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Law No. 313 Of 28 June 2004 Debt

Original Language Title:  LEGE nr. 313 din 28 iunie 2004 datoriei publice

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LEGE no. 313 313 of 28 June 2004 public debt
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 577 577 of 29 June 2004



The Romanian Parliament adopts this law + Chapter I General provisions + Article 1 Regulatory framework This law regulates the scope, purpose, contracting, reimbursement, registration, reporting and administration of public debt. + Article 2 Definitions Within the meaning of the present law, the following terms and expressions have the following meanings: 1. state-designates Romania, whose interests are represented by the Government; 2. Government public debt-the totality of the internal and external financial obligations of the state, at some point, coming from loans contracted directly or guaranteed by the Government, through the Ministry of Public Finance, on behalf of Romania, in financial markets; 3. local public debt-the totality of the domestic and foreign financial obligations of the local public administration authorities, at some point, coming from loans contracted directly or guaranteed by them from the financial markets; 4. public debt-government public debt to which local public debt is added. For the purpose of assessing Romania's public debt, any obligation, expressed in foreign currency, is calculated in national currency, using the exchange rate communicated by the National Bank of Romania, valid on the last day of the period for which it is made reporting; 5. domestic government public debt-the part of government public debt that represents the totality of the financial obligations of the state, coming from loans contracted directly or guaranteed by the state, from natural or legal persons resident in Romania, in lei or in foreign currency, in accordance with the provisions of this law or other special laws, including the amounts used temporarily from the availability of the general current account of the State Treasury for the temporary financing of budget deficits; 6. external government public debt-the part of government government debt representing the totality of the financial obligations of the state, coming from loans contracted directly or guaranteed by the state from natural or legal persons non-residents in Romania; 7. domestic local public debt-the part of the local public debt that represents the totality of the financial obligations of the local public administration authorities, coming from loans contracted directly or guaranteed by them, from natural or legal persons resident in Romania; 8. external local public debt-the part of the local public debt representing the totality of the financial obligations of the local public administration authorities, coming from loans contracted directly or guaranteed by them from persons non-resident physical or legal in Romania; 9. the service of public debt-the totality of the amounts representing capital ratios, interest, commissions and other costs related to the public debt, according to the agreements or loan agreements, at a certain date or for a fixed period; 10. state guarantee-the commitment assumed in the account and on behalf of the state by the Government through the Ministry of Public Finance, as guarantor, to pay at maturity the unhonored obligations of the guaranteed, under the law; 11. the public debt register-the database organized on magnetic and/or paper support that highlights the situation of the public debt in chronological order and which has four components: the sub-register of internal government public debt, the subregister external government government debt, domestic local government debt sub-register and external local government debt sub-register, each of these four sub-registers having two distinct positions, i.e. for direct public debt and debt guaranteed public; 12. State loan-the obligation generated by a contract whereby the State, as a borrower, obtains financial funds from a creditor or legal person and undertakes to reimburse them, together with interest and other costs related, within a specified period; 13. State title-financial instrument attesting public debt in the form of vouchers, treasury certificates, including treasury certificates for the population not bought at maturity and converted into certificates of deposit or other financial instruments constituting state loans 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; 14. Short term-the duration of repayment shall not exceed 1 year; 15. medium term-the duration of repayment is more than 1 year, but does not exceed 5 years; 16. long term-the duration of repayment exceeds 5 years; 17. Short-term state title-the treasury voucher and the treasury certificate, either interest-bearing or disaccount, with maturity of up to 1 year inclusive, as well as other financial instruments that may be created by the issuer, under the law; 18. medium or long-term state title-state bond with a maturity of over 1 year and maximum 5 years from the issue, respectively over 5 years from the issue, either interest-bearing or disaccount-bearing, issued according to the state loan clauses; 19. State title with interest-the state title which has a nominal value at which an interest rate is paid, at specified dates; 20. state title with disaccount-state title without interest coupon, which is sold at a value less than its nominal value; 21. capital related to the government securities carrying interest the amount borrowed from the one who offers the loan, at the time of the issuance of the interest-bearing state securities; 22. 