Law No. 81 Of 11 May 1999 Public Debt Law

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

Read the untranslated law here: https://www.global-regulation.com/law/romania/3071564/-lege-nr.-81-din-11-mai-1999-legea-datoriei-publice.html

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
Law No. 81 of 11 May 1999 ISSUING public debt Law PARLIAMENT Published in MONITORUL OFICIAL nr. 215 of 17 May 1999 Parliament adopts this law.


Chapter 1 General provisions Article 1 Definitions for the purposes of this Act, the words and expressions below have the following meanings: 1. State-designate Romania as a sovereign State, whose interests are represented by the Government;
2. government debt all internal and external obligations of the State, at one point, contracted by the Government, through the Ministry of finance, on behalf of Romania. In assessing Romania's public debt, any obligation, expressed in another currency than the national team, is calculated in the national currency using the exchange rate communicated by the National Bank of Romania for the last day of the period to which the reporting;
3. internal public debt-the part of the public debt, representing the entirety of the obligations of the State, originating loans directly or guaranteed by the State of the internal market, including amounts received from Treasury sources;
4. external public debt-the part of the public debt, representing the entirety of the obligations of the State, coming from the external market loans, contracted directly or guaranteed by the State;
5. the State guarantee-the commitment on behalf and on behalf of the State by the Ministry of finance towards credit institution to pay a certain amount thereof, in the case of non-payment of the obligations of the debtor;
6. the State guarantees to all internal and external guarantees issued by the Ministry of finance, in the name and on behalf of the State, loans contracted by businesses and public authorities. State guarantees are issued for loans in the domestic market. State guarantees are issued for foreign loans in foreign markets;
7. register of public debt-the document that highlights the plight of the public debt in chronological order and which has two components: the internal public debt sub-registry shall report and public foreign debt sub-registry shall report;
8. the State Register of securities-document that highlights the plight of State guarantees and which has two components: the internal State guarantees sub-registry shall report and external State guarantees sub-registry shall report;
9. the State loan-generated by a contract obligation, whereby the State obtain funds from a natural or legal person to the creditor and undertakes to reimburse them together with interest and other costs, in a specified period;
10. capital-related loan amount obtained as a result of a loan;
11. bonds-records attest the public debt in the form of Treasury bills, certificates, or other financial instruments, loans of the State in national currency or in foreign currency in the short term, medium and long term. They can be issued in dematerialized form, materialized or are registered or bearer, and may be negotiable or non-negotiable;
12. Treasury interest-title State which has a nominal value to which it pays a fixed interest rate to the specified database;
13. discount Treasury-State title without the coupon interest rate, which is sold at a lower value than its nominal value;
14. the related capital securities interest-bearing State-sum loaned from the one who gives the loan at the time of issuance of securities bearing interest;
15. the related capital Government securities discount amount borrowed from the one who gives the loan at the time of the issue of Government securities discount to the amount that represents the purchase price of the securities of State discount;
16. authorization-authorization of permanent budget to pay debt service on the due date, without additional provisions in the law of the State budget;
17. the title of title of dematerialized State-State which is highlighted by registration in the account which is recorded on paper or other kind of support established by the Ministry of finance;
18. State title-the title of State manifested in physical form;
19. account registration system-operational system by means of which the titles are issued in dematerialized form, their being carried out by the Ministry of finance or the designated agent;
20. the price of the State-the amount paid by buyers of Government securities at issue;
21. the nominal value of the State-title value stated on a Treasury bond, refundable at maturity;
22. the first-difference between the price of a Treasury bond issue, and its nominal value, if the price is higher than the nominal value;
23. the difference between the discount-a State title at issue and its nominal value, if the price is lower than the nominal value;
24. interest rate-the interest rate expressed as a percentage, paid for a capital loan or Treasury bond interest-bearing;
25. interest-rate variable interest rate on a loan or Treasury bond interest-bearing, which change from time to time, in accordance with an index, a formula or another criterion, as set out in the terms of the loan or title;
26. in the short term a period of up to one year inclusive;
27. in the medium term a period of over one year, up to 5 years of age inclusive;
28. in the long term a period of over 5 years;
29. due date-the date on which the nominal value and the last tranche of interest, related a loan or Treasury bond interest-bearing, or nominal value of a Treasury bond discount become payable in accordance with the terms of the loan;
30. interest payment date-the date designated for the payment of interest on a loan or a particular series of bonds, interest-bearing;
31. date of redemption in advance of the date fixed for redemption-a State title before its maturity, which is communicated by the issuer or agent appointed by the Ministry of finance and in which country(ies) of State can receive, prior to maturity, the value entered in the title, in accordance with the terms stipulated in the deed of loan issue by the State;
32. the current posting date-the date set by the National Bank of Romania or by another authorized agent as last date appearing in the registration system account and that serves to identify the holder of the title of the State due to the payment of the par value or interest, becomes chargeable at the time fixed by the terms of issue of the loan by the State;
33. risk fund extra-budgetary Fund, established at the Ministry of finance, in which deposit fees received from the beneficiaries of the loans directly and those guaranteed by him, as negotiated with the Ministry of finance;
34. The Inter-Ministerial Committee for guarantees and credits of foreign trade-body that examines and approves, endorses, according to competence, financing and credit insurance export-import, in the name and on behalf of the State, which shall be carried out by the Export-Import Bank of Romania-S.A. (Eximbank);
35. the public debt ceiling all loans that you can contract and ensure the State for a period of one year, which is set annually by law. The ceiling of the public debt ceiling for public debt includes domestic and external public debt ceiling. Internal public debt ceiling is determined according to the approved budget deficit and provisions of special laws. Public external debt ceiling is set as the maximum amount of foreign loans which they may contract or guarantee State over a period of a year and is set annually by the law;
36. procurement-acquiring temporary or definitive by a legal person acquiring goods, investment, contract purchase, lease or rental, and the services funded in whole or in part from the State budget, local budgets, special funds set up by law in addition to these budgets, from extra-budgetary means from external credits contracted directly or guaranteed by the State;
37. letter of guarantee-guarantee that tool;
38. guaranteed-a legal entity that receives a loan from a credit institution on the basis of a letter of guarantee issued by the Ministry of finance;
39. the general account of Treasury account where the State collects all public revenues and expenditures shall be made public, unless otherwise provided by law.


