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Law No. 81 Of 11 May 1999 Public Debt Law

Original Language Title:  LEGE nr. 81 din 11 mai 1999 Legea datoriei publice

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LEGE no. 81 81 of 11 May 1999 Public Debt Law
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 215 215 of 17 May 1999



The Romanian Parliament adopts this law + Chapter 1 General provisions + Article 1 Definitions Within the meaning of the present law, the following terms and expressions have the following meanings: 1. state-designates Romania as a sovereign state, whose interests are represented by the Government; 2. public debt-the totality of the internal and external obligations of the state, at some point, contracted by the Government, through the Ministry of Finance, on behalf of Romania. For the purpose of assessing Romania's public debt, any obligation, expressed in currency other than the national currency, is calculated in national currency, using the exchange rate communicated by the National Bank of Romania for the last day of the period of reporting; 3. domestic public debt-the part of the public debt, which represents the totality of the state's obligations, coming from loans contracted directly or guaranteed by the state from the internal market, including the amounts temporarily received from treasury sources the state; 4. external public debt-the part of the public debt, which represents the totality of the state's obligations, coming from foreign market loans, contracted directly or guaranteed by the state; 5. state guarantee-the commitment assumed in the account and on behalf of the state by the Ministry of Finance to the creditor institution to pay it a certain amount, in case of non-execution of the debtor's payment obligations; 6. state guarantees-the totality of internal and external guarantees issued by the Ministry of Finance, on behalf and on behalf of the state, for loans contracted by economic agents and public authorities. Domestic state guarantees are issued for loans contracted from the domestic market. External State guarantees are issued for loans contracted from the foreign market; 7. the public debt register-the document that highlights the public debt situation in chronological order and which has two components: the sub-register of internal public debt and the external public debt subregister; 8. the register of state guarantees-the document that highlights the situation of state guarantees and which has two components: the subregister of internal state guarantees and the subregister of state external guarantees; 9. State loan-the obligation generated by a contract, by which the state obtains funds from a creditor or legal person and undertakes to reimburse them together with interest and other costs, within a specified period; 10 10. capital on loan-the amount obtained as a result of a loan; 11. government securities-documents certifying the public debt in the form of vouchers, treasury certificates or other financial instruments, constituting the loans of the state in national currency or in foreign currency, in the short, medium and long term. They may be issued in materialized or dematerialized form, nominative or bearer, and may be negotiable or non-negotiable; 12. State title with interest-the state title which has a nominal value at which an interest rate is payable on specified dates; 13. state title with disaccount-state title without interest coupon, which is sold at a value less than its nominal value; 14. capital related to the interest-bearing state securities-the amount borrowed from the one offering the loan, at the time of the issuance of the interest-bearing securities; 15. capital related to government securities with disaccount-the amount borrowed from the one who offers the loan, at the time of the issuance of the state securities with disaccount, at the value that represents the purchase price of the government securities with disaccount; 16. permanent budgetary authorization-authorization to pay the service of public debt at maturity, without additional provisions in the annual state budget law; 17. dematerialized state title-state title that is highlighted by registration in the account and which is recorded on paper or other type of support established by the Ministry of Finance; 18. materialized state title-state title in physical form; 19. registration system in the account-the operational system through which the government securities are issued in dematerialized form, their registration being carried out by the Ministry of Finance or the agent designated by him; 20. the price of the state title-the amount paid by the purchasers of the government securities 21. the nominal value of the state title-the value entered on a state title, redeemable at maturity; 22. the first-the difference between the price of a state title on the issue and its nominal value, if the price is higher than the nominal value; 23. disaccount-the difference between the price of a state title on the issue and its nominal value, if the price is lower than the nominal value; 24. interest rate-interest expressed in percent, paid for the capital of a loan or interest-bearing state title; 25. variable interest rate-interest rate of a loan or interest-bearing state title, which changes at intervals, in accordance with an index, a formula or other criterion, as provided for in the terms of the contract loan or state title; 26. Short term-a period of up to one year inclusive; 27. medium term-a period of over one year, up to 5 years inclusive; 28. long term-a period of over 5 years; 29. the due date-the date on which the nominal value and the last instalment of interest, related to a loan or an interest-bearing state title, or the nominal value of a state title with a disaccount become chargeable in accordance with the terms of the contract on loan; 30. the date of payment of interest-the date designated for the payment of interest on a loan or a certain series of government securities, interest-bearing; 31. the date of repurchase in advance-the date fixed for the redemption of a state title, prior to its maturity, which is communicated by the issuer or the agent designated