Law of the Republic of Lithuania Amending Article 23 of the Law on the Bank of Lithuania


Published: 0000-00-00

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LAW OF THE REPUBLIC OF LITHUANIA AMENDING
ARTICLE 23 OF THE LAW ON THE BANK OF LITHUANIA
 
15 December 2011   No XI-1800
Vilnius
 
(Official Gazette No 99-1957, 1994; No 28-890, 2001;
No 27-1079, 2003; No 28-869, 2004; No 147-6553, 2009)
 
 
 
Article 1. Amendment of Article 23
1.   Article 23 shall be amended and set forth to read as follows:
“Article 23. Coverage of the Loss and Allocation of the Profit of the Bank of Lithuania
1. Following the approval of the set of financial statements of the last completed financial year in accordance with the procedure laid down by this Law, profit (loss) for that year and undistributed profit carried over from the previous financial years shall be attributed to the net distributable profit (loss). Thereafter the net distributable profit shall be allocated or the net distributable loss shall be covered in accordance with the procedure laid down by this Article.
2. Net distributable loss shall be covered from the reserve capital of the Bank of Lithuania. When the reserve capital is not sufficient to cover such net distributable loss, the remaining uncovered losses are carried forward to be covered by the net distributable profit of the succeeding financial years.
3. Net distributable profit shall be allocated in the following sequence:
1) to cover the uncovered loss carried forward;
2) from the excess remaining after the allocation under subparagraph 1 of this paragraph, an amount shall be allocated to authorised capital up to the amount specified in Article 20 of this Law;
3) from the excess remaining after the allocation under subparagraph 2 of this paragraph, an amount shall be allocated to reserve capital up to the amount independently established by the decision of the Board of the Bank of Lithuania taking into account the risks and a potential impact thereof, however, this capital shall be no less than five amounts of the authorised capital of the Bank of Lithuania;
4) from the excess remaining after the allocation under subparagraph 3 of this paragraph, an amount shall be allocated to the state budget as the profit contribution of the Bank of Lithuania. This contribution shall not exceed the amount corresponding to 70 per cent of the calculated average of the profit (loss) of the Bank of Lithuania of the last three completed financial years.
4. The surplus of the distributable profit remaining after the allocation under paragraph 3 of this Article shall be carried forward as undistributed profit and shall be allocated in succeeding financial years according to the procedure laid down by this Article.”
 
Article 2. Final Provisions
1. The provisions of Article 23 of the Law on the Bank of Lithuania amended by Article 1 of this Law shall be applied for allocation (coverage) of the distributable profit (loss) for 2012 and onwards.
2. Upon the approval of the set of financial statements of the Bank of Lithuania for 2011, the part of the contribution to the state budget of the Bank of Lithuania profit for 2011, which shall be paid to the state budget in 2012, may be, on the basis of the decision of the Board of the Bank of Lithuania, withheld for compensation of the market value of the real estate retired from active use by the Bank of Lithuania, which was recognised as unnecessary by the decision of the Board of the Bank of Lithuania and is envisaged to be transferred to the state enterprise State Property Fund and (or) other state institutions in accordance with the procedure laid down by the laws of the Republic of Lithuania. This withheld amount of the profit contribution shall be equal to the market value of the real estate of the Bank of Lithuania to be transferred, which is established by the valuation of the real estate pursuant to the provisions of the Law of the Republic of Lithuania on Assets and Business Valuation Principles. This withheld amount shall be recognised as income of the Bank of Lithuania for 2012 at the same time when the real estate is transferred to the state enterprise State Property Fund and (or) other state institutions.
3. The provisions of paragraph 2 of this Article shall be applied only in case where the amount being allocated to the state budget in the course of the allocation of the profit of the Bank of Lithuania for the year 2011 as the profit contribution of the Bank of Lithuania is sufficient to compensate the market value of the real estate retired from active use by the Bank of Lithuania, which was recognised as unnecessary by the decision of the Board of the Bank of Lithuania and is envisaged to be transferred to the state enterprise State Property Fund and (or) other state institutions in accordance with the procedure laid down by the laws of the Republic of Lithuania.
 
Article 3. Entry into Force of the Law
This Law shall enter into force on 1 January 2012.
 
I promulgate this Law passed by the Seimas of the Republic of Lithuania.
 
 
 
PRESIDENT OF THE REPUBLIC                                                  DALIA GRYBAUSKAITĖ