LAW
ON MODIFICATIONS AND AMENDMENTS TO THE LAW ON ESTABLISHING THE MACEDONIAN BANK FOR DEVELOPMENT PROMOTION

Article 1

In the Law on Establishing the Macedonian Bank for Development Promotion (Official Gazette of the Republic of Macedonia, no. 24/98, 6/2000, and 109/2005) in Article 6, paragraph 1, point 6 after the word "risks" the words "and credit insurance of domestic receivables against commercial risks" shall be added.

After paragraph 3 a new paragraph shall be added and shall read:

"Regulations that define the commitment for allocation of compulsory reserves on accounts with the National Bank of the Republic of Macedonia do not apply to the:

-  Bank's sources of funds, and

-  Commercial bank's commitments on the basis of placements of the Bank's funds".

Words: "Management Board" shall be replaced with the words: "Supervisory Board" in paragraph 5 that shall become paragraph 6.

Paragraphs 6 and 7 shall become 7 and 8, and the number "5" shall be replaced with the number "6" in paragraph 8 that shall become 9.

Article 2

Words: "Management Board" shall be replaced with the words: "Supervisory Board" in Article 8-a, paragraph 4, and 8-b, paragraph 5.

Article 3

Article 14 shall be deleted.

Article 4

The title of chapter 7 shall be modified and shall read: "Bodies of the Bank".

Article 5

Article 17 shall be modified and shall read:

"Bodies of the Bank shall be the following: Assembly, Supervisory Board, Board for Risk Management, Auditing Board, Managing Board and other bodies set forth in the Statute of the Bank".

Article 6

After Article 17 three new articles shall be added, 17-a, 17-b, and 17-v, and shall read:

"Article 17-a

The Republic of Macedonia in the Assembly of the Bank shall be represented by 5 persons appointed by the Government of the Republic of Macedonia - representatives of the state capital.

For appointing the members of the Supervisory Board, who are representatives of the Bank's state capital, i.e. who are appointed on proposal of the representatives of the state capital in the Assembly of the Bank, a prior consent of the Governor of the National Bank of the Republic of Macedonia shall not be needed.

Independent members shall not be appointed in the Supervisory Board.

Article 17-b

The appointed representatives of the state capital in the Bank Assembly shall also be members of the Supervisory Board of the Bank until at least 15% of the Bank capital is privatized.

Upon privatizing of at least 15% of the Bank capital, the Bank Supervisory Board shall consist of 5 members appointed by the Bank Assembly, three on proposal of the representatives of the state capital in the Bank Assembly, on prior consent of the Government of the Republic of Macedonia and two members on proposal of the rest of the Bank shareholders.

Upon privatizing of at least 15% of the Bank capital, the members of the Bank Supervisory Board shall make decisions in regard with the Guarantee Fund, appointed on proposal of the representatives of the state capital in the Bank Assembly.

Article 17-v

Bank Supervisory Board shall approve exposure toward an individual bank of above 50% of the Bank guarantee capital".

Article 7

This Law shall become effective on the eight day after the day of its publication in "Official Gazette of the Republic of Macedonia ".