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 price of the state securities with disaccount; 23. permanent budgetary authorization-authorization of the Government to increase, in exceptional circumstances, the budgetary provisions of the state budget related to the payment of interest, commissions and other costs related to public debt by diminishing corresponding to the budgetary provisions of other budget chapters; 24. dematerialized state title-state title that is highlighted by registration in the account; 25. materialized state title-state title in physical form; 26. 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 Public Finance or the agent designated by him; 27. the price of the state title-the amount paid by buyers of government securities; 28. the nominal value of the state title-the value of a state title, redeemable at maturity; 29. 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; 30. 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; 31. interest rate-interest expressed in percent per year, paid for the capital of a loan or interest-bearing state title; 32. 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 the loan or prospectus of the issue; 33. 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 the loan or of the prospectus; 34. 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; 35. the date of repayment in advance-the date of repayment of a loan, prior to its maturity; 36. risk fund-the fund constituted at the Ministry of Public Finance from the amounts received from the commissions received from the beneficiaries of the loans contracted by the state through the Ministry of Public Finance and their sub-loan and those guaranteed state through the Ministry of Public Finance, as well as from other sources provided by law; 37. Interministerial Committee of Guarantors And Credits of Foreign Trade-the body that examines and endorses, according to the powers, the issuance of state guarantees for loans contracted by economic agents, as well as underloans granted by the Ministry of Public Finance, whose composition and competences are approved by Government decision; 38. The Commission for the Authorization of Local Loans committee that examines and endorses, according to the powers, the contracting of loans and the issuance of guarantees by the local public administration authorities, whose composition and competences are approve by Government decision; 39. public debt ceiling-the totality of financial obligations that they can contract and guarantee the central public administration authorities and local public administration authorities for a period of 1 year, which is established annually by law. The public debt ceiling includes the internal public debt ceiling and the external public debt ceiling, which are established as the maximum amount of domestic and external loans that they can contract and guarantee the authorities. central public administration and local public authorities for a period of 1 year; 40. letter of guarantee-the document certifying the state guarantee; 41. the general current account of the State Treasury-the account in which the state collects all public revenues and from which all public expenditures are made, unless otherwise provided by law; 42. international financial institution-multilateral international organization, established for the development of economic and financial relations between states, promotion of international monetary cooperation, facilitation of trade development international, which operates in accordance with banking and commercial principles, grants loans and guarantees for economic, social and investment development projects in the public and private fields, in the countries affiliated to this body; 43. final beneficiary of the subsidiary loan agreement any economic agent or authority of the public administration, designated by Government decision or by law of ratification of the loan, as the case may be; 44. beneficiary of state guarantee-any economic agent or authority of the public administration, designated by Government decision, for which it is stipulated that the repayment of the loan guaranteed by the state to be made from its own sources, without affecting the consolidated general budget, or, in the case of guarantees granted to local public administration authorities, it is stipulated that the repayment of the loan guaranteed by the state is made from sources of local budgets; 45. consolidated general budget-as defined in the art. 2 2 section 7 7 of Law no. 500/2002 on public finances, as amended; 46. operation at sight (spot)-sale/purchase operation of foreign currency, with settlement within 2 days from the date of conclusion of the transaction, at the exchange rate established between the parties (spot rate), if the parties do not agree otherwise; 47. term operation (forward)-sale/purchase operation of currency with settlement within a period of more than 2 working days from the date of conclusion of the transaction, at the exchange rate established between the parties (forward course). If this is a non-working day, the settlement shall take place on the next working day if the parties do not agree otherwise; 48. currency swap-operation to buy and sell simultaneously the same amount in foreign currency with the same counterparty, with settlement on two dates of different currency (as a rule, spot and forward), at established exchange rates (spot and forward) on the date transaction; 49 49. interest rate swap-interest rate change operation, on the basis of a contractual agreement between two parties, whereby each party agrees to make periodic payments to the other party, within a defined period of time, in the same currency, the interest calculated on the basis of a fixed rate, for one part, and variables, for the other part, applicable to the same capital; 50. the currency date-the date on which the settlement of the transaction is made; 51. the transaction date-the date on which the transaction ends; 52. the change of the contract currency of a loan the decision of the Ministry of Public Finance for the currency redenomination of a loan and the financial