Article 2 Contracting loans and issuance of guarantees by the State, the State Government is empowered to contract loans from domestic and foreign State or to ensure internal and external loans only through the Ministry of finance, for the following purposes: to finance the budget deficit);
  

b) debt refinancing;
  

(c) the balance of payments) supporting and strengthening the State's foreign exchange reserve;
  

d) financing of investment projects for the development of priority sectors of the economy;
  

(e) financing of development) small and medium enterprises majority-owned Romanian;
  

(f) financing of the purchase of goods) and services, including imports of raw materials and energy resources;
  

g) obligations related to State guarantees for loans;
  

h) depreciation of government loans and payment and redemption of debt outstanding, including capital, interest and other costs;
  

I) short-term financing needs of the State budget;
  

j) financing expenditure relating to the liquidation of the consequences of natural disasters and other calamities;
  


k) keeping an appropriate balance of the Treasury's general account, established by the Ministry of finance;
  

l) other necessities approved by special laws.
  


Article 3 public debt repayment (1) repayment of loans by the State ensure, where appropriate, sources established by laws, sources of the general account of Treasury and state loan to refinance public debt.
  

(2) repayment of equity rates, payment of interest and other costs of the public debt have precedence over all other obligations of the State.
  

(3) in the event that the loans contracted or guaranteed by the State, money funds are not sufficient to cover all payments due, all the responsibilities assumed by the agent/attorneys appointed agents shall cease simultaneously by taking on the obligations of the Ministry of finance.
  


Article 4 the administration of the public debt, the Finance Ministry is the only contractor and Manager of public debt and has the authority to establish the daily balance of the account's general Treasury, future levels of liquidity requirement, maturity of government debt, interest costs and debt refinancing or reduction.


Article 5 authorisation of investments and guarantees for deposits of public individuals and legal entities, as well as foreign financial institutions can invest in accordance with the law, any own funds or in the administration of their bonds of public debt, which is covered by this law.


Article 6 loans for local public administration authorities (1) Loans contracted by local public administration authorities are part of Romania's public debt, but does not constitute debts or liabilities of the Government, and the payment of related service such loans shall be made solely from the revenues which have guaranteed the loans concerned by the local public administration authorities.
  

(2) local public administration authorities can engage internal loans without Government guarantee, provided prior notification to the Ministry of finance.
  

(3) foreign loans will be contracted only with the approval of the Commission for the approval of these loans, made up of representatives of local public administration authorities, of the Government and the National Bank of Romania, whose component is approved by the Government.
  

(4) the contracting of loans by local public administration authorities shall be made in accordance with the provisions of law No. 189/1998 on local public finances and of the present law; reporting and recording of local government debt are made according to the methodological norms issued by the Ministry of finance.
  


Internal public debt Chapter 2 Article 7 the obligation to pay the internal debt (1) domestic public debt represents an unconditional and irrevocable obligation of the State to the repayment of loans in lei, payment of interest and other costs.
  

(2) for the purposes of the payment of interest on domestic debt are granted permanent authorization for carrying out such budgetary expenses.
  


