Decree of the President of the State Bank of Czechoslovakia No. 103 / 1985 Coll.
Decree of the President of the Czechoslovak State Bank on lending and interest rates
Valid
Effective from 01.01.1986
103
DECLARATION
President of the Czechoslovak State Bank
of 8 November 1985
on lending and interest rates
The President of the Czechoslovak State Bank provides, pursuant to § 7 (5) (a) of Act No. 144 / 1970 Coll., on the Czechoslovak State Bank and § 391 (5) of the Economic Code:
GENERAL PROVISIONS
In line with the objectives of the economic policy of the Government of the Czechoslovak Socialist Republic, the State Bank of Czechoslovakia (hereinafter referred to as "the Bank ') is lending to increase efficiency in the national economy, to strengthen economic and monetary balance and to strengthen the purchasing power of the Czechoslovak Crown. In doing so, the Bank shall carry out a socio-economic control of the organisation's management in line with its social interests.
(1) This decree provides for the provision of loans to socialist organisations (1), including international economic organisations established in the territory of the Czechoslovak Socialist Republic (2) and to organizational units of socialist organisations( 3) (hereinafter referred to as "organisations"), to monetary institutes in the Czechoslovak Socialist Republic (hereinafter referred to as the "organizations"), or to monetary institutes or other bodies abroad.
(2) Paragraph 24 of this Decree applies to the granting of loans to national committees. Paragraphs 5 to 15 also apply to the granting of loans to national committees.
(3) Paragraph 22 (b) of this Decree applies to the granting of loans to monetary institutions or other bodies abroad.
(4) Paragraph 25 of this Decree applies to the provision of loans to the financial institutions in the Czechoslovak Socialist Republic.
The granting of loans shall be in accordance with the principles of internal and foreign banking monetary policy (hereinafter referred to as "the principles'), approved by the Government of the Czechoslovak Socialist Republic.
Credit planning
(1) The Bank provides loans in accordance with the Monetary Plan of the Czechoslovak Socialist Republics4 (hereinafter referred to as the Monetary Plan). In the course of its preparation, the Bank shall apply criteria expressing the effective use of the monetary plan's needs and resources, thereby increasing the link of the monetary plan to national economic development plans and national budgets.
(2) The total amount of the loans granted is derived from the volume of credit resources in the monetary plan and from the development of basic economic ratios and indicators, in particular qualitative ones.
(3) Organisations, economic management5) and other authorities designated by the Bank provide the Bank with the necessary documentation for planning and providing loans.
(4) Following the approval of the monetary plan by the Government of the Czechoslovak Socialist Republic, the Bank, in cooperation with the economic managementauthorities (5) and the monetary institutions, shall carry out its breakdown in order to support the tasks and intentions of the State Plan for the Development of the National Economy and the State Budget of the Federation and Republics in the plans of the organisations.
(5) Economic management bodies and organisations are required to ensure in their economic plans and in their implementation the tasks of the monetary plan discussed with the bank, 6) to create conditions for the efficient use of loans and to ensure their return.
Conditions for granting credit
The Bank shall provide the loans referred to in Part Two of this Order with priority to support the intensification of industrial, construction and agricultural production, effective structural changes in the national economy, scientific and technological development, progressive reconstruction and modernisation, strengthening export capacity and reducing the import performance of the Czechoslovak economy, achieving energy, fuel and metal savings, improving the efficiency of stock use and strengthening the internal market balance and promoting the development of services paid by the population.
The Bank differentiates between the amount of the loan to cover material and other creditworthy values and the credit conditions following compliance with the criteria for the effective use of the loan set out in the Guidelines. In the case of credit differentiation, it also uses credit sanctions and interest rates (Sections 12 to 15).
(1) The Bank provides loans provided that:
(a) they shall be used to carry out effectively or, where appropriate, to exceed the tasks of the national economic development plan of the national economy secured by the organisation in its economic plan as well as the other tasks set out in that plan discussed with the bank;
(b) the return and maturity of the loan shall be ensured within the agreed deadlines and the credit shall be secured by material and other creditworthy values, where appropriate by other means referred to in paragraphs 2 and 3;
(c) the organisations meet the criteria for the efficient use of the credit (§ 6);
(d) the organisation's own resources and, where appropriate, the resources provided by its senior bodies shall be used as a priority.
(2) In the event that the return on the loan is not guaranteed in advance by the organisations, the bank requires a financial guarantee to cover the loan.
(3) By way of exception, the bank grants loans whose return on funds from organisations is not guaranteed in advance with a State guarantee.
