Rules For Municipal Loans And Guarantees

Original Language Title: Noteikumi par pašvaldību aizņēmumiem un galvojumiem

Read the untranslated law here: https://www.vestnesis.lv/ta/id/173271

Cabinet of Ministers Regulations No. 196, Riga, 25 March 2008 (pr. No 19 51) regulations on local government borrowing and guarantees Issued in accordance with the law on budget and financial management of the fifth paragraph of article 41 and rule "on the municipal budget" article 26, first paragraph 1. determines the order in which the authorities can take loans and provide guarantees.
2. Municipalities can take short-term or long-term loans and give guarantees, concluding the loan agreement with the Government or other lenders.
3. to monitor the financial activities of the local Government on issues related to take loans, guarantees provided and planned the attack and took up guarantees, as well as, where appropriate, provide recommendations to local authorities for further financial transaction, the Minister of Finance shall establish the municipal loan and guarantee control and oversight Council (hereinafter Council) and approved its Statute.
4. the Council supports the Ministry of Finance according to the allocations from the State budget for the current year.
5. the Council consists of one representative from the Ministry of finance, the Ministry of fisheries today, Mike, Ministry of environment, regional development and local government Ministry, the Bank of Latvia, Latvian Authorities of the Union and the Treasury.
6. The municipality may take a loan or guarantee, only after the receipt of the decision of the Council, if it is supported by the decision of the local government borrowing, or give a guarantee, except for this provision, paragraph 13.
7. On the basis of the loan contract with the Treasury or the guarantee contract has a Council decision which supported the decision of the local government borrowing, or provide a guarantee.
8. not later than five working days after the meeting, the Council in its decision (the minutes statement) issued by the municipality concerned and meeting the other copy shall be sent to the State Treasury.
9. to municipal finance ministers received approval for the right to enter into loan agreements with other lenders, the municipality after the receipt of the decision of the Council, which supported the decision of the local government borrowing, the Ministry of finance submitted the application to the Minister of finance, and the loan agreement.
10. The municipality may enter into a loan agreement with another lender after Finance Minister has confirmed another lender.
11. the Council decision shall be adopted by the Council. The Council meets at least once a month.
12. The Council venue, time and agenda shall be communicated to all the members of the Council no later than five working days before the regular session of the Council. If necessary, the President of the Council shall have the right to convene an extraordinary meeting, informing the members of the Council.
13. providing guarantee for those debt obligations that take student student loans and student loans from credit institutions shall submit to the Council, the municipality information sending: 13.1. local Government Council (Council) decision on the provision of a guarantee, giving the guarantee and its extent, as well as giving the lenders, the proposed repayment terms, rate of interest on the loan and loan guarantees; sāšan atmak
13.2. information about local government borrowing, bonding and long term liabilities.
14. If the municipality does not follow that rule 2, 6, 7, 10 and 13 of the type referred to in paragraph 1, the Finance Minister after the Council recommendation proposes regional development and Municipal Affairs to suspend the local Government Council (Council) decision.
15. local application for receiving a loan review the Council if, not later than 10 working days before the relevant Council meetings are presented in the following documents: 15.1 the local Government Council (Council) decision to take the loan. The decision shows the purpose and the amount of the loan, and the lender, the Treasury or other loan withdrawal timetable, up to a three-year term, repayment term, provided the scheduled deferred principal payment and repayment of the loan guarantees;
15.2. in accordance with the local Government Council (Council) decision prepared loan applications (annex 1);
15.3. the municipal authorities statement of accounts payable and accounts receivable documents in the first of the month;
15.4. the loan feasibility study (annex 2);
15.5. local Government Council (Council) President's attestation (annex 3): 15.5.1. the date of submission of documents to the municipality does not have tax debt and other State specific minimum charges;
15.5.2. that the loan will be spent according to purpose;
15.5.3. the municipality has developed technical documents according to the construction of laws and regulatory requirements (if the municipality implement construction project);
15.6. estimate and/or request;
15.7. local borrowing, bonding and long term commitment amount (annex 4), including a planned new borrowing.
16. If the local Government shall submit an application in the European Union co-financed the project, in addition to the provisions mentioned in paragraph 15 of the document to be submitted to the second level intermediate copy of the contract concluded on 1. "section in the text of the Agreement, the terms" 2. under the "subject of the contract", 3. "duration of the Introduction section, the section" 4 "Co-financing on the provision and payment arrangements" and the section "parties 17. signatures ' contain information.
17. local application delivery guarantee appearance at the hearing, the Council if, not later than 10 working days before the relevant Council meetings are presented in the following documents: 17.1. local Government Council (Council) decision to give a guarantee. The decision shall specify the Corporation, which provides a guarantee, and the local Government of the capital of that Corporation (in percentage), the loan amount and purpose of the proposed repayment terms and the planned borrowing interest rate;
17.2. in accordance with the local Government Council (Council) decision to prepare an application for provision of the guarantee (annex 5);
17.3. the municipal authorities statement of accounts payable and accounts receivable documents in the first of the month;
17.4. the Corporation proof that the head of the Corporation at the date of submission of the document is not a tax debt and other State specific minimum charges;
17.5. the financial statements (balance sheet, profit and loss statement) that the nature of the dug Corporation financial status for the previous financial year;
10.9. local borrowing, bonding and long term commitment amount (annex 4), including the new planned. 
18. the local authorities, which provide guarantees for multiple local government created the Corporation, may empower one local presentation of all the documents in accordance with the provisions of paragraph 17. 
19. The municipality, which is in accordance with the provisions of paragraph 18 is authorized to submit the documents, in addition to the provisions referred to in paragraph 17 of the paper they presented guarantee submission summary (annex 6).
20. The Council has the right to: 20.1. to request and receive any more information from the local government, if it requires a specific examination of the application;
20.2. If necessary, hold a Council extraordinary meeting specific local outings, if the Council considers that the issue is possible only when you examine the situation on the ground;
20.3. in monitoring the financial activities of the local authorities in matters related to loans and guarantees, to hold meetings, outings to check or loan are spent in Council for the purposes specified in the permit;
20.4. the monitoring of the municipal debt obligations associated with municipal bonds, guarantees and long-term commitments to assess possible risk factors and their direct impact on municipal budgets;
20.5. to require the participation of the representatives of local authorities, which are considered the municipal submission.
21. Local Government borrowing can be removed for the implementation of the project in the medium term, not exceeding three years. Local Government Council (Council) decision shall indicate the amount of the loan withdrawal distribution over the years according to the approved schedule for the implementation of the project.
22. the Municipalities that received the loan, which is scheduled to be removed in the medium term, each year up to 15 January, starting from the moment of receipt of a loan provided to the Council information on the assigned medium-term loan (annex 7), indicating what scope is removed and used financial year medium-term loan granted. The municipality granted the loan amount may be increased in the coming years for the financial year does not remove the part of the loan.
23. the implementation of the project shall be submitted by the Council of the local municipal Council (Council) President's assurance that the project is completed and information on the total loan amount of waste.
24. The municipality is obliged to specify the amount of the loan according to the results of the procurement procedure, but not exceeding a borrowing of the municipal decision. This information shall be submitted by the municipal Treasury borrowing.
25. the local Government shall have the right to regional development and local government through the Minister to submit the proposals to the Cabinet Council does not accept the submission review.