conditions, based on market conditions, in agreement with the borrower; 53. reopening the broadcasts of government securities the operation by which the Ministry of Public Finance decides to attract additional amounts from investors, through a issuance of government securities already in its portfolio. + Article 3 Contracting public debt (1) The Government is authorized to take out internal and external state loans only through the Ministry of Public Finance, for the following purposes: a) financing the deficit of the state budget, temporary financing of deficits in previous years of the state social insurance budget, until the allocation of amounts with this destination, financing of temporary deficits of the state budget, the state social insurance budget and the budget of the State Treasury of the current year and the refinancing of government public debt, under conditions accepted by the Ministry of b) permanent maintenance of an appropriate balance in the general current account of the State Treasury, established by the Ministry of Public Finance; c) financing of projects or other needs approved by Government decision; d) support of balance of payments and foreign exchange reserve; e) other situations provided by law. (2) The Government is authorized to guarantee internal and external loans only through the Ministry of Public Finance, contracted for priority purposes for the Romanian economy, established, for each individual case, by Government decision. State guarantees can only be granted for loans whose reimbursement is provided to be made exclusively from own sources, respectively from local budgets, in the case of local public administration authorities. ((3) The loans contracted or guaranteed by the local public administration authorities are part of Romania's public debt, but are not obligations of the Government, and the payment of the public debt service related to these loans will be perform exclusively from local budgets and through loans to refinance local public debt. (4) Local public administration authorities may contract or guarantee domestic and/or external loans in the short, medium and long term, for the realization of public investment of local interest, as well as for the refinancing of local public debt, according to the law, only with the opinion of the Commission on Authorization of Local Loans; the reporting and registration of local public debt are made according to the methodological norms issued by the Ministry (5) The method of contracting for each type of instrument of public debt is approved by the methodological norms issued in application of this law. + Article 4 Repayment of government government debt (1) The reimbursement of government government debt is an unconditional and irrevocable obligation of the state of payment of capital, interest and other costs related to loans contracted or guaranteed; commissions, disaccount value, expenses related to the payment of other services related to the contracting of state loans, as well as the expenses related to services provided by the rating agencies for the assessment of country risk will be paid from the state budget. (2) In order to pay the government debt service, the permanent budgetary authorization shall be granted for these expenses. (3) In accordance with the legal provisions, the sources of payment for the government debt service are, as the case may be: a) the availability of the general current account of the State Treasury; b) State loans to finance and refinance government government debt; c) the expenses provided with this destination in the state budget; d) the amounts collected by the financial institutions mandated by the Ministry of Public Finance to manage the external loans contracted by him, on behalf and on behalf of the state, from the final beneficiaries of loans; e) the amounts collected by the Ministry of Public 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 creditors; f) the amounts provided in the budgets of the final beneficiaries, based on the subsidiary loan agreements and the subsidiary loan agreements and guarantee concluded between the Ministry of Public Finance, the local public administration authorities and the agencies economic entities under their authority, under the conditions of loan agreements between the Romanian state and creditors; g) amounts provided in the budgets of economic agents who have contracted loans with the state guarantee; h) the risk fund, for the situations in which the guarantees issued by the Ministry of Public Finance are executed or if the final beneficiaries of direct and underborrowed loans do not honour their obligations under the agreements subsidiary loan or subsidiary loan agreements and guarantee; i) other sources, under the law. (4) The reimbursement of capital ratios related to the service of direct government public debt is made by refinancing them by the Ministry of Public Finance. (5) If the date on which one of the payments related to the public debt service is to be made is a day of celebration or a non-working day, the payment will be made on the first working day after the due date of payment, whether in the loan agreement or in the issue prospectus for the government securities is not provided otherwise, without obliging the moratoriums. The government securities that are found in this situation will remain in the property of the registered owner and cannot be traded. + Article 5 Government government debt instruments Government government debt instruments include, but are not limited to: a) government securities issued on the internal or external market; b) State loans from banks, from other credit institutions, Romanian or foreign legal entities, in conditions resulting from negotiations; c) State loans from foreign governments and government agencies, international financial institutions or other international organizations; d) temporary loans from the availability