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Law No. 166 Of 17 August 1998

Original Language Title:  LEGE nr. 166 din 17 august 1998

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LEGE no. 166 166 of 17 August 1998 on approval Government Emergency Ordinance no. 43/1997 for the preparation of the special accounting balance and the regularization of certain loans and interest classified in the "loss" category at the Agricultural Bank-S.A., as well as for the repeal Government Emergency Ordinance no. 48/1997 amending and supplementing Government Emergency Ordinance no. 43/1997
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 304 304 of 20 August 1998



The Romanian Parliament adopts this law + Article 1 Approval Government Emergency Ordinance no. 43 43 of 10 July 1997 for the preparation of the special accounting balance and the regularization of some credits and interest classified in the category "loss" at Banca Agricola-S.A., published in the Official Gazette of Romania, Part I, no. 153 of 14 July 1997, with the following amendments and additions: 1. The title of the emergency ordinance shall read as follows: " Emergency Ordinance for the preparation of the special accounting balance and regularization of some credits and interest classified in the category < > > at Banca Agricola S.A. " 2. Article 1 shall read as follows: "" Art. 1. -It is authorized the Agricultural Bank S.A. to draw up the special accounting balance sheet, on June 30, 1997, in order to ensure the restructuring of the assets, respectively of the loans and related interest, classified in the category < >, according to the Norms of the National Bank of Romania on the classification of credits and the establishment of specific risk provisions and taking into account the provisions of this emergency ordinance. 3. Article 2 shall read as follows: "" Art. 2. --(1) Credits granted on the basis of contracts concluded before 31 December 1996 and the corresponding interest rates classified in category < > will be highlighted in accounts outside the balance sheet and further pursued by Banca Agricola S.A. for collection and will be regularized in the special accounting balance drawn up on the basis of accounting data from June 30, 1998, becoming effective from the same date, and within the limits of the values set out in Annex *) which forms an integral part of this Emergency Ordinance, as follows: a) guarantees granted to the Agricultural Bank S.A. by title of < >, at the remaining value of that entered in the credit agreements and in the documents establishing the guarantees; b) deposits of the clients of Banca Agricole S.A., including the shareholders who also benefit from loans classified in the category < > will be blocked from the date of this emergency ordinance, until the repayment of the outstanding loans; c) the difference between the nominal value of the loans and the related interest, classified in the >, and the remaining value of the guarantees received by Banca Agricola S.A. will be regularized within the amount of 3.374.5 billion lei and will be replaced in the asset of the balance sheet of the Agricultural Bank S.A. with government securities issued by the Ministry of Finance, in the amount of 1,300 billion lei. (2) The National Bank of Romania will reschedule until December 31, 1999, from its claims the amounts representing loans granted to the Agricultural Bank S.A. in accordance with the provisions of Law no. 20/1996 20/1996. At the same time, the payment obligations of the Agricole Bank S.A. to the National Bank of Romania are cancelled, representing the loans granted according to the 20/1996 20/1996 and the related interest. " ----------- *. The Annex shall be communicated to those 4. Article 3, paragraphs 1, 2 and 4 shall read as follows: "" Art. 3. -(1) The Ministry of Finance will highlight the loans and interest thus taken over, within the amount of 3.374.5 billion lei, according to art. 2 2 para. ((1) lit. c) of this emergency ordinance, in a separate account within the public debt, on the basis of the convention concluded with Banca Agricola S.A. ((2) Amounts taken as the difference between the nominal value of the loans and related interest, classified in the category < >, and the remaining value of the guarantees received by Banca Agricola S.A. from customers to the account of these loans, will be taken over to the public debt, at their value, on June 30, 1997. The takeover will be carried out on the basis of the special accounting balance concluded, according to the accounting data from June 30, 1997, approved by the general meeting of shareholders, and the annexes on loans and related interest rates for each economic agent. The entire responsibility of the correctness, reality and accuracy of the amounts taken over by the Agricole Bank S.A. Transfer and payment agent for the securities issued on account of this debt is the National Bank of Romania. .............................................................................. (4) The state guarantees issued by the Ministry of Finance to Banca Agricola S.A. for the categories of loans and interest rates that are subject to art. 3 3 para. ((1) of this emergency ordinance, with the bank calculating, with the same date, the corresponding provisions. " 5. Article 6, paragraphs 1 and 2 shall read as follows: "" Art. 6. -(1) The state securities issued by the Ministry of Finance will be registered, on the basis of the convention concluded with Banca Agricola S.A., on domestic public debt, will be negotiable and will be interest-bearing, according to the issue prospectus. (2) The interest related to the internal public debt, established by this emergency ordinance, shall be paid from the amounts provided with this destination in the state budget. " 6. In Article 6, after paragraph 3, paragraphs 3 ^ 1 and 3 ^ 2 are inserted, with the following contents: "" (3 ^ 1) As of the third quarter of 1998, the state title is the bearer of an interest whose rate will be at the interest rate of the last issue of government securities with maturity at 91 days, launched by the Ministry of Finance, previously the period for which the coupon is calculated and paid. ((3 ^ 2) Interest shall be paid quarterly, in which the quarter corresponds to the calendar quarter. " 7. Article 7, paragraph 2 shall read as follows: "" (2) Until October 31, 1997, the Coordination Committee for the restructuring of Banca Agricole S.A., together with the executive management of the bank will develop, with the support of independent experts or specialized consulting companies, the plan strategic development of the bank over the next 2 years, including the objectives of its privatization. Responsibility for implementing the program lies with the executive management of Banca Agricole 8. Article 11 shall be inserted after Article 10: "" Art. 11. -Banca Agricola S.A. is authorized to carry out the revaluation of the bank's patrimony, following that the favorable results will be used in 1998 for capitalization. The revaluation operation shall be carried out, on the basis of the records from 31 December 1997, by authorized experts, and the results will be subject to the approval of the extraordinary general meeting of the shareholders of Banca Agricole S.A., until 30 July 1998. " + Article 2 On the date of entry into force of this Law, the Government Emergency Ordinance no. 48/1997 amending and supplementing Government Emergency Ordinance no. 43/1997 for the preparation of the special accounting balance and the regularization of some credits and interest classified in the category "loss" at Banca Agricola S.A., published in the Official Gazette of Romania, Part I, no. 239 239 of 12 September 1997. + Article 3 Government Emergency Ordinance no. 43/1997 for the preparation of the special accounting balance and the regularization of some credits and interest classified in the category "loss" at Banca Agricola-S.A., published in the Official Gazette of Romania, Part I, no. 153 of July 14, 1997, with the amendments made by this law, shall be rejoined, giving the texts a new numbering. This law was adopted by the Senate at the meeting of June 22, 1998, in compliance with the provisions of art 74 74 para. (2) of the Romanian Constitution. p. SENATE PRESIDENT ULM SPINEANU This law was adopted by the Chamber of Deputies at its meeting on July 9, 1998, in compliance with the provisions of 74 74 para. (2) of the Romanian Constitution. p. CHAMBER OF DEPUTIES PRESIDENT MARIA PAULA IVANESCU ----------