First annual meeting of the Board of Governors

The newly appointed NIB’s Board of Governors held its first Annual Meeting on 19 May 2005 at Frederiksborg Castle in Hillerød, Denmark, under the Chairmanship of Mr. Geir H. Haarde, Minister of Finance of Iceland.

At this meeting the Nordic Council of Ministers of Finance and Economy formally handed over the audited and approved Accounts of NIB for 2004 to the new Board of Governors and to the Board of Directors responsible for the Bank’s activities from the beginning of the year 2005.

In February 2004 representatives of the governments of the five Nordic countries and the three Baltic countries, Estonia, Latvia and Lithuania, signed a new agreement on NIB to effect the membership of the Baltic countries in the Bank on equal footing with the five founding members, Denmark, Finland, Iceland, Norway and Sweden. The new agreement on NIB entered into force on 1 January 2005.

The enlargement of NIB’s membership is an important event in the relations between the Nordic and the Baltic countries. NIB is the first Nordic, intergovernmental institution to include the Baltic countries among its members. The new agreement provides for a new governance of NIB. At the highest level the eight member countries are represented in the Board of Governors of the Bank, composed of eight Governors. Each member country has designated a cabinet minister as its Governor.

The Board of Governors noted that the Bank is serving its basic purpose of promoting sustainable economic development in its member countries and their neighbouring countries in a constructive and positive manner. The Board of Governors further noted that the Bank’s activities continue to produce good financial results; for 2004 a record high dividend of EUR 55 million will be distributed. The prospects for the Bank in 2005 and in the years ahead are judged to be favourable. The Governors pointed out that the enlargement of NIB provides the eight member countries with a common financial institution, promoting their economic growth through cross-border investment in environmentally sound infrastructure and industry, both within and outside the membership region.

The Board of Governors thanked Mr. Jón Sigurðsson who relinquished his position as President and CEO of NIB on 31 March 2005 for his leadership and contribution to NIB’s successful development over eleven years, and welcomed his successor, Mr. Johnny Åkerholm, to his important post as NIB’s President and CEO from 1 April 2005.

The Board of Governors appointed the Governor for Denmark, Mr. Bendt Bendtsen, Minister of Economic and Business Affairs, as its Chairman for the period 1 June 2005 to 31 May 2006.