of the general current account of the State Treasury, under the law; e) state guarantees. + Chapter II Government direct government debt + Article 6 Government securities (1) The Ministry of Public Finance is authorized to issue government securities, expressed in national currency and in foreign currency, both on the domestic market and on the foreign market, at times and in the amounts considered timely, for the purpose of fulfilling the objectives of art. 18. (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 or the disaccount, the maturity, the mode of transmission and other items specific to each category of securities; these instruments may be used by the holders as loan guarantees; b) in dematerialized form, as titles for which the issue, probation and transmission of the embedded rights are highlighted by registration in the registration system in the account; these instruments may be used by the holders as collateral for loans. (3) The Ministry of Public Finance may delegate to agents or other institutions, on the basis of convention, operational powers regarding the issuance of government securities. (4) The dematerialized state securities and those issued in materialized form are negotiable or non-negotiable instruments. (5) State securities may be issued in the short, medium or long term. (6) State securities will be offered for sale under the condition that the offer includes at least the following items: 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 options incorporated, if applicable. (7) In December of each year, the Ministry of Public Finance will announce the program of issuance of government securities on the internal and external market for the following year. This programme may be amended in the course of the year, depending on developments in the financial markets. (8) The Ministry of Public Finance, the National Bank of Romania and the National Securities Commission shall develop rules for the regulation of activities and operations on the primary and secondary market of state securities in Romania. (9) The Ministry of Public 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 advertising formalities, under the law. + Article 7 Contracting government direct government debt The government is authorized to contract direct government public debt only through the Ministry of Public Finance, using the instruments provided in art. 5 lit. a)-d), not limited to them. + Article 8 Sub-borrowing of direct loans (1) The government is authorized to directly contract loans from international financial institutions or other creditors, only through the Ministry of Public Finance, to underlend to final beneficiaries, in order to achieve projects or programs of priority importance for Romania, approved by Government decision or by law of ratification of the loan, as the case may be. (2) Subborrowing of loans contracted by the Government, through the Ministry of Public Finance, on behalf of the state, final beneficiaries shall be made on the basis of subsidiary loan agreements concluded between the Ministry of Public Finance and them or, after case, based on subsidiary loan agreements and guarantee, concluded between the Ministry of Public Finance, on the one hand, the local public administration authorities coordinating the activity of the final beneficiaries and, as the case may be, guarantors of the amounts they and the final beneficiaries of the loan, on the other hand. (3) The conclusion of the subsidiary loan agreement or the subsidiary loan agreement and the guarantee is subject to the opinion of the Interministerial Committee of Guarantees and Foreign Trade Credits, for loans whose reimbursement is made exclusively from the economic agent's own sources, or the opinion of the Local Loan Authorisation Commission, if the sub-borrower is an authority of the local public administration. + Article 9 Management of external loans by financial institutions (1) The Ministry of Public Finance, on behalf of the Romanian State and on the basis of the provisions of the loan agreements and of the subsidiary loan agreements, may mandate a financial institution to administer external loans, under the conditions established by the management agreement. The Ministry of Public Finance is authorized to pay in exchange for this service an administration fee. (2) External loans contracted by the Ministry of Public Finance, on behalf of the Romanian state, whose administration was mandated to a financial institution, will be paid by the subloan final beneficiaries to the Ministry of Public Finance or, where applicable, to the financial institution, under the conditions laid down by the management agreement and the subsidiary loan agreements or the subsidiary and collateral loan agreements. (3) The Ministry of Public Finance shall charge from the financial institutions or from the final beneficiaries a commission for the supply of the risk fund, under the conditions of this law, if the law of ratification of the loan does not provide otherwise. + Chapter III Management of State guarantees and sub-loans + Article 10 Issuance of State guarantees (1) The Ministry of Public Finance is authorized to issue state guarantees for loans contracted by any economic agent or public administration authority, designated by Government decision, for which reimbursement is provided the loan guaranteed by the State to be made from its own sources, without affecting the consolidated general budget, or, in the case of guarantees granted to the local public administration authorities, it is stipulated that the repayment of the loan guaranteed by the State should be made of sources of local budgets, only with the opinion of the Interministerial Committee of Guarantees and Credits of Foreign Trade, respectively of the Commission for the Authorization of Local Loans, as well as under the conditions imposed by other special laws. (2) The Export-Import