by the Ministry of Finance and to which the holder of the state title may receive, prior to maturity, the value entered in the title, in accordance with the clauses stipulated in the act of issue of the State loan; 32. the date of the current registration-the date set by the National Bank of Romania or by another authorized agent as the last date appearing in the system of registration in the account and which serves to identify the holder of the state title to which the payment of the nominal value or the related interest is due, which becomes chargeable at the deadline set by the terms of the act of issue of the state loan; 33. risk fund-the extra-budgetary fund, constituted at the Ministry of Finance, in which the commissions received from the beneficiaries of the loans contracted directly by the state and those guaranteed by him are deposited, as negotiated with the Ministry of Finance Finance; 34. Interministerial Committee of Guarantees and Foreign Trade Credits-the body examining, endorsing and approving, according to the powers, financing and export-import credit insurance operations, on behalf of and on behalf of the State, which is carried out by the Export-Import Bank of Romania-S.A. (Eximbank); 35. public debt ceiling-the totality of loans that it can contract and guarantee the state for a period of one year, which is established annually by law. The public debt ceiling covers the internal public debt ceiling and the external public debt ceiling. The internal public debt ceiling is set according to the approved budget deficit and the provisions of special laws. The external public debt ceiling shall be determined as the maximum amount of external loans which it may contract or guarantee the State for a period of one year and shall be established annually by law; 36. public procurement-the final or temporary acquisition by a legal person procuring goods, investments, by contract of purchase, rental or anthalf, as well as of services financed in whole or in part from the state budget, from local budgets, from special funds established by law outside these budgets, from extra-budgetary means and from external loans guaranteed or contracted directly by the state; 37. letter of guarantee-the instrument certifying the guarantee; 38. Guaranteed-the legal person who receives a loan from a creditor institution, on the basis of a letter of guarantee issued by the Ministry of Finance; 39. the general account of the state treasury-the account in which the state collects all public revenues and from which all public expenditure is carried out, unless otherwise provided by law. + Article 2 Contracting State loans and issuing state guarantees The government is authorized to contract internal and external state loans or to guarantee domestic and foreign loans only through the Ministry of Finance, for the following purposes: a) financing the state budget deficit; b) refinancing of public debt; c) support of balance of payments and consolidation of the state's foreign exchange reserve; d) financing investment projects for the development of priority sectors of the economy; e) financing the development of small and medium enterprises with majority Romanian capital; f) financing of the purchase of goods and services, including the import of raw materials and energy resources; g) fulfillment of obligations related to state guarantees for loans; h) depreciation and payment of government loans and redemption of unpaid debt, including capital, interest and other costs; i) financing the short-term needs of the state budget; j) financing of expenses related to the liquidation of the consequences of natural disasters and other calamities; k) permanent maintenance of an appropriate balance in the general account of the state treasury, established by the Ministry of Finance; l) other needs approved by special laws. + Article 3 Public debt repayment (1) The repayment of the State loans shall be ensured, where appropriate, from sources established by legal provisions, from sources of the general account of the state treasury and from state loans for the refinancing of public debt. (2) The repayment of capital ratios, the payment of interest and other costs related to public debt shall take precedence over other obligations of the State. (3) In the event that on loans contracted or guaranteed by the state the funds are insufficient for the full coverage of the due payments, all the responsibilities assumed by the designated agent/agents shall cease by simultaneous takeover of obligations by the Ministry of Finance. + Article 4 Public debt management The Ministry of Finance is the only contractor and administrator of public debt and has the authority to determine the daily balance of the state treasury general account, the future levels of the liquidity requirement, the maturity of the public debt, the corresponding interest costs and the refinancing or reduction of public debt. + Article 5 Authorization of legal investments and guarantees for public deposits Romanian individuals and legal entities, as well as foreign financial institutions may invest, under the law, any funds of their own or under their administration, in government securities of public debt, which are subject to this law. + Article 6 Loans contracted by local public administration authorities ((1) The loans contracted by the local public administration authorities are part of Romania's public debt, but do not represent debts or liabilities of the Government, and the payment of the service related to these loans will be carried out exclusively from the revenue by which the respective loans were guaranteed by the local public administration authorities. (2) Local public administration authorities may engage internal loans without the Government guarantee, provided that the Ministry of Finance is informed in advance. (3) The external loans will be contracted only with the approval of the commission for the authorization of these loans, made up of representatives of the local public administration authorities, of the Government and of the National Bank of Romania, whose composition is approved by the Government. (4) The contracting of loans by the local public administration authorities