(4) There is no legal right to grant credit; the bank is considering whether to grant the loan and under what conditions.
The loans are granted directly by the Bank to organisations for which the need for credit has arisen.
(1) The credit relationship between the bank and the organisation is adjusted for the relevant planning period (annual or five-year, as appropriate) by credit agreements concluded after the discussion of the relevant economic plan.
(2) In the credit agreement between the bank and the organisation, in addition to the terms of the lending provided for in the Economic Legislation (7), the criteria for the efficient use of the loan, the specific conditions for the provision of individual types of credit, the conditions for interest-rate bonification, the method of assessment of the credit agreement, the conclusion of supplements to the credit agreement and the resolution of disputed issues arising from the credit agreement.
(3) Long-term loans shall be granted on the basis of a sub-credit agreement concluded between the bank and organisations based on the credit agreement referred to in paragraph 1.
(4) The credit agreement (paragraphs 1 to 3) is concluded if the agreement on the whole of its content is reached.
(5) In the case of loans whose provision and repayment cannot be adjusted in advance in accordance with paragraph 1, the bank shall grant the loan on the terms and conditions communicated in writing to the organisation upon request.
(1) In order to ensure consistent material coverage of loans, the bank requires that they be insured to the extent appropriate when lending material values exposed to natural and other damage to cooperative organisations.
(2) For organisations using state budget subsidies, the Bank coordinates the provision of loans with the use of budgetary resources.
Interest on operating and investment loans and on the funds of organizations in Czechoslovak crowns in bank accounts
(1) The organisation pays interest on the loan; the amount of interest on loans shall be differentiated according to the maturity date of the credit, which shall be no more than one year for operating short-term special-purpose loans, no more than three years for operating medium-term special-purpose loans and no more than five years for innovative loans; for operational long-term special-purpose loans (except for a permanent reverse stock loan), the maturity of the loans shall be no more than seven years. For medium and long-term investment loans, the maturity of the loans shall be governed by the principles.
(2) From the funds of the bank's accounts, the bank pays interest to the organisations; the amount of interest shall be differentiated according to the duration of the deposit and the notice period. For fixed-term deposits for at least one year, the notice period shall be three months, for fixed-term deposits for at least two years shall be six months and for fixed-term deposits for at least four years shall be twelve months. In the event of non-compliance with the agreed duration of the deposit, interest shall be granted to the organisation at the rate corresponding to the time the funds were deposited with the bank and at the same time the bank shall charge the organisation a specified fee for the early collection of the deposit.
(3) The amount of the basic interest rates on operating and investment loans and on the crown resources of the banks' accounts is set out in the Annex to this Decision. For some types of credit, or for some organisations, the President of the Bank may authorise, in the interest of the Union, basic interest rates by way of derogation from the interest rates set out in this Annex.
(4) An increased interest on a loan above the basic interest rate referred to in paragraph 3 shall be deemed to be a penalty interest.
(5) The reduced interest on the loan below the basic interest rate referred to in paragraph 3 shall be considered as an interest-rate swap.
Interest on foreign exchange loans and foreign exchange deposits
(1) The organisation shall pay the interest agreed in the credit agreement on the foreign exchange credit; the bank is based on foreign money market rates and conditions depending on the type of currency and maturity of the loan.
(2) The Bank pays interest on the funds of foreign exchange funds deposited by the organisation in the bank's accounts. The amount of the interest rate shall be determined by the Bank at rates abroad, depending on the type of currency and the time at which the foreign exchange funds are deposited.
Credit sanctions and interest rate bonification
(1) The Bank is entitled to apply credit sanctions to organisations which do not safeguard the planned creation of own resources, do not comply with the agreed criteria for the effective use of the loan, in particular for failure to fulfil the binding tasks and limits of the national economic development plan or to comply with the conditions agreed with the Bank (§ 9).
(2) In the cases provided for in paragraph 1, the Bank may apply the following credit penalties:
(a) penalty interest;
(b) repayment of loans before maturity;
(c) exclusion from lending values for which the agreed effectiveness and return on loans is not guaranteed;
(d) refusal or limitation of the volume of newly requested loans.
For organisations with unbalanced financial management, long-term non-performing criteria for the effective use of credit or non-return of credit, a bank may require, in addition to applying the credit penalties provided for in Section 12 (2), the repayment of loans, preferably before other payments from funds in the current account, to stop the reservation of wage payments, to introduce a binding order of payments from the current account, to require a guarantee for the loan or to transfer the organisation to a consolidation regime (Section 18 (4)).