26. The Treasury control financial obligations under the concluded loan agreement. If the contract is not fulfilled, the Treasury is entitled to 10 working days of unchallenged agenda for times the unpaid amount from the appropriate municipality due to the amount of individual income tax or financial cohesion fund grants.
27. The State Treasury shall inform the Council of the local authorities, which do not fulfil the conditions of the loan agreement.
28. within 10 working days after the conclusion of the contract of guarantee, the municipality shall send the procurement monitoring Bureau for inclusion in the register of such Subscriber information about the borrowers, which according to paragraph 17 of these regulations provides a guarantee: 28.1. borrower's name;
28.2. registration number;
28.3. address;
28.4. the signing of the Treaty of guarantee.
29. the municipalities are obliged to provide the Treasury informed the requested information for all local governments in loans and guarantees provided.
30. Be declared unenforceable in the Cabinet of 17 December 2002, Regulation No 543 "rules on borrowing and guarantees of local self-government" (Latvian journal, 2002, nr. 189; 2003; 2004, nr. 86.171. no).
Prime Minister i. Godmanis Finance Minister a. Slakter the Editorial Note: the entry into force of the provisions by 4 April 2008.
 
1. the annex to Cabinet of Ministers of 25 March 2008. Regulations No 196 Finance Minister a. Slakter by Annex 2 of the Cabinet of Ministers of 25 March 2008. Regulations No 196 Finance Minister a. Slakter the annex 3 of the Cabinet of Ministers of 25 March 2008. Regulations No 196 Finance Minister a. Slakter 4. Annex to the Cabinet of Ministers of 25 March 2008. Regulations No 196 Finance Minister a. Slakter annex 5 by the Cabinet of Ministers of 25 March 2008. Regulations No 196 Finance Minister a. Slakter annex 6 by the Cabinet of Ministers of 25 March 2008. Regulations No 196

Finance Minister a. Slakter annex 7 by the Cabinet of Ministers of 25 March 2008. Regulations No 196 Finance Minister a. Slakter States