Foreign Investment Political Reinsurance Act (FIPRA)
Whereas, past turbulence in our domestic affairs, due to the secession of St. Esprit and Tilapia, and foreign assisted terrorism now rooted out, has made it difficult for potential foreign investors wishing to benefit from our educated work force, convenient location, and extensive infrastructure to secure political risk insurance against expropriation, currency inconvertibility, and war for possible projects here, and
Whereas, direct guarantees by the United Provinces of Eutopia are not effective in overcoming the reluctance of foreign insurers to provide this coverage, and foreign investors are unwilling to accept such coverage from Omnicare, as it is itself largely subject to those same risks, be it therefore
Resolved that potential investors in new projects or expansions of existing projects in the United Provinces of Eutopia can register their project and international political risk insurance supplier with the Ministry of Trade and International Affairs, which upon verification will accept an application from the insurance company for reinsurance of United Provinces of Eutopia political risk, for a premium rate to be set by the MTIA. The Federal government will provide a guarantee for the policy amount to the Eutopian Central bank. The Eutopian Central bank will then pledge a like amount of its holdings of foreign government securities held at international recognized custodians for the benefit of the insurer providing the political risk coverage for the registered project.