In order to increase the interest of organisations on improving efficiency and to promote the additional objectives set out in the principles, the Bank provides interest rate creditworthiness to the organisations.
The Bank shall determine the penalty interest or interest bonification taking into account the extent of the defects and, where appropriate, the benefits to which the penalty interest or interest bonification is linked. The highest threshold for penalty interest and interest-rate creditworthiness is set out in the principles.
CREDIT SPECIES
The Bank shall provide organisations with:
(a) operating credits;
(b) investment credits;
(c) foreign exchange loans.
Operating loans
(1) The Bank provides the following operating loans to organisations:
(a) special-purpose loans for circulation;
(b) overdraft credit;
(c) credit assistance;
(d) credit for the composition of a holding in an undertaking with foreign shareholding or for the purchase of shares.
(2) The President of the Bank may determine other types of operating loans and the conditions for granting them.
(1) The special-purpose loans for circulation are granted by the Bank to organisations in particular for stocks, claims on customers up to the deadline for payment, uninvoiced work and supplies, construction site facilities, future costs and non-investment expenditure for the development of science and technology, and, where appropriate, other operational needs.
(2) When providing an overdraft credit, the organisation's own operating funds shall be concentrated in one account with an overdraft credit, which shall normally replace the loans referred to in paragraphs 1 and 3.
(3) In order to strengthen payment discipline and customer relations, the Bank may temporarily provide credit assistance to organisations with a temporary shortage of funds. Such assistance shall, in particular, provide customers with the payment of supplies, suppliers with their claims after due, the payment of wages or the bridging of the time gap in the planned generation and use of resources in the organisation's funds. The basic condition for granting them is that the organisation submits to the Bank measures ensuring, within the time limits set, the removal of the causes of the lack of resources. In doing so, the bank also takes into account the degree of fault of the organisation.
(4) A consolidation loan shall be granted by the Bank to organisations with long-term unbalanced financial management and long-term non-compliance with the criteria for the effective use of the credit provided that the consolidation programme ensures the repayment of the loan within three years of its granting.
Investment credits
The Bank shall provide the following investment credits to the organisations:
(a) special-purpose investment loans;
(b) bridging investment credits.
(1) The Bank provides special-purpose investment loans to organisations for the acquisition, modernisation and reconstruction of basic funds, and exceptionally for other investment needs. The conditions and deadlines for the payment of special-purpose investment loans shall be governed by the principles.
(2) The Bank provides the bridging investment loan organisations to bridge the time gap between the need for and the creation of resources in the Investment Fund. The conditions and deadlines for the repayment of the bridging investment loan shall be governed by the principles.
(3) The Bank provides the housing cooperatives with special-purpose investment loans for housing construction, or other needs related to housing construction. The terms and terms of these loans and interest rates shall be laid down in a separate regulation. 8)
Foreign exchange loans
In particular, the Bank provides foreign exchange loans to organisations to promote the effectiveness of external economic relations, to strengthen the foreign exchange balance and in line with the intentions of the foreign exchange plan and the foreign exchange economy of the Czechoslovak Socialist Republic.
The Bank provides foreign exchange loans in transferable roubles, national currencies of the Council of Economic Assistance States and freely convertible currencies
(a) organisations
(aa) development projects and the development of activities to ensure greater creation of foreign exchange funds in the future;
(ab) to address the temporary shortage of foreign exchange resources as a result of the time discrepancy between the formation and the need for foreign exchange resources;
(b) to a bank of a foreign customer or other foreign entity to finance the import of goods from the Czechoslovak Socialist Republic or to cover, where appropriate, expenditure relating to the supply abroad.
CREDIT OF NATIONAL SELECTIONS AND MONETARY CONTRACTS
The Bank shall grant credit to the National Committees for the planned construction of the Z event for which the return on the loan is guaranteed within the specified period.
(1) The conditions for granting loans to monetary institutions and the types of loans are laid down by the Bank after consultation of the relevant monetary institution.
(2) The Bank grants loans to foreign exchange banks to cover the need for funds resulting from the granting of loans to foreign-exchange debt organisations and, where appropriate, other operational needs.
FINAL PROVISIONS
(1) The provisions on the granting of loans by the Bank apply mutatis mutandis to the granting of loans to organisations by other monetary institutions, organisations or bodies, where they are authorised to grant loans under the applicable legislation or under the mandate of the Bank, to the extent specified by the Bank.
