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Law No. 91 Of 30 December 1993 On Public Debt

Original Language Title:  LEGE nr. 91 din 30 decembrie 1993 privind datoria publică

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LEGE No 91 of 30 December 1993 on public debt
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR NO. 3 of 10 January 1994



The Romanian Parliament adopts this law + Chapter 1 General provisions + Article 1 The public debt represents the totality of the monetary obligations at some point, resulting from internal and external loans, in the medium or long term, contracted by the state in its own name or guaranteed by it. + Article 2 Activities regarding the contracting and guaranteeing of reimbursable internal and external loans, in the medium or long term, and the management of public debt shall be exercised by the Government, through the Ministry of Finance, under the conditions of this law. + Article 3 Establishing the conditions under which public, internal and external loans may be contracted, the negotiation and conclusion of agreements and conventions, and the use of other legal instruments generating public debt shall be made within the institutional framework regulated by this law. + Chapter 2 Internal public debt + Article 4 The government may contract, within the amount approved by the Parliament, state loans from the domestic financial market, from legal or natural persons, in order to ensure the necessary money resources. + Article 5 State loans can be committed to cover some necessities determined by: a) the budget deficit provided for by the annual law approving the state budget; b) public expenditure of national interest for investment objectives, which cannot be financed from the current resources of the state budget; c) refinancing the internal public debt; d) other needs, approved by special laws. + Article 6 Loans for local public administration needs can be employed by this, under the provisions of Law no. 10/1991 on public finances, of Law no. 69/1991 69/1991 on local public administration, as well as the provisions of this Law. The Ministry of Finance is empowered to endorse the contracting of loans by local public administrations after the finding of the existence of repayment possibilities. + Article 7 State loans are also made through securities issues: bonds, treasury bills, annuity securities or other state documents. Securities issues representing state loans, their sale and redemption, as well as the payment of interest and other related charges shall be made directly by the Ministry of Finance or through other financial institutions. specialized, which acquire the status of agent of the state, based on the conventions concluded. ART. 8 Securities representing state loans shall be placed by public subscription or other specific technical procedures. + Article 9 Payments due for repayment of domestic public debt, representing the due rates in a period of one year, interest and related commissions, as well as expenses occasioned by issuance and placement of securities, form the service internal public debt. + Article 10 The repayment of the contracted loans shall be ensured, as the case may be, from the state budget surpluses, from the State loans for the refinancing of the internal public debt, as well as from other resources established by The interest related to the internal public debt, as well as the expenses occasioned by the issuance and placement of securities represent expenses in the state budget, if the legal provisions do not establish otherwise + Article 11 The management of internal public debt shall be ensured by the Ministry of Finance and shall consist in the contracting of state loans, organization and record keeping by specific accounts, repayment of public debt, calculation and payment of interest, fees and charges due, as well as in carrying out other specific operations. + Chapter 3 External public debt + Article 12 The government may employ, under the law, medium or long term external loans, contracted directly or by commercial companies, autonomous regions and local public authorities with the guarantee of the state, for the realization of development, economic restructuring, achievement of other objectives or actions of public interest, creation and maintenance of the foreign exchange reserve of the state, ensuring the necessary resources to remove the effects caused by natural disasters or in other cases force majeure. ART. 13 The need for external loans is determined on the basis of the strategy on external public debt, within the limit of external credits and external indebtedness, proposed by the Government and approved by the Parliament. + Article 14 Guarantee on behalf and account of the state by the Ministry of Finance of external credits for the realization of investment objectives by companies, autonomous regions and local public authorities is based on analyses of Project of the Export-Import Bank of Romania-S.A. and with the approval of the Interministerial Committee of Guarantees and Credits of Foreign Trade. + Article 15 The issuance of securities launched on foreign financial markets is approved by the Government, at the proposal of the Ministry of Finance, also requesting the advisory opinion of the National Bank of Romania. + Article 16 The implementation of operations on the implementation of external public debt commitments shall be carried out by the Ministry of Finance, which, for this purpose, concludes conventions with commercial banks and beneficiaries of contracted loans. + Article 17 The general supervision of the house execution of external public debt commitments shall be exercised by the Ministry of Finance and the National Bank of Romania, according to the methodological norms developed under this law. + Article 18 Liability for the management and use of external loans contracted by the companies, autonomous regions and local public authorities with the state guarantee, as well as for the establishment of the resources necessary to repay the due rates and the payment of interest, charges and related fees lies with the loan beneficiaries. The Ministry of Finance, the National Bank of Romania and commercial banks bear the responsibility for compliance with the destination of loans committed or/and guaranteed externally. + Article 19 Payments due for a period of one year for the reimbursement of external public debt, representing the due rates, interest rates, charges and related commissions, constitute the service of external public debt. Repayment of due rates and payment of interest, charges and commissions related to external public debt commitments shall be made from the resources with this destination provided in the state budget, in the local budget and in the own budget of the the loan beneficiary, as applicable. + Article 20 The Ministry of Finance and the National Bank of Romania will ensure the provision in the balance of external payments of the resources necessary for the reimbursement of external loans, the payment of interest, charges and related commissions. + Article 21 For financial risks arising from the state guarantee of foreign loans contracted by commercial companies and autonomous regions, the Ministry of Finance will constitute the risk fund, which will be administered on an extra-budgetary basis and will be fuel from the amounts collected in the form of commissions from the beneficiaries of the guaranteed external loans, the interest received from the market placements of the temporarily available amounts from the risk fund and other