What is the role of bits?

Expropriation refers to the taking of an investment by the host country government without the investor's consent. BITs aim to protect investors from such actions by ensuring that compensation is paid promptly, adequately, and effectively when expropriation occurs.

The compensation provided under BITs is designed to be fair and reasonable, reflecting the full value of the investment at the time of expropriation. This helps to ensure that investors are not unfairly disadvantaged due to actions by the host country government.

In addition to compensation for expropriation, BITs also provide for the transferability of investment-related funds. This means that investors can freely move their money in and out of the host country without delay.

Bilateral Investment Treaties (BITs) are international agreements that outline the rights and obligations of investors and host countries. A key aspect of BITs is the establishment of clear limits on the expropriation of investments.

The transfer of funds is crucial for investors to be able to access their investments and profits. BITs ensure that investors can do so using a market rate of exchange, protecting them from unfair currency conversions.