LAW no. 68 of 25 April 2012 (* updated *)
to ratify the Loan Agreement (the Project on modernization of social assistance) between Romania and the International Bank for Reconstruction and Development, signed in Bucharest on July 8, 2011
(updated to on September 25, 2013 *)
---------------- *) Updated form of this bill until September 25, 2013 is carried out by the Legal Department of the SC "Territorial Center computing "SA Piatra Neamt by including all amendments and supplements to the amendment June 20, 2013 approved Resolution no.
705 of 18 September 2013. The contents of this document is not a document of official character is intended to inform users
Romanian Parliament adopts this law.
It ratifies the Loan Agreement between Romania and the International Bank for Reconstruction and Development, worth 500 million euro equivalent on the project on modernization of social assistance, hereinafter project, signed in Bucharest on 8 July 2011, hereinafter further agreement.
(1) The Ministry of Labour, Family and Social Protection is designated implementing agency of the project and as such are delegated full authority and responsibility in doing so.
(2) The Ministry of Finance will conclude with the Ministry of Labour, Family and Social Protection subsidiary agreement that will establish the rights and obligations of the parties in implementing the agreement.
Off from the loan amounts referred to in Art. 1 is transferred in the account opened in the name of the currency Ministry of Finance and the National Bank of Romania is used as the need for financing the state budget deficit and public debt refinancing, according to Government Emergency Ordinance no. 64/2007 on public debt, approved with amendments by Law no. 109/2008, as amended.
Debt service payment on the loan or the repayment of capital, interest payments, fees and other costs related to the loan, ensure compliance with current legislation on public debt through repayable funding mechanism for contracted by the Government through the Ministry of Public Finance, to finance the state budget deficit and refinance debt.
(1) authorizes the Government of Romania, through the Ministry of Finance, jointly with the International Bank for Reconstruction and Development, introduce, during use of the loan in relation to the concrete conditions of development of the Agreement, amendments to its content which relate to the modification of indicators from which it performs withdrawals, the mechanism for disbursement of the installments of the loan and any other changes that are not likely to increase the financial obligations of Romania to the International Bank for Reconstruction and Development or to determine November conditionings economic to those originally agreed between the parties.
(2) Amendments agreed par. (1) shall be approved by Government decision.
This law was adopted by the Parliament of Romania, in compliance with art. 75 and Art. 76 para. (2) of the Romanian Constitution.
Chamber of Deputies Roberta Alma Anastase SENATE
Vasile Blaga Bucharest, April 25, 2012.
Loan Agreement (the Project on modernization of social assistance)
between Romania and the International Bank for Reconstruction and Development *)
Loan No. 8056-GB Dated July 8, 2011
LOAN AGREEMENT Agreement dated 8 July 2011 agreement between Romania (the Borrower) and the International Bank for Reconstruction and Development (the Bank)
Borrower and the Bank hereby agree agreement following:
definitions 1.01. General Conditions (as defined in the Appendix to this Agreement) constitute an integral part of this Agreement.
1.02. Unless the context requires a different meaning, capitalized terms used in this Agreement have the meaning ascribed to it in the General Conditions or in the Appendix to this Agreement.
2.01. Bank agrees to lend to the Borrower on the terms and conditions set forth or referred to in this agreement, the amount of five hundred million euro (EUR 500 million), the amount set can be converted periodically by an operation in currency conversion pursuant to section 2.07 of this agreement (loan) to assist in financing the project described in Annex 1 of the agreement (the project).
2.02. The Borrower may withdraw the proceeds of the Loan in accordance with Section III of Annex 2 to this Agreement.
2.03. Fee payable by the Borrower shall be equal to one quarter of one percent (0.25%) of the loan amount. The Borrower shall pay the initial fee within 60 days after the Effective Date.
2.04. Interest payable by the Borrower for each Interest Period shall be at a rate equal to the reference rate for the currency of the loan plus a fixed margin, provided that the conversion of all or any portion of the loan amount, the interest payable by the borrower on during the conversion of that amount to be determined in accordance with the relevant provisions of art. IV of the General Conditions. Notwithstanding the foregoing, if any amount of balance shot of the loan remains unpaid on maturity and such default continues for a period of 30 days, then the interest payable by the Borrower shall be calculated differently, as stipulated in section 3.02 (e) the General conditions.
