Law No. 63 Of 8 July 1992 On Ratification Of The Loan Agreement Between Romania And The International Bank For Reconstruction And Development, Concluded At Washington On 2 June 1992

Original Language Title:  LEGE nr. 63 din 8 iulie 1992 pentru ratificarea Acordului de împrumut dintre România şi Banca Internaţională pentru Reconstrucţie şi Dezvoltare, încheiat la Washington la 2 iunie 1992

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LAW No. 63 of 8 July 1992 on ratification of the loan agreement between Romania and the International Bank for reconstruction and development, concluded at Washington on 2 June 1992, published in PARLIAMENT ISSUING the OFFICIAL GAZETTE NR. 160 of 14 July 1992, the Romanian Parliament adopts this law.


Article 1 shall ratify the loan agreement between Romania and the International Bank for reconstruction and development, worth 400 million dollars, the Washington S.U.A. on 2 June 1992.


Article 2 the Government shall submit quarterly reports to Parliament on the State of completion of the proposed measures for compliance with the clauses provided for in the agreement ratified by article. 1. This law was adopted by the Senate at its meeting on 23 June 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 on 29 June 1992, with due regard for the provisions of article 7. 74 para. (2) of the Constitution of Romania.
PRESIDENT of the CHAMBER of DEPUTIES MARTIAN D LOAN AGREEMENT (structural adjustment Loan) between Romania and the International Bank for reconstruction and development loan agreement, dated June 2, 1992, (loan) between Romania and the International Bank for reconstruction and development (Bank) considering that: (A) the Bank has received a letter dated 4 May 1992 on behalf of the Borrower, in which is described a programme of actions objectives and policies intended to achieve structural adjustment of the economy to a borrower (hereinafter the program) to declare the commitment of the borrower for the execution of the programme and by requesting assistance from the Bank to finance emergency imports required during execution; and (B) on the basis of, inter alia, of the above mentioned, the Bank decided that the support program to assist the borrower through a loan that will make in two installments, according to those who follow.
As a result, the aforementioned parties have agreed upon the following: Article 1 General terms and conditions. Section 1.01 definitions-"General conditions applicable to loan and guarantee agreements" of the Bank, dated 1 January 1985, as amended below (terms and conditions) constitute an integral part of this agreement: (a) paragraph) section 2.01, 11 will change as follows: "by means of imports and other activities that can be funded from the proceeds of the loan according to the provisions of the annex. 1 to the agreement. ";

b Section c) July 09) will change as follows: "(c)) no later than 6 months after the expiry date or at a later date agreed for this purpose between the borrower and the Bank, the borrower will prepare and provide a report to the Bank with the required details and content reasonably by the Bank, on the implementation of the programme referred to in the preamble to the agreement on the loan , that the borrower and Bank their obligations according to the loan agreement and the loan objectives "; and (c) the Last sentence) section 3.02 are removed.
  

d) in section 6.02, OT renumeroteaza k) is like (1) and it added a new subparagraph (k)), which reads as follows: "an extraordinary situation) will be appeared, under which any additional loan drawdown will be inconsistent with the provisions of art. III, section 3 of the Statute of the Bank. "
Section 1.02. -If the context requires otherwise, the terms defined in the General conditions and in the preamble to this agreement have the respective meanings set forth in them, and the term ' S.I.T.C. "means International Standard Trade Classification, revised the third time (S.I.T.C. Rev. 3), published by the United Nations Statistical Papers, Series M, no. 343 (1986).


Article 2 the loan Section 2.01. -The Bank agrees to lend to the borrower, terms and conditions displayed or referred to in the loan agreement, various currencies which will have a value equivalent to the amount of the summed four hundred million dollars ($ 400,000,000), which represent the sum of loan drawdowns, with each shot takes into account the Bank evaluated of the date of drawdown.
Section 2.02. -the amount of the loan) can be drawn from the loan account in accordance with the provisions of the annex. 1 to this agreement.

b) Borrower may, for the purposes of the programme, to open and maintain a deposit account in dollars to the Bank of Romania's national team, in the terms and conditions satisfactory to the Bank. Deposits and payments in and out of the special account shall be made according to the provisions of the annex. 5 to this agreement.
  

