What is Principles No 135 / 1985 Coll.?

Principles No. 135 / 1985 Coll., Internal and Foreign Banking Monetary Policy After 1985, approved by Resolution of the Government of the Czechoslovak Socialist Republic of 31 October 1985 No 289 — Principles of internal and foreign banking monetary policy after 1985 approved by the Government of the Czechoslovak Socialist Republic of 31 October 1985 No 289.

When it became Principles No 135 / 1985 Coll. effectiveness?

Principles No 135 / 1985 Coll. became effective date not available.

Is Principles No 135 / 1985 Coll. still valid?

Yes, Principles No 135 / 1985 Coll. is still valid and effective.

Principles No 135 / 1985 Coll. - Principles of internal and foreign banki...

135

PRINCIPLES

INTERNAL AND FOREIGN BANK MONETARY POLICY AFTER 1985

approved by order of the Government of the Czechoslovak Socialist Republic

of 31 October 1985

ČÁST PRVNÍ

GENERAL PROVISIONS

HLAVA PRVNÍ

Basic focus of banking monetary policy

Čl. 1

In line with the intentions of the Czechoslovak Socialist Republic's monetary plan for the years 1986- 1990 (hereinafter referred to as the "Monetary Plan ') and the intentions of the National Economy Development Plan of the Czechoslovak Socialist Republic for the years 1986- 1990 (hereinafter referred to as the" Eighth Five-Year Plan') and of the State budgets, an active differentiated banking monetary policy promoting demanding efficiency criteria for the provision of credit and foreign exchange resources is applied; to support the enhancement of the benefits of the intensification of production and the faster growth of the efficiency of the national economy, in particular by using scientific and technological development and greater involvement in the international division of labour and ensuring the planned dynamics of the development of the national economy; while working on strengthening the internal and external economic balance and stability of the purchasing power of the Czechoslovak crown.

Čl. 2

Bank monetary policy in line with the conceptual intentions of the eighth five-year plan, state budgets and monetary plan helps

(a) to ensure the planned development of the economy through loans and foreign exchange; This appropriation is intended to cover expenditure relating to:

(b) achieve the planned dynamics of national income growth, in particular by reducing production consumption and utilizing corporate reserves in stocks, thereby limiting corporate requirements to the use of credit resources;

(c) ensure that the results of science and technology are rapidly used so that scientific and technological development becomes a decisive factor in the intensification of the national economy;

(d) to ensure that the dynamics of loans granted to the corporate sector are consistent with the development of basic economic indicators, in particular the development of national income;

(e) strengthen the balance in the internal market and thereby contribute to increasing and improving the standard of living of the population in line with the planned development of the income and expenditure of the population;

(f) strengthen the qualitative aspect of the balance of external economic relations by ensuring the planned development and structure of the foreign exchange position and by providing the necessary resources to cover due foreign liabilities;

g) to increase the efficiency of foreign trade relations mainly through the intensive participation of the Czechoslovak economy in cooperative, specialisation and integration actions.

HLAVA DRUHÁ

Basic tasks of banking monetary policy

Čl. 3

Bank monetary policy contributes to ensuring the basic intentions of the eighth five-year plan and state budgets in particular by:

(a) supports the implementation of measures to ensure the improvement of the efficiency, quality, technical level and performance of the production produced and thus the achievement of greater competitiveness of Czechoslovak products on foreign markets and the improvement of exchange rates in foreign exchange;

(b) promote research and development in organisations and contribute to the speedy implementation of scientific and technological development results in the reproduction of basic resources, progressive modernisation and reconstruction, and other effective investments and the rapid return and benefits of balance of payments, the priority of ensuring decisive investments aimed at structural rebuilding of the Czechoslovak national economy and the deepening of socialist economic integration;

(c) contribute to improving labour productivity and labour saving and to continuously reducing the material complexity of production, in particular by making better use of all raw materials and material resources, in particular fuels, energy and metals, in order to achieve the highest economy in all areas of the national economy and to evaluate national work in the field of external economic relations;

(d) act on the efficient and uniform use of stocks and improve their structure in line with the consolidation of supplier-customer relations;