2.05. The Payment Dates are February 1 and August 1 of each year.
2.06. The loan amount will be repaid in accordance with the provisions of Schedule 3 to this Agreement.
2.07. (A) The Borrower may at any time request any of the following Conversions of term loan to facilitate prudent debt management: (i) a change of currency loan for all or any part of the parties drawn or undrawn loan amount in a currency approved; (Ii) a change in the base rate of interest applicable to all Parties or any part of the loan amount withdrawn and outstanding from a floating rate to a fixed rate or vice versa or from a floating rate based on the Variable Spread to a floating rate based on a fixed margin; and (iii) floating rate setting limits applicable to all Parties or any part of the loan amount drawn and outstanding, capping the interest rate or variation margin interest rate to variable rate.
(B) Any conversion requested pursuant to paragraph (a) of this Section that is accepted by the Bank will be a conversion, as defined in the General Conditions, and will be made in accordance with Art. IV of the General Conditions and of the Conversion Guidelines.
3.01. The Borrower declares its commitment to the objectives of the Project. In this context, the Borrower shall implement the MMFPS in accordance with Art. V of the General Conditions.
3.02. Without limiting the provisions of Section 3.01 of this Agreement and unless the Borrower and the Bank shall otherwise agree, the Borrower shall ensure that the project is implemented in accordance with Annex 2 to this Agreement.
Events that may cause suspension / prepayment
4.01. Additional events that can result in suspension are:
A) strategy on the reform of social assistance to the Borrower and the Action Plan have been amended, suspended, revoked, canceled or abandoned them without prior consent of the Bank, so that affected materially and adversely the ability of the Borrower to perform project or to perform any of its obligations under this agreement.
B) Borrower legislation governing social assistance programs has been amended, suspended, abrogated, repealed or waived this so affect materially and adversely the ability of the Borrower to effectively implement the strategy on the reform of social assistance to the Project.
4.02. Additional events that may cause the prepayment represents any of the events specified in Section 4.01 of this Agreement occurs and continues for a period of 60 days after the event has been notified by the Bank to the Borrower.
Entry into effect; termination
5.01. The additional condition to the effectiveness MOP is the adoption by the Borrower, through the Ministry of Labor, in a manner satisfactory to the Bank.
5.02. Closing date for entry into effect is 150 days from the date of this Agreement.
addresses 6.01. Representative of the Borrower is the Ministry of Finance.
6.02. Borrower address is
Ministry of Public Finance Str. Apolodor. 17, Sector 5 Bucharest
Romania Telex: Fax: 11239 4021.312.67.92
6.03. Bank's Address is: International Bank for Reconstruction and
Development 1818 H Street, NW
Washington, DC 20433 USA
Cable address: Telex: Fax: 248 423
INTBAFRAD (MCI) or 1-202-477-6391
Washington, DC 64145 (MCI)
agreed to Bucharest, Romania, the day and year first above written.
For Romania, Gheorghe
authorized representative for the International Bank for Reconstruction and Development, Francois
Rantrua, authorized representative
PROJECT DESCRIPTION The objective of the Project is to improve the performance of Borrower's social assistance system by strengthening performance management, improving equity and administrative efficiency and reduce errors and fraud.
The project consists of the following: securing funding through reimbursement of payments already made by the Borrower program budget allocations for eligible expenditures (PCE), to help implement the reform program designed to improve the Borrower's social assistance system.
Implementation arrangements. 1
institutional arrangements. The Borrower MMFPS: a) take all necessary measures to effectively implement the Strategy on the reform of social assistance and action plan; and b) will implement the project in accordance with MOP and will not amend or repeal any of the provisions of MOP and will not abandon them without prior consent of the Bank.
2. The Borrower DGAS within MMFPS, will coordinate project implementation and will be responsible for: a) monitoring the performance IDT sites; b) preparation and submission to the Bank of records of achievement IDT sites; and c) coordination with MFP in preparing and submitting to the Bank requests for drawing the Project.
