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Law No. 118 Of 4 December 1995

Original Language Title:  LEGE nr. 118 din 4 decembrie 1995

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LEGE no. 118 of 4 December 1995 *** on the empowerment of the Ministry of Finance and the National Bank of Romania to carry out external loans in the medium and long term, as well as the approval of the external public debt ceiling for 1996
ISSUER Parliament
Published in OFFICIAL MONITOR no. 177 177 of 13 May 1998



---------- Note * *) Republicated pursuant to art. II of Government Ordinance no. 35 35 of 27 August 1996 , published in the Official Gazette of Romania, Part I, no. 202 of August 29, 1996 (approved by Law no. 38 of 31 March 1997, published in the Official Gazette of Romania, Part I, no. 54 of 1 April 1997), giving the texts a new numbering. Law no. 118 118 of 4 December 1995 was published in the Official Gazette of Romania, Part I, no. 282 282 of 5 December 1995 and has been amended by Law no. 29 29 of 6 May 1996 , published in the Official Gazette of Romania, Part I, no. 91 91 of 6 May 1996. + Article 1 Romania's external public debt ceiling for 1996 is set at the amount of US$ 3.0 billion. + Article 2 The government, through the Ministry of Finance, is authorized to contract state loans, in foreign currency, in order to finance and refinance internal and external public debt. The National Bank of Romania will act as agent of the state for contracting and carrying out state loans in foreign currency. + Article 3 The National Bank of Romania is empowered to carry out, until December 31, 1996, medium and long-term external loan operations on the international capital market to strengthen the international reserves of the state and the establishment of the foreign exchange fund for the energy program, up to a cumulative level of 1.5 billion U.S. dollars, included in the debt ceiling approved for 1995 and in the external public debt ceiling for 1996 provided in art. 1 1 of this law. + Article 4 The National Bank of Romania is authorized to carry out swap operations with precious metals in the medium and long term, as well as medium and long-term foreign exchange swap operations with the amounts obtained from the loans contracted according to the provisions of art. 3. + Article 5 In order to determine the country, political and economic risk, the National Bank of Romania may conclude contracts with specialized agencies, recognized by the international financial-banking community. + Article 6 The financial obligations arising from the commitments concluded by the National Bank of Romania in its own name represent external public debt, with the provision of payment of due rates, interest and commissions related to the international reserve of the state, and the value in their lei is reflected in the management of the National Bank of Romania. + Article 7 Financial-banking commitments made by the National Bank of Romania according to art. 2, which constitutes external public debt, is approved distinctly by Government decisions, on the proposal of the Council of Administration of the National Bank of Romania, in which the destination and characteristics of the loan will be expressly stipulated. + Article 8 The government will inform, on a semi-annual basis, the Parliament on the development of contracted external loans, the contracting conditions, the guarantees granted, the use and the payment schedule of the rates and interest rates. ----------