shall be made according to the provisions Law no. 189/1998 on local public finances and the present law; the reporting and registration of local public debt are made according to the methodological norms issued by the Ministry of Finance + Chapter 2 Internal public debt + Article 7 Obligation to pay off domestic public debt (1) The internal public debt is an unconditional and irrevocable obligation of the state to repay the loans contracted in lei, to pay interest and other related costs. (2) In order to pay the interest on domestic public debt, the permanent budgetary authorization shall be granted for these expenses. + Article 8 Instruments of internal public debt The internal public debt instruments of the State shall include, but not limited to: a) government securities in national currency; b) State loans from the National Bank of Romania, granted under the conditions established by Law no. 101/1998 on the National Bank of Romania; c) state loans from commercial banks in Romania; d) state loans from other credit institutions in Romania and government agencies. + Article 9 Issuance of government securities (1) The Ministry of Finance is authorized to issue government securities, expressed in national currency and in foreign currency. (2) State securities may be issued: a) in materialised form, as printed documents, comprising mandatory particulars relating to the issuer, the face value, the interest rate, the maturity, the mode of transmission and other items specific to each category of securities; b) in dematerialized form, as titles for which the issue, probation and transmission of the embedded rights are highlighted by registration in the account registration system. (3) The Ministry of Finance may delegate to agents or other institutions designated for this purpose operational tasks regarding the issuance of government securities. + Article 10 State securities regime (1) The dematerialized state securities and those issued in materialized form are negotiable instruments in the regime enshrined in the provisions of this law, as well as according to the terms of the contract concluded with the trustee, if the government securities are owned by a trustee. (2) The Ministry of Finance shall develop regulations establishing the regime of government securities and which must include, in particular, but not exclusively, rules on: a) the issue of government securities in materialized form or by registration in the account and on the conditions of issue; b) face value, interest rate, premiums, maturities, redemptions and payments; c) offer procedures, conditions and arrangements for the sale of government securities; d) registration and administration of government securities. ((3) The payment of capital and interest of government securities, issued in materialized form, shall be made in accordance with the legal provisions on such securities and with the provisions of the regulations elaborated within the limits of the provisions of this laws. ((4) The payment of the capital and the interest of the dematerialized government securities shall be made through the system of registration in the account, in accordance with the provisions of the regulations elaborated within the limits of + Article 11 Maturity of government securities (. State securities denominated in national currency may be issued in the short, medium or long term. (2) Short-term state securities are treasury bills and treasury certificates, either interest-bearing or disaccount, as well as other instruments that may be created by the issuer under the law. (3) The state securities in the medium or long term are the government bonds with a maturity of over one year and a maximum of 5 years from the issue, respectively over 5 years from the issue, either interest-bearing or disaccount, issued according to the clauses State loan. + Article 12 Circulation of government securities (1) State securities will be offered for sale under the condition that the offer includes at least the following elements: a) the name, date of issue and the value of the government securities b) the form of the state loan represented by the related securities-with disaccount or interest bearing; c) the interest rate, the method of calculation and the dates on which interest is payable, where applicable; d) the maturity date and the advance refund clause, if applicable. (2) Any concerted agreements or practices of the participants in the market of government securities, which have as their object or could have as an effect distortions of competition on the market, in particular those concerning: a) the yield and price of government securities; b) the volume of government securities offered or required; c) the structure of the portfolio of state securities of each market participant and the portfolio management strategy; d) involvement in transactions that could constitute acts of unfair competition to other market participants. (3) The Ministry of Finance establishes and applies the regulation of activities and operations on the primary market of government securities. The Ministry of Finance, the National Bank of Romania and the National Securities Commission will develop, within 90 days from the date of publication of the present law in the Official Gazette of Romania, rules regulating the activities and operations on the secondary market of government securities. + Article 13 Payment of government securities (1) The value of the government securities shall be reimbursed in accordance with the conditions of issue and the provisions of this law; on the date of repayment the obligations of the state (2) The Ministry of Finance may reimburse, before the due date of the state obligation, the government securities with a maturity of more than one year, if it is stipulated in the clauses entered in the title or in the act of issue of the state loan, and the redemption is made according to the provisions of the (3) The Ministry of Finance is authorized to provide compensation for government securities, issued in materialized form, which have been lost, stolen, destroyed or damaged, provided that the state title is identifiable by series, number and description, in accordance with the regulations