Section 2.03. -The expiry date will be December 31, 1993 or a later date established by the Bank. The Bank will notify promptly Borrowed over the date on the prolongation.
Section 2.04. -The borrower will pay the Bank a Commission at regular intervals of inactivity at the rate of three-fourths of a percentage point (3/4 of 1%) per year for the capital loan netras.
Section 2.05. -a) Borrower will pay interest periodically to the capital of the loan for the amounts drawn and unused, at an equal rate, for each interest period, the cost of borrowing in the previous semester determined qualified, plus one-half of one percentage point (1/2 of 1%). At each of the particulars specified in section 2.06. of this agreement, the borrower will pay interest in respect of capital nerambursat during the previous interest, calculated at the rate applicable during that period of interest.

b) as soon as possible after the end of each quarter, the Bank shall notify the borrower the cost of qualifying loans determined for that semester.
  

c) for the purposes of this section: (i) the period of interest represents a period of six months ending on the date immediately preceding each data specified in section 2.06. of this agreement, beginning with the period of interest in which they have signed this agreement.
(them) The cost of qualifying loans represent the cost, as reasonably determined by the Bank and expressed as a percentage per annum of the unpaid Bank loans, committed after 30 June 1982, excluding those loans or part thereof allocated by the Bank to fund: (A) Investment Bank; and (B) loans that will be made by the Bank after 1 July 1989, with interest to be determined otherwise than according to paragraph a) of this section.
(iii) represents the first Semester 6 months or 6 months of the following calendar year.

d) at the time that may be specified by the Bank through the preavizarea Borrower with no less than 6 months), subparagraphs b and c)) (iii) of this section shall be amended as follows: ' a) Borrower will pay interest to the non-refundable amounts drawn loan and periodically, at a rate for each quarter is equal to the cost of qualifying loans determined for the preceding quarter plus one-half of one percentage point (1/2 of 1%). At each of the particulars specified in section 2.06. of this agreement, the borrower will pay interest appropriate in respect of the outstanding part of the period of interest, calculated at the rates applicable during the period of interest. "" b) as soon as possible after the end of each quarter, the Bank shall notify the borrower the cost of loans qualifying for that quarter. "" c) (iii) Quarter represents a period of 3 months starting January 1, April 1, July 1 or October 1 in any calendar year. "
Section 2.06. -Interest and other fees will be payable semiannually on January 15 and July 15 of each year.
Section 2.07. -The borrower will repay the loan amount according to the schedule set out in annex 4 to the depreciation. 2 to this agreement.


Article 3 special clauses Section 3.01. -a) periodically, the borrower and the Bank, at the request of either party, will have discussions on the progress made in carrying out the programme, and the actions specified in the annex. 4 to this agreement.

b) Previously of such discussions, the Bank, the borrower shall provide for analysis and review, a report on the progress made in carrying out the programme with details reasonably requested by the Bank.
  

Section 3.02. Excepţind-if the Bank agrees otherwise, the purchase of goods that will be financed from the proceeds of the loan will be governed by the provisions of the annex. 3 to this agreement.
Section 3.03. -a) Borrower will you or will ensure the keeping of obvious and appropriate accounts to operate according to the accounting practices of healthy reflection of expenditures financed from the proceeds of the loan.

