Charter of the Vexillium Bank
This is but a suggested charter and will be subjected to a vote by members.
I. Goals of the Bank
(i) The purpose of the Vexillium Bank is to contribute toward the end of poverty concentrated
in one nation or another, and to assist nations from eradicating poverty from their shores.
(ii) The bank will also provide funds to nations for short-term currency or economic stabilisation.
(iii) At no time shall the bank specify a ratio of loans between these two categories,
and nor shall a bias be provided for one or the other type of loan. The only evaluation shall
be the nett benefit for a nation for loan funds.
(iv) Loans from the Vexillium Bank shall only be made available to member nations.
Likewise, capital provided to the bank, not in the form of payment for Bank Bonds, by non-member
nations shall be counted as gifts and non-refundable.
(v) The Bank shall also analyse economic information made available, and provide that
information to member nations without exception.
(i) The Bank will achieve these goals by facilitating the exchange of capital funds between the
capital markets of the world and nations in need, using funds from member nations to subsidize,
where necessary, the interest bill of the borrower-nation, partially or completely.
(ii) The condition for loans will be that recipients use the funds to provide
infrastructure and other permanent developments within their nation, developments that allow
the people to develop their resources.
(iii) At no time will funds be provided for the purposes of purchasing military arms.
Should Loan Monitors of the bank discover that funds are being used for these purposes, the
loan shall be immediately suspended. Recommencement of the loan shall only be permitted when
the Board of the Bank is satisfied that the recipient will not violate this rule any longer.
(iv) The Bank will be authorised to issue bonds to raise capital, and will specify its
own interest rate and duration on the bonds.
(v) The Bank SHALL NOT make further bond issues simply to cover its own expenses or
interest payments of borrowing nations beyond the sum of ONE BILLION Christianan Crowns.
III. Evaluation of Requests
(i) No consideration shall be made to the internal politics of a nation when evaluating
a request for funds. In these matters, the bank shall remain politically neutral.
(ii) The Bank shall, however, consider the likely economic benefits balanced against
the considered environmental or cultural impacts. The bank shall not ignore these considerations,
with all applications having to make environmental and cultural self-evaluations on their
applications for funding, and, if deemed necessary, the Bank may initiate its own cultural or
environmental impact evaluation studies.
(iii) The Board's decision will be final and can only be overturned by 65% of member
states. The Board's decision shall be based upon a simple majority.
(iv) There will only ever be an ODD number of Board members.
(v) Environmental and cultural impacts aside, the Bank's evaluation of requests for
loans shall be purely on a "Return on investment" basis, where the return is experienced by
the people of the applicant nation.
(vi) All administration fees shall be levied by the bank according to the stated
economic prosperity of the member nation.
(vii) All accounts, fees and budget figures for the bank shall be made available to any
citizen of member-nations. The Bank shall, at all times, retain open accounting practices.
(i) Membership of the Vexillium Bank shall be available to all nations of Vexillium.
Membership shall not be, in any way, prohibited unless the nation is under an explicit
exclusion (see clause IV-iii).
(ii) Nations may be expelled from the Vexillium Bank by a 75% vote of the current
membership of the bank. That nation is then free to re-apply for membership ONE MONTH after
(iii) Nations expelled from membership of the Vexillium Bank can also be prohibited
from applying for membership for a specified period. This also requires a 75% approval by
the membership of the Vexillium Bank. This is an EXPLICIT EXCLUSION.