in force, and the holder to have carried out the opposition or the publication required by law. (4) If the date on which one of the payments related to the state title must be made is a day of celebration or a non-working day, the payment will be made on the next working day, without obliging the moratoriums. + Article 14 State loans from the National Bank of Romania The Ministry of Finance is authorized to borrow funds on behalf of the state, directly from the National Bank of Romania, under the conditions established by Law no. 101/1998 . + Article 15 State loans from commercial banks or other lending institutions in Romania The Ministry of Finance is authorized to contract state loans from commercial banks or other Romanian lending institutions, under the conditions resulting from the negotiations. + Chapter 3 External public debt + Article 16 Obligation to pay off external public debt (1) External public debt is an unconditional and irrevocable obligation of the state of repayment of loans contracted from the foreign market, payment of interest and other related costs. (2) In order to pay the service of external public debt, the permanent budgetary authorization shall be granted for these expenses ((3) The sources of payment for the service of external public debt are, as the case may be a) the expenses provided with this destination in the state budget; b) The reserve fund at the Government's disposal, according to the state budget law; c) the amounts resulting from the recovery of the Romanian state receivables Law no. 29/1994 on the authorization of the Government to approve the negotiation in order to recover Romania's receivables from foreign trade and international economic cooperation, conducted before December 31, 1989, after deducting the expenses due to the exporting economic agents, established on the basis of the course of 15 lei for one U.S. dollar and the 25% share to stimulate exports, defined according to Government Ordinance no. 14/1995 on certain measures to stimulate the achievement of complex objectives and long-cycle production, intended for export, approved by Law no. 70/1995 ; d) the amounts collected by the financial institutions mandated by the Ministry of Finance to manage the external loans contracted by him, on behalf and on behalf of the state from the final beneficiaries of loans, intended for investments and imports; e) the amounts collected by the Ministry of Finance from the final beneficiaries of the loans, based on the subsidiary loan agreements, concluded under the conditions of the loan agreements between the Romanian state and the international financial bodies; f) the amounts provided in the budgets of the loan beneficiaries, based on the subsidiary loan and guarantee agreements concluded between the Ministry of Finance, the county or local councils and the economic agents under their authority, under the conditions loan agreements between the Romanian State and international financial bodies; g) the amounts provided in the budgets of the county or local public authorities for external loans contracted directly by them, under the law; h) amounts provided in the budgets of economic agents who have contracted external loans with the state guarantee; i) the risk fund, for the situations in which the guarantees issued by the Ministry of Finance for external loans contracted by economic agents are executed. + Article 17 Instruments of external public debt External public debt instruments are as follows: a) foreign currency government securities issued on foreign financial markets; b) loans from foreign governments, foreign government agencies, multilateral financial institutions or other international organizations; c) syndicated loans in the short, medium or long term; d) direct loans from private investors, in the short, medium or long term; e) loans from foreign banks or foreign companies; f) other loans, as applicable. + Article 18 Tasks of the Ministry of Finance on external The Ministry of Finance has the following a) contracting directly on behalf of the state, administration and reimbursement of state loans, including related costs; b) the contracting of external credits by launching bond issues on foreign capital markets, their administration and reimbursement; c) examining the appropriateness and necessity of contracting external loans from foreign capital markets; d) issuance of state guarantees for external loans; e) to analyse the conditions for the refinancing of external public debt and to ensure that new loans fall within the annual external debt ceiling; f) elaboration of the draft annual law on the external public debt ceiling and other normative acts arising from this law; g) the administration, together with the National Bank of Romania, of the currency reserve of the state, in order to ensure the necessary resources for its growth, the use, together with the National Bank of Romania, of the foreign exchange reserve for payment of public debt and support for the national currency; h) semi-annual presentation, Government and Parliament, of the situation of external loans contracted directly by the state and those guaranteed by the state; i) development of rules on the methodology of hiring and reimbursement of external loans contracted directly by the state and those guaranteed by the state. + Article 19 National Bank of Romania-agent of the state on external public debt The foreign public debt service contracted by the Ministry of Finance on behalf of the state is paid through the National Bank of Romania The Ministry of Finance has the obligation to carry out the settlement in lei of payments made by the National Bank of Romania, the second working day from the receipt of the confirmation of payment to external + Article 20 International agreements Loans contracted by the state through the Ministry of Finance may have no destination other than that established by agreements and will be contracted, administered and reimbursed according to the terms of the loan agreements. + Article 21 Conversion of funds obtained by contracting external loans to finance the state budget deficit The funds obtained as a result of contracting external loans by the Ministry of Finance on