(b)): (i) the borrower will keep record and accounts referred to in paragraph a) of this section, including those for the special account for each fiscal year in which it was conducted, according to the accounting principles of accounting applied by the independent accountants, acceptable to the Bank;
(them) will provide the Bank as soon as it is available, but in any case not later than 6 months after the end of each year, a certified copy of this report surveys carried out by the experts, given the scope and details of reasonably requested by the Bank; and (iii) such other Bank will provide information about the records and accounts referred to as well as expertise will be requested periodically, reasonably be expected by the Bank.

c) for all expenses for which were made at the expense of loan drawdown based on the statements of expenses, Borrower:
  


(i) you or will ensure the keeping, according to the paragraph a) of this section, for obvious and accounts reflecting such expenditure;
(them) will keep for at least another year after the Bank received the expertise report for the fiscal year in which the last drawing was made from the loan account, all documents (contracts, orders, invoices, transport documents, receipts and other documents) emphasizing these expenses;
(iii) will provide an opportunity to representatives of the Bank to examine these documents; and (iv) ensure that these obvious and accounts to be included in the annual surveys referred to in subparagraph b) of this section and that the expertise report to contain a separate opinion of Chartered Accountants, which look like statements of expenditure submitted during the fiscal year concerned, as well as the procedures and internal controls involved in their preparation , can guarantee the accuracy of firing to which it refers.


Article 4 supplementary Condition suspension Section 4.01. -For the purposes of those referred to in section 6.02. (1) of the General conditions is specified the following additional condition, namely the appearance of a situation which would make unlikely to carry at the end of the program or any part of it.


Article 5 Termination Section 5.01. -The term of ninety (90) days after the date this agreement is specified for purposes of section 12.04. and conditions.


Article 6 the borrower Representatives. Addresses Section 6.01. -Minister of economy and Finance of the borrower is designated as the representative of the borrower for the purposes of section 11.03. and conditions.
Section 6.02. -Specify the following addresses for the purposes of section 11.01. conditions: For Lent: Ministry of economy and finance, Apolodor Street nr. 17, Sector 5, Bucharest Romania Telex: 11239 For Bank: International Bank for reconstruction and development, 1818 H Street, N.w.a.

 


 

Washington, D.C. 20433 United States of America cable Address: Telex: INTBAFRAD 248423 (RCA) Washington, D.C. 82987 (FTCC) 64145 (WUI) or 197688 (TRT) for the certification of the above, the Parties present, through representatives authorised according to the procedure, have agreed that the agreement should be signed on behalf of the District of Colombia-United States of America, on the day mentioned at the beginning year.
ROMANIA Through authorized representative INTERNATIONAL BANK for RECONSTRUCTION and DEVELOPMENT Through regional Vice-president Europe and Central Asia Schedule 1 Pulling from loan amounts 1. In accordance with the provisions as specified or referred to in this annex, the amount of the loan can be drawn from the loan account for expenses incurred (or, if the Bank agrees, to be carried out) with reasonable costs of goods required during execution of the programme and which will be financed from these amounts.
2. by exception to the provisions of paragraph 1 above, shall not make drawdowns for: a) for goods included in the following groups and subgroups S.I.T. C, or any groups and sub-groups which will replace them according to some future revisions so designated S.I.T.C. Bank by notifying the borrower Group Sub-group Description articles 112-121-liquor unmanufactured tobacco 122, waste-manufactured tobacco (whether or not containing tobacco substitutes) 525-radioactive materials and associated with them-667 pearls, precious and semiprecious stones, unprocessed or processed 718 718.1 nuclear reactors and parts thereof, fuel elements (cartridges), non-irradiated for nuclear reactors 728 728.43 tobacco processing Machinery 897 897.3 Jewelry made of gold, silver and platinum group metals (except for watches and clocks housings) as well as processed goods made of gold and silver (including jewellery) 971-gold nemonetar (excluding gold watches and concentrates) b) expenses in the currency of the borrower or for goods supplied from the territory of the borrower, the borrower's currency, whether it is the same with other countries, in that currency for the goods produced in the territory of that;
  

c payments for expenses) prior to the date of this agreement, with the exception of fire in a running sum not exceeding the equivalent of 80 million dollars that can be made into account payments for these expenses before that date but after 24 February 1992;
  

d) expenditure for goods purchased under contracts for values less than the equivalent of $ 100,000;
  

(e) expenses for supplies provided) under a contract that any national or international financial institution or agency, other than the Bank, will be funded or will be accepted to finance; and f) expenditure on goods intended for a military or paramilitary purpose or for consumption.
  

