Artikel III

In order to accomplish its purposes, the Corporation is authorized to:
(a) Identify and promote projects which meet criteria of economic feassibility and efficiency, with preference given to projects that have one or more of the following characteristics: (i) they promote the development and use of material and human resources in the developing countries which are members of the Corporation;
(ii) they provide incentives for the creation of jobs;
(iii) they encourage savings and the use of capital in productive investments;
(iv) they contribute to the generation and/or savings of foreign exchange;
(v) they foster management capability and technology transfer; and
(vi) they promote broader public ownership of enterprises through the participation of as many investors as possible in the capital stock of such enterprises;
(i) they promote the development and use of material and human resources in the developing countries which are members of the Corporation;
(ii) they provide incentives for the creation of jobs;
(iii) they encourage savings and the use of capital in productive investments;
(iv) they contribute to the generation and/or savings of foreign exchange;
(v) they foster management capability and technology transfer; and
(vi) they promote broader public ownership of enterprises through the participation of as many investors as possible in the capital stock of such enterprises;
(b) Make direct investments, through the granting of loans, and preferably through the subscription and purchase of shares or convertible debt instruments, in enterprises in which a majority of the voting power is held by investors with Latin American citizenship, and make indirect investments in such enterprises through other financial institutions;
(c) Promote the participation of other sources of financing and/or expertise through appropriate means, including the organization of loan syndicates, the underwriting of securities and participations, joint ventures, and other forms of association such as licensing arrangements, marketing or management contracts;
(d) Conduct cofinancing operations and assist domestic financial institutions, international institutions and bilateral investment institutions;
(e) Provide technical cooperation, financial and general management assistance, and act as financial agent of enterprises;
(f) Help to establish, expand, improve and finance development finance companies in the private sector and other institutions to assist in the development of said sector;
(g) Promote the underwriting of shares and securities issues, and extend such underwriting provided the appropriate conditions are met, either individually or jointly with other financial entities;
(h) Administer funds of other private, public or semi-public institutions; for this purpose, the Corporation may sign management and trustee contracts;
(i) Conduct currency transactions essential to the activities of the Corporation; and
(j) Issue bonds, certificates of indebtedness and participation certificates, and enter into credit agreements.
The Corporation may make investments of its funds in such form or forms as it may deem appropriate in the circumstances, in accordance with Section 7(b) below.
The operations of the Corporation shall be governed by the following principles:
(a) It shall not establish as a condition that the proceeds of its financing be used to procure goods and services originating in a predetermined country;
(b) It shall not assume responsibility for managing any enterprise in which it has invested and shall not exercise its voting rights for such purpose or for any other purpose which, in its opinion, is properly within the scope of managerial control;
(c) It shall provide financing on terms and conditions which it considers appropriate taking into account the requirements of the enterprises, the risks assumed by the Corporation and the terms and conditions normally obtained by private investors for similar financings;
(d) It shall seek to revolve its funds by selling its investments, provided such sale can be made in an appropriate form and under satisfactory conditions, to the extent possible in accordance with Section l(a)(vi) above;
(e) It shall seek to maintain a reasonable diversification in its investments;
(f) It shall apply financial, technical, economic, legal and institutional feasibility criteria to justify investments and the adequacy of the guarantees offered; and
(g) It shall not undertake any financing for which, in its opinion, sufficient capital could be obtained on adequate terms.
(a) With the exception of the investment of liquid assets of the Corporation referred to in Section 7(b) of this Article, investments of the Corporation shall be made only in enterprises located in developing regional member countries; such investments shall be made following sound rules of financial management.
(b) The Corporation shall not provide financing or undertake other investments in an enterprise in the territory of a member country if its government objects to such financing or investment.
Nothing in this Agreement shall prevent the Corporation from taking such action and exercising such rights as it may deem necessary for the protection of its interests in the event of default on any of its investments, actual or threatened insolvency of enterprises in which such investments have been made, or other situations which, in the opinion of the Corporation, threaten to jeopardize such investments.
Funds received by or payable to the Corporation in respect of an investment of the Corporation made in any member's territories shall not be free, solely by reason of any provision of this Agreement, from generally applicable foreign exchange restrictions, regulations and controls in force in the territories of that member.
The Corporation shall also have the power to:
(a) Borrow funds and for that purpose furnish such collateral or other security as the Corporation shall determine, provided that the total amount outstanding on borrowing incurred or guarantees given by the Corporation, regardless of source, shall not exceed an amount equal to the sum of its subscribed capital, plus its earned surplus and reserves;
(b) Invest funds not immediately needed in its financial operations, as well as funds held by it for other purposes, in such marketable obligations and securities as the Corporation may determine;
(c) Guarantee securities in which it has invested in order to facilitate their sale;
(d) Buy and/or sell securities it has issued or guaranteed or in which it has invested;
(e) Handle, on such terms as the Corporation may determine, any specific matters incidental to its business as may be entrusted to the Corporation by its shareholders or third parties, and discharge the duties of trustee in respect of trusts; and
(f) Exercise all other powers inherent and which may be necessary or useful for the accomplishment of its purposes, including the signing of contracts and conducting of necessary legal actions.
The Corporation and its officers shall not interfere in the political affairs of any member; nor shall they be influenced in their decisions by the political character of the member or members concerned. Only economic considerations shall be relevant to decisions of the Corporation, and these considerations shall be weighed impartially in order to achieve the purposes stated in this Agreement.