(e) use funds from accepted bank loans from abroad primarily for the acquisition of progressive technology, for financing production and reconstruction, with relatively high appreciation of the resources invested in strengthening the principle of foreign exchange and crown return and more demanding conditions for access to foreign resources;

(f) to provide loans abroad, in particular to promote Czechoslovak exports, to develop effective international cooperation, in particular socialist economic integration, and to secure planned imports for the national economy;

(g) target credit policy in relation to foreign countries in such a way that foreign exchange liquidity and the solvency of the State vis-à-vis foreign countries are consistently guaranteed;

(h) promote credit for the development of the production of consumer goods and services required by the population and thereby contribute to the smooth realisation of the income of the population, in particular wages, in order to achieve overall and, above all, structural balance in the internal market.

HLAVA TŘETÍ

Principles for the implementation of banking monetary policy by the Czechoslovak State Bank

Čl. 4

(1) The Czechoslovak State Bank (hereinafter referred to as "the Bank") uses monetary criteria to assess the effectiveness of the national economy in monetary terms and to determine the needs and resources of the monetary plan and its effective use during the process of creating and during their implementation.

(2) In particular, the Bank applies the following monetary criteria and indicators: the relationship between the growth of credit and national income, the state and the change in the foreign exchange position of the State, the development of the balance of payments of the Czechoslovak Socialist Republic, the relationship between the development of foreign claims and foreign liabilities, the share of foreign exchange-based loans in total imports, the development of the external and internal purchasing power of the Czechoslovak Crown, the development of the savings rate of the population, the acceleration of the time of stock turnover, the share of the loan in financing of investment funds, the average maturity of investment credits, the share of investment credits in modernisation, rationalisation and the acceleration of technical development to total investment credits.

Čl. 5

(1) In the period during which the draft economic plans of the organisations are drawn up and implemented, the Bank uses the criteria for the effective use of the credit for each organisation (Article 9) with a view to contributing to the efficiency of the organisation's management and continuously assessing its implementation.

(2) In providing loans, the bank applies an active credit differentiation at the planned level and the actual fulfilment of the criteria for the effective use of the loan and thus acts on the more efficient use of social resources.

Čl. 6

(1) The Bank applies the principle of return on loans and foreign exchange funds within the specified deadlines, thereby acting on the use of reserves and on the effective creation of material and financial resources in organisations.

(2) In providing loans, the Bank requires that the organisation's own resources be used as a priority to cover the credit facilities. It thus operates on the creation and use of the organisation's own resources in accordance with the organisation's economic plan and financing principles.

Čl. 7

(1) By releasing foreign exchange coverage on imports under the terms of the Czechoslovak State Bank for the release of foreign exchange coverage to cover liabilities from foreign economic activity and for salaries from abroad (hereinafter referred to as "the terms"), 1) in relation to the development of balance of payments, the performance of export tasks, taking into account the most favourable conditions of foreign exchange financing, supports the security of the eight-year plan and annual plans.

(2) The Bank, in cooperation with the competent authorities and in cooperation with the pricing, financial and investment policy, aims to increase the efficiency of foreign trade exchanges and to combat the effects of inflation in economic relations with non-socialist states on the Czechoslovak national economy.

(3) Bank monetary instruments are used by the Bank to strengthen the participation of organisations in improving effective foreign exchange benefits for balance of payments; coordinate its action with the principles of foreign trade policy and financial economic instruments in foreign trade.

(4) By accepting loans from abroad under the foreign exchange plan, the Bank shall provide foreign exchange funds, in particular for accelerating scientific and technological development, for faster implementation of progressive technology, for the implementation of integration actions and for imports which, by creating foreign exchange or saving imports, will provide permanent foreign exchange benefits in the short term, in particular by increasing export efficiency, thereby contributing to intensification of the reproductive process.

(5) By authorising corporate loans and providing bank loans abroad, the Bank supports the acceleration of export dynamics, the achievement of favourable payment conditions and the provision of the development of raw materials necessary for the Czechoslovak national economy, in accordance with the foreign exchange plan and the foreign exchange economy.

