The Cabinet of Ministers of the Republic of Latvia in 1997 February 4, regulation. 64 in Riga (7.17. ¤) rules on local borrowing and guarantees Issued in accordance with the law "on local government budgets," 22 and 26 article 1. These rules shall lay down the procedure by which the authorities can make loans and give guarantees, as well as local government borrowing and the extent of the guarantee.
2. the local government borrowing and guarantees given the context of the current year total amount may not exceed the amount set by the Cabinet of Ministers of the law "on local government budgets" in article 13 are matched within the Cabinet and local mutual negotiations and laid down the law on the State budget for the year.
3. The Cabinet of Ministers adopted each year municipal loan and guarantee distribution of the maximum amount by quarter in increasing order from the beginning of the year.
4. local loans made, concluding with a Treasury loan agreement, in accordance with the law "on local government budgets," 22. the first, third and fourth parts, as well as 23, 24 and 25 the requirements laid down in the article. Minister of finance specific projects, taking into account the country's economic development and financial system stability considerations, may propose to the Cabinet to provide for derogations referred to in this paragraph.
5. the authorities can give guarantees only according to the law "on local government budgets" in article 26 requirements while providing local forecasts the creation of stocks according to the accounting rules.
6. in order to ensure local government financial operations with national macroeconomic policies, the option of using the loan capital (including external loan capital) local loans, municipal property, the municipal functions and complete throughout the country the guaranteed provision of services to the population, as well as to coordinate and possibly reduce local borrowing costs, made environmental protection and regional development Minister to create a municipal loan and guarantee control and oversight Council (hereinafter Council) and approved its Statute. The Council is composed of two representatives of the environmental protection and the Ministry of regional development and the Ministry of Finance and one representative of the Ministry of the economy, the Bank of Latvia and the Latvian Authorities of the Union.
7. the Council technically ensure the protection of the environment and regional development Ministry in accordance with the current year's public budget allocations.
8. The municipality only after receipt of the acceptance of the Council has the right to do or to give a loan guarantee. The Council shall, within three working days, inform the State which issued the authorization for the Government to guarantee local business loan.
9. paragraph 8 of these regulations shall apply to all municipal borrowing and guarantees, except for the laws and regulations of the Cabinet of Ministers proposed an interest-free short-term loans from the State budget according to the law "on budget and finance management ' 40. the requirements set out in article.
10. If the municipality does not comply with these rules 4 and 8 points in these conditions, environmental protection and regional development Minister at the request of the Council suspended the local Government Council (Council) decision, and that decision is cancelled the law "On local governments" in article 49.
11. the local government borrowing or guarantee-related issue is dealt with in the Council, if the application has been submitted to authorities or investment project in which is based the loan or guarantee repayment of the loans and guarantees, as well as complete information on the already existing obligations of the municipality concerned (about the above-mentioned borrowing and guarantee). The Council is entitled to request any information from the authorities or the expert assessment of the projects submitted.
12. the Council shall monitor the financial activities of the local Government on issues related to the loans and guarantees granted, as well as, if necessary, draw up and submit recommendations to local authorities for further action.
13. If a local government action taken does not ensure effective use of the loan or its use does not comply with the Council accepted the project, as well as if you are not a condition of repayment of the loan and other loan-related conditions, at the initiative of the Council of environmental protection and regional development Minister, submit to the Cabinet of Ministers proposals for the municipal takeover of the financial activities of the Cabinet of Ministers.
14. Municipalities are entitled to the protection of the environment and regional development through the Minister to submit the proposals to the Cabinet to re-evaluate the Council should not projects.
15. The Treasury concluded loan agreement with local governments, subject to these rules and other regulatory requirements. The loan agreement can be closed: 15.1. based on the order of the Minister of finance for the short term loan short term financial management according to the law "on budget and finance management ' 40. the requirements set out in article. The following loan interest rates are set according to the bank of Latvia established refinancing rate;
15.2. in accordance with the law "on local government budgets" in article 23 and 24. In this case, the loan interest rate of the loan agreement is determined on the basis of the domestic borrowing the term promissory notes of fruit, plus the rate of 0.5 percent.
16. The Treasury controlled by local Governments concluded loan agreement conditions and, if they are not met, is entitled to due the Treasury funds to write off unchallenged in order from the municipal budget account or transferable instruments, with the exception of the grant funds.
17. Local Government is obliged to give the Treasury the required information about the local government borrowing and guarantee.
18. Fix in 1997 municipal loan and guarantee distribution of the maximum amount by quarter in increasing order from the beginning of the year: 18.1 I quarter-7 million. LAT;
18.2. quarter II-10 million. LAT;
18.3. quarter III-15 million. LAT;
18.4. quarter IV-20 million. Lats.
19. Be declared unenforceable in the Cabinet of Ministers of 21 May 1996 the rules no 180 "rules for municipal loans and guarantees" (Latvia's journal, 1996, no. 91).
Prime Minister a. slice of environmental protection and regional development Minister, Deputy Prime Minister a. Gorbunov will