Article 8 of the internal public debt Instruments debt Instruments of the State include, without limitation: a) State titles of national currency;
  

Sub-loans b) State of the National Bank of Romania, under the conditions established by law. 101/1998 on the Statute of the National Bank of Romania;
  

Sub-loans c) State commercial banks from Romania;
  

Sub-loans d) State from other credit institutions from Romania and from government agencies.
  


Article 9 Issue Government securities (1) the Minister of finance is authorized to issue bonds denominated in national currency and in foreign currency.
  

(2) the State may be given in the form: a) as vocalist, printed as a document, including mandatory particulars relating to the issuer, nominal amount, interest rate, maturity date, mode of transmission and other factors specific to each class of securities;
  

(b)) in the form of dematerialized securities, as for that issue, probation and broadcast rights incorporated the entry registration system into account.
  

(3) the Minister of finance may delegate certain agents or other institution designated for that purpose operational powers on the issue of government bonds.
  


Article 10 the State securities Regime (1) securities dematerialised State and those issued in materialized form are negotiable instruments under the established provisions of this law, and according to the terms of the contract concluded with the trustee, if the titles are held by a trustee.
  

(2) the Minister of Finance shall prepare regulations establishing the regime of State securities and which must include, in particular, but not exclusively, rules on: (a) Government securities issuance) in the form of an entry in or near by account and by the conditions of issue;
  

b) nominal value, interest rates, premiums, and payments due, ransom;
  

c) offer procedures, conditions and modes of sale of Government securities;
  

d) registration and administration for State titles.
  

(3) payment of capital and interest on State securities issued in materialized form, shall be in accordance with the laws of such debt securities and with regulations drawn up within the limits of the provisions of this law.
  

(4) payment of capital and interest on State securities dematerialised is performed through the account registration system, in accordance with the regulations drawn up within the limits of the provisions of this law.
  


Article 11 government securities Maturity (1) Titles of State expressed in national currency can be issued short-term, medium or long-term.
  

(2) State Titles in short-term Treasury bills and vouchers are certificates, interest-bearing, either with either discount, and other tools that may be created by the issuer in accordance with the law.
  

(3) the titles of State medium-term or long-term bonds with a maturity of over one year and up to 5 years after issuance, i.e. over 5 years at issue, whether the interest-bearing or discount, issued under the terms of the loan.
  


Article 12 state securities Circulation (1) State Titles will be offered for sale, provided that the offer to include at least the following elements: (a) the name, date of issue) and the value of Government securities offered;
  

b) state loan form represented by related titles-with discount or interest-bearing;
  

c) the rate of interest, the method of calculation and the dates on which interest is payable, where appropriate;
  

d) due date and advance refund clause, if any.
  

(2) it is prohibited to any agreements or concerted practices of participants in the Government securities markets, which have as their object or effect could lead to distortions of competition on the market, in particular as regards: (a)) return and the price of securities;
  

b) Government securities volume offered or required;
  

c) portfolio evidence of structure of each participant in the market and portfolio management strategy;
  

d) involvement in transactions that could constitute acts of unfair competition against other participants in the market.
  

(3) the Minister of Finance shall establish and apply to regulate the activities and operations of the primary market of Government securities. The Ministry of finance, National Bank of Romania and the National Securities Commission will draw up, within 90 days from the date of publication of this law in the Official Gazette of Romania, rules governing the activities and operations on the secondary market of Government securities.
  


Article 13 payment of Government securities (1) the amount of Government securities shall be reimbursed in accordance with the terms of issue and the provisions of this law; at the time of the reimbursement obligations of the State shall be extinguished.
  

(2) the Minister of finance may refund you before the due date of the obligation of the State, state securities with a maturity longer than one year, if this is stipulated in clauses embodied in title or in the issue of the loan Act of State, and the redemption shall be carried out in accordance with the provisions of this law.
  

(3) the Minister of finance is authorized to provide compensation for State titles issued in materialized form, that have been lost, stolen, destroyed or damaged, provided that title to be identifiable by serial number and description, in accordance with the regulations in force and the holder to be opposition or disclosure required by law.
  

(4) if the date on which it performed one of the payments of the State is a holiday or a non-working day, payment will be made the next business day, without obliging the disbursed.
  


Article 14 the State Loans from National Bank of Romania, the Ministry of finance is authorized to borrow funds on behalf of the State, either directly from the National Bank of Romania under the conditions laid down by law No. 101/1998.


Article 15 the State Loans from commercial banks or other credit institutions from Romania the Ministry of finance is authorized to contract loans from State commercial banks or other credit institutions, under the terms resulting from the negotiations.


