EEC - Turkey Association Agreement (1963) - Electronic Database of Investment Treaties (EDIT)

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EEC - Turkey Association Agreement (1963)

HAVE AGREED AS FOLLOWS:

1.

Requests for the financing of investment projects which will serve to increase the productivity of the Turkish economy and further the objectives of the Agreement of Association, and which are part of the Turkish development plan, may be submitted by the Turkish State and by Turkish undertakings to the European Investment Bank, which shall inform them of the action taken thereon.

2.

Projects for which requests are approved shall be financed by loans. These loans may be contracted up to a total of 175 million units of account, which-may be committed in the five years following the entry into force of this Agreement.

3.

Requests for financing submitted by Turkish undertakings shall not be approved without the agreement of the Turkish Government.

4.

1. Loans shall be. granted on the basis-of the economic features of the.projects. which they are to finance.

2. Loans, especially those for investment projects the return on which is indirect or long term, may be made on special terms such as reduced rates of interest, extended repayment periods, interest-free periods and, where appropriate, any other special repayment terms which may facilitate the servicing of such loans by Turkey.

3. Any loan granted to an undertaking or to an authority other than the Turkish State shall be subject to a guarantee from the Turkish State.

5.

1. The Bank may make the granting of these loans subject to public invitation to tender or other tendering procedures. Participation in such public invitations to tender or other tendering procedures shall be open on equal terms to all natural and legal persons who are nationals of Turkey or of Member States of the Community.

2. Loans may be used to cover expenditure on imports or domestic expenditure, where such expenditure is necessary for carrying out approved investment projects.

3. The Bank. shall ensure that the funds are used in the most -judicious manner and in accordance with the objectives of this Agreement.

6.

Turkey undertakes to allow recipients of these loans to obtain the currency: necessary for the repayment of the loans and of interest thereon.

7.

Assistance provided under.this Protocol for carryirig out certain projects may take the form: of Participation in. financing operations in which, in particular, third countries, international - finance organizations or credit and development authorities and institutions of Turkey or of Member States of the Community-may be concerned.

8.

Aid to Turkish economic and social development under the conditions set out in this Agreement and in this Protocol shall be supplementary to the endeavours of the Turkish State.