Order 005: Economy of the Republic of Alduria

[Alejandro Campos]

Transitional Government of the Republic of Alduria
ORDER 005

Pursuant to my authority as President of the Republic of Alduria, and the provisions of the Constitution of Alduria, I hereby promulgate the following:

SECTION 1. Currency of Alduria, Aldurian Mint.
1. The currency of the Republic of Alduria shall be issued by the Bank of Alduria through the Aldurian Mint. The currency issued by the Bank of Alduria shall be the national currency, and shall be legal tender for all payments within the territory of the Republic of Alduria.

2. The currency of the Republic of Alduria shall be the Aldurian Écu. Its symbol shall be €.

3. One Écu shall be subdivided into 100 Centimes.

4. Coins shall be struck for the following denominations of Centimes: 1 Centime, 5 Centimes, 10 Centimes, 25 Centimes and 50 Centimes.

5. There shall be a limited government-owned company called the Aldurian Mint established under the Department of Finance and Commerce, and shall be granted exclusive contract to produce all the coins and paper currency for the Republic of Alduria.

SECTION 2.Department of Finance and Commerce.
1. The Department of Finance and Commerce shall be responsible for all matters of trade and economics not explicitly or implicitly assigned to other government agencies, departments or bodies by law.

2. The responsibilities of Department of Finance and Commerce shall include, but not be limited to:
2a. The revenues and expenditures of the Government of the Republic;
2b. International and domestic trade;
2c. Policy relations with international finance or trade organizations;
2d. Fiscal and monetary policy;
2e. Economic infrastructure;
2f. Management of nationalized industries.

SECTION 3.The Bank of Alduria.
1. There shall be a government-owned Bank of Alduria established as the government’s and banker’s bank, a government agency under the Department of Finance and Commerce that is nontransferable.

2. The primary objectives of the Bank of Alduria's operations shall be:
2a. To promote financial stability;
2b. To guide sound banking operations;
2c. To maintain the stability of the internal and external value of the currency;
2d. To foster economic development within the scope of the above objectives.

3. The Bank of Alduria shall have its Head Office in the city of Punta Santiago and may establish branch offices in all regions of the country, as well as in foreign nations. The establishment and abolishment of its branch offices shall be authorized by the resolution of the Board of Directors and reported to Parliament for approval.

4. The Bank of Alduria shall have a Board of Directors consisting of as many directors as may be nominated by the Cabinet and appointed by the President.

5. The Governor of the Bank of Alduria, the Secretary of Finance and Commerce, the Secretary of the Interior, and the Secretary of State shall all be ex officio directors.

6. Except for the ex officio directors, the directors shall be appointed for a term of five (5) AN years, and may be reappointed upon the expiration of such term.

7. The powers and functions of the Board of Directors shall be as follows:
7a. To examine policies concerning money, credit, and foreign exchange;
7b. To examine the adjustment of the Bank of Alduria's capital;
7c. To approve the operation plans of the Bank of Alduria;
7d. To examine the budget and fiscal reports of the Bank of Alduria;
7e. To examine and approve major by-laws and regulations of the Bank of Alduria;
7f. To examine the establishment and abolition of the Bank of Alduria's branch offices;
7g. To approve the appointment and the removal of the Bank of Alduria's department heads and their deputies, and branch managers;
7h. To examine matters proposed by the Governor;
7i. To examine the Bank of Alduria's assets and liabilities;
7j. To audit the Bank of Alduria's accounts;
7k. To examine the reserves for the issuance of currency by the Bank of Alduria;
7l. To examine the amount of currency issued by the Bank of Alduria;
7m. To examine and approve the Bank of Alduria's fiscal reports;
7n. To investigate any case involving violation of this Act and the by-laws and regulations of the Bank of Alduria.

8. The Board of Directors may delegate all or part of the above powers and functions to the Governor of the Bank. The resolution of the Governor shall be reported to the Board of Directors for record and approval. The Board of Directors shall establish rules and regulations of board meetings. Such rules and regulations shall be reported to the Department of Finance and Commerce for record.

9. The Bank shall have a Governor with the rank of special appointment and may have up to two Deputy Governors with the rank of selective appointment, all of whom shall be appointed for a term of five (5) AN years and may be reappointed upon the expiration of such term.

10. The Governor shall be the chief executive in directing and supervising the operations of the Bank, shall carry out resolutions of the Board of Directors, and shall represent the Bank on all occasions. The Deputy Governors shall assist the Governor in the execution of the above duties.

11. The Governor shall be the chairman of the Board of Directors. Whenever the Governor is unable to attend, the Deputy Governor designated to act for the Governor shall be the chairman.

12. Upon the resolution of the Board of Directors and approval by the Department of Finance and Commerce, the Head Office of the Bank may establish the following departments to affect its operations:
12a. Banking Department.
12b. Issue Department.
12c. Foreign Exchange Department.
12d. Treasury Department.
12e. Bank Examination Department.
12f. Economic Research Department.
12g. Department of the Head Office.
12h. Accounting Department.

13. The Bank of Alduria may, whenever necessary, delegate other government mints to issue currency by region on its behalf, to be regarded as national currency. The assets and liabilities pertaining to the issuance of such currency shall be for the account of the Bank.

14. The Bank of Alduria shall keep currency equal to one-hundred percent of the currency it circulates in reserve.

15. The Bank of Alduria, to assist economic development, may establish various funds, using savings deposits re-deposited by financial institutions and other special funds to refinance banks for their medium and long-term loans.

16. The Bank of Alduria may, at its discretion and in the light of financial and economic conditions, prescribe an upper limit for the interest rates of bank deposits, and approve the range of interest rates on bank loans as proposed by the bankers' associations.

