Legal Mandate

Danish Act on the Support to Danish Investments in Eastern Europe of December 19th, 1989.

Objectives

1. The objective of Denmark’s support to Danish investments in Eastern Europe shall be to stimulate reformist Eastern European countries to achieve economic and industrial growth and to boost closer economic cooperation between Denmark and Eastern European countries for the benefit of both the overall East/West relationship as well as Danish business and employment.

The Investment Fund for Central and Eastern Europe

2. A Fund shall be founded to promote investments in Central and Eastern Europe in cooperation with the Danish private business sector. The Investment Fund is a self-governing institution referred to as The Investment Fund for Central and Eastern Europe (IØ).

(2) the Danish government may grant subsidies to the Fund’s activities. Furthermore, the Fund may receive contributions from commercial organisations, companies or private individuals in the form of cash contributions or guarantee capital.

(3) The Fund may grant support to Danish investments in Central and Eastern Europe through subscription for shares, financing of feasibility studies and other entrepreneurial activities, lending, granting of guarantees and sureties, training, consultancy and other measures that the Board of Directors (“the Board”) may deem necessary to promote the objectives of the Fund.

(4) The Fund shall be managed by a Board of Directors who shall be appointed for a period of 3 consecutive years by the Danish Minister of Foreign Affairs, who shall also appoint the chairman and vice chairman among the members. The Fund’s day-to-day operations shall be managed by a managing director, who shall also be appointed the Danish Minister of Foreign Affairs. Expenses relating to the Fund’s administration shall be covered by the Fund.

(5) Any other terms governing the Fund’s operations shall be laid down in a statute approved by the Danish Minister of Foreign Affairs.

Guarantees for investments in Eastern Europe

3. The Danish Minister of Foreign Affairs may within a limit of DKK 1 billion issue guarantees to companies residing in Denmark against loss pertaining to new direct investments in Eastern Europe and similar loans.

(2) Guarantees may be issued only against losses caused by political matters such as for example nationalisation and similar public measures, matters that prove a hindrance to transfer of contributions, war acts or the like in the country in which the investment is made.

(3) A risk premium is paid for any guarantee issued which is paid into a guarantee fund that is used to meet losses.

4. This Act shall come into force the day after it was announced in the Danish Legal Gazette.

            Copenhagen, 19th of December 1989