March. Borrower through MFP, MMFPS and NAPS, will implement the financial management of the project. MFP, MMFPS and NAPS will continue to make budget transfers for PCE through existing channels and procedures, while the NAPS county agencies, ie AJPS will regularly report receiving transfers and use of budget allocations. In this regard, MMFPS and NAPS will ensure that reports of PCE is performed regularly in a timely manner and comply with the reporting requirements set.
4. The Borrower MMFPS will take all necessary measures to strengthen institutional capacity for strategic planning and management to monitor the performance of DGAS, Social Inspection, NASB and the National Institute of Medical Assessment and Work Capacity Rehabilitation, in accordance with the Arrangement stand- by arrangement between Romania and the IMF, respectively, with the loan Agreement and Memorandum of understanding between Romania and the EC.
May. The Borrower shall ensure that the duration of the project are made available annual budgetary allocations to implement it.
Anti-Corruption The Borrower shall ensure that the project is carried out in accordance with the guidelines on anti-corruption.
Section II Project Monitoring, Reporting and Evaluation
1 project reports. The Borrower MMFPS, will monitor and assess the progress of the Project and prepare project reports in accordance with Section 5.08 of the General Conditions and on the basis of indicators acceptable to the Bank. Each Project Report shall cover a period of six months and will include: a) information on spending on social assistance programs included in PCE, according to economic classification of budget Borrower; and b) Project implementation reports in the format and contents described in MOP. These reports will be submitted to the Bank no later than forty-five (45) days from the end of the period covered by that report.
2. Without limiting the provisions of paragraph 1 of this Section, the Borrower, through the Ministry of Labor, NASB and AJPS sites will keep all detailed information on payments to beneficiaries of social assistance programs included in PCE, within their power, which may be required Bank to Post Review.
March. During the project implementation, the Borrower by the Court of Auditors will carry out an annual audit of social assistance programs included in PCE and to the Bank audit reports not later than twelve (12) months after calendar year end audited since audit in April 2011.
. During the project implementation, the Borrower through MMFPS will cause Social Inspection to conduct thematic inspections based on samples aimed at implementing social assistance programs included in PCE (excluding state allowance for children) in order and having frequency determined in MOP, which relate, but are not limited to, matters concerning the irregularities and errors made in administering social benefits, their causes and remedial action taken. Since calendar year 2012, during the project implementation, thematic inspection reports will be submitted to the Bank for analysis later than ninety (90) days of the completion of thematic inspection. The Borrower MMFPS will give the Bank the opportunity to discuss and comment on those reports and will promptly implement recommendations arising from the Bank agreed with this analysis.
B. Financial management, financial reports and audits
1. The Borrower MMFPS and NAPS will maintain or cause to be maintained a financial management system in accordance with Section 5.09 of the General Conditions.
2. Without limiting the provisions of Part A of this Section, the Borrower, through the Ministry of Labor and NAPS will prepare and furnish to the Bank as part of the Project's report, within forty-five (45) days after the end of each calendar quarter, unaudited interim financial reports for the Project covering the quarter, in form and substance satisfactory to the Bank.
March. The Borrower MMFPS and NAPS will have financial statements audited programs under PCE pursuant to Section 5.09 (b) of the General Conditions. Each audit of the financial statements of the programs will cover a fiscal year of the Borrower and will be conducted in accordance with terms of reference acceptable to the Bank. Programs audited financial statements for each period shall be submitted to the Bank within a maximum of twelve (12) months from the end of that period.
A loan disbursement. General
1. The Borrower may withdraw the proceeds of the Loan in accordance with Art. II of the General Conditions of this section and those additional instructions as the Bank shall specify by notice to the Borrower (including the World Bank's Guidelines on withdrawals projects in May 2006, reviewed regularly by the Bank and applicable to this Agreement in accordance with these instructions) for reimbursement of eligible expenses, as set out in the table in paragraph 2 below.
2. The table below specifies the categories of eligible expenditures that can be financed and repaid from proceeds of the Loan Borrower (Category) allocation of the Loan to each category and the percentage of expenditures to be financed through reimbursement of eligible expenses in each category.
