Law No. 7 Of February 5, 1992

Original Language Title:  LEGE nr. 7 din 5 februarie 1992

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LAW No. 7 of 5 February 1992 concerning financial coverage of the obligations of the State remaining neregularizate on 31 December 1990 and takeover by the State and commercial banks registered losses in 1989 and 1990 by the operators of State-owned and non-performing bank loans published in PARLIAMENT ISSUING the OFFICIAL GAZETTE NR. 17 of 11 February 1992, the Romanian Parliament adopts this law.


Article 1 shall approve the financial coverage of the State's remaining obligations neregularizate as at 31 December 1990 with autonomous administrations, companies and other economic units with state capital, subject to a maximum amount of 92.8 billion lei, according to the annex. 1. Article 2 shall be approved by the state takeover and by commercial banks within the limits of the sum of lei 173.3 billion losses incurred by businesses with the State capital in 1989 and 1990, remaining uncharged, non-performing bank loans granted in prior years for investments, and bank loans to exports and construction-Assembly works carried out in previous years under government agreements trade and cooperation between Romania and other countries.
Commercial banks will take over paying 10% of the amount referred to in the preceding paragraph, in proportion to the related bank loans, by way of discounts, which will cover from a special fund established in accordance with the provisions of point 9 of the annex. 2. in law No. 12/1991 concerning profits tax.
The difference, up to the limit of the amount of 155.8 billion lei, the State, lovingly debt account for losses and boost bank borrowing loans from previous years.


Article 3 acquisition of losses from economic agents with the State capital will be made within 30 days of the publication of this law.
Losses that are retrieved will be released with that side what is covering each trader: a) amounts arising as favourable influences from revaluation of stocks of raw materials, semi-finished products, finished products, etc., determined and retained for this purpose according to legal regulations;
  

b) profit since 1991, according to the law, which is intended to cover losses from previous years;
  

c) Development Fund availability to non-investment expenditure in the year 1991;
  

d) reserve fund set up under the law;
  

e) insurance fund established in 1990 in State agriculture;
  

f) amounts made available to economic agents from the availability of funds of the former Central, blocked their abolition;
  

(g)) the amounts made available to economic agents from the Fund budget to the economy made up of favorable influences resulting from the revaluation of inventories.
  

Losses incurred by economic agents with the State capital from the years 1989 and 1990, according to the data of the balance sheet on 31 December 1990, as well as losses that will take over the State and commercial banks, to a maximum amount of 84.1 billion lei, are playable in the annex. 2. In article 4 the taking over by the State and by commercial banks of bank loans to economic agents with the State capital for investments in previous years, which have become non-performing, which sums up 51.1 billion lei, according to the annex. 3, as well as bank credits in lei have been granted foreign trade enterprises for exports and for construction-Assembly works carried out in previous years, under government agreements, trade and cooperation of Romania in other countries totaling 33.7 billion lei, according to the annex. 4, also within 30 days of the date of publication of this law.


Article 5 shall constitute the national reserve, the geological reserves with the rank of non-ferrous metal content and left in the custody of their units until their liquidation, concentrated stocks zinco-plumboase, manganese ore and metallurgical by-products poor, neprelucrabile by the technologies and capacities currently existing in the country.
Related appropriations concerned stocks limit the amount of 4,436.7 million lei, of which 2,951.7 million at Company "Hillside"-S.A. Copsa Mica and 1,485 million lei at the lead and zinc Autonomous Baia Mare, will take over the State on behalf of the public debt and the commercial banks under the present law. With the sums made from capitalizing on the national reserve stocks, according to the provisions of this law, it will repay the Government debt.


Pursuant to article 6. 3 and 4 of this law, shall constitute commissions made up of representatives of the Ministry of economy and finance, the National Bank of Romania and, where appropriate, the Ministry of Trade and tourism, the Romanian Commercial Bank, Romanian Bank-Jsc Development Corporation, Agricultural Bank-S.A., Romanian Bank for foreign trade Corporation, which will analyze, verify and approve, on the basis of the accounting balance sheets losses and bank loans, loans from autonomous administrations, companies and other economic units with state capital.
Retrieving losses, and bank loans non-performing loans will be made on the basis of reports drawn up between the committees established according to the preceding paragraph and the boards of the economic agents.
Interest due from businesses related to bank loans, as well as losses due to bad loans, calculated and unearned by commercial banks until the take-over of losses and bank credits, loans shall be cancelled. Properly calculated interest shall be cancelled by the National Bank of Romania for refinancing.


Article 7 Bank loans for investments that you have downloaded will be highlighted further by economic operators which they have received and by commercial banks which have granted accounts apart balance sheets and will be pursued by the Ministry of economy and finance, as well as by commercial banks in order to reactivarii and their reimbursement, depending on the financial possibilities of the economic operators concerned , the Fund's resources.


Article 8 bank credits for exports and for construction-Assembly works executed under government agreements, trade and cooperation taken over will be also highlighted further by economic operators which they have received and by commercial banks which have granted, account balances, and in addition will be pursued until the collection or settlement under external contracts and credit agreements.
Ministry of Commerce and Tourism-Foreign Trade Department, in collaboration with the Ministry of economy and finance, the National Bank of Romania, commercial banks and, where appropriate, other ministries will act for the recovery of claims by foreign cash receipt thereof, or bringing in the products listed in these balances, materials and other goods for the domestic market or for capitalizing on third markets, it may have recourse to other common mechanisms in foreign markets , collection of receivables, including: indirect imports through some operations, divestiture or sale swich claims, including their bidding, according to legal regulations.
Foreign currency obtained from the proceeds of foreign claims and related expenses will be ceded to foreign Fund of the State, at the exchange rate on the date of the operations.