resources, according to the legal provisions. The amounts due to the risk fund by the beneficiary of the guaranteed external loan shall be determined by the Ministry of Finance by applying negotiable percentage shares, differentiated according to the financial creditworthiness of the beneficiary, period by grace and the amount of the average repayment rate The amount of the amounts due to the risk fund, the terms of shedding and the other obligations incumbent on the beneficiary of the loan shall be provided for in the contract concluded by him + Article 22 Any commitment of external public debt shall be recorded in the Register of Foreign Public Debt, established, by this law, at the Ministry of Finance. + Article 23 The Ministry of Finance aims to set up reimbursement resources by the beneficiaries of the external loans guaranteed by the state, keep records of the state receivables from the execution of the guarantees granted and act to debtors. + Article 24 As guarantor of external loans on behalf of the state, the Ministry of Finance assesses the financial risks, opportunity and conditions for issuing the guarantee in order not to affect the financial credibility of the Romanian state on the plan international, participates in the negotiation of agreements and other international legal instruments that contract foreign loans guaranteed by the state. + Article 25 The Ministry of Finance and the National Bank of Romania systematically follow the evolution of the country's foreign exchange resources, analyze the possible difficulties in repaying the external public debt and propose to the Government + Article 26 The government considers, when the situation requires, the opportunity and conditions for rescheduling or refinancing the external public debt and presents proposals to the Parliament for approval. + Article 27 The Ministry of Finance, in collaboration with the National Bank of Romania, annually elaborates the external payment balance project. The National Bank of Romania aims at the execution of the external balance of payments and sends quarterly to the Ministry of Finance the situation of the state's The Ministry of Finance together with the National Bank of Romania presents half-yearly to the Government information on how to achieve the provisions of the external payment balance and proposes solutions to cover the deficit or to use the surplus in the current account of the balance of external payments. The government presents for approval to Parliament, by June 30, the annual execution of the balance of external payments. + Article 28 The Ministry of Finance draws up and presents to the Government six-monthly reports on the evolution of external public debt and transmits to international financial-banking bodies statistical data on external debt, according to the obligations arising from Romania's membership of these bodies. + Article 29 The data on the realization of each loan on account of external public debt shall be reported to the Ministry of Finance by the beneficiaries of the loans and by the commercial banks through which they run, according to the developed in the application of this law + Chapter 4 Final provisions + Article 30 In application of this law, the Ministry of Finance shall: a) elaborates the strategy of attracting and using available capital on the internal and external market; b) acts for the application of the provisions of any laws aimed at contracting state loans; c) elaborates and proposes to the Government draft normative acts in the field of state loans; d) conclude, on behalf of the state, loan contracts from the domestic financial market; analyze, endorse and participate in the negotiation of contracting or guaranteeing external loans; e) ensure, together with the National Bank of Romania, the resources necessary to repay the loans; f) pursues the evolution of credit and interest on the financial market and makes proposals for public debt conversion operations; g) organize and keep records of all internal and external payment commitments made by contracts, agreements, conventions and other legal instruments and pursues the execution of these commitments; h) informs the Government, Parliament and international bodies with which it has concluded agreements in this regard on the evolution and use of state loans and public debt; i) supervise the use of public debt-generating loans as approved; j) hire and represent the state in relations with natural and legal persons, as well as before the courts, in the field of state loans; k) assess the financial risks arising from the guarantee of external loans, the opportunity and the conditions for issuing the guarantee; l) keep records of the guarantees granted and follow that the commitments arising from the granting of guarantees do not affect the financial credibility of the Romanian state internationally. + Article 31 The Ministry of Finance, through specialized control bodies, exercises control of the use of borrowed resources, according to approved destinations, under the law. + Article 32 The National Bank of Romania, autonomous regions, companies, institutions and other governmental and non-governmental bodies are obliged to transmit the necessary information, requested, in relation to the public debt. + Article 33 It constitutes contraventions to the provisions of the present law the following facts, if, according to the criminal law, it a) failure to submit legal documents by which loans generating external public debt or external loans with the guarantee of the state were contracted, within the deadlines set by the Ministry of Finance; b) non-reporting of data on the execution of loans on internal and external public debt; c) refusal to provide the control bodies with the documents, data and information requested regarding the internal and external public debt. The contraventions provided above are sanctioned with a fine of 1,000,000 lei to 3,000,000 lei. + Article 34 The finding of contraventions and the application of sanctions shall be made by the Ministry of Finance and its territorial units empowered for this purpose. In so far as this law does not have otherwise, the contraventions provided in art. 33 the provisions of Law no. 32/1968 on the establishment and sanctioning of contraventions, except art. 25, 26, 27. + Article 35 They constitute crimes and are punishable by imprisonment from 6 months to 5 years the following facts: a) the use of funds in lei and in foreign currency from commitments of external public debt for purposes other than those for which contracting or guaranteeing them was approved; b) the provision of erroneous data for the foundation of the public guarantee when contracting external loans. The finding of the facts provided for in the previous paragraph shall be made by the Ministry of Finance and its territorial units, as well as by other bodies empowered for this purpose by law. + Article 36 Within 30 days from the date of entry into force of this Law, the Ministry of Finance will develop the methodological norms of application. + Article 37 On the date of entry into force of this Law, any contrary provisions shall be repealed. This law was adopted by the Chamber of Deputies at the meeting of December 20, 1993, in compliance with the provisions of 74 74 para. (1) of the Romanian Constitution. p. CHAMBER OF DEPUTIES PRESIDENT ION RATIU This law was passed by the Senate at the meeting of December 21, 1993, in compliance with the provisions of art 74 74 para. (1) of the Romanian Constitution. SENATE PRESIDENT prof. univ. dr. OLIVIU GHERMAN ------------