Announcement of Ecuador Ratifies the MIGA and ICSID Conventions on January 15, 1986

INTERNATIONAL MONETARY FUND JOINT LIBRARY FOR IMMEDIATE RELEASE JAtJ 2 8 1986 World Bank INTERNATIONAL BANK FOR flECO.NSTllUCTJON AND DEVtl.OPMEP.T VAZHIN TON, D. C. 1818 H Street , .W ., Washington . D.C. 20433 . U.S.A.• Telephone : (202 ) 477-1234 20431 BANK NEWS RELEASE Contact: Ciro Gamarra January 15, 1986 (202) 4 77-532 0 ECUADOR RATIFIES THE MIGA AND ICSID CONVENTIONS Ecuador today became the first country to ratify the Convention establishing the Multilateral Investment Guarantee Agency (MIGA Convention). At the same time, it signed and ratified the International Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID). The signings were completed on the occasion of the visit of His Excellency President Leon Febres Cordero to Washington, D.C. by Ecuador's Minister of Foreign Affairs, H.E. Dr. Edgar Teran Teran. The ICSID Convention became effective in 1966 and, with Ecuador, now includes 93 Signatories and eighty-eight Contracting States . The MIGA Convention was opened for signature at the 1985 Annual Meeting of the Bank's Board of Governors in Seoul , Korea, and has now been signed by six countries. These include -- in addition to Ecuador -- Korea, Turkey, Senegal, Sierra Leone and St . Lucia , which just signed on January 13. The MIGA Convention will become effective upon its ratification by five capital-exporting countries and fifteen capital-importing countries, provided that these countries ' subscriptions total one-third of MIGA's capital. A country gives its final approval of the ICSID or MIGA conventions through ratification or accept ance . Both MIGA and ICSID share the objective of encouraging the flow of investments to and among developing countries by enhancing mutual understanding and confidence between investors and host countries. ICSID serves this objective by providing a forum for the settlement of investment disputes under international rules; MIGA will issue guarantees against non-commercial risks and advise and assist member governments in their efforts to attract foreign investments at fair terms. ICSID arbitration applies only upon the voluntary consent of the host government and MIGA will issue guarantees only with the approval of the host government. The signature and ratification by Ecuador constitutes an important step in the cooperation of the World Bank with its member countries towards the promotion of conditions conducive to the increase of the flow of foreign investments . - 0 -