Bank of Romania-S.A. Eximbank-will analyze and submit for approval to the Interministerial Committee of Guarantees and Foreign Trade Credits only the projects whose funding is authorized by Government decision to be guaranteed by the state, with the opinion of the Ministry of Public Finance. (3) The working methodology for the Export-Import Bank of Romania-S.A. -Eximbank, as well as of the Interministerial Committee of Guarantees and Foreign Trade Credits in terms of approval of the granting of sub-loans or state guarantees by the Ministry Public Finance will be determined by Government decision, which comes into force with this law. + Article 11 Procedure for issuing State guarantees (1) The issuance of state guarantees is subject to acceptance by the Ministry of Public Finance of the clauses contained in the loan contracts concluded between the potential beneficiary of the guarantee and the creditor institutions, as well as the opinion Inter-ministerial Committee of Dealers And Credits of Foreign Trade or of the Commission for the Authorization of Local Loans, as the case may be. (2) Between the Ministry of Public Finance, as a guarantor, and the beneficiary of the guarantee shall conclude 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 Public 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 will be established by norms developed by the Ministry of Public Finance and approved by the Government. (5) State guarantees may be granted and under the provisions of special laws. + Article 12 Obligation to honour state guarantees (1) The State guarantee is an obligation of the Romanian State, which is executed if the beneficiary of the loan does not have the capacity to pay, in whole or in part, the loan, interest, commissions and other costs established in accordance with guaranteed loan terms. (2) If the state guarantee becomes chargeable, the Ministry of Public Finance is obliged to carry out, from the risk fund, to the creditor institution, payment or payments due by the guaranteed debtor, in accordance with the provisions of the letter of warranty issued. (3) If the state guarantee issued under a special law becomes chargeable, the Ministry of Public Finance shall be obliged to carry out, from budgetary sources, if the law does not provide otherwise, payment or payments due, in accordance with the provisions The letter of guarantee issued. + Article 13 Risk Fund ((1) In order to cover the financial risks arising from the state guarantee of loans contracted by legal entities from lending institutions, as well as from loans contracted directly by the State and under-loan to beneficiaries the final risk fund shall be established. (. The risk fund shall consist of: a) the amounts collected in the form of commissions from the beneficiaries of the loans guaranteed by the state or under-borrowed, with the exception of the public administration authorities, for both cases, from which no commission is charged to the risk fund; b) interest on the availability of the risk fund; c) interest and late payment penalties, at the level of those provided for the non-payment within the fiscal obligations, applied for non-payment within the period, by the final beneficiaries of the loans guaranteed by the state or under-borrowed, of the commissions the risk fund and, respectively, the due rates, interest, commissions and other related costs of the loan; d) funds allocated from the state budget for this purpose; e) other legally constituted sources. ((3) The amounts in the risk fund are intended to pay the obligations related to the state guarantees and those related to the subsidiary loan agreements or to the subsidiary and guarantee loan agreements, if the final beneficiaries do not have of own financial resources for the payment of payment obligations. (4) The risk fund shall be managed by the Ministry of Public Finance, under the law, by the general current account of the State Treasury, taking into account the safety, liquidity and profitability of the funds, in this order and priority. 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 and sub-loans shall be established by rules issued by to the Ministry of Finance. + Article 14 Determination of the risk commission (1) Based on the economic and financial analysis of the documentation, presented by the applicant legal entity of state guarantee or subloan, the Ministry of Public Finance or other designated agent, at its request, determines the degree of risk of Applicant. (2) Depending on the degree of risk, established according to par. (1), the Ministry of Public Finance determines the amount of the risk commission, in percentage. The amount due shall be determined by applying the percentage share to the amount of the loan guaranteed or under (3) The risk commission represents the amount due to the risk fund of the beneficiary of a loan secured or underborrowed, in the amount and at the terms stipulated in the guarantee agreement, the subsidiary loan agreement or the subsidiary loan agreement and warranty, concluded with the Ministry of Public Finance. (4) The Ministry of Public Finance issues technical norms, approved by order of the Minister, for the determination of the risk commission, which comes into force with this law. + Article 15 Execution of state guarantees and payment of direct loans (1) The beneficiary of the state guarantee shall inform the Ministry of Public Finance and shall test in writing, with supporting documents, declaring on his own responsibility, at least 10 calendar days before the due date, on the lack of availability money necessary to pay the due amounts. (2) If the beneficiary of the state guarantee cannot fulfill his payment obligation, according to the loan agreement, he may present a request for payment to the Ministry of Public Finance, in order for the latter to pay the amounts due to the creditor, according to the provisions of the letter of guarantee. The