Foreign Credit Transactions Law

Transcription

1 Foreign Credit Transactions Law The Law was published in the "Official Gazette of the Federal Republic of Yugoslavia", Nos. 42/92, 24/94 and 28/96. I. BASIC PROVISIONS Article 1 A foreign credit transaction shall be understood to mean a legal transaction concluded between a domestic and a foreign person, whereby a credit (commercial, goods, financial, etc.) is taken or extended. For the purposes of this Law, a domestic person shall be understood to mean a bank, an enterprise and other body corporate whose registered office is in Yugoslavia, and an individual conducting a business, who is registered with competent authorities and who is a resident of Yugoslavia. For the purposes of this Law, a foreign person shall be understood to mean a body corporate whose registered office is abroad and an individual whose residence is abroad. Article 2 The funds stemming from a financial credit taken abroad may be used towards importing goods and services and financing the execution of capital projects abroad. Notwithstanding the provisions of paragraph 1 of this Article, the National Bank of Yugoslavia may set in the scope of the Yugoslav balance of payments projection, the extent to which financial credits may also be used for other purposes and the modality of doing so. Article 3 The credits extended by international financial organisations shall be used in conformity with ratified international agreements and guarantees and superguarantees issued by the Federal Republic of Yugoslavia. A domestic person may not conclude a credit contract pursuant to an international agreement requiring the guarantee of the Federal Republic of Yugoslavia, prior to obtaining the guarantee of the republic in the territory of which its registered office is situated.

2 Article 4 Foreign credit transactions may be conducted by domestic persons meeting the requirements determined by this Law. The National Bank of Yugoslavia may conduct foreign crediit transactions in the manner and in the scope of its rights and duties determined by federal law. Article 5 A domestic person referred to in Article 1 of this Law shall conduct foreign credit transactions in the scope of the Yugoslav balance of payments projection, in conformity with this Law. II. CONDITIONS FOR AND MANNER OF CONCLUDING FOREIGN CREDIT TRANSACTIONS Article 6 Foreign credit transactions shall be concluded on the basis of contracts made in writing. Domestic persons may conclude foreign credit contracts in their own name and for their own account and in their own name and for account of other persons, and banks authorized for foreign transactions, in the name of and for account of other persons. The mutual rights and duties of domestic persons concluding foreign credit contracts in their own name and for account of other persons or in the name and for account of other persons, shall be determined by contract. A domestic person which has concluded a foreign credit contract shall be liable to the foreign person concerned for the performance of its contractual duties. The Federal Republic of Yugoslavia shall not guarantee for the performance of the duties referred to in paragraph 4 of this Article, except in the cases provided by federal law. Domestic persons may not conduct foreign credit transactions which create obligations to the Federal Republic of Yugoslavia. Article 7 The Federal Republic of Yugoslavia may borrow abroad and extend credits and guarantees to foreign persons on the basis of a federal law relating to each credit transaction individually. 2

3 The member-republics may conclude foreign credit contracts on the basis of a special law relating to each credit transaction individually. Article 8 A bank may conclude a credit contract with a foreign person and issue and receive guarantees if it is authorized by the National Bank of Yugoslavia for the performance of foreign payment and credit operations, and if it meets the requirements set by the federal law governing the operations of banks. A bank which is not authorized for the conduct of the transactions referred to in paragraph 1 of this Article may conclude in its own name and for its own account a foreign credit contract towards importing goods and services for its own needs exclusively, if it meets the requirements set by the federal law governing the operations of banks. Article 9 An enterprise may take credits abroad, extend credits abroad and issue guarantees and other forms of security for account of foreign persons, if it is using them towards conducting the business it is registered for. An enterprise may extend financial credits to a foreign person only on the basis of the profit generated abroad, in conformity with the law governing the foreign trade transactions. Article 10 An individual who is conducting a business and is registered with competent authorities may conclude a foreign credit transaction in his/her own name and for his/her account under the conditions referred to in Article 9 of this Law. Article 11 Other bodies corporate may conclude foreign credit contracts under the conditions referred to in Article 9 of this Law. III. REGISTRATION OF FOREIGN CREDIT TRANSACTIONS Article 12 Foreign credit transactions shall be registered with the National Bank of Yugoslavia. The following shall be subject to registration: foreign credit contracts, amendments to and cancellation of contracts and credit utilisation, repayment and collection. 3