3. the expenses for a goaltender contracts for buying goods with a value estimated at less than $ 1 million may be required by the Bank based on the statements of expenditures according to the terms and conditions specified by the Bank.
4. To the extent possible, requests for shooting will be reunited so that demand for shooting to be done for cumulative amounts echivalind no less than $ 5 million.
5. No shooting won't perform and no commitment will not be assumed for sums or at the behest of the borrower, with regard to expenditure to be financed from the proceeds of the loan after loan aggregate amounts drawn from the loan account together with the total amount of such commitments will have reached an equivalent of 250 million u.s. dollars unless the Bank will be satisfied, after an exchange of views under the provisions of section 3.01. This agreement, based on the obvious satisfaction of Bank: a) of the progress made by the borrower in the performance of the program; and (b)) that were undertaken actions presented.
6. If, as a result of the exchange of views presented in paragraph 4 above, the Bank will notify the borrower that the progress and actions taken are not satisfactory and, within 90 days after this notification, the borrower will not have made progress and will not be undertaken to the satisfaction of the Bank, then the Bank may, on the basis of a notice to the Borrower netrasa, or terminate the loan amount or any part of it.


Annex 2 Timetable for repayment of capital Repayment Date depreciation (expressed in dollars) *) at each 15 January and 15 July, commencing January 15, 1998 until January 15 and July 15, 2009 16,665,000 2009 16,705,000 Note *) figures in this column represents the dollar equivalent determined at the respective dates of withdrawal. See General conditions, 3.04 sections. and 4.03.

First reimburse under section 3.04. b) of the General conditions, the first to pay for the amount of capital at any maturity of the loan that is paid in advance will be below the specified percentage for the anticipated refund: reimbursement anticipated First interest rate (expressed as a percentage per year) applicable on the date of repayment of the loan multiplied by anticipated: Not more than 3 years before maturity 0.18 more than 3 years but not more than 6 years before maturity more than 0.35 but no more than 11 years before maturity 0.65 for more than 11 years, but not more than 15 years before maturity 0.88 more than 15 years before maturity 1.00 Annex 3 Purchase 1. Contracts for the purchase of goods, with estimated values in the equivalent of $ 5,000,000 or more each, will be awarded through international competitive tender according to the procedures laid down in sections I and II of the directives within the purchase loans and credits B.I.R.D. A.I.D. "published by the Bank in May 1985 (directive), with the following modifications: a) Paragraph 2.8. from directives cancelled and replaced as follows: "1.7. International community notification and advertising should be notified at the time in connection with the auction. This will be done by announcing the invitation for application for inclusion on a list of participants in the tender for the fulfilment of the conditions for qualification, or for auction; such notices must be carried out in at least one large newspaper circulation in the country of the borrower and, in addition, in at least one of the following forms: (i) a notice in a publication of the United Nations, Development Forum, Business Edition; or () an advertisement in a newspaper, gazeta technique periodically or wide international circulation; or

(iii) a notice by local representatives from the countries and territories referred to in the directive, which are potential suppliers of goods you requested. "

b) the following provisions are added to the end of paragraph 2.21. from directives: "as an additional alternative tender documents may require the lowest bidder to express tender price in a single wide currency movement in international trade and specified in the tender documents."

c) 2.55 onwards. and 2.56. from directives cancelled.
  

2. contracts for the purchase of supplies for the estimated values lower than $ 5,000,000 equivalent will be awarded: a) by buyers who are required to follow public procurement procedures of the borrower for the import of goods on the basis of such procedures, provided that these procedures should be considered acceptable to the Bank; and (b)) by other buyers, according to existing commercial practice, provided that such contracts should be awarded on the basis of comparative evaluation of current rankings obtained from suppliers in at least two countries, with the exception of direct contracting procedures acceptable to the Bank, that can be used when it is considered appropriate, in accordance with paragraph 3.5. from directive.
  

