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II SÉRIE — NÚMERO 72

payment is made by the Agency. Subrogation shall be effective with respect to the host country concerned only after its approval of the reinsurance by the Agency. The Agency shall include in the contracts of reinsurance provisions requiring the reinsured to pursue with due diligence the rights or claims related to the reinsured investment

Article 21

Cooperation with private insurers and with reinsurers

a) The Agency may enter into arrangements with private insurers in member countries to enhance its own operations and encourage such insurers to provide coverage of non-commercial risks in developing member countries on conditions similar to those applied by the Agency. Such arrangements may include the provision of reinsurance by the Agency under the conditions and procedures specified in article 20.

b) The Agency may reinsure with any appropriate reinsurance entity, in whole or in part, any guarantee or guarantees issued by it.

c) The Agency will in particular seek to guarantee investments for which comparable coverage on reasonable terms is not available from private insurers and reinsurers.

Article 22 Limits of guarantee

a) Unless determined otherwise by the Council by special majority, the aggregate amount of contingent liabilities which may be assumed by the Agency under this chapter shall not exceed one hundred and fifty percent of the amount of the Agency's unimpaired subscribed capital and its reserves plus such portion of its reinsurance cover as the Board may determine. The Board shall from time to lime review the risk profile of the Agency's portfolio in the light of its experience with claims, dcgTee of risk diversification, reinsurance cover and outer relevant factors with a view to ascertaining whether changes in the maximum aggregate amount of contingent liabilities should be recommended to the Council. The maximum amount determined by the Council shall not under any curcumstanccs exceed five times the amount of the Agency's unimpaired subscribed capital, its reserves and such portion of its reinsurance cover as may be deemed appropriate.

b) Without prejudice to the general limit of guarantee referred to in section a) above, the Board may prescribe:

i) Maximum aggregate amounts of contingent liability which may be assumed by the Agency under this chapter for all guarantee issued to investors fo each individual member. In determining such maximum amounts, the Board shall give due consideration to the share of the respective member in the capital of the Agency and the need to apply more liberal limitations in respect of investments originating in developing member countries; and

if) Maximum aggregate amounts of contingent liability which may be assumed by the Agency with respect to such risk diversification factors as individual projects, individual host countries and types of investment or risk.

Article 23

Investment promotion

a) The Agency shall carry out research, undertake activities to promote investment flows and disseminate information on investment opportunities in developing member countries, with a view to improving the environment for foreign investment flows to such countries. The Agency may, upon the request of a member, provide technical advice and assistance to improve the investment conditions in the territories of that member. In performing these activities, the Agency shall:

0 Be guided by relevant investment agreements among member countries;

ii) Seek to remove impediments, in both developed and developing member countries, to the flow of investment to developing member countries; and

iif) Coordinate with other agencies concerned with the promotion of foreign investment, and in particular the International Finance Corporation.

6) The Agency also shall:

0 Encourage the amicable settlement of disputes between investors and host countries;

ii) Endeavor to conclude agreements with developing member countries, and in particular with prospective host countries, which will assure that the Agency, with respect to investment guaranteed by it, has treatment at least as favorable as that agreed by the member concerned for the most favored investment guarantee agency or Slate in an agreement relating to investment, such agreements to be approved by special majority of the Board; and

Hi) Promote and facilitate ihe conclusion of agreements, among its members, on the promotion and protection of investments.

c) The Agency shall give particular attention in its promotional efforts to the importance of increasing the flow of investments among developing member countries.

Article 24

Guarantees of sponsored Investments

In addition to the guarantee operations undertaken by the Agency under this chapter, the Agency may guarantee investments under the sponsorship arrangements provided for in annex I to this Convention.

CHAPTER IV Financial provisions

Article 25 Financial management

The Agency shall carry out its activities in accordance with sound business and prudent financial management practices with a view to maintaining under all circumstances its ability to meet its financial obligations.