behalf of the state, to finance the deficit of the state budget, are converted into national currency through the National Bank of Romania. The reimbursement of external loans will be made by the Ministry of Finance, which will lay off all the amounts in lei necessary for the full payment. + Article 22 Use of external state loans to finance investments or imports established by the Government (1) In addition to the purposes listed in art. 2, external public debt can also be contracted for: a) the creation of new jobs and the support of privatized companies or with majority state capital, based on the economic and social priorities established by the Government; b) financing the restructuring of the economy and setting up strategic stocks, including the production of goods and services for the internal market and for export; c) financing of infrastructure investment projects, including those for social services; d) financing of public procurement. (2) External loans for the purposes provided in par. ((1), except lit. d), as well as external loans for the purposes provided in art. 2 lit. d)-f) are presented for approval to the Inter-Ministerial Committee of Guarantees and Foreign Trade Credits. (3) The transmission of external loans, contracted by the Ministry of Finance on behalf of the state, to the final users shall be made on the basis of subloan contracts, concluded between the Ministry of Finance + Article 23 Administration of foreign loans obtained to finance investments or imports established by the Government (1) The Ministry of Finance may mandate financial institutions that, on behalf of and on behalf of the Romanian state, manage the foreign loans contracted by the Ministry of Finance on behalf and on behalf of the state, intended for investments and imports. (2) Financial institutions and final users of external loans contracted by the Ministry of Finance on behalf of the state are obliged to provide in full the necessary sources for that reimbursement, according to the clauses stipulated in external contracts as well as in the subsidiary loan agreements. + Article 24 External public debt procedures contracted to finance investment projects (1) External loans that are used to finance investment projects will be distributed to economic agents, in compliance with the following rules: a) economic agents will present investment projects with business plans and other necessary documents, relevant for specialized financial institutions; b) specialized financial institutions will analyze investment projects, business plans and the ability of economic agents to repay funds obtained from external loans and will adopt decisions related to the use of these loans; c) on the basis of the decisions adopted, the specialized financial institutions will collect the amounts from creditors, according to the procedures established by the credit agreements concluded with the loan beneficiaries. In the contract concluded by the international financial institutions with the Ministry of Finance will stipulate that the transfer of foreign exchange resources to the final beneficiaries should be operated only after obtaining the agreement of the Ministry of Finance investments and the opinion of the Interministerial Committee of Guarantees and Foreign Trade Credits, based on the analyses carried out by the Import-Export Bank of Romania-S.A. (Eximbank) (2) External loans, contracted by the state for the financing of investment projects that are financed from the state budget, will be analyzed and managed directly by the Ministry of Finance. + Article 25 Procedures regarding external public debt contracted to finance imports established by the Government (1) External loans for the financing of imports established by the Government will be underlent to economic agents by the conclusion of subloan contracts. (2) External loans for the financing of imports established by the Government shall be distributed by the Ministry of Finance, directly or through its designated agent. The distribution criteria will be established by methodological norms approved by the Government. (3) External loans for the financing of imports established by the Government may be distributed by the Ministry of Finance through financial institutions or by agents appointed by him, on the basis of a subloan agreement comprising the clauses in accordance with the external contract and the legislation + Article 26 Repayment of external loans granted by the Ministry of Finance to financial institutions (1) All external loans contracted by the Ministry of Finance on behalf of the Romanian state and granted for administration to financial institutions for the financing of investment projects or imports established by the Government will be paid The Ministry of Finance by economic agents, in accordance with the provisions of the subloan contract concluded between the financial institutions, on behalf of the Romanian state, and the economic agents. (2) In the sub-loan contracts with financial institutions or economic agents the Ministry of Finance will specify the currency in which the capital and foreign currency rates will be calculated and reimbursed in which interest and other costs will be calculated and paid Related, as appropriate. (3) The Ministry of Finance is authorized to charge a commission from financial institutions or economic agents, beneficiaries of loans, to supply the risk fund. + Chapter 4 State guarantees for domestic loans + Article 27 Issuance of State guarantees for domestic loans The Ministry of Finance is authorized to issue state guarantees for internal loans, contracted by a legal entity from a creditor institution, to finance projects or activities of priority importance for Romania or for other destinations established and approved by the Government. + Article 28 Procedure for issuing state guarantees for domestic loans (1) The issuance of state guarantees for domestic loans is subject to the acceptance by the Ministry of Finance of the clauses contained in the loan contracts concluded between legal entities and creditor institutions. ((2) Between the Ministry of Finance, as a guarantor, and the legal person who contracts a loan with the guarantee of the