(2) The granting of loans to producer, consumer and housing cooperatives and the Central Council of cooperative central funds set up for this purpose shall be subject to the conditions laid down by the cooperative associations and the Central Board of Cooperatives and agreed with the Bank.
Exemptions from Sections 2, 8 and 9 of this Order are permitted by the President of the Bank.
The Order of the Chairman of the State Bank of Czechoslovakia No 158 / 1975 Coll., on the provision of loans is hereby repealed.
This Decree shall take effect on 1 January 1986.
Chairman of the Czechoslovak State Bank:
Ing. Stejskal v. r.
Annex to Decree No 103 / 1985 Coll.
Interest rates on operating and investment loans and on the crown resources of organisations in accounts with monetary institutions
| Roční procentní sazba | |||
|---|---|---|---|
| I. Úrokové sazby z úvěrů | |||
| 1. | Provozní úvěry | ||
| A. | Krátkodobé účelové úvěry a kontokorentní úvěr | 5 % | |
| a) úvěr na pohledávky za odběrateli do lhůty splatnosti v tuzemsku | |||
| b) úvěr na krátkodobé pohledávky v zahraničí | |||
| c) krátkodobý úvěr na zásoby | |||
| d) úvěr na sezónní náklady | |||
| e) úvěr na nevyfakturované práce a dodávky | |||
| f) kontokorentní úvěr | |||
| B. | Střednědobé účelové úvěry | 6 % | |
| a) střednědobý úvěr na zásoby | |||
| b) úvěr na doplnění obratového fondu | |||
| c) úvěr zemědělským organizacím v důsledku nepříznivých klimatických podmínek | |||
| C. | Dlouhodobé účelové úvěry | 6 % | |
| a) úvěr na trvale se obracející zásoby (do doby jeho splacení) | |||
| b) úvěr na náklady příštích období a záběhové náklady | |||
| c) úvěr na zařízení staveniště | |||
| d) úvěr na složení podílu do podniku se zahraniční majetkovou účastí nebo na nákup akcií | |||
| e) úvěr na dlouhodobé pohledávky v zahraničí | 6–10 % | ||
| D. | Úvěrové výpomoci | ||
| a) úvěr na pohledávky po lhůtě splatnosti | 7–12 % | ||
| b) platební úvěr | 10 % | ||
| c) úvěr na složení prostředků na platbu dodavateli | 10 % | ||
| d) úvěr na mzdy | 10 % | ||
| E. | Konsolidační úvěr | 12 % | |
| 2. | Investiční úvěry a úvěry na technický rozvoj | ||
| A. | Střednědobé účelové úvěry | 5 % | |
| a) inovační úvěr | |||
| b) investiční úvěr | |||
| B. | Dlouhodobý účelový investiční úvěr | 7 % | |
| 3. | Překlenovací úvěr na krátkodobý nedostatek zdrojů ve fondech organizace | 6 % | |
| 4. | Úvěr nesplacený ve lhůtě | 15 % | |
| II. Úrokové sazby z prostředků organizací na účtech u peněžních ústavů | |||
| 1. | Netermínované prostředky | 0,5 % | |
| 2. | Termínované vklady | ||
| a) termínované vklady nejméně na 1 rok | 2 % | ||
| b) termínované vklady nejméně na 2 roky | 3 % | ||
| c) termínované vklady nejméně na 4 roky | 4 % | ||
| d) termínované vklady ze základních členských vkladů bytových družstev nejméně na 1 rok | 1 % | ||
| 3. | Prostředky na účtech soudních a notářských depozit | 2 % | |
1) Article 14 of the Economic Code.
2) Article 389a of the Economic Code.
3) Paragraph 17 (2) of the Economic Code.
4) § 4 of Act No. 144 / 1970 Coll., on the State Bank of Czechoslovakia.
5) Article 390b of the Economic Code.
6) Sections 1 (3), 9, 10 and 11 of Act No. 145 / 1970 Coll., on National Economic Planning.
7) § 382a (3) of the Economic Code as amended by Act No. 98 / 1988 Coll.
8) Decree of the Federal Ministry of Finance, the Ministry of Finance of the Czech Socialist Republic, the Ministry of Finance of the Slovak Socialist Republic and the President of the State Bank of Czechoslovak No. 136 / 1985 Coll., on financial, credit and other assistance of cooperative and individual housing construction and modernization of family houses privately owned.
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Regulation Information
| Citation | Decree of the Chairman of the State Bank of Czechoslovakia No. 103 / 1985 Coll., on the provision of loans and on interest rates |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 06.12.1985 |
|---|---|
| Effective from | 01.01.1986 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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