│ │Suma the loan category of expenditure alocată│Procentul │
│ │ (in EUR) │ │
be funded ├───────────────────────┼─────────────────────────┼──────────────────────────┤
│ (1) Payments under PCE│ 500,000,000 │Suma to limit shoot │
│ │ │
in Table │rii │ │ │de paragraph B.2 a) al│
│ │ │
sections │acestei ├───────────────────────┼─────────────────────────┼──────────────────────────┤
│SUMA TOTAL: 500,000,000 │ │ │
B. Drawing conditions;
1 during firing. Notwithstanding the provisions of Part A of this Section, no withdrawals shall be made:
A) of the Loan Account until the Bank will not receive full payment of the initial fee;
B) payments under Category (1) in respect of each tranche, as set out in the table in paragraph B.2. a) of this section, the application for drawing was transmitted, if the Borrower, the MFP has not provided documents satisfactory to the Bank showing that payments under PCE were made by the Borrower to eligible beneficiaries under and accordance with the procedures established by the laws and regulations applicable to the Borrower;
C) for payments made prior to the date of this Agreement, provided that the aggregate amount of withdrawals not exceeding one hundred million (EUR 100 million equivalent), they should be made to reimburse payments made by the Borrower prior to the date agreement, but not earlier than 10 July 2010 for eligible expenditures under category (1), and provided that the Borrower to be submitted documentation satisfactory to the Bank showing that those IDT have been met.
2. Notwithstanding the provisions of part A of this section and without limitation to the provisions set out in paragraph 1 above, drawdowns under the above category can be made by the Borrower as follows:
A) The withdrawals will be made in one (1) to twenty (20) installments in amounts not exceeding the total limit next to each IDT provided in the table below, subject to the submission of documents satisfactory to the Bank bank and as defined in MOP showing that the next IDT were met:
│ indicators on which withdrawals are carried out (IDT) │ │ │ limit drawdown │
(expressed in EUR) │
│ 1) The shape of the Action Plan for the Strategiei│ │
│ reform of social assistance is │ │
│ MMFPS disseminated. │ 25.000.000│
│ 2) 3 NASB produce monthly reports to screen │ │
│ 4 programs of the PCE (support allowance │ │
│ family, child-rearing allowance, GMI and │ │ || | │ state allowance for children). │ 25.000.000│
│ 3) NASB produces three monthly performance reports to manage-ment │ │
│ programs for families with low incomes │ │
│ and they are used in the management MMFPS │ │
│ and NAPS. │ 25.000.000│
│ 4) At least 90% of recipients of allowances susţinere│ │
│ family are paid by NAPS, for two months consecutive │ │
│ in accordance with harmonized procedures │ │ || | │ means-testing and applying the threshold │ │
│ lower eligibility. │ 25.000.000│
│ 5) At least 90% of recipients of allowances for │ │
│ parental entering the program from │ │
│ 1 January 2011 shall pay by NAPS, for two │ │ || | │ consecutive months, using an income replacement │ │
│ 75%. │ 25.000.000│
│6) At least 90% of beneficiaries │
│ consolidat│ new program for low-income families are paid by │ │
│ NASB, for two consecutive months. │ 25.000.000│
│ 7) Share of funds for social assistance │ │
│ goes to first the poorest quintile increased │ │
│ 37.7% to 45% compared to baseline (2009) , │ │
│ as measured by budget survey │ │
│ family. │ 25.000.000│
│ 8) harmonized test procedures means │ │
│ taken to VMG, support allowance │ │
│ family and aid heat disseminated. │ 25.000.000│
│ 9) criteria harmonized medical evaluation │ │
│ disabled people taken are disseminated. │ 25.000.000│
│10) At least 90% of people who are certified │ │
│ to receive disability allowance, in accord- ance with │ │
│ new harmonized system for people with │ │
│ disabilities are paid through NAPS. │ 25.000.000│
│11) At least 90% of new applications for │ │
│ programs for low-income families and │ │
│ family policy programs of the last two are luni│ │
│ according to the guidelines operaţionale│ │
│ on a single application and a single point of service │ │
│ (single window). │ 25.000.000│
│12) administrative costs and the participation of beneficiaries │ │
│ park system means-tested programs are │ │
│ reduced by 15% compared to the reference value. │ 25.000.000│
│13) At least one inspection campaign theme is │ │
│ performed for each of the following programs: │ │
│ VMG, disability allowance, allowance │ │