(6) By carrying out foreign exchange depository and other bank foreign exchange operations, the Bank shall provide foreign exchange benefits for the balance of payments.

(7) The Bank provides for payment operations in the field of active and passive tourism in accordance with foreign exchange plans.

Čl. 8

(1) The Bank shall issue cash in accordance with the balance sheet of the financial income and expenditure of the population and the plan foreseen by the dynamics of the development of the national economy and shall organise the cash turnover in accordance with the planned circulation of the tangible and money funds.

(2) In the context of lending and the release of foreign exchange funds, the Bank shall carry out, in accordance with the applicable rules, social control functions aimed mainly at promoting social interests. In view of these principles, the Bank shall, in particular:

(a) ensuring the tasks of the State Plan in the economic plans of the organisations and their implementation;

(b) the direction of wage resources in economic and contribution organisations under the relevant legislation;

(c) the effectiveness of the process of reproduction of basic funds in organisations; pay particular attention to the actions set out as binding tasks of the State Plan and the preparation of investments;

(d) management of stock organisations, in particular in terms of the efficiency of their use;

(e) the management of the relevant organisations with foreign exchange funds.

(3) In its participation in the assessment and closure of the results of the economic activity of the organisations, the Bank shall proceed in accordance with the guidelines for the assessment of the closure of the results of the economic activity of the State Economic Organisations and Foreign Trade Organisations in the eighth five-year period.

ČÁST DRUHÁ

INTERNAL BANK MONETARY POLICY

HLAVA PRVNÍ

Differential credit policy

Čl. 9

(1) In granting the loan, the Bank is active on the efficiency of the management of the organisations by differentiating the amount of the loan, the length of the maturity of the loan, interest and penalties and other credit terms and conditions specified in the credit agreements. The basis of this differentiation is the security of the tasks of the monetary plan, in particular compliance with the credit directive approved by the Government of the Czechoslovak Socialist Republic. To this end, it uses as criteria for the efficient use of the credit aggregate indicators of production efficiency, as set out by the State Planning Commission, from which it selects those that best reflect the efficiency of the organisation's management; taking into account the assurance and implementation of the binding tasks and the limits of the State Plan and the State budgets allocated.

(2) For the purposes of credit differentiation, the President of the Bank shall establish additional criteria for the efficient use of the credit, in particular the relationship between the credit and the indicators of the organisation's economic efficiency, taking into account the specificities of the reproductive process in each sector. In their quantification, the Bank shall base itself on indicators of the organisation's economic plans and on the objectives and tasks of the monetary plan; This applies to the effectiveness of the loan to meet the qualitative indicators of the economic plans of the organisations as a precondition for securing the credit directive approved by the Government of the Czechoslovak Socialist Republic. In their assessment, the Bank shall also take account of their development from the beginning of the eighth five-year period, or from the previous year.

Čl. 10

(1) Organisations which at the same time fulfil the criteria for the efficient use of credit may obtain a higher credit participation in the financing of their needs. The Bank limits its participation in the financing of their needs to organisations that do not consistently ensure compliance with the effective use criteria.

(2) The size of the loan to cover the funding of the organisations is differentiated by the Bank, taking into account how effectively the organisations use the funds to perform their production and sales tasks. The Bank grants loans to organisations that consistently use orbital funds, or increase their efficiency, to partially or fully cover the growth of circulatory funds. The Bank does not provide additional loans for the growth of the funds and requires funding from the organisation's own resources to be provided to organisations where the efficiency of the use of circulatory funds is declining due to economic weaknesses.

(3) The size of the investment financing loan is differentiated by the Bank, taking into account the effectiveness and benefits of the investments, the level of use of the basic funds and the economic results and the financial situation of the organisation, characterised by the relationship between the need for the repayment of the investment loans granted, the creation of investment resources and the volume of investments.

Čl. 11

(1) Interest rates on loans (3) are differentiated in particular according to the nature of the sector, types of credit facilities, selected national economic priorities and equipping organisations with their own resources.

