The EBRD Headquarters Agreement: A Brief Overview
The European Bank for Reconstruction and Development (EBRD) is an international financial institution that aims to promote the development of market economies in countries in central and eastern Europe, as well as in the former Soviet Union. The EBRD headquarters is located in London, United Kingdom, and has been established under the EBRD Headquarters Agreement, which outlines the privileges and immunities that the bank enjoys in the UK.
The EBRD Headquarters Agreement was signed on 9 May 1990 by the UK government and the EBRD member countries. The agreement provides the EBRD with legal status in the UK and outlines the privileges and immunities that the bank and its employees enjoy. These privileges and immunities include exemption from UK taxation, immunity from legal process, and the ability to hold property and assets.
One of the most significant privileges that the EBRD enjoys under the Headquarters Agreement is the exemption from UK taxation. This means that the bank is not subject to UK income tax, corporation tax, or any other taxes on its income, property, or assets. In addition, the bank`s employees are also exempt from UK taxation on their salaries and other allowances.
Another privilege that the EBRD enjoys is immunity from legal process. This means that the bank and its employees are immune from any legal proceedings in the UK, including arrest, detention, and seizure of property. However, this immunity does not apply to civil actions arising from commercial activities.
The EBRD Headquarters Agreement also provides the bank with the ability to hold property and assets in the UK. This includes the ability to own and occupy property, as well as to hold accounts and other financial assets.
In conclusion, the EBRD Headquarters Agreement is an important legal framework that outlines the privileges and immunities that the EBRD enjoys in the UK. These privileges and immunities provide the bank with a significant degree of independence and autonomy, which allows it to carry out its mandate of promoting economic development in its member countries.