Decision of the Board of Governors
Section 8
Loans made and loan guarantees issued for investments outside the Member countries may, if so determined by the Board of Directors, be designated project investment loans or project investment guarantees.
For project investment loans made and project investment guarantees issued, the Bank shall make allocations to a special credit risk fund, primarily to cover losses on such loans and guarantees.
The Member countries shall cover the Bank's losses arising from failure of payment in connection with project investment loans and project investment guarantees up to the following amounts:
Denmark EUR 379,208,157
Estonia EUR 16,486,418
Finland EUR 318,902,260
Iceland EUR 17,020,181
Latvia EUR 24,052,957
Lithuania EUR 35,108,442
Norway EUR 387,086,760
Sweden EUR 622,134,827
The Member countries' guarantees hereby cover at most 90 per cent of losses on individual project investment loans. Payment is subject to call by the Board of Directors pursuant to agreements entered into between the Bank and each Member country.
Section 9
Loans made and loan guarantees issued for environmental investments in the neighbouring region of the Member countries may, if so determined by the Board of Directors, be designated special environmental investment loans or environmental investment guarantees.
The Member countries shall cover 100 per cent of the Bank's losses arising from failure of payment in connection with environmental investment loans and environmental investment guarantees up to the following amounts:
Denmark EUR 63,201,359
Estonia EUR 2,747,736
Finland EUR 53,150,377
Iceland EUR 2,836,697
Latvia EUR 4,008,826
Lithuania EUR 5,851,407
Norway EUR 64,514,460
Sweden EUR 103,689,138
Payment is subject to call by the Board of Directors pursuant to agreements entered into between the Bank and each Member country.
Section 10
The business of the Bank shall be conducted in accordance with the principles referred to in Section 1 and in accordance with the following guidelines:
a) A loan shall not be made nor a guarantee issued if opposed by the state of the beneficiary.
b) Borrowings and the investment of funds in the Member countries shall be made in consultation with the authorities of the country concerned.
c) In its operations, the Bank shall aim for a profit allowing the formation of reserves and reasonable return on the subscribed authorised capital referred to in Section 3.
d) The Bank may when specific need arises, acquire shares or other assets, in support of its business or to protect its claims.
e) The Bank shall, to the extent practicable, protect itself against the risk of exchange rate losses.