(2) Interest rates are fixed at a fixed annual percentage rate or spread. The interest rate established within the range shall be considered as the basic interest rate.

Čl. 12

(1) In particular, the Bank may provide interest-rate creditworthiness to the organisation for:

(a) significant and long-term improvement of the criteria for the effective use of credit;

(b) a desirable overrun of the proposed benefits and parameters, where appropriate with the achievement of the proposed benefits and parameters at earlier dates, in particular those for the balance of payments or the fuel balance;

(c) exceeding the planned amount of the foreign exchange efficiency indicator at wholesale prices when exports are completed;

(d) exceeding the planned foreign exchange collection;

(e) saving the consumption and purchase of imported raw materials against the organisation's economic plan;

(f) the taking over of the mobilisation task in aggregate indicators of production efficiency, where appropriate for the desired excess and more economical and earlier fulfilment of the binding tasks and limits of the state plan relating to the effective use of the credit criteria applied;

(g) a significant reduction in the specific consumption of fuels, energy and metals against the fact of the previous year;

(h) the provision of overplank supplies to market funds in a desirable structure, in particular innovative and first-quality products.

(2) Interest rate bonification may be granted up to 50% of the fixed basic interest rate of the credit concerned, up to 5% of the quantifiable benefit achieved by fulfilling the condition for creditworthiness in the credit agreement.

Čl. 13

The Bank shall be entitled to apply the penalty interest (4) to organisations which:

(a) have not taken over the tasks of the State Plan and the State budgets in their economic plan;

(b) fail to meet the criteria for the efficient use of the credit, in particular for failure to fulfil binding tasks and the limits of the national economic development plan;

(c) do not safeguard the planned creation of own resources;

(d) do not safeguard the use of own resources in accordance with their economic plan;

(e) use the means to finance investments inefficiently and economically, in particular not providing binding tasks for the investment plan, exceeding the planned construction deadlines, failing to comply with the dates for the planned deployment of capacity and the planned efficiency and use of both construction and machinery, in particular import machinery, or having a low or deteriorating level of use of basic resources for the organisation as a whole;

(f) accumulate excess stocks, where appropriate, produce unsecured production on the warehouse, or, where appropriate, inefficiently manage other devices;

(g) implement its economic plan unevenly within the year;

(h) do not provide a return on loans granted;

(i) continue to violate planning, financial, contractual, credit, payment, wage or cash discipline;

(j) they shall not submit to the Bank reports and reports on credit values within the time limits set, or submit reports incorrect and incomplete;

(k) they do not comply with other agreed terms of credit agreements or written arrangements on credit terms, as appropriate.

Čl. 14

The bank may set a penalty interest of up to 50% of the basic interest rate for the type of credit concerned; taking into account the extent of the defects to which the penalty interest is linked; The penalty interest may be applied only to loans that have been subject to non-compliance or which relate to values in which there are defects or, for other or, where applicable, all loans drawn.

Čl. 15

The Bank shall apply the credit penalties following prior notification of the organisation, in particular if the organisation does not provide for the agreed measures to address the deficiencies or if such measures are not effective. In serious cases, the bank shall at the same time alert the economic management authorities to the superior organisation and ask them to cooperate in addressing the deficiencies.

Čl. 16

If the credit sanctions applied are ineffective and the organisation fails to comply with the criteria for the effective use of the credit in the long term and has an unbalanced financial management and does not provide a return on the loan, the Bank shall proceed according to the following principles:

(a) in the case of long-term non-fulfilling credit-efficient criteria, or other criteria, for organisations for which the loan is outstanding within 60 days or longer, or is larger, the bank shall be entitled to pay the loan after prior notice of the organisation from the funds in the current account before other payments of the organisation; the bank shall at the same time set a deadline for the organisation to address the deficiencies;

(b) if, within the time limit laid down in point (a), the bank is not able to remedy the deficiencies, after prior consultation with the organisation, the trade union bodies of the organisation and the economic management body fulfilling the central management function, the bank may refuse to provide the organisation with a wage reservation; At the same time, the Bank shall set an additional deadline for the organisation to address the deficiencies;

(c) if the organisation does not improve its management and financial and payment situation within the time limit set out in point (b), the bank may determine the following mandatory order of payments from the current account in the absence of payment appropriations: payments, taxes and charges to the relevant state budget, credit payments to the bank, payments to suppliers, wages, other payments;

(d) if the resolution of the deficiencies is a long-term issue or requires the participation of economic management bodies, the Bank shall propose to the senior sectoral central authority the conversion of the organisation into a consolidation scheme in accordance with Article 23.