External public debt Chapter 3 Article 16 obligation to pay public debt externa


(1) foreign public debt represents an unconditional and irrevocable obligation of the State to the repayment of loans taken by the external market, payment of interest and other costs.
  

(2) for the purposes of the payment of the foreign debt service is granted permanent authorization for carrying out such budgetary expenses.
  

(3) the sources of payment for foreign public debt service should, where appropriate, the following: expenditure of) with this destination in the State budget;
  

(b) the Reserve Fund) available to the Government, according to State budget law;
  

c) amounts resulting from the recovery of the claims of the Romanian State, defined by law. 29/1994 authorizing the Government to approve the negotiation in order to recover debts from the Romanian foreign trade and international economic cooperation, carried out before 31 December 1989, after deducting appropriate economic operators, established on the basis of a rate of 15 lei per dollar S.U.A. and share 25% for boosting exports, according to Government Ordinance defined. 14/1995 on some measures to stimulate the development of complex and production goals with long manufacturing cycle, intended for export, approved by law No. 70/1995;
  

d) amounts received by the financial institutions mandated by the Ministry of Finance to manage foreign loans contracted by him in the name of and on behalf of the State of final beneficiaries of loans, intended for investment and imports;
  

e) amounts received by the Ministry of Finance from final beneficiaries of loans, based on the subsidiary loan agreements concluded under the terms of the loan agreements between the State and international financial bodies;
  

f) amounts provided for in budgets of beneficiaries of loans, based on the subsidiary loan agreements and collateral arrangements concluded between the Ministry of finance, county councils or local businesses under their authority, under the terms of the loan agreements between the State and international financial bodies;
  

g) amounts provided for in the budgets of the county or local public authorities for foreign loans contracted directly by them, in accordance with the law;
  

h) amounts provided for in budgets of economic agents who contracted foreign loans with State guarantee;
  

I) risk fund, for situations in which guarantees are issued by the Ministry of finance for foreign loans contracted by businesses.
  


Article 17 external public debt Instruments debt Instruments are the following: a) State titles of foreign currency denominated financial markets;
  

Sub-loans b) from foreign Governments, foreign government agencies, multilateral financial institutions or other international organisations;
  

Sub-loans syndicated c) short-term, medium or long-term;
  

Sub-loans d) direct from private investors, short-term, medium or long-term;
  

Sub-loans e) from foreign banks or from foreign companies;
  

f) other borrowings, as appropriate.
  


Article 18 duties of Ministry of finance regarding the external public debt Ministry of Finance shall have the following duties: a) directly on behalf of State Contracting, management and repayment of loans from the State, including costs;
  

(b) contracting of foreign loans) through the release of bonds on foreign markets, capital management and reimbursement;
  

c) examination of the necessity and opportunity of contracting foreign loans in foreign markets;
  

d) issuance of State guarantees on foreign loans;
  

analysis of conditions for e) refinancing public debt and ensuring that the new external loans to overcome the external debt ceiling annually;
  

f) draft law regarding public external debt ceiling and other normative acts arising from this law;
  

g) Administration, together with the National Bank of Romania, the State foreign exchange reserve, in order to ensure the necessary resources for its growth, use, together with the National Bank of Romania, the foreign exchange reserve for payment of debt service and to support the national currency;
  

h) presentation and term, Government and Parliament, the situation of foreign loans contracted directly by the State and guaranteed by the State;
  

I drawing-up of guidelines) methodology for engagement and for repaying the foreign loans contracted directly by the State and guaranteed by the State.
  


Article 19 National Bank-agent of the State regarding public debt externa external debt Service incurred by the Finance Ministry on behalf of the State shall be paid through the National Bank of Romania. The Finance Ministry is obliged to carry out the settlement of payments in lei made by National Bank of Romania, the second business day following receipt of the confirmation of the payment.


Article 20 international agreements on loans by the State through the Ministry of Finance may not have another destination than that set out in the agreements and will be contracted, administered and refunded under the terms of the loan agreements.


Article 21 the conversion funds obtained by contracting foreign loans to finance the deficit of the State budget Funds obtained as a result of foreign loans incurred by the Finance Ministry on behalf of the State, to finance the State budget deficit, are converted into national currency through the National Bank of Romania. Repayment of foreign loans will be made by the Finance Ministry, which will make all amounts necessary for making leis full payments.


Article 22 the use of foreign loans by the State to finance investments or imports set by the Government (1) in addition to the purposes listed in article 3. 2, external public debt may be contracted for and: (a) creation of new jobs) work and support of privatized companies or majority-owned by the State, based on social and economic priorities set by the Government;
  

(b) the restructuring of the economy and finance) establishment of strategic stocks, including the production of goods and services for the domestic market and for export;
  

c) financing of investment projects in infrastructure, including those for social services;
  

d) financing of public procurement.
  

