Decree of the General Director of the State Bank of Czechoslovakia No. 105 / 1966 Coll.
Decree of the Director-General of the Czechoslovak State Bank on the lending of socialist organisations and interest rates
Valid
Effective from 01.01.1967
105
DECLARATION
Director General of the Czechoslovak State Bank
of 20 December 1966
on lending to socialist organisations and interest rates
The Director General of the Czechoslovak State Bank provides for the Act No. 117 / 1965 Coll., on the Czechoslovak State Bank and pursuant to § 391 (2) of the Economic Code No. 109 / 1964 Coll.:
General provisions
(1) This decree regulates the granting of loans by the Czechoslovak State Bank (hereinafter "the Bank ') to state economic organisations, foreign trade enterprises *) and cooperative organisations * *) (hereinafter" organisations') and national committees; further regulates interest rates on loans and funds held by socialist organisations in cash institutions.
(2) According to the decision of the Bank's headquarters, loans under this decree are granted to other socialist organisations, or other types of loans than those mentioned in this decree.
Support for business loans is governed by the principles of credit and interest policy approved by the Government.
(1) Credit agreements are concluded between the bank and organisations. Credit agreements shall be concluded in writing.
(2) The credit agreement is concluded if the bank and the organisation are satisfied of all the terms of the credit agreement.
(1) If the organisation fails to comply with the terms of the credit agreement, the bank may increase interest rates, require repayment of the loan before the maturity date, exclude from lending needs that do not ensure the return of the loan, limit the amount of loans granted or refuse to grant the loan. * * *)
(2) The conditions and procedure for applying the measures referred to in paragraph 1 are laid down in credit agreements.
(3) In the event that the return on the loan from the funds of the credit firm is not guaranteed in advance, the bank shall require guarantees for the financial coverage of the loan from the superior authority or the State guarantee.
(1) The loans are subject to interest from socialist organisations to the money institutions.
(2) The funds in the accounts pay interest to the socialist organisations.
CREDIT OF ORGANISATIONS
Investment credits
The Bank shall provide organisations with:
(a) special-purpose investment credit;
(b) bridging investment credit.
In particular, the investment loan agreement shall agree on the total amount of investment credits, their distribution to individual buildings and machines (sets), the conditions for their provision, the method and timing of their use and repayment, or guarantees.
(1) The special-purpose investment loan is granted to organisations for the acquisition of investments provided that they meet the criteria for the effectiveness of investments and the return on credit.
(2) The loan is granted for buildings (including residential construction by organisations), machinery not included in the building budget, project work, other investments or other investment needs.
(3) After checking the effectiveness, as well as the need and effectiveness of the investments, priority shall be given to the credit requirements for those actions and organisations that ensure greater efficiency and, in comparative actions, a shorter construction period and a faster repayment of the special-purpose investment loan.
(1) A special purpose investment loan is granted to direct investors in a separate credit account from which payment documents for credit investments are paid; If the investment is paid for by the investor's own resources and the special-purpose investment loan, the loan and own resources shall be drawn as decided by the investor.
(2) The maturity of the loan must be less than the economic life of the investment.
The special-purpose investment loan shall be granted to housing cooperatives for the construction and construction of garages, or other needs of an investment nature, if the membership shares, state contributions provided by national committees or contributions from other organisations, or other own resources, and if the return on the credit is ensured.
A bridging investment loan shall be provided to bridge the time gap between the need for and the creation of investment funds within a calendar year, in advance of supplies and works, or in default of own resources at the planned level; the credit is granted for a period exceeding a calendar year but not exceeding a period of 12 months from the date of granting of the credit.
Operating loans
The Bank shall provide organisations with:
(a) an orbital loan;
(b) carry-over operating credit.
An orbital credit shall be granted for permanently needed stocks, for stocks resulting from short-term economic fluctuations, for seasonal stocks and for long-term frontloading, for items of gradual consumption in use, for completion and disposal stocks, for receivables and for future costs, for measures necessary for the preparation and implementation of technical development or for other operational needs.
(1) If the organisation has a shortage of resources in the fund for seasonal fluctuations (production, supply, etc.), the bank will grant it a bridge operating loan even above the guaranteed wage level.
(2) If the organisation has a shortage of resources in the fund working for reasons other than seasonal reasons, the bank will grant it a carry-over operating loan only up to the amount of the guaranteed wage volume and above the amount of the guaranteed wage volume only in cases of special consideration.
(3) If the organisation has a lack of resources in other operational funds, the bank will grant it a bridge operating loan to cover that shortfall.
(4) A carry-over operating loan shall be granted provided that the lack of resources in the relevant operational fund cannot be eliminated even if the resources of the reserve fund of the organisation or branch (managing national committee) are used. If the organisation has a lack of resources due to seasonal fluctuations, a bridging operating loan shall be granted provided that the lack of resources is corrected within 12 months at the latest.
(1) In particular, the operating credit agreement sets out the criteria for the effectiveness of the use of the loan and its return, the method of credit pursuant to Section 16, the indicative amount of the loan, the stocks which will be considered as desirable sales stocks and the cases in which organisations cover their own needs.
(2) The deadline for concluding the operating credit agreement is set out in the credit and interest policy principles. The Bank may grant an operating loan even if the credit agreement is not concluded within that period. In this case, the loan shall be granted under conditions determined by the bank according to the principles of credit and interest policy.
In providing operating credits, the method of lending in an overdraft account or lending in credit accounts is used when using a reverse account.