3. goods traded normally can be purchased, provided that the earlier approval from the Bank, through the international scholarships or other competitive procurement channels, according to Bank acceptable procedures acceptable to the Bank.
4. For each contract referred to in paragraph 1 of this annex, the borrower will provide the Bank, prior to submission to the Bank of first drawing funds from the loan account relating to the contract, two copies of a form of such a contract, together with the analysis of the respective tenders and recommendations for grant, a description of the procedures for tendering and followed and such other information as the Bank will reasonably require. When the payments to a contract must be made from the proceeds of the special account, such children, along with other information required to be provided to the Bank as a result of this subparagraph shall be provided as part of the record of the Bank required under paragraph 4 of the annex. 5 to this agreement.
5. For each contract referred to in paragraphs 2 and 3 of that annex, the borrower will provide the Bank, prior to submission to the Bank of the first drawing of the loan account amounts in connection therewith, such documentation and information as the Bank may reasonably request in order to support requests for shooting such a contract. When payments for a contract to be made from the proceeds of the special account, the documentation and information to be provided to the Bank under the provisions of this paragraph shall be provided as part of the record of the Bank required under paragraph 4 of the annex. 5 to this agreement.
6. the provisions of the preceding paragraph 5 of this annex shall not apply to contracts made on behalf of the drawdown of the loan account, on the basis of the statements of expenditure.


Annex 4 Actions to which reference is made in paragraph 5 of annex b). 1 to this agreement 1. Continuing to maintain a macroeconomic framework in line with the objectives of the programme, as has been established on the basis of acceptable Borrower and the Bank.
2. Continuation of the implementation of a programme agreed with the Bank for the Elimination of all subsidies for consumption up to 31 December 1993.
3. maintain a Continuation of) investment units, with staff and other resources, with the programme of work and terms of reference for the Bank satisfacatori; b) finalization by that unit of public investment projects, planned and under construction, according to the norms and criteria agreed with the Bank; c) adoption of all measures necessary to ensure that only such public investment projects, in relation to the borrower and the Bank will agree on the basis of such an analysis, will be approved or discontinued.
4. the establishment of a structure of) price and satisfactory to the Bank, the borrower for crude oil, electricity, coal and lignite, including a formula to maintain those prices at par with world prices, as agreed with the Bank; b) programme implementation satisfactory agreed with the Bank to increase the natural gas price in accordance with the methodology to the satisfaction of the Bank, with at least 10% every quarter in real terms, since 1 July 1992 and until the price reaches and is then maintained at a level sufficient to cover such economic cost; c) liberalization of prices of structure all products other than those referred to in sub-paragraphs a and b)) of this paragraph, so as to eliminate all limits on prices and production and to reduce the notification period for price increases to no more than 30 days.
5. The establishment of an agency, equipped with staff and other resources, and satisfacatori terms of reference for the Bank, which will be responsible for the application of Antimonopoly laws and regulations of the borrower.
6. Removing all restrictions and quotas applicable to the export of goods from Romania, with the exception of such goods that will be agreed upon with the Bank.
7. Continuation of the maintenance system) monitoring the economic and financial viability of the State enterprises, based on the rules and the criteria agreed with the Bank; b) programme implementation satisfactory agreed with the Bank for restructuring or liquidation of State enterprises which, in accordance with the criteria and rules referred to in sub-paragraph a) established as are unsustainable in terms of economic or financial; (c) ensuring that outstanding payments) of State enterprises are limited to no more than 7.5% of the aggregate turnover of the undertakings State, calculated according to the rules to the satisfaction of the Bank.
8.) development and application of criteria satisfactory to the Bank, for establishing and continuing the activities of the autonomous public corporations; and b) adoption and implementation of a satisfactory program initially for reclassification, according to law No. 31/1990 of the borrower, any 1900 that does not meet the criteria referred to in this subparagraph a).
9. Completion of all the measures agreed upon with the Bank for privatization: a) about 3,000 State shops, services, restaurants and workshops selected; and (b)) about 20 State enterprises have been selected.
10. Completion of all the measures agreed with the Bank for reforming family allowances including reducing taxes for people with children, by ensuring that: (a) the uniform application of) such allowances, including reducing taxes for all families with children who fulfil the criteria agreed with the Bank; b) of an equal allowances for each child; and (c)) that all tax reductions and budgetary allowances paid on account of such aid shall be limited on 1 January 1993 and further, to no more than the equivalent of 2 percent of gross domestic product.