4 The guarantees for account of foreign persons, based on foreign credit transactions, shall also be subject to registration. Before concluding a credit contract, the domestic person concerned shall notify the National Bank of Yugoslavia of its intention to conclude the credit contract, for registration purposes. The National Bank of Yugoslavia shall set the manner of, time-limits for and forms for registration and keeping a record of foreign credit transactions. IV. PAYMENTS AND COLLECTIONS ON THE BASIS OF CONCLUDED FOREIGN CREDIT TRANSACTIONS Article 13 A domestic person may repay a credit and revoke an issued guarantee before the expiration of the contract period, if its contractual duty has been performed in conformity with the concluded foreign credit contract and the law governing the foreign exchange management. A domestic person may pledge, sell and collect before the expiration of contract period the claims arising from a foreign credit contract, in conformity with such contract and the law governing foreign exchange management. Article 14 If the Federal Republic of Yugoslavia has assumed the guarantor or super-guarantor obligations in relation to foreign credit contracts taken towards debt refinancing or rescheduling, or if the assumption of such obligations is about to take place, the domestic person concerned may not pay prematurely its debt to the foreign person concerned while the refinancing or rescheduling is under way. The domestic person concerned may discharge prematurely the obligations referred to in paragraph 1 of this Article in the country by paying in the dinar equivalent calculated at the exchange rate valid on the date of payment, on the condition that it concludes a contract governing mutual rights and obligations with a bank authorized for foreign transactions - debtor or guarantor in relation to the concluded credit transaction. In a case referred to in paragraph 2 of this Law, the authorized bank may not discharge prematurely the obligation to the foreign person concerned at the request of the domestic person concerned. 4

5 Article 15 Notwithstanding the provisions of Article 14 of this Law, a domestic person may discharge prematurely, with the approval of the National Bank of Yugoslavia, its obligations stemming from concluded foreign credit contracts which are being refinanced or rescheduled (hereinafter debt-conversion transactions), including: 1) Conversion of debt for an interest in an enterprise, bank or other financial organization; 2) Conversion of debt for relinquishment of a tourist facility time-sharing right; 3) Conversion of debt into new obligations assumed in relation to the foreign person concerned; 4) Conversion of debt for claims abroad. The National Bank of Yugoslavia shall set the manner of conducting and monitoring the debt-conversion transactions. Article 16 The debt-conversion transactions referred to in Article 15 of this Law shall be conducted through a bank authorized for foreign transactions and the National Bank of Yugoslavia. Article 17 The approval referred to in Article 15 of this Law shall be given by the National Bank of Yugoslavia in conformity with standing economic policy measures. Article 18 The National Bank of Yugoslavia shall give its approval for the debt-conversion transactions referred to in Article 15 of this Law within 15 days from the application filing date. If the National Bank of Yugoslavia rejects an application for its approval of a debt conversion transaction or if it fails lo decide on the application within the time-limit set in paragraph 1 of this Article, the domestic person concerned may complain to the Governor of the National Bank of Yugoslavia within eight days from receipt of the decision rejecting its application for approval or upon the expiration of the time-limit set in paragraph 1 of this Article. The decision of the Governor of the National Bank of Yugoslavian shall be final and an administrative suit may not be instigated against it. 5