│ family support, aid heat and │ │
│ child-raising allowance. │ 25.000.000│
│14) Action Plan for fixes is ANPS│ │
│ adopted to implement the recommendations of: (i) │ │
│ independent assessment of the integrity and accuracy of information in the │ │
│ SAPPHIRE; and (ii) feasibility study │ │
│ ing on cross-checking data from │ │
│ SAFIR with other databases. │ 25.000.000│
│15) At least 90% of MIG beneficiaries are paid, │ │
│ by NAPS, for two consecutive months. │ 25.000.000│
│16) The creation of a central register with a national database of │ │
│ │ 25.000.000│ disability
│17) Review and as such the application of the provisions privind│ │
│ sanctions policy, powers of investigation, and system │ │
│ │ 25.000.000│ recommendations for Social Inspection
│18) NASB runs crossing databases including o│ │
│ for at least 3 months between data │ │
│ programs to increase the allowance │ │
│ child VMG, family support allowance and │ │
│ state allowance for children from SAPPHIRE system and │ │
│ relevant information concerning the identity and │ │
│ income derived from databases managed by către│ │
│ National Pension, National Agency for Employment │ │
│ Employment, ANAF and │ │
│ National Registry of Evidence of Population and lists of irregularities │ │
│ found on each program are transmitted inspection │ │
│ Social for verification and to propose measures to remedy │ │
│ (result). │ 50.000.000│
│19) risk-based investigation to detect error and fraud │ │
│ is used by Social Inspection │ │
│ programs for families with low incomes │ │
│, for child-raising allowance and │ │
│ allowances for people with disabilities. │ 25.000.000│
----------- Table of indicators on which withdrawals are carried out (IDT) from pt. 2 of subparagraph B sect. III of Annex 2 was replaced with the table in Annex AMENDMENT of June 20, 2013 approved Resolution no. 705 of September 18, 2013 published in the Official Gazette no. 597 of 25 September 2013 in accordance with the amendment to the pt. 1 of the same law.
B) If the Bank determines at any time that any portion of the amount made available by the Bank to the Borrower under Category (1) was made for the reimbursement of expenses not eligible under the EuP or not in accordance with the provisions of Section III. B.1 b) hereof and the provisions MOP, Bank Borrower shall promptly return such amount as the Bank shall specify by notice to the Borrower.
March. Deadline drawing will be August 31, 2016.
----------- Pct. 3 of letter B sect. III of Annex 2 was modified pt. 2 of amendment dated June 20, 2013 approved Resolution no. 705 of September 18, 2013 published in the Official Gazette no. 597 of 25 September 2013.
Amortization schedule borrower will repay the loan in full on 1 February 2023.
Definitions Section 1
. NAFA National Agency for Fiscal Administration means the Borrower or any successor thereto.
2. Guidelines on anticorruption guidelines means of preventing and combating fraud and corruption in projects financed by IBRD loans and IDA credits and grants of 15 October 2006 revised January 2011. 3
. Category means a category set out in the table in Section III. A.2 of Annex 2 to this Agreement.
4. AJPS county agency for social benefits means the Borrower or any successor thereto.
May. Child allowance benefits means the program established by the Government Emergency Ordinance no. 148/2005 on family support for raising children, approved with amendments by Law no. 7/2007, as amended and supplemented.
June. Complementary budget for adults with disabilities means benefits program established by Law no. 448/2006 on the protection and promotion of rights of persons with disabilities, republished, as amended and supplemented.
July. Disability benefits means benefits program established by Law no. 448/2006, republished, as amended and supplemented.
August. IDT sites means indicators on which disbursements shall be made as provided in Section III. B.2.a) Annex 2 to this Agreement, as these indicators are the product and result indicators that measure specific performance improvement social assistance system of the Borrower.
September. EC means the European Commission.
10. EuP means eligible expenditure program, a portion of budgetary allocations to the Borrower to finance benefits under social assistance programs 4: (i) the program on state allowance for children; (Them) on the child allowance program; (Iii) program on family support allowance; and (iv) A guaranteed minimum income program.