(2) foreign loans intended for the purposes referred to in paragraph 1. (1) with the exception of subparagraph (c). (d)), as well as foreign loans intended for the purposes mentioned in article 1. 2(a) d)-f) are presented for endorsement to the interministerial committee for guarantees and credits of foreign trade.
  

(3) the transmission of foreign loans contracted by the Ministry of Finance, on behalf of the State, the end-user shall be based on contracts entered into between subimprumut, Ministry of finance and they.
  


Article 23 external loans administration obtained to finance investments or imports set by the Government (1) the Minister of finance may authorize the financial institutions that, in the name and on behalf of the Romanian State, manage foreign loans contracted by the Ministry of finance in the name and on behalf of the State, intended for investment and imports.
  

(2) financial institutions and end users do you have external loans contracted by the Ministry of Finance on behalf of the State shall be obliged to provide the necessary sources for repayment in full, in accordance with the terms stipulated in the contracts, as well as subsidiary loan agreements.
  


Article 24 procedures on external public debt incurred to finance investment projects (1) foreign loans which are used to finance investment projects will be distributed to businesses, while respecting the following rules: a) the economic agents will present investment projects with business plans and other documents relevant to financial institutions;
  

specialized financial institutions b) will analyze investment projects, business plans and the ability of economic operators to repay funds obtained from foreign loans and shall adopt decisions relating to the use of such loans;
  

c) on the basis of decisions taken, specialized financial institutions will collect the amounts from creditors, in accordance with the procedures laid down in the credit agreements concluded with beneficiaries. In a contract concluded by the international financial institutions and the Ministry of Finance will stipulate that the transfer of foreign exchange resources to the final beneficiaries to be operated only after obtaining the agreement of the Ministry of Finance regarding the investment objective and interministerial committee for guarantees and credits for foreign trade, on the basis of tests carried out by Export-Import Bank of Romania-S.A. (Eximbank).
  

(2) external Loans contracted by the State to finance investment projects which are financed from the State budget, will be analyzed and managed directly by the Ministry of finance.
  


Article 25 procedures relating to external debt contracted to finance imports set by the Government (1) foreign loans to finance imports set by the Government will be subimprumutate to businesses through subimprumut contracts.
  


(2) foreign loans to finance imports set by the Government shall be distributed by the Finance Ministry, either directly or through an agent or appointed. Allocation criteria will be determined through guidelines approved by the Government.
  

(3) foreign loans to finance imports set by the Government can be distributed by the Ministry of finance through financial institutions or through agents appointed by him, on the basis of a contract of subimprumut comprising contract compliant external clauses and rules in force.
  


Article 26 the reimbursement of foreign loans granted by the Ministry of finance towards the management of financial institutions (1) All foreign loans contracted by the Ministry of Finance on behalf of the Romanian Government and financial institutions granted towards Administration for financing of investment projects or imports set by the Government Ministry of finance will be paid by the operators, in accordance with the provisions of the contract concluded between the subimprumut financial institutions in the name and on behalf of the Romanian Government, and businesses.
  

(2) In subimprumut contracts with financial institutions or businesses with Finance Ministry will specify the currency will be calculated and reimbursed the capital rates and the currency will be calculated and paid interest and other costs, as appropriate.
  

(3) the Minister of finance is authorized to collect a fee from financial institutions or from economic agents, beneficiaries of loans to fund the venture fund.
  


Chapter 4 the State Guarantees for loans by Issuing internal article 27 State guarantees for domestic loans the Finance Ministry is authorised to issue State guarantees for loans contracted by a domestic legal person from a credit institution, to finance projects or activities of priority importance for Romania or for other destinations established and approved by the Government.


Article 28 issuance Procedure for State guarantees for domestic loans (1) the issue of State guarantees for loans is conditional upon acceptance by the Ministry of Finance of the clauses contained in the loan contracts concluded between legal entities and credit institutions.
  

(2) Between the Ministry of finance, in its capacity as guarantor, and the legal person which incurs a loan with guarantee of the State, as guaranteed, ending an agreement they are stipulated the rights and obligations of the Contracting Parties, including those relating to the payment of the fee.
  

(3) the Minister of finance issue, in favour of the creditor institution, guarantee letter, stating the terms and conditions under which the waiver is granted.
  

(4) the procedure of issuing State guarantees for loans is determined by internal rules drawn up by the Ministry of finance and approved by the Government.
  


Article 29 obligation to honor the State guarantees for domestic loans (1) State guarantee for a loan represents an internal indirect obligation of the Romanian State, which is where the recipient of the loan has no ability to pay, in whole or in part, loan, interest and other costs determined in accordance with the conditions of the loan guaranteed.
  

