Monday, November 21, 2011

FLAR - Introduction

About the FLAR    

General Description

Fondo Latinoamericano de Reservas (FLAR)
The FLAR established in 1978 is the issuer with the hightest rating in Latin America.
It's integrated by Bolivia, Colombia, Costa Rica, Ecuador, PerĂș, Uruguay and Venezuela.
Objectives of FLAR
    Support the balance of payments of member countries by granting loans or guaranteeing third-party loans.
    Improve the conditions of international reserve investments made by member countries.
    Contribute to the harmonization of exchange rate, monetary, and financial policies of member countries.

About the FLAR

Constitutive Agreement Chapter V


Article 35 - To achieve its objectives, the Latin American Reserve Fund shall enjoy the following privileges and immunities:
Immunity of its property and other assets and all deposits and other resources entrusted to the Fund, be they liabilities, net worth or yields from fiduciary operations, with respect to any form of compulsory seizure that may alter its control over said assets and liabilities as a result of any administrative action whatsoever on the part of member countries and as pertains to restrictions, regulations and control or moratory measures established by said countries. Property and other assets and all deposits and other resources entrusted to the Fund, be they liabilities, net worth or yields from fiduciary operations, shall enjoy the same immunity with respect to judicial action;
Inviolability of property and archives;
Exemption from restrictions on holding resources in gold or in any currency;
Free convertibility and transferability of assets;
Exemption from all taxes on its income, property and other assets;
Exemption from taxes on the issue of securities or guarantees and, in general, on any other operations it may carry out in fulfillment of its purposes;
Exemption from customs duties, other taxes of equivalent effect, and from import prohibitions and restrictions;
Exemption from all responsibility related to the payment, withholding or collection of any tax;
Treatment of its communications identical to that granted to the official communications of member countries; and
Carriage of its correspondence, parcels and printed matter free of charge by the postal services of member countries when bearing its franking stamp.
Article 36 - In the headquarters country, the Executive President shall enjoy the same immunities, privileges and guarantees accorded to member countries? Ambassadors. The international officials of the Fund shall enjoy the immunities and privileges that the headquarters country grants to diplomatic officials of comparable rank.

Article 37 - Should the Fund establish branches, agencies or representative offices within member countries territories , they shall grant the international officials staffing these posts the same immunities and privileges that they accord to diplomatic officials of comparable rank.

Article 38 - The Fund shall enter into agreements with the Governments of member countries in order to define the privileges and immunities to be enjoyed by the Fund and its international officials pursuant to the provisions of this chapter, as well as the treatment to be given to national officials and employees.



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