6 Article 19 The National Bank of Yugoslavia may prematurely discharge its obligations stemming from the foreign credits it has been utilizing in its own name and for its own account in the scope of the Yugoslav balance of payments projection, by concluding debt-conversion transactions in its own name and for its own account. The National Bank of Yugoslavia may conduct the debt-conversion transactions in its own name and for account of the Federal Republic of Yugoslavia or in the name and for account of the Federal Republic of Yugoslavia, in conformity with the provisions of this Law. V. MEASURES RESTRICTING THE CONCLUSION OF FOREIGN CREDIT CONTRACTS Article 20 In the event of disruptions in the Yugoslav balance of payments, the Federal Government, having obtained the opinion of the National Bank of Yugoslavia, may enact the following measures restricting the conclusion of foreign credit contracts for the purpose of averting disruptions and maintaining the liquidity of the Federal Republic of Yugoslavia: 1) Suspension of the conclusion of foreign credit contracts; 2) Setting the amount to which domestic persons may conclude foreign credit contracts; 3) Obligatory payment of a deposit in dinars in proportion to the amount of credit specified in the foreign credit contract; 4) Approval of the National Bank of Yugoslavia for the conclusion of foreign credit transactions; 5) Temporary limitation of premature credit repayment; 6) Suspension of the conduct of and issuance of approvals for debt-conversion transactions. The measures referred to in paragraph 1 of this Article shall be applicable for the duration of disruptions. 6

7 VI. PENAL PROVISIONS 1. Economic Offences Article 21 Any domestic person shall be fined 90,000 to 450,000 new dinars for economic offence in the following cases: 1) If it does not use a financial credit in conformity with this Law (Article 2); 2) If it concludes a credit contract making commitments to the Federal Republic of Yugoslavia (Article 6 paragraph 6), 3) If it takes a foreign credit, issues a guarantee to a foreign person or extends a credit to a foreign person or receives a guarantee from abroad contrary to the provisions of this Law (Articles 8 and 9); 4) If in the course of refinancing or rescheduling of the debts stemming from concluded foreign credit contracts for which the state is the guarantor or super-guarantor, it makes premature payments to the foreign person concerned or fails to pay in the dinar equivalent at the exchange rate valid on the date of payment (Article 14); 5) If it fails to conduct the debt-conversion transactions in conformity with this Law or if it conducts them without the approval of the National Bank of Yugoslavia (Article 15); 6) If it concludes foreign credit transactions and utilises or repays credits contrary to the measures restricting the conclusion of foreign credit transactions (Article 20). The responsible individual in the bank, enterprise or other body corporate concerned shall also be fined 6,000 to 30,000 new dinars for economic offence in any of the cases referred to in paragraph I of this Article. Besides the fine, the individual responsible for any of the economic offences referred to in paragraph 1 of this Article shall also be subjected to a preventive measure prohibiting him/her from conducting certain foreign trade transactions in the duration of up to five years. 2. Petty Offences Article 22 Any domestic person shall be fined 18,000 to 90,000 new dinars for petty offence in the following cases: 1) If it concludes a credit transaction contrary to the provisions of this Law (Articles 10 and 11); 7

8 2) If it fails to register a foreign credit contract, guarantees and other forms of security and all arisen changes in connection with such contract, as well as the utilization, repayment and collection of credits, or if it fails to serve notice of its intention to conclude such contract (Article 12, paragraphs 1 through 4). The responsible individual in the domestic person concerned shall also be fined 4,500 to 22,500 new dinars for petty offence in any of the cases referred to in paragraph 1 of this Article. Article 23 The Federal Foreign Exchange Inspector's Office shall conduct the first instance proceedings in case of any of the petty offences referred to in Article 22 of this Law. The Federal Petty Offence Council shall decide on any complaint filed against any decision rendered in the petty offence proceedings. VII. TRANSITIONAL AND CONCLUDING PROVISIONS Article 24 The credit transactions which are under way on the effective date of this Law shall be completed under the conditions valid at the time of their commencement, should that be more favorable for parties to such transactions. Article 25 This Law shall supersede on its effective date the Foreign Credit Transactions Law (the "Official Gazette of the Socialist Federal Republic of Yugoslavia", No. 84/90). Article 25 This Law shall come into force on the eighth day upon its publication in the "Official Gazette of the Federal Republic of Yugoslavia". 8