(2) where a State guarantee for a loan become payable, internal state is obliged to perform the credit institution payment or payments due from the debtor, in accordance with the stipulations of the letter of guarantee issued.
  

(3) if the payment obligations in excess of liquidity risk fund and the amounts provided for in the State budget with this destination, and the payment or payments are secured through contracting a State loan, but in this situation and only for the amount of internal State security uncovered loans be converted into domestic public debt.
  


Article 30 risk Fund for State guarantees for domestic loans (1) to cover financial risks arising from the guarantee by the State of the loans taken up by the legal entities of the credit institutions, under the present law, the venture fund.
  

(2) risk Fund is constituted by the amounts received in the form of commissions from the beneficiaries of the loans guaranteed, interest earned from investments amounts contained in the deposits, from increases in delay imposed for nonpayment of commissions allocated budgetary funds, for this purpose, as well as from other sources legally constituted.
  

(3) the amounts placed as deposits in the risk fund is placed by the Ministry of finance or an agent appointed by it, taking into account safety, liquidity and profitability, in that order and priority. Amounts placed in storage in the risk fund is intended for the payment of obligations arising from State guarantees for domestic loans.
  

(4) risk Fund is managed under the budget of the Ministry of Finance, through the general treasury account. How to manage the Fund, as well as reflecting the Treasury's accounts in the accounts of legal persons and of operations related to the granting of State guarantees for domestic loans will be determined by rules drawn up by the Finance Ministry.
  


Article 31 of Commission Determination (1) on the basis of economic and financial analysis of the documentation submitted by a legal person which require a State guarantee for a loan, the Ministry of finance or other designated agent, at his request, determine the degree of risk which is expressed as a percentage. The degree of risk thus determined may be accepted if its level does not exceed 10% of the value of the loan.
  

(2) depending on the degree of risk, established pursuant to paragraph 4. (1) the Ministry of finance determines the fee amount of risk to be transferred to the account of the risk of the loan guaranteed. The amount due shall be determined by applying the percentage share to the amount of the loan guaranteed.
  

(3) Commission of risk is the sum payable by the beneficiary of a loan guaranteed by the State, the amount and the deadlines 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 fulfil the obligation to pay under the agreement of loan and credit institution has undertaken all measures stipulated in this law, the loan agreement and in the letter of guarantee to cover payments that are owed to the creditor, then the institution may submit an application to the Ministry of finance for payment in order that the latter to pay, under the State guarantee for the loan.
  

(2) an application for payment will include: outstanding credit rates, interest and other costs, as well as the date of the payments to be made to the creditor institution by the Ministry of finance, in accordance with the terms of the letter of guarantee.
  

(3) where an application for payment from specificăţiile are in accordance with the provisions of this Act and with the terms of the letter of guarantee, the Ministry of finance will transfer the amount or amounts requested on behalf of the creditor institution indicated, within 30 days from the date the Bank application.
  


Article 33 termination of validity of State guarantee for loans (1) ceasing of State guarantee for domestic lending occurs when: a) the loan covered by warranty is paid entirely by the beneficiary;
  

(b)) the Minister of Finance shall pay or payments, in full, the creditor institution, in the name of garantatului;
  

c) period of validity stipulated in the letter of guarantee has expired.
  

(2) the extinction of obligations arising from the loan agreement shall entail termination of the validity of the letter of guarantee, which shall be returned to the issuer, i.e. the Ministry of Finance shall, within 10 days of meeting one of the conditions laid down in paragraph 1. 1. Article 34 guarantees the recovery of sums paid for State domestic lending (1) After the Ministry of Finance of the payment or payments arising from the execution of the security for the loan, the loan beneficiary is obliged to repay the equivalent of the Ministry of finance expenditure incurred by it in accordance with the provisions of the Convention concluded between the beneficiary of the loan and the Finance Ministry. The Convention concluded between the Ministry of finance, in its capacity as guarantor, and the recipient of the loan internally shall be enforceable.
  

(2) For the recovery of sums paid under the guarantee of the State, the Ministry of finance takes precedence over the assets and income of the recipient of the loan, based on the legislation in force concerning the obligations arising out of the State budget.
  

(3) the amounts recovered by the Department of Finance, in terms of this article, represents funds available for venture fund, in order to reintregirii it.
  


Chapter 5 of State Guarantees for loans, the provision of Article 35 external State guarantees for loans (1) the Minister of finance, on behalf of the State, shall be authorized to grant State guarantees on foreign loans.
  

(2) the State Guarantees for foreign loans, subject to this Act, shall be granted only to fund objectives whose selection criteria are the same as in the case of contracting external public debt.
  