state, as guaranteed, a convention in which the rights and obligations of the signatory parties, including those relating to the payment of the risk commission. (3) The Ministry of Finance shall issue, in favour of the creditor institution, the letter of guarantee, specifying the terms and conditions under which the guarantee is granted. (4) The procedure for issuing state guarantees for internal loans will be established by norms developed by the Ministry of Finance and approved by the Government. + Article 29 Obligation to honour state guarantees for domestic loans (1) The state guarantee for an internal loan is an indirect obligation of the Romanian state, which is executed if the loan beneficiary does not have the capacity to pay, in whole or in part, the loan, interest and other costs established under the terms of the guaranteed loan. ((2) If a state guarantee for an internal loan becomes chargeable, the State shall be obliged to carry out to the creditor institution the payment or payments due by the guaranteed debtor, in accordance with the stipulations of the letter of guarantee issued. (3) If the payment obligations exceed the availability of the risk fund and the amounts provided in the state budget with this destination, and the payment or payments are provided by contracting a state loan, only in this situation and only for the amount not covered by the internal state guarantee for loans is converted into domestic public debt. + Article 30 Risk Fund for State guarantees for domestic loans (1) In order to cover the financial risks arising from the state guarantee of loans contracted by legal entities from the creditor institutions, under the conditions of this law, the risk fund shall be constituted. (2) The risk fund shall be from the amounts collected in the form of commissions from the beneficiaries of the guaranteed loans, from the interest obtained from the placements of the amounts in deposits, from the late increases applied for non-payment within the commissions, from budgetary funds allocated for this purpose, as well as from other legally constituted sources. ((3) The amounts as deposits in the risk fund shall be placed by the Ministry of Finance or the agent designated by him, having regard to their safety, liquidity and profitability, in this order and priority. The amounts in the deposit in the risk fund are intended to pay the obligations generated by the state guarantees for domestic loans. (4) The risk fund shall be managed in an extra-budgetary procedure by the Ministry of Finance, through the general account of the state treasury. The management of the risk fund as well as the reflection in the accounting of the state treasury and the accounting of the legal entities of the operations related to the granting of state guarantees for domestic loans will be established by rules developed by the Ministry of Finance. + Article 31 Determination of the risk commission ((1) Based on the economic and financial analysis of the documentation submitted by the legal entity requesting a state guarantee for the domestic loan, the Ministry of Finance or other designated agent, at its request, determines the degree of risk that express in percent. The degree of risk thus determined can be accepted if its level does not exceed 10% of the loan amount. (2) Depending on the degree of risk, established according to par. ((1), the Ministry of Finance determines the amount of the risk commission to be transferred to the risk fund account by the beneficiary of the guaranteed credit. The amount due is determined by applying the percentage share to the guaranteed loan amount. (3) The risk commission represents the amount due by the beneficiary of a loan guaranteed by the state, in the amount and at the terms stipulated in the convention concluded with the Ministry of Finance + Article 32 Execution of State guarantees for domestic loans (1) If the beneficiary of the loan does not meet his payment obligation under the loan contract and the creditor institution has undertaken all the measures stipulated in this law, in the loan contract and in the letter of guarantee to cover the payments that are due to him, then the creditor institution may submit a request for payment to the Ministry of Finance, in order for the latter to pay, according to the state guarantee, for the domestic loan. (2) The payment application will include: outstanding credit rates, interest and other costs, as well as the date of payments to be made to the creditor institution by the Ministry of Finance, in accordance with the terms of the guarantee letter. (3) If the specifications in the payment application are in accordance with the provisions of the present law and with the clauses of the letter of guarantee, the Ministry of Finance shall transfer the amount or amounts requested to the account indicated by the creditor institution, in bank days from the date of submission of the application. + Article 33 Termination of the validity of the State guarantee for domestic loans ((1) The cessation of the validity of the State guarantee for internal loans shall be made when: a) the loan covered by the guarantee is fully paid by its beneficiary; b) The Ministry of Finance shall make the payment or payments, in full, to the creditor institution, on behalf of the c) the term of validity stipulated in the letter of guarantee has expired. (2) The termination of the obligations arising from the loan contract shall entail the termination of the validity of the letter of guarantee, which shall be returned to the issuer, respectively to the Ministry of Finance, within 10 days from the meeting of one of the in par. ((1). + Article 34 Recovery of amounts paid for State guarantees on domestic loans (1) After carrying out by the Ministry of Finance the payment or payments generated by the execution of the state guarantee for the domestic loan, the beneficiary of the loan has the obligation to pay back to the Ministry of Finance of this, in accordance with the provisions of the convention concluded between the beneficiary of the loan and the The convention concluded between the Ministry of Finance, as a guarantor, and the beneficiary of the internal loan are enforceable. (2) For