,
f) approving the audited financial statements,
g) appointing the President of the Bank.
(2) The Executive Board may delegate its powers to the Supervisory Board, other than those set out in paragraphs a to d of Article 1.
Article 3 - Presidency
The Presidency of the Executive Board shall rotate among the Member States.
CHAPTER 3 - SUPERVISORY BOARD
Article 1 - General
(1) The members of the Supervisory Board shall be appointed in the same manner as the members of the Executive Board, as provided for in Article 1, Chapter 2.
5) Observer States and Organizations shall be able to appoint one member to the Supervisory Board, without having the right to vote in meetings.
(2) The Supervisory Board shall be under the authority of the Executive Board and shall be responsible for the general operations of the Bank.
(3) The governance of the Supervisory Board shall be determined by the Executive Board.
Article 2 - Chairperson
The President of the Bank shall also hold the position of Chairperson of the Supervisory Board.
CHAPTER 4 - THE PRESIDENT OF THE BANK
Article 1 - General
(1) The President of the Bank shall be appointed by the Executive Board.
(2) The President of the Bank shall also hold the position of Chairperson of the Supervisory Board.
(3) The President of the Bank shall meet the conditions set forth in paragraph 2, Article 1, Chapter 2.
(4) The term of office of the President of the Bank shall be five years and may be renewed only once.
Article 2 - Powers and Duties
The President of the Bank shall have the following powers and duties:
a) ensure compliance with the Treaty establishing the Bank and the policies approved by the Executive Board and the Supervisory Board,
b) chair the Supervisory Board and recommend operational and financial policies and proposals, established in accordance with the internal institutional order of the Bank,
c) conduct the day-to-day business of the Bank under the guidance of the Supervisory Board,
d) be responsible for the organization, appointment and dismissal of officials and staff,
e) promote the image of the Bank within the international financial community,
f) exercise authority related to the activities of the Bank,
g) issue administrative orders regarding the internal functioning of the Bank,
h) exercise administrative authority over departments reporting directly to the President.
Article 3 - Removal
(1) The President of the Bank may be removed from office if, during his term of office, he has committed any criminal act.
(2) The removal of the President of the Bank from office shall be made by the Executive Board and the Supervisory Board, by a majority vote.
CHAPTER 5 - FINANCE
Article 1 - Shareholders
(1) Each Member State, through its competent institutions, shall be entitled to hold a share of the Bank’s shares.
(2) The shares of the Bank held by a Member State shall be determined by its paid-up capital.
Article 2 - Financing
(1) Both governments and individuals of Member States shall be entitled to avail themselves of the services of the Bank.
(2) The Bank shall make loans or grants only for projects for the development of civil infrastructure, energy or environmental remediation.
(3) The Bank shall not make loans or grants for military purposes or for the financing of military groups or organizations.
(4) The Bank shall not make loans or grants for projects with a significant adverse impact on the environment.
CHAPTER 6 - CONCLUSIONS
(1) The Island Nations Development Bank is an international development finance institution.
(2) The Bank shall have the role of financing development projects.
(3) This Treaty was signed in Rossio (BER).