(3) the total amount of State guarantees on foreign loans which may be granted in one year fall into the ceiling of the public debt.
  


Article 36 the obligation to honor the warranties of State external loans State guarantee for foreign loans represent an indirect obligation of the Romanian State, which shall be exercised in cases where the recipient of the loan has no external capacity to pay, in whole or in part, loan, interest and other costs determined in accordance with the terms of the contract concerning the loan.


Article 37 the issuance of State guarantees for loans (1) the Government shall establish projects that have an importance of high priority for Romania.
  

(2) Export-Import Bank of Romania-S.A. (Eximbank) will review and will submit to the opinion of the interministerial committee guarantees and credits of foreign trade projects supported by Ministers.
  

(3) the interministerial Committee for guarantees and credits of foreign trade will approve projects for which it will issue letters of guarantee.
  

(4) the Minister of finance is authorized to issue State guarantees for loans contracted by foreign operators and public authorities.
  


Article 38 Procedure of issuing State guarantees for loans (1) the issue of State guarantees on foreign loans shall be subject to acceptance by the Ministry of Finance of the clauses contained in the loan contracts concluded between legal entities and credit institutions.
  

(2) Between the Ministry of finance, in its capacity as guarantor, and the legal person who contracts a loan guarantee external State, as guaranteed, ending an agreement they are stipulated the rights and obligations of the Contracting Parties, including those relating to the payment of the fee.
  

(3) the Minister of Finance shall issue a letter of guarantee in favour of the creditor institution.
  

(4) the procedure for the issue of the security of State external loans shall be established by rules drawn up by the Ministry of finance and approved by the Government.
  


Article 39 the Commission Determination (1) on the basis of economic and financial analysis, carried out by the Export-Import Bank of Romania-S.A. (Eximbank) or other designated agent, of the documentation submitted by the legal person applying for a State guarantee for external loans, the Finance Ministry or other designated agent, at his request, determine the degree of risk, which is expressed as a percentage. The degree of risk, thus determined may be accepted if its level does not exceed 10% of the value of the loan.
  

(2) depending on the level of risk determined in accordance with paragraph 1. (1) the Ministry of finance determines the fee amount of risk to be transferred to the account of the risk of the loan guaranteed. The amount due shall be determined by applying the percentage share to the amount of the loan guaranteed external.
  

(3) Commission of risk is the sum payable by the beneficiary of a loan guaranteed by the State, external in the amount of the stipulated in the Convention concluded with the Ministry of finance.
  


Article 40 the risk Fund for State guarantees for loans (1) to cover financial risks arising from the guarantee of the State external loans contracted by the legal entities of the credit institutions, under the present law, the venture fund.
  

(2) risk Fund consists of amounts received in the form of commissions from the beneficiaries of foreign loans guaranteed, interest earned from investments amounts contained in the deposits, from increases in delay imposed for nonpayment of commissions allocated budgetary funds, for this purpose, as well as from other sources legally constituted. Where the payment is effected the risk on some of the outstanding due guaranteed income risk fund is reintregesc with amounts recovered from it.
  

(3) the amounts placed as deposits in the risk fund is placed by the Ministry of finance or an agent appointed by it, taking into account safety, liquidity and profitability, in that order and priority. Amounts placed in storage in the risk fund is intended for the payment of obligations arising from State guarantees for foreign loans granted.
  

(4) risk Fund is managed under the budget of the Ministry of Finance, through the general treasury account. How to manage the Fund, as well as coverage of the Treasury accounts of the operations related to the granting of State guarantees on foreign loans will be determined by rules drawn up by the Ministry of finance.
  


Article 41 guarantees Execution State for foreign loans issued by the Ministry of Finance (1) where the collateral taker of State defaulting of payment stipulated in the loan agreement, the creditor institution, in accordance with the terms laid down in it, you know, in writing, to the Ministry of finance, for the obligation of the guarantor.
  

(2) the notification will include: capital value rate of interest and other costs to be reimbursed to the creditor institution, in accordance with the loan agreement.
  

(3) State collateral taker will inform you and will sample in writing in a timely manner, the guarantor upon payment of the required money lack availability of amounts due.
  

(4) the Ministry of finance will ask the National Bank of Romania to pay amounts due by externally to the creditor institution. The Ministry of finance will refund the equivalent in lei of amounts paid by the National Bank of Romania in the second working day following receipt of the confirmation of the payment.
  


Article 42 ceasing State guarantee for loans (1) ceasing of State guarantee for external lending occurs when: a) the loan covered by a State guarantee is paid entirely by the beneficiary;
  

(b)) the Minister of Finance shall pay or payments, in full, the creditor institution, in the name of garantatului;
  

c) period of validity stipulated in the letter of guarantee has expired.
  