(1) The overdraft account shall be accounted for or paid by the organisations' cash and non-cash income, except for those amounts which the organisation may retain in the cash register or use for cash expenditure under special regulations, *) and in addition to direct subsidies and allocations for individual funds, provided that separate accounts are opened for them.
(2) Operating payments and cash withdrawals shall be made from the overdraft account except for payments and withdrawals made directly from separate accounts or transfers to other accounts (sub-accounts).
(3) When lending in an overdraft account, loans in separate credit accounts may be granted to organisations for some purposes.
Credit-account organisations using a reverse account shall demonstrate to the bank, before each loan is granted, the credit need in a manner agreed in the credit agreement.
Foreign exchange credit
An organisation may obtain an exchange credit under the contract for the import of investment-building machines and equipment, or other needs, if their own foreign exchange resources are not sufficient.
CREDIT OF NATIONAL SELECTIONS
The conditions and procedure for granting credit to the national committees, their scope and the purposes for which they are provided shall be laid down in the principles of credit and interest policy.
INTEREST RATES
(1) The basic interest rate on the investment loan is 6%, for agricultural organisations 5%, the interest rate on loans for corporate housing construction and for the actual housing of national committees is set at 2-4%.
(2) The basic interest rate on operating loans is 4%, 2% for commercial organisations, 3% for agricultural organisations.
(3) The interest rate on loans granted to national committees is set at a range of 3- 6%.
(4) The interest rate on cooperative housing loans is set at 1-4%.
(5) The interest rate on the bridging operating loan in the absence of resources due to seasonal fluctuations is 4%, in the absence of resources for other reasons is 5%.
(6) The interest rate on foreign exchange loans is set out in the credit and interest policy principles.
(1) The interest rate on funds held by socialist organisations for money institutions is 1,8%.
(2) The amount of interest on the accounts of socialist organisations in respect of money institutions deposited for a long period of notice shall be higher than that referred to in paragraph 1. 1; the rate of such interest shall be determined in the principles of credit and interest policy.
The credit and interest policy principles shall specify the conditions and scope for raising and reducing the interest rate or other interest rates for certain sectors, for certain types of loans or deposits.
PROVISIONS COMMON AND FINAL
(1) If the branch directorates carry out an economic activity, they shall be subject to the provisions of this decree applicable to the organisation when lending and remuneration.
(2) Agricultural organisations within the meaning of this decree are single agricultural cooperatives, state-owned property managed by agricultural production administrations or other organisations agreed between the bank and the competent central authorities.
For serious reasons, the Bank's headquarters may allow exemptions from Sections 8 to 14.
They shall be deleted:
1. Decree No 67 / 1958 of the Minister of Finance of the Ú. l., on interest rates, in so far as it regulates interest on the accounts of socialist organisations and on loans granted to them,
2. Sections 1 to 15 and 24 to 33 of the Order of the Minister of Finance No 66 / 1958 Ú. l., on the granting of loans by the Czechoslovak State Bank and on payment and settlement transactions,
3. the Directive of the Director-General of the State Bank of Czechoslovakia No 217 / 1959 of the Ú. l., on the provision of operating credits to construction enterprises,
4. the principles for the financing and lending of single agricultural cooperatives and cooperative cooperation services by the Czechoslovak State Bank, published at 93 / 1959 Úl. and the amended principles for the financing and lending of uniform agricultural cooperatives and cooperative cooperation services, published at 2-3 / 1964 Bulletin of the Ministry of Agriculture, Forestry and Water Management,
5. decree of the Director General of the Czechoslovak State Bank No. 142 / 1960 Coll., on the provision of operating credits and the application of sanctions,
6. the Directive of the Director-General of the Czechoslovak State Bank on the provision of operating credits to forestry organisations, registered in the amount of 63 / 1960 Coll., as amended by the Order of the Director-General of the Czechoslovak State Bank No 11 / 1964, registered in the amount of 25 / 1964 Coll.,
7. decree of the Director General of the Czechoslovak State Bank No. 24 / 1961 Coll., on the provision of operating credits to commercial organisations,
8. principles for the provision of operating credits and exceptional short-term investment credit to agricultural state economic organisations under the responsibility of the Ministry of Agriculture, Forestry and Water, registered as 1 / 1965 Coll.,
9th Decree of the State Bank of Czechoslovakia No. 95 / 1965 Coll., on the lending of socialist organizations and on interest.
This decree shall take effect on 1 January 1967.
Director-General:
Dr Pohl v. r.
*) The Czechoslovak Commercial Bank, a public limited company, grants loans to foreign companies under this decree, on the basis of the measure of the Czechoslovak State Bank by delegation of the Czechoslovak Commercial Bank, a public limited company, to provide loans to foreign companies registered in the amount of 5 / 1965 Coll.
* *) The provision of investment credits to production and consumer cooperatives is governed by specific rules.
* * *) In such a case the organisation is obliged to comply with § 36 paragraph 2 of Government Decree No. 100 / 1966 Coll., on the planned management of the national economy.
*) Decree of the Minister of Finance and Director General of the Czechoslovak State Bank No. 208 / 1964 Coll., on emission and treasury operations.
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Regulation Information
| Citation | Decree of the General Director of the State Bank of Czechoslovakia No. 105 / 1966 Coll., on the lending of socialist organisations and interest rates |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 20.12.1966 |
|---|---|
| Effective from | 01.01.1967 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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