17. The Bank may, in the light of financial conditions, purchase and sell in the open market the bonds issued or guaranteed by the government, financial bonds issued by banks and bills accepted or guaranteed by banks. The Cabinet or Parliament may veto any decision of the Bank of Alduria to issue Government Bonds at any time prior to issue.

18. The Bank may, whenever it deems that the monetary and credit conditions so warrant, prescribe a maximum limit for various kinds of credits extended by all, or any category of, financial institutions.

19. The Bank shall license and examine all other banks that are to operate within the Republic of Alduria, as well as establish general regulations for their operation.

20. The Bank may contract foreign loans under its credit, or, by executive order, contract, or assist in the contracting of foreign loans in the name of the Republic, under such terms as the executive order may provide.

SECTION 4.National Resources and Infrastructure.
1. The Department of Interior is responsible for the national resources and infrastructure of the Republic of Alduria.

2. The Republic of Alduria must not act in contradiction to the physical and resource maps of the Micronational Cartography Society (hereafter referred to as ‘the Maps’) when it exercises any of its powers under this responsibility.

3. The Department of Interior may declare the existence of natural resources within Alduria.

4. Declarations of existence of natural resources must provide the following information:
4a. Type of resource;
4b. Location;
4c. Any other details prescribed by law.

5. The Department of Interior may declare the existence of infrastructure within Alduria.

6. Declarations of existence of infrastructure must provide the following information:
6a. State the infrastructure type to be declared;
6b. Designate the entity responsible for it;
6c. Specify its location, where relevant; and
6d. State anything else that is prescribed by law.

7. A declaration of existence of infrastructure may only be made under this section if:
7a. It is necessary that the infrastructure have been established for a long time;
7b. The infrastructure cannot practically be created by business or a state-owned industry;
7c. No other alternative is possible.

8. The Department of Interior must have due regard to the requirements of realism and economic stability in the exercise of any powers under this section.

9. The Department of Interior may establish further rules in consultation with the Cabinet and with Parliament relating to the exercise of the powers described in this section.

SECTION 5.Government-Owned Companies, Nationalization.

1. The Government of the Republic of Alduria is entitled to establish government-owned industries and companies.

2. The Government of the Republic of Alduria may only establish such industries through executive order under this section if:
2a. There is a pressing economic need;
2b. No private or otherwise existing Aldurian business is able or willing to carry out the work required.

3. The Government of the Republic of Alduria may sell government-owned industries to private individuals, and must have due regard for market demand in the industry’s relevant sector.

4. The Government of the Republic of Alduria may obtain ownership of private companies and businesses within Alduria.

5. Nationalization must not occur unless:
5a. The company fulfils a pressing economic need and would otherwise stop functioning; or
5b. There is some other compelling and exceptional reason.

6. The Government of the Republic of Alduria must, wherever possible, nationalize a company or business by the normal rules and laws of acquisition.

7. Where it is not possible to comply with the normal rules and laws of acquisition, the Government of the Republic of Alduria must, wherever possible compensate the owners from whom the business or company is nationalized.

8. The Cabinet may establish further rules relating to the exercise of the powers described in this section.

9. The following government-owned companies are hereby established, with initial capitalization provided by the Treasury of the Republic of Alduria:
9a. Aldurian Oil Company (a government-owned oil and natural gas company);
9b. General Company of Alduria; (a government-owned umbrella corporation);
9c. Aldurian Shipbuilding Corporation (a government-owned ship-building company);
9d. National Energy Company (a government-owned provider of electricity);
9e. National Mining Company (a government-owned mining and resource extraction company);
9f. Aldurian Railways (a government-owned railway management and construction company);
9g. National Construction Corporation (a government-owned general construction company);
9h. Telecommunications of Alduria (a government-owned telecommunications and internet service company);
9i. National Aldurian Broadcasting Corporation (a government-owned tri-media company and public service broadcaster);
9j. Armaments of Alduria (a government-owned armaments and munitions company);
9k. Aldurian Mail (a government-owned postal service company);
9l. Aldurian Stock Exchange Corporation (a government-owned stock exchange);
9m. National Military Corporation (a government-owned military uniforms and supplies company);
9n. Aldurian Airlines (a government-owned airline);
9o. Aldurian Aviation Corporation (a government-owned aerospace research, design and manufacturing company);
9p. National Research and Development Corporation (a government-owned research and development company);
9q. Aldurian Petrochemicals (a government-owned petrochemical industry company).

10. Unless otherwise provided by law, the Prime Minister shall be ex-officio Chairman of the Board of Directors of the aforesaid government corporations, and the Cabinet shall constitute the Board of Directors of the aforesaid government corporations. The Prime Minister, with the consent of Cabinet, may by written instrument appoint an Aldurian citizen to be President and Chief Executive of any government corporation, to serve at the pleasure of, and remain accountable to, the Cabinet. Said appointed President and Chief Executive shall possess full authority, subject to law, to govern the affairs of the said government corporation.

11. The corporations under this Article may contract foreign or domestic loans, and issue bonds and commercial papers, under its own credit.

SECTION 6.Business and Citizen Grants.
1. Upon registration or incorporation, all business shall receive a Aldurian Business Grant from the Bank of Alduria of €2,000 that will not need to be paid back. This grant can only be awarded to company bank accounts.

2. Upon approval of citizenship, new citizens shall receive a Citizen’s Dividend from the Bank of Alduria of €800 that will not need to be paid back. This grant can only be awarded to individual citizen bank accounts.

3. The grants under this section may be altered by the Cabinet, subject to review by Parliament.

SIGNED,

Alejandro Campos
President of the Republic

[Natalia Cotilla]

Countersigned,

Natalia Cotilla
Prime Minister