Čl. 17

(1) In addition to the sanctions provided for in the Decree, (5) the Bank also applies additional sanctions under a special law. 6)

(2) In the event of shortages in the implementation and use of investments and basic funds for which the bank has not granted the loan, it may apply a penalty interest on another investment or operating loan.

HLAVA DRUHÁ

Activities of the loan in drawing up the economic plans of organisations

Čl. 18

In the planned use of the central credit fund through the loan, the Bank operates to ensure the breakdown of the tasks of the State Plan and the Monetary Plan in the organisation's economic plans, so that the tasks of the Organisation's economic plan are provided by intensifying factors of development, labour productivity growth, material cost savings, mainly in raw material consumption, inventory use, basic resources, concentrating resources on investment construction on the most effective actions, ensuring effective export tasks in quantity and territorial distribution, and better use of foreign exchange for imports.

Čl. 19

(1) In the period during which the five-year and annual economic plans of the organisations are drawn up, the Bank promotes:

(a) ensuring the efficient use of the credit;

(b) ensuring, where appropriate, the strengthening of the economic plans of the organisations, in particular the financial plan, in particular by mobilising reserves to improve the efficiency of production and the intensified use of the production funds;

(c) the removal of deficiencies in the management of organisations.

(2) The Bank shall pay particular attention to the need for loans and to the provision of repayment of loans, the creation, distribution and use of own resources, the balance of the organisation's financial plan and the requirements for subsidies and redistribution.

(3) After the approval of the State Plan and the State Budget, the Bank operates on the tasks of the State Plan and the State Budget in the Organisation's Economic Plan and on their equal distribution during the year. Following the approved monetary plan, the Bank shall discuss with the organisations their credit needs and its projection and security in the financial plan.

(4) If the organisation does not take over the scheduled tasks of the State Plan and the relevant State Budget into the economic plan, it shall not ensure the effective use of the loan in its economic plan, the removal of the deficiencies in its management and the performance of the liabilities assumed towards the bank, the bank shall apply credit sanctions in serious cases, after prior consultation with the organisation or its senior body, taking into account the extent of the defects, pending the recovery.

Čl. 20

The basic conditions for granting loans during the period of the preparation of the five-year and annual economic plans of the organisations shall be discussed by the Bank with the economic management authorities, which shall act as the central management body; are, in particular, fundamental issues relating to the provision of credit, the form of cooperation and the extent of responsibility in ensuring the efficient use of credit, the specification of the tasks for each organisation following the breakdown of the tasks of the State Plan, the conditions for the application of interest rates and sanctions, external relations security, financial security of investment construction.

Čl. 21

After consulting the economic plan, a credit agreement shall be concluded between the bank and the organisation for the relevant planning period and between the bank and the economic management body, which shall act as a central article of the procedure under the relevant legislation. 7)

HLAVA TŘETÍ

The Bank's lending process

Čl. 22

(1) In order to consolidate payment discipline and customer relations and to bridge the temporary shortage of own resources in organisations' funds, the Bank may temporarily grant credit assistance under the relevant legislation. 8)

(2) When providing credit assistance, the Bank may:

(a) organisations where there is a shortage of funds due to late payment by other organisations, to provide loans for circulation under unaltered conditions and credit assistance to address payment difficulties (in particular loans for claims on customers after maturity, credit for opening up the credit (after changing the time of production), credit for payment and wage credit);

(b) organisations which themselves have caused a shortage of funds and which demonstrate to the bank how and within what time period this unplanned shortage of funds will be remedied, to grant loans only on the basis of a plan to remedy the deficiencies, with the guarantee, where appropriate, of the authority of the superior organisation. It provides credit assistance under stricter conditions and only if there are short-term deficiencies. Organisations that are unable to demonstrate that the deficiencies have been remedied shall not grant new loans or, where appropriate, limit existing loans and shall only grant them credit for claims on customers after maturity and credit for wages and other transactions guaranteed; the payment credit is granted only for small payments up to 5000 CZK per case.