Annex 5 special account 1. For the purposes of this Annex: (a)) eligible expenditure represents expenses related to the reasonableness of cost of goods required during execution of the programme and which will be financed from the proceeds of the loan according to the provisions of the annex. 1 to this agreement; and b) authorized an amount representing allocation equals $ 40,000,000 which will be drawn from the loan account and will be deposited in a special account, in accordance with paragraph 3 of this annex).
  

2. payments from the special account shall be made exclusively for eligible expenditures, according to the provisions of this annex.
3. after the Bank has received satisfactory evidence, for her, as it opened a special account in a timely manner, drawing alocarilor drawing and subsequent refueling special account shall be made as follows: a) For approved allocations from drawdown, the borrower will provide the Bank a request or requests for a deposit or deposit not exceeding the total amount of the authorized allocation. Based on this request or requests, the Bank, acting on behalf of the borrower, will draw from the loan account and will make the special account that amount or amounts requested by the borrower.
  

) (i) to re-fill particular Borrower will furnish the Bank requests for deposits in special account at those intervals which will specify the Bank.
  

(them) Before or at the date of each such request, the Borrower will provide the Bank documents and other evidence required, in accordance with paragraph 4 of this annex, for the payment or payments in connection with which it is applied for refueling. On the basis of each such requests, the Bank, acting on behalf of the borrower, will draw from the loan account and will make the special account that the amount sought by the borrower and shown by documents and other evidence, to be paid from the special account for eligible expenses.
All these deposits will be drawn from the account of Bank lending for the respective equivalent amounts, as were substantiated by documents and other evidence.
4. For each payment made by the Borrower from the special account, the borrower at the time reasonably required by the Bank, the Bank will provide those documents and other evidence that a local resident as payment was made exclusively for eligible expenditures.

5. Without opposing the provisions of paragraph 3 of this annex, the Bank will not require additional deposits into the special account: a) If, at any time, the Bank has decided that all additional drawings to be made by the borrower directly from the loan account in accordance with the provisions of art. 5 of the General conditions and of paragraph a of section 2.02). in this agreement; or b) once the sum total loan netrasa, less the amount of any outstanding commitment of the Bank, according to section 5.02. conditions relating to the program, will be equal to the equivalent of twice the amount of the authorized allocation.
  

In consequence, pulling at the expense of the loan to the amount remaining from the loan netrase will follow those procedures which shall be specified in the notification to the Bank by the borrower. Such additional drawdown will be made only by and to the extent that the Bank will be convinced that all of these amounts, the remaining deposit special account as at the date of this notification, shall be used in the making of payments for eligible expenses.
6.) If the Bank will be decided at any time, as any special payment on account of: (i) was made in respect of an expense or an amount neeligibila according to paragraph 2 of this annex; or () was not justified by the evidence provided to the Bank, the borrower shall forthwith, upon notification of the Bank: (A) provide those additional evidence that the Bank may request; or (B) shall deposit in a special account (or, at the request of the Bank, will repay it) an amount equal to the amount of that payment or part thereof not so eligible or justified. If the Bank won't agree otherwise, no additional deposit is not made by the Bank in the special account until the Borrower will not be supplied proofs or not will be made that deposit or refund as appropriate.

b) If the Bank will be decided at any time, as any amount remaining in the special account shall not be required to cover additional expenditure eligible for payments, the borrower will repay the Bank promptly, that the amount of arrears, after notification from the Bank.
  

c) Borrower may, after notification of the Bank, to reimburse all or part of the Bank the amounts deposited in the special account.
  

d Return to the Bank) carried out in accordance with paragraphs 6 a), b) and (c)) of this annex shall be entered in the credit for the credit for pulling the next or for termination, according to the provisions of this agreement, including the General conditions.
  

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