the recovery of the amounts paid, according to the state guarantee, the Ministry of Finance has priority over the assets and incomes of the beneficiary of the internal loan, based on the legislation in force on the obligations ((3) The amounts recovered by the Ministry of Finance, under the conditions of this Article, represent funds available for the risk fund, in order to rejoin it. + Chapter 5 State guarantees for external loans + Article 35 Granting of State guarantees for external loans (1) The Ministry of Finance, on behalf of the State, is authorized to grant state guarantees for foreign loans. (2) State guarantees for foreign loans, regulated by this law, will be granted only to finance objectives whose selection criteria are the same as in the case of contracting external public debt. (3) The total amount of State guarantees for external loans that may be granted in a single year falls within the external public debt ceiling. + Article 36 Obligation to honor state guarantees for foreign loans The state guarantee for foreign loans is an indirect obligation of the Romanian state, which is exercised if the beneficiary of the external loan does not have the capacity to pay, in whole or in part, the loan, interest and other costs established in accordance with the terms of the external loan contract. + Article 37 Issuance of State guarantees for external loans (1) The government will establish the projects that are of priority importance for Romania. (2) Export-Import Bank of Romania-S.A. (Eximbank) will analyze and submit to the approval of the Inter-Ministerial Committee of Guarantees and Foreign Trade Credits the projects supported by the ministries. (3) The interministerial committee of guarantees and foreign trade credits will endorse the projects for which letters of guarantee will be issued. (4) The Ministry of Finance is authorized to issue state guarantees for foreign loans contracted by economic agents and Romanian public authorities. + Article 38 Procedure for issuing State guarantees for external loans (1) The issuance of state guarantees for foreign loans is subject to the acceptance by the Ministry of Finance of the clauses contained in the loan contracts concluded between legal entities and creditor institutions. ((2) Between the Ministry of Finance, as a guarantor, and the legal person who contracts an external loan with the guarantee of the State, as guaranteed, a convention in which the rights and obligations of the signatory parties are stipulated, including those relating to the payment of the risk commission. (3) The Ministry of Finance shall issue the letter of guarantee to the creditor institution. (4) The procedure for issuing the state guarantee for external loans will be established by norms developed by the Ministry of Finance and approved by the Government. + Article 39 Determination of the risk commission (1) Based on economic and financial analysis, conducted by the Export-Import Bank of Romania-S.A. (Eximbank) or other designated agent, of the documentation submitted by the legal person requesting a state guarantee for external loans, the Ministry of Finance or other designated agent, at its request, determines the degree of risk, which shall be express in percent. The degree of risk, thus determined, can be accepted, if its level does not exceed 10% of the value of the external loan. (2) Depending on the degree of risk established according to par. ((1), the Ministry of Finance determines the amount of the risk commission to be transferred to the risk fund account by the beneficiary of the guaranteed credit. The amount due is determined by applying the percentage share to the value of the guaranteed external loan (3) The risk commission represents the amount due by the beneficiary of an external loan guaranteed by the state, in the amount and at the terms stipulated in the convention concluded with the Ministry of Finance + Article 40 Risk Fund for State guarantees for external loans (1) In order to cover the financial risks arising from the state guarantee of external loans contracted by legal entities from the creditor institutions, under the conditions of this law, the risk fund shall be constituted. (2) The risk fund is constituted by the amounts collected in the form of commissions from the beneficiaries of the guaranteed external loans, from the interest obtained from the placements of the amounts in deposits, from the late increases applied for non-payment in the term of the commissions, from the budgetary funds allocated for this purpose, as well as from other legally constituted sources. If payments are made from the risk fund related to unfulfilled maturities to be guaranteed, the income of the risk fund shall be completed with the amounts recovered from it. ((3) The amounts as deposits in the risk fund shall be placed by the Ministry of Finance or the agent designated by him, having regard to their safety, liquidity and profitability, in this order and priority. The amounts in the deposit in the risk fund are intended to pay the obligations generated by the state guarantees for the external loans granted. (4) The risk fund shall be managed in an extra-budgetary procedure by the Ministry of Finance, through the general account of the state treasury. The management of the risk fund, as well as the reflection in the accounting of the state treasury of the operations related to the granting of state guarantees for external loans will be established by norms developed by the Ministry of Finance. + Article 41 Execution of State guarantees for external loans issued by the Ministry of Finance (1) If the beneficiary of the state guarantee does not meet the payment obligations stipulated in the loan agreement, the creditor institution, in accordance with the clauses provided therein, shall notify, in writing, the Ministry of Finance, in to exercise the obligation of guarantor. (2) The notice will include: the capital ratio, the interest amount and other costs to be repaid to the lending institution, according to the loan agreement. (3) The beneficiary of the state guarantee will inform and prove, in writing, in a timely manner, the guarantor on the lack of available funds necessary to pay