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CHARACTERISTICS OF THE FINANCIAL INSTITUTION

Belgium, speaking on behalf of the EC, said that they are confident that the GEF will be restructured in a way that will enable it to exercise its financing function. Coherence between the COP and the GEF will be facilitated by universal membership in the GEF. Discussion or work on a set of financing institutions would not be useful towards ensuring a quick provision of financial assistance to developing countries. The EC urged the Secretariat to commence consultations in order to have interim arrangements ready for the first COP, while respecting the primacy of the COP to decide on policy, strategy, programme priorities and eligibility criteria. The COP should not "micro-manage" projects. There is no need for a subsidiary body on financial arrangements, rather this should be the task of the Secretariats.

Australia said that the GEF will be the financial mechanism of the Convention and shared the EC's confidence in the restructuring of the GEF. Bahamas suggested that rather than focussing exclusively on the GEF, the group should devote one day to enumerating the desired characteristics of the institution.