payment request will include: credit rates due, interest and other costs, as well as the date of payments to be made to the creditor institution, by the Ministry of Public Finance, in accordance with the terms of the guarantee letter. (3) If the specifications in the payment application are in accordance with the terms of the guarantee letter, the Ministry of Public Finance will order the transfer of the amount or amounts requested, from the risk fund to the account indicated by the guaranteed the lending institution, on the date specified in the application. (4) In the case of guarantees for loans in foreign currency, the Ministry of Public Finance will buy from the National Bank of Romania the necessary foreign currency in order to make payments due to the lending institution. The payment of the value in lei of the currency will be ensured from the risk fund, on the same day as the currency is bought, at the exchange rate set by the National Bank of Romania valid on that day. (5) The obligation to repay direct loans contracted by the Government through the Ministry of Public Finance lies with the Ministry of Public Finance. It may delegate this award to the final beneficiaries of the subsidiary loan agreements or the subsidiary and guarantee loan agreements. ((6) The sources of payment for the funds which have been subject to subsidiary loan agreements or subsidiary loan and guarantee are constituted on the basis of the provisions of these agreements. If the final beneficiaries or their guarantees, in the case of subsidiary and guarantee loan agreements, do not have the financial sources necessary to honour the obligations, the source shall be the risk fund. (7) The provisions of par. ((1)-(4) shall also apply in the case of subsidiary loan agreements and subsidiary and guarantee loan agreements. + Article 16 Termination of the State guarantee ((. The cessation of the validity of the State guarantee shall be made when: a) the obligations related to the loan guaranteed by the State are fully paid by its beneficiary or by a third party; b) The Ministry of Public Finance shall make payment or payments, until extinguishing, to the creditor institution, on behalf of the state guarantee beneficiary; c) the term of validity stipulated in the letter of guarantee has expired; d) other conditions expressly provided in the letter of guarantee. (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 Public Finance, within 10 days from the fulfilment of one of the conditions provided in par. ((1). + Article 17 Recovery of amounts paid by the Ministry of Public Finance to the account of state guarantees and subsidiary loan agreements (1) After carrying out by the Ministry of Public Finance the payment or payments generated by the execution of the state guarantee or the subsidiary loan agreements, respectively the subsidiary loan agreements and the guarantee, the beneficiary of the loan guaranteed or the sub-loan has the obligation to refund to the Ministry of Public Finance the equivalent of the expenses incurred by him, in accordance with the provisions of the guarantee agreement, of the subsidiary loan agreement, respectively of the subsidiary loan and guarantee, concluded between the beneficiary of the loan and Ministry of Public Finance. The guarantee agreement, the subsidiary loan agreement or the subsidiary loan agreement and guarantee concluded between the Ministry of Public Finance, as guarantor or sub-borrower, and the beneficiary of the loan constitute enforceable title. (2) Recovery of amounts paid according to par. (1) shall be carried out in accordance with the legislation in force on the collection of tax receivables, by the competent fiscal bodies, if the law does not (. With the amounts recovered under the terms of this Article, the risk of the risk fund shall be completed. + Chapter IV Administration of government government debt + Article 18 Objectives of the government government debt management process In the process of contracting and administration of government public debt, the Ministry of Public Finance aims, taking into account market conditions, the following objectives, without limitation: a) optimisation of liquidity for budgetary expenditure; b) limiting the risk of refinancing; c) optimisation of the share of negotiable securities in the portfolio; d) the management of the exchange rate risk and the interest risk; e) the establishment of interest rates on government securities in reference interest for the activity of financial intermediation in Romania; f) diversification of the creditor base; g) optimisation of budgetary expenditure by public debt according to the other objectives. + Article 19 Tasks of the Ministry of Public Finance in Government Government Debt The Ministry of Public Finance is the only contractor and administrator of government public debt, direct and guaranteed, and has, for the fulfilment of this purpose, the authority to undertake the following: a) estimate the liquidity requirements for the implementation of the budget sector; b) directly contracts, on behalf of the state, administers and reimburses state loans, including the related costs; c) issue letters of guarantee for loans; d) elaborates the draft annual law on the public debt ceiling and other normative acts arising from this law; e) set out, under market conditions, the terms for the financing and refinancing of public debt and ensure that the new loans fall within the annual public debt ceiling; f) perform operations for the purpose of managing the risks associated with the government debt g) coordinate relations with international rating agencies for the purpose of country risk assessment; h) presents, semi-annually, the Government and Parliament the situation of loans contracted directly by the state and those guaranteed by the state; i) elaborates the norms provided by this law in its competence; j) annually elaborates the general