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Law No. 399 Of 7 October 2003

Original Language Title:  LEGE nr. 399 din 7 octombrie 2003

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LEGE no. 399 399 of 7 October 2003 to amend and supplement Government Emergency Ordinance no. 8/2002 on the ratification of the Loan Agreement between Romania and the International Bank for Reconstruction and Development for the realization of the Rural Financing Project, signed in Washington DC on April 30, 2001
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 708 708 of 10 October 2003



The Romanian Parliament adopts this law + Article I Government Emergency Ordinance no. 8/2002 on the ratification of the Loan Agreement between Romania and the International Bank for Reconstruction and Development for the realization of the Rural Financing Project, signed in Washington DC on April 30, 2001, published in the Official Gazette of Romania, Part I, no. 114 of 12 February 2002, approved with amendments by Law no. 307/2002 ,, amend and supplement as follows: 1. Paragraph 2 of Article 2 shall read as follows: " (2) M.F.P. will conclude with the treasurer bank an agreement to manage resources and implement the project, establishing the rights and obligations of the parties, including the margin charged to cover the costs of the activities carried out this and which will be borne by the participating financial institutions. " 2. After paragraph 2 of Article 2, a new paragraph (2 ^ 1) is inserted, with the following contents: " (2 ^ 1) Through participating financial institutions are understood: intermediary participating banks, leasing companies, private credit banks or service providers, as the case may be, as defined in art. I Section 1.02 of the Loan Agreement. ' 3. Paragraph 3 of Article 2 shall read as follows: " (3) M.F.P. will conclude subsidiary loan agreements, participation agreements, agent agreements and co-financing, as the case may be, as defined in art. I section 1.02 of the loan agreement, with the participating financial institutions, selected on the basis of the procurement procedures of the International Bank for Reconstruction and Development and the eligibility criteria provided for in the loan. " 4 4. The letter b) of Article 4 shall read as follows: " b) taxes due and payable on the territory of Romania, related to the activities provided for in Part C (1) and (2) of Annex no. 2 2 to the loan agreement. " 5. Article 5 shall read as follows: "" Art. 5. -Repayment of the loan, payment of interest and related commissions will be made by M.F.P. as follows: a) of the amounts from the participating financial institutions for the activities financed under Part A of Annex no. 2 to the loan agreement, through recovery from intermediary participating banks, leasing companies and beneficiaries of micro-loans; b) from the participating financial institutions for the activities financed under Part B of Annex no. 2 2 to the loan agreement; c) from the state budget, through the budget of M.F.P.-lt; lt; General actions gt; gt;, for: --capital ratios and interest related to activities financed under Part C (1) and (2) of Annex no. 2 2 to the loan agreement; -the commitment fee of 0,75%, applied to the unused amounts on the loan, which will be partially recovered from the participating financial institutions, in line with the drawdown of the loan amounts and their sub-borrowing to the final beneficiaries; -the initial commission of 1% of the loan amount, which will be partially recovered from the participating financial institutions. ' 6 6. The letter b) of Article 6 shall read as follows: " b) at least 25% by service providers and up to 75% by the Government, from the state budget, through the budget of M.F.P.-lt; lt; General actions gt; gt;, in the case of microloans granted under Part A (3) of Annex no. 2 2 to the loan agreement, respectively proportional to the volume of financing sources for the coverage of projects. " 7. In Article 6, a new paragraph (2) is inserted, with the following contents: "(2) In order to cover the risk of non-payment, the service providers will ensure the establishment of real and/or personal guarantees by the beneficiaries of the microloans." 8. After Article 6, two new articles are inserted, Articles 6 ^ 1 and 6 ^ 2, with the following contents: "" Art. 6 6 ^ 1. -It is approved to carry out operations in foreign currency on the territory of Romania to pay the necessary goods and services to the realization of the project, financed by the Rural Financing Project and contracted with resident legal or physical persons. Art. 6 ^ 2. -The payment of the commissions and bank charges related to the loan run shall be ensured by the U.M.P. from the bonus interest on the availability temporarily kept in the accounts opened with the bank through which the funds of the loan Romania's contribution to the realization of the project, if the amount of the bonus is less than the amount of bank fees and charges retained by the bank. At the end of each year the favorable balance of the bonified interest shall be carried over to the following year, with the same destination, following that at the end of the project the favorable balance will turn to the state budget + Article II Government Emergency Ordinance no. 8/2002 on the ratification of the Loan Agreement between Romania and the International Bank for Reconstruction and Development for the realization of the Rural Financing Project, signed in Washington DC on April 30, 2001, published in the Official Gazette of Romania, Part I, no. 114 of 12 February 2002, approved with amendments by Law no. 307/2002 , with the amendments and completions brought by this law, will be republished in the Official Gazette of Romania, Part I, giving the texts a new numbering. This law was adopted by the Senate at the meeting of September 4, 2003, in compliance with the provisions of art 74 74 para. (2) of the Romanian Constitution. p. SENATE PRESIDENT, DORU IOAN TARACILA This law was adopted by the Chamber of Deputies at the meeting of September 22, 2003, in compliance with the provisions of 74 74 para. (2) of the Romanian Constitution. CHAMBER OF DEPUTIES PRESIDENT VALER DORNEANU Bucharest, October 7, 2003. No. 399. ------------