(2) the extinction of obligations arising from the loan agreement shall entail termination of the validity of the letter of guarantee.
  


Article 43 recovery of sums paid for State guarantees for loans (1) After the Ministry of Finance of the payment or payments due, under the State guarantee for the loan, the loan beneficiary must undertake external all measures necessary in order to receive a refund of amounts paid to the Ministry of Finance, in accordance with the provisions of the Convention concluded between the beneficiary of the loan and the Finance Ministry. The Convention concluded by the Ministry of Finance, in its capacity as guarantor, and the recipient of the loan externally shall be enforceable.
  

(2) the Ministry of finance will take all legal measures to recover payment or payments made as a result of the execution of the Security State.
  

(3) For the recovery of sums paid under the guarantee of the State Ministry of finance takes precedence over the assets and income of the recipient of the loan, based on the legislation in force concerning the obligations arising out of the State budget.
  

(4) the amounts recovered by the Minister of finance under this item represent income for risk in order to fund its reintregirii.
  


Chapter 6 registering and administering the public debt and State guarantees in article 44 the administration of the public debt and State guarantees to the Ministry of finance is authorised to manage public debt and State guarantees for fulfilling this goal. The Ministry undertakes the following: a) analyzes and assesses the size of the loan, so that the level of indebtedness to correspond to the needs and capacity of the State to manage debt;
  

b) you accounts of public debt contracted and obvious statistics State guarantees issued;
  

c) follows the progress of loans guaranteed by the State;
  

d) oversees cash at the expense of general Treasury for payment within specified time limits to comply with obligations;
  

(e) draw up the annual account) general government debt.
  


Chapter 7 final provisions Article 45 registration of public debt and State guarantees (1) Ministry of finance you registers in the same indication public debt and State guarantees for loans of Romania.
  

(2) the registers shall include data on government debt situation, letters of warranty, including their value, level of interest rates, commissions, and other information.
  

(3) the Minister of finance is authorized to elaborate guidelines concerning the register of public debt and State guarantees to register loans.
  


Article 46 the conferral of competences of the Ministry of Finance Ministry of finance may delegate to a public institution tasks related to the process of contracting and administering the public debt and State guarantees for loans.


Article 47 (1) Offence Constitute contraventions to provisions of this law the following acts, if, according to the criminal law, are not committed under such conditions as to be considered offences: a) documents which have contracted loans generating public debt within the time limits laid down by the Ministry of finance;
  

b) failure to report data relating to the conduct of loans relating to public debt;
  


c) refusing to make available organs of control documents, data and information relating to public debt.
  

(2) the Offences referred to in paragraph 1. (1) shall be imposed with a fine from 50,000,000 lei lei to 10,000,000.
  


Article 48 the finding and sanctioning of offences (1) Finding contraventions and penalties are carried out by the Ministry of finance and its territorial units, empowered for this purpose.
  

(2) In so far as this law provides otherwise, no offences under article 4. 47 shall apply to the provisions of law No. 32/68 on the establishment and sanctioning of offences, with the exception of art. 25-27. Article 49 the finding and punishing offences (1) Constitute criminal offences and are punishable by imprisonment from 6 months to 5 years the following facts: a) funds in Moldovan lei and foreign currency, derived from the contracting of public debt, for purposes other than those for which they were approved;
  

b) providing erroneous data for substantiation of documentation submitted in order to obtain the necessary approvals to contract or guarantee foreign loans, which are subject to this law.
  

(2) the finding of the facts referred to in paragraphs 1 and 2. (1) shall be made by the Ministry of finance, its territorial units, as well as by the competent bodies for this purpose.
  


Article 50 guidelines within 90 days from the date of entry into force of this law, the Ministry of finance will elaborate methodological norms for the application.


Article 51 enters into force, repeals the entry into force of the present law shall repeal: Law No. 91/1993 on public debt, as published in the Official Gazette of Romania, part I, no. 3 of 10 January 1994; art. 17 para. (2) to (8), art. 18 and 45 of the law nr. 72/1996 concerning public finances, as published in the Official Gazette of Romania, part I, no. 152 of 17 July 1996; any other provisions to the contrary.
This law was adopted by the Senate at its meeting on 6 April 1999, in compliance with the provisions of art. 74 para. (1) of the Constitution of Romania.
PRESIDENT of the SENATE, pp. CRISTIAN DUMITRESCU this law was adopted by the Chamber of deputies at its meeting on 7 April 1999, in compliance with the provisions of art. 74 para. (1) of the Constitution of Romania.
p. CHAMBER of DEPUTIES PRESIDENT, VASILE LUPU — — — — — — — — — —