account of public debt, the annex to the annual general account of execution of the state budget. + Article 20 Government government debt management operations (1) In order to manage the risks associated with the government debt portfolio, the Ministry of Public Finance is authorized to do the following operations, without limitation: a) foreign exchange swap and other specific operations of foreign exchange risk management; b) interest rate swap and other specific interest risk management operations; c) change of the contract currency of a loan; d) redemption of government securities on the secondary market; e) reopening the broadcasts of government securities. (2) The revenues, respectively the expenses resulting from the administration of government public debt management operations represent incomes, respectively expenditures of the state budget. + Article 21 National Bank of Romania-state agent on government government debt (1) The payment of the government debt service contracted by the Ministry of Public Finance, on behalf of the state, in currency other than the national currency may be made through the National Bank of Romania, on the basis of convention. Optionally, for strategic reasons, for the payment of the government debt service in foreign currency, the Ministry of Public Finance can use the existing currency in its accounts or buy from the National Bank of Romania the necessary currency payments, at the exchange rate communicated by the National Bank of Romania valid on that day, and may pay the value in lei of it on the same day. (2) The National Bank of Romania or other financial institution may act as an agent for the registration of internal public debt or its components, as well as the activities regarding the organization of state securities auctions internal market. + Article 22 Commissions For the activities carried out by the financial institutions, including by the National Bank of Romania, as state agent for certain operations, the Ministry of Public Finance is authorized to pay commissions from the state budget, the the amount is determined by the convention between the two parties. + Article 23 Using funds in foreign currency ((1) The foreign currency funds of the Ministry of Public Finance may be converted into national currency, at the time considered appropriate by the Ministry of Public Finance, through the National Bank of Romania, at the exchange rate communicated by the National Bank of Romania Romania valid on that day. (2) The Ministry of Public Finance may use funds in foreign currency contracted to finance and refinance government government debt for the payment of government debt service in foreign currency. + Chapter V Final provisions + Article 24 Registration and reporting of public debt (1) The Ministry of Public Finance shall keep records in which data on the public debt of Romania are entered. (2) The registers will include data on directly contracted loans and guarantees granted, including their value, the level of interest rates, commissions, as well as other information, established by norms developed by the Ministry of Finance Public. (3) Beneficiaries of loans that constitute public debt, in accordance with the provisions of art. 2 2 section 4, will report by 15 of the month information for the previous month on loans, in the structure established by norms developed by the Ministry of Public Finance. + Article 25 Contraventions (1) It constitutes contraventions to the provisions of this law the following facts: a) non-reporting of loans information, according to art. 24 24 para. ((3); b) non-compliance with the obligation provided 15 15 para. ((1). (2) Contraventions provided in par. (1) is sanctioned with a fine of 50,000,000 lei to 100,000,000 lei. + Article 26 Finding and sanctioning contraventions (1) The finding of contraventions and the application of sanctions shall be made by the competent fiscal bodies, under the law. (2) In so far as this law does not have otherwise, the contraventions provided for in art. 25 the provisions of Government Ordinance no. 2/2001 on the legal regime of contraventions, approved with amendments and additions by Law no. 180/2002 ,, as amended. + Article 27 Offences They constitute crimes and are punishable by imprisonment from 1 month to 3 months or fine from 50,000,000 lei to 100,000,000 lei the following facts: a) the use of funds in lei and in foreign currency, coming from sub-loans and loans guaranteed by the state for purposes other than those for which they were approved and guaranteed; b) the provision of erroneous data for the substantiation of the documentation presented, in order to obtain the necessary notices for the granting of guarantees or subloans, under the conditions of this law + Article 28 Methodological rules On the proposal of the Ministry of Public Finance, the Government will approve methodological norms of application, which enter into force with this law. + Article 29 Entry into force, repeal (1) This law shall enter into force on January 1, 2005, with the exception of art. 14 14 para. ((4) and art. 28, which takes effect 3 days from the date of publication in the Official Gazette of Romania, Part I. (2) On the date of entry into force of this Law, the Public Debt Law no. 81/1999 , published in the Official Gazette of Romania, Part I, no. 215 of 17 May 1999, and the provisions of art. 2 2 section 22 22, art. 57 57 para. ((3) and para. (4) of Government Emergency Ordinance no. 45/2003 on local public finances, published in the Official Gazette of Romania, Part I, no. 431 of 19 June 2003, approved with amendments and additions by Law no. 108/2004 . This law was adopted by the Romanian Parliament, in compliance with the provisions of art. 75 75 and art. 76 76 para. (1) of the Romanian Constitution, republished. PRESIDENT OF THE CHAMBER OF DEPUTIES VALER DORNEANU NICOLAE VACAROIU Bucharest, June 28, 2004. No. 313. ---------