~
COALITION PROVISIONAL AUTHORITY ORDER NUMBER 20
TRADE BANK OF IRAQ
Pursuant to my authority as Administrator of the Coalition Provisional Authority (CPA),
and under the laws and usages of war, and consistent with relevant U.N. Security Council
resolutions, including Resolution 1483 (2003),
Noting the letter of May 8, 2003, from Permanent Representatives of the United States of
America and the United Kingdom of Great Britain and Northern Ireland to the President
of the United Nations Security Council (S/2003/538),
Underscoring the requirement that the Development Fund for Iraq (DFI) must be used in
a transparent manner to meet the humanitarian needs of the Iraqi people, for the
economic reconstruction and repair of Iraq's infrastructure, for the continued
disarmament of Iraq, and for the costs of Iraqi civilian administration, and for other
purposes benefiting the people of Iraq,
Reaffirming the commitment of the CPA to using effectively the resources of the DFI for
the aforementioned purposes,
..
Noting that Iraq currently lacks financial institutions capable of facilitating imports and
exports of goods and services to and from Iraq,
Noting the importance of economic trade to revitalizing the Iraqi economy, stimulating
economic growth and providing employment for the Iraqi population in order to provide
for sustainable development,
I hereby promulgate th~ following:
Section 1
Establishment
There is hereby established an institution to be known as the Trade Bank of Iraq
(TBI). The TBI shall be an independent governmental entity, and is hereby
authorized to perform such activities as are necessary to accomplish its purposes,
consistent with the Charter of the TBI.
Section 2
Purpose
The TBI shall provide financial and related services to facilitate the importation
and exportation ~of goods and services to and from Iraq in order to benefit the
CP A/ORD/17 July 2003/20

economy of Iraq. The Administrator may promulgate additional regulations,
orders, memorartda or other documentation that further define the purpose of the
DFI.
Section 3
President, Charter and Board of Directors
The Administrator shall appoint a President of the TBI. The President shall be the
chief executive officer of the TBI. The President, with concurrence of the CPA
Director, Economic Development, shall issue a Charter for the TBI, effective upon
issuance, which will specify, among other things, the functions, powers, financial
structure, governance, and reporting requirements of the TBI. The Charter for the
TBI shall establish a Board of Directors for the purpose of governing the activities
of the TBI.
~ Section 4
Initial Capitalization
The authorized capital of the TBI is $100,000,000. The Administrator may
provide initial paid-in capital for the TBI from the DFI, in an amount not to exceed
$5,000,000. The remaining $95,000,000 will exist as callable capital only in the
event the TBI is unable to meet its current obligations. The Administrator may
provide any reqyired callable capital from the DFI.
Section 5
Contractual and Other Authorizations
In general, the President, on behalf of the TBI, is authorized to hire and pay the
salaries of staff, procure goods and services, and enter into contracts and engage in
such other acts as may be necessary or advisable to conduct the business of the
TBI. In particular, the President, on behalf of the TBI, is authorized to enter into a
short-term contract with an Operating Consortium of financial institutions from
various countries selected by the Administrator. Under this contract, the members
of the Operating Consortium shall provide, for a limited period of time, training,
operational and technical support to the TBI and such other support as the
President may deem advisable and necessary, including but not limited to,
advising, issuing and confirming letters of credit on behalf of the TBI.
~
Section 6
Distribution of Profits
Profits generated by the operations of the TBI will be distributed to the DFI from
time to time as determined by the President in consultation with the Administrator.
J 2
CPA/ORD/17 July 2003/20

~
~
Section 7
Auditing and Review of Operations
To ensure that the TBI is managed transparently and for the benefit of the Iraqi
people, the President may obtain the services of an independent certified public
accounting firm for the purposes of auditing and publicly reporting on the TBI's
operations.
Section 8
Transition~
The TBI shall take appropriate steps to deal with issues relating to its operations
that are associated with the assumption of government responsibilities by an
internationally recognized representative government of Iraq in accordance with
Resolution 1483.
Section 9
Entry into Force
This Order shall enter into force on the date of signature.
LI'"'
/ l,.,./' if! { ~~ ~
L. Pdt1'1 Administrator
Coalition Provisional Authority
~
~
CP A/ORD/17 July 2003/20
3