the amounts due to external. (4) The Ministry of Finance shall ask the National Bank of Romania to pay externally the amounts due to the lending institution. The Ministry of Finance will settle the value in lei of the amounts paid by the National Bank of Romania, on the second working day from the receipt of the confirmation of payment to the external. + Article 42 Termination of the validity of the State guarantee for external loans ((1) The cessation of the validity of the State guarantee for external loans shall be made when: a) the loan covered by the State guarantee is fully paid by its beneficiary; b) The Ministry of Finance shall make the payment or payments, in full, to the foreign creditor institution, on behalf of the c) the term of validity stipulated in the letter of guarantee has expired. (2) The termination of the obligations arising from the loan contract shall entail the termination of the validity of the letter of guarantee. + Article 43 Recovery of amounts paid for State guarantees for external loans (1) After carrying out by the Ministry of Finance the payment or due payments, according to the state guarantee for the external loan, the beneficiary of the external loan must take all necessary measures to return to the Ministry Finance the amounts paid, in accordance with the provisions of the convention concluded between the beneficiary of the loan and The convention concluded by the Ministry of Finance, as guarantor, and the beneficiary of the external loan constitute enforceable title. (2) The Ministry of Finance will undertake all legal measures to recover the payment or payments made, as a result of the execution of the state guarantee. (3) For the recovery of the amounts paid according to the state guarantee the Ministry of Finance has priority over the assets and incomes of the beneficiary of the external loan, based on the legislation in force on the obligations ((4) The amounts recovered by the Ministry of Finance under the terms of this Article represent income for the risk fund in order to rejoin it. + Chapter 6 Registration and administration of public debt and state guarantees + Article 44 Administration of public debt and state guarantees The Ministry of Finance is authorized to administer public debt and state guarantees. For the purpose of this purpose, the Ministry of Finance a) analyze and assess the size of the loan, so that the level of indebtedness meets the needs of Romania and the state's ability to manage the debt; b) keep the bookkeeping of the contracted public debt and the statistical record of the state guarantees issued; c) aims to carry out the state-guaranteed d) supervise the liquidity in the general account of the state treasury for payment within the set deadlines; e) annually develop the general account of public debt. + Chapter 7 Final provisions + Article 45 Registration of public debt and state guarantees (1) The Ministry of Finance shall keep records in which mentions of public debt and state guarantees for loans of Romania are entered. (2) Registers will include data on the situation of public debt, letters of guarantee, including their value, interest level, commissions, as well as other information. (3) The Ministry of Finance is authorized to develop methodological norms on the public debt register and the register of state guarantees for loans. + Article 46 Delegation of the Ministry of Finance The Ministry of Finance may delegate to a public institution tasks related to the process of contracting and administration of public debt and state guarantees for loans. + Article 47 Contraventions (1) It constitutes contraventions to the provisions of this law the following facts, if, according to the criminal law, they are not committed under such conditions as to be considered crimes: a) failure to submit documents by which loans generating public debt were contracted within the deadlines set by the Ministry of Finance; b) non-reporting of data on the development of public debt loans; c) refusal to provide the control bodies with the documents, data and information requested on the public debt. (2) Contraventions provided in par. (1) is sanctioned with a fine of 10,000,000 lei to 50,000,000 lei. + Article 48 Finding and sanctioning contraventions (1) 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. (2) In so far as this law does not have otherwise, the contraventions provided for in art. 47 the provisions of Law no. 32/1968 on the establishment and sanctioning of contraventions, except art. 25-27. + Article 49 Finding and punishing crimes (1) It constitutes crimes and is punishable by imprisonment from 6 months to 5 years the following facts: a) the use of funds in lei and in foreign currency, arising from the contracting of public debt, for purposes other than those for which they were approved; b) the provision of erroneous data for the substantiation of the submitted documentation, in order to obtain the necessary notices for the contracting or guarantee of external loans, which is the subject of this law. (2) The finding of the facts provided in par. (1) shall be made by the Ministry of Finance, its territorial units, as well as by the authorized bodies for this purpose by law. + Article 50 Methodological rules Within 90 days from the date of entry into force of this Law, the Ministry of Finance will develop the methodological norms of application. + Article 51 Entry into force, repeal The date of entry into force of this Law shall be repealed: Law no. 91/1993 on public debt, published in the Official Gazette of Romania, Part I, no. 3 of 10 January 1994; art. 17 17 para. ((2)-(8), art. 18 18 and 45 of Law no. 72/1996 on public finances, published in the Official Gazette of Romania, Part I, no. 152 152 of 17 July 1996; any other provisions to the contrary. This law was adopted by the Senate at the meeting of April 6, 1999, in compliance with the provisions of art 74 74 para. (1) of the Romanian Constitution. p. SENATE PRESIDENT, CRISTIAN DUMITRESCU This law was adopted by the Chamber of Deputies at its meeting on April 7, 1999, in compliance with the provisions of 74 74 para. (1) of the Romanian Constitution. p. CHAMBER OF DEPUTIES PRESIDENT, VASILE LUPU ----------