Article 9 for tracking and collection of amounts that would result from the reactivation of investment bank loans and foreign debts taken from the recovery, commercial banks will collect the amount in lei of claims recovered, a Commission that will negotiate with the Ministry of economy and finance.


Article 10 internal public debt constituted according to the provisions of this Act, including interest in respect of loans contracted on behalf of this public debt, it will refund the payment, respectively, of the following resources: a) net amounts obtained from reactivating and repayment obligations on economic operators, which represent investment bank loans taken on behalf of the public debt;
  

b) net amounts lei obtained from recovery claims on behalf of the foreign public debt, which represent the equivalent in lei at the official rate, currencies will be transferred to the State's Foreign Exchange Fund and equivalent value of products or goods are brought into the country in their respective claims;
  

(c) liquidity Fund) budget established at the level of the national economy on account of the stimulatory effect of revaluation of stocks left over after covering the financial obligations of the State of neregularizate as at 31 December 1990 and other legal expenses in this Fund budget approved;
  

d) amounts fixed and approved annually, with this destination, by law, from selling shares it holds in State companies;
  

e) other sources set out according to the law.
  


Article 11 public debt constituted according to the provisions of this law will be covered by the liquidation through bank loans, negotiated on behalf of the State, on behalf of and with the approval of the Ministry of economy and finance, the National Bank of Romania.
Shall authorise the National Bank of Romania to secure refinancing of commercial banks through a special feature with a leased interest. This facility will cover two thirds of the loan granted by commercial banks for public debt constituted according to the present law.

Interest in respect of loans shall be calculated and paid quarterly, the remaining loan.


Article 12 any loss of autonomous public corporations, companies and other economic units with state capital, registered after the dates referred to in article 1. 2, will trigger the bankruptcy procedure.
This law was adopted by the Senate at its meeting on 23 January 1992 in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.
Academic SENATE PRESIDENT ALEXANDRU BÂRLĂDEANU this law was adopted by the Chamber of deputies at its meeting of 27 January 1992, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.
PRESIDENT of the CHAMBER of DEPUTIES MARTIAN D Annex 1 financial SITUATION neregularizate State obligations at 31 December 1990 and covering their financial-million-neregularizate Obligations covered by the favourable influences: gold revaluation extra-budgetary Fund *) 92,805.5 52,852.8:39,952.7 TOTAL of which:-unfavorable Differences on imports of raw materials during the period 1 January to 31 October 1990 25.243 x * x) *-25.243)-Differences in adverse imports of raw materials during the period 1 November to 31 December 1990 155.0 155.0 unfavorable Differences-to-exports carried out during the period 1 November to 31 December 1990 9,803.9-9,803.9-subsidies and differences in price and unsettled budget fare in 1990 8,170.9-8,170.9-investment and other spending unsettled from the budget in 1990 9,479.2-9,479.2-completing the paid-up capital of the State of the subscribed capital at commercial banks 36,143.7 36,143.7-State Budget Deficit at the end of 1990 3,809.0 3,809.0-Note *) as it constitutes funds revaluation of stocks and selling housing from the State housing stock.

Note *) including related interest of bank loans used to cover temporarily unfavourable differences on imports until their settlement from public funds.


Annex 2 the SITUATION of losses businesses owned by the State in 1989 and 1990, remaining uncovered financial at the end of 1990, coverage and sources of losses that are retrieved by the State and commercial banks-million-the amount of Loss-the year 1989 94,088.0-Loss 39,698.1 of 1990-Loss TOTAL LOSSES from disasters 3,147.6 136,933.7: of which: 1. Losses covered financial 52,818.6 2. Losses taken by the State and commercial banks 84.115.1 Annex 3 SITUATION of bank loans to the economic agents with the State capital for investments in previous years, which have become non-performing-million-Ministry/Department Amount TOTAL ECONOMY: 51,064.9 Ministry of industry 8,480.7 of which: electricity-Autonomous "Leo" Bucharest 2,930.5-613.0-Department of wood industry Construction Machinery Industry Department 150.0-chemical and Petrochemical Industry Department 948.0-3,545.4-Department of Metallurgical Department of Industry Department of Industry 5.2-Electrical construction materials 288.6 Ministry of trade and tourism of which: 205.3-12.1-internal trade Department Department Department of external trade Tourism 88.4 104.8-Ministry of public works and town and country planning 1,167.8 of which:-Department of public works and the Ministry of agriculture and food 1,167.8 22,715.3 of which:-the State Department of Agriculture-Food Department 14,596.8 3,031.6-1,170.0-Direction Agriculture Mechanization Department Improving Land 1,195.4-Units directly subordinate to the Ministry of environment 2,721.5 1.319.5 of which :-1,287.5-Water Department "Rnp"-the 32.0 r.a. Counties and Bucharest 221.7 loans, established financial bodies and counties Bank, who will take over the control and on the basis of the nominal lists submitted by the Ministry of economy and finance 16,954.6 Annex 4 SITUATION of bank credits in lei have been granted foreign trade enterprises for exports and for construction-Assembly works executed in previous years in Government, commercial agreements and cooperation with other countries-million lei to the Ministry/Department of Economics: the sum TOTAL of 33,710.7 Ministry of industry 20,053.6 of which: Industry-Construction machines Department 10,802.7-1,779.5 Electrotechnical Industry Department-Department of wood industry 1,043.0-Department of chemical and Petrochemical Industry 621.4-Department of Textile and Leather 3,699.7-650.6-Department of Metallurgical Department of oil-637.3 "Romelectro" 591.3-228.1 Mines Department Ministry of agriculture and food 464.9 the Ministry of public works and town and country planning Ministry of National Defence 3,807.3 9,384.9 — — — — — — — — — — — ------