11. Family support allowance means benefits established by Law no. 277/2010 on family support allowance, as amended and supplemented.
12. Programs of family policy means collectively the program on state allowance for children (defined in this Annex) program on child allowance (defined in this Annex), or any successor thereof.
13. Conditions means the General Conditions of IBRD Loans from July 31, 2010.
14. DGAS means General Directorate of Social Assistance in the MMFPS Borrower (as defined in this Annex), or any successor thereto.
15. VMG means minimum wage established by Law no. 416/2001 on minimum wage, as amended and supplemented.
16. Aid heat means benefits program established by the Government Emergency Ordinance no. 5/2003 *) on aid for heating and population for the payment of thermal energy facilities, approved by Law no. 245/2003, as amended and supplemented.
*) Government Emergency Ordinance no. 5/2003 was repealed by Government Emergency Ordinance no. 70/2011.
17. IMF means the International Monetary Fund.
18. The allowance for disabled adults means benefits program established by Law no. 448/2006, republished, as amended and supplemented.
19. Legislation regulating social assistance programs means the Borrower relevant legislation governing social benefit programs concerning: (i) the state allowance for children; (Ii) the child allowance; (Iii) allocation for the family; (Iv) minimum wage, as defined in this Annex.
20. Program for low-income families means collectively family support allowance (as defined in this Annex), MIG (as defined in this Annex), aid for heat (as defined in this Annex), or any successor thereof.
21. ME means monitoring and evaluation.
22. MMFPS means the Ministry of Labour, Family and Social Protection of the Borrower or any successor thereto.
23. MFP means the Ministry of Finance or any successor thereto.
24. Loan Agreement and Memorandum of Understanding between Romania and EC means the Memorandum of Understanding between the European Community and Romania, signed in Bucharest and in Brussels on 23 June 2009 and the loan agreement in the amount of up to 5.000.000.000 euro, of Romania, as Borrower, the National Bank of Romania, acting as agent of the Borrower, and the European Community, as lender, signed in Luxembourg on 23 June 2009 and in Bucharest on 18 June 2009, ratified by emergency Government Ordinance no. 82/2009, approved with amendments by Law no. 364/2009, as amended.
25. National Employment Agency Employment Agency means the Borrower under the coordination MMFPS.
26. National Institute of Medical Assessment and Work Capacity Recovery means under the coordination of the National Institute of Public Pensions.
27. NASB means the National Agency for Social Benefits of the Borrower or any successor thereto.
28. Payments under EuP means monthly payments of budgetary allocations Borrower made by NAPS / AJPS to eligible beneficiaries under one of the four programs of social assistance to which reference was made in paragraph 10 above, in accordance with the eligibility criteria, the terms and provisions under the respective laws and regulations applicable Borrower's social assistance programs in question.
29. Financial Statements means the annual programs for social assistance programs developed by the Borrower, through the Ministry of Labor and NAPS, in accordance with applicable national law.
30. MOP means the Project Operational Manual, which will be approved by the Minister of Labour, Family and Social Protection and the documents referred to in Section IA1 of Schedule 2 to this Agreement, describing procedures for implementation of the Project, as provided in this Agreement and of national laws and regulations of the Borrower.
31. National Registry of population means the national population registry administered by the Ministry of Interior of the Borrower.
32. SAPPHIRE means integrated system for managing social benefits.
33. Social assistance programs means 4 Borrower's social assistance programs eligible for reimbursement under the Project: (i) the program on state allowance for children; (Them) on the child allowance program; (Iii) program on family support allowance; and (iv) A guaranteed minimum income program.
34. Strategy on the reform of social means of social reform program of the Borrower as adopted by the Government through the Memorandum of 3 March 2011.
35. State allowance for children means benefits program established by Law no. 61/1993 on state allowance for children, republished, as amended.
36. Stand-By Arrangement means Stand-by Arrangement between Romania and the International Monetary Fund, agreed by the letter of intent sent by the Romanian authorities, signed in Bucharest on 24 April 2009 and Decision Board of the International Monetary Fund on 4 May 2009, ratified by Government emergency Ordinance no. 99/2009, approved by Law no. 37/2010, as amended.