(3) Transferring operating loans shall be granted by the Bank to organisations to bridge the time discrepancy in the planned resource formation or in the case of temporary non-implementation of the planned subsidies to the organisation's funds.

(4) The interest rate bridge loan with maturity only in the following year after it was granted allows the bank to bridge the discrepancy between the need and resources of the technical development fund.

(5) The bridging investment loan shall provide the Bank with continuous financing of investments in advance of the execution of the planned works and supplies within the year or due to seasonal fluctuations in production, circulation and own resources generation, possibly due to failure to produce resources or for other reasons; the condition for granting the loan is to settle the needs and resources and repay the loan by the end of the current calendar year, where justified within 12 months of granting the loan.

(6) In the case of organisations in the agriculture, nutrition and forestry sector, the Bank shall provide credit assistance to cover temporarily the excess of the distribution of the economic result due to adverse climatic conditions in agricultural and forestry production.

Čl. 23

If the resolution of the deficiencies is a long-term issue or requires the participation of economic management bodies, the Bank may grant a consolidation loan to the organisation as long-term credit assistance according to the following principles:

(a) the consolidation loan shall be granted by the Bank, following an analysis of the organisation's financial situation, on the basis of a consolidation plan, in which the organisation shall indicate measures to gradually restore the financial balance and improve the effectiveness, implementation deadlines and the persons responsible for their compliance; the bank requests that the consolidation plan also include measures to be taken by the central competent authority to increase the profitability and improve the fulfilment of the credit-efficient criteria;

(b) the consolidation loan is granted by the bank with the guarantee of the economic management bodies of the superior organisation; the bank requests repayment if the measures contained in the consolidation plan are not implemented;

(c) as a condition for granting a consolidation loan, the Bank may require the senior sectoral central authority to set up a consolidation committee with the organisation as an advisory body of the Director of the Organisation with the participation of representatives of the Bank and other relevant bodies;

(d) if there is no improvement within the time limit set out in point (a) in accordance with the consolidation plan, the Bank shall require the competent leading federal central authority to submit to the Government of the Czechoslovak Socialist Republic an analysis of the organisation's activities proposing essential measures consisting, for example, of measures to rationalise production, of the change of production programme, of the organisation's integration into another organisational unit (9) or of the transfer of the production programme10) to another organisation; for organisations managed by the authorities of the national republics, the competent central authority of the Republic shall submit a proposal to the Government of the Republic;

(e) the implementation of the consolidation plan shall be taken into account by the Bank in its participation in the evaluation and closure of the economic results of the organisation's activities.

HLAVA ČTVRTÁ

Lending for the development of science and technology

Čl. 24

(1) In lending the development of science and technology, the Bank operates on the creation of new technical knowledge and its accelerated introduction into production. The provision of loans for the development of science and technology is mainly conditional on the achievement of a higher technical level of innovative products and thus on the increased competitiveness of our products on world markets.

(2) The Bank provides the following interest-bearing loans for the development of science and technology, depending on the efficiency and social benefits of the individual measures:

(a) innovation credit;

(b) bridging credit to supplement the resources of the technical development fund.

(3) The Bank's innovative loan enables organisations to cover comprehensively the costs associated with the resolution of the tasks of the Science and Technology Development Plan and their implementation in production, including the costs of the licence, the verification of a new product or new technology, and the instruments, machines and equipment to address the tasks of the Science and Technology Development Plan, or to implement them in order to facilitate and accelerate the entire innovation cycle. By bridging credit to complement the resources of the technical development fund, the bank helps address the temporary lack of resources to address the individual tasks of the science and technology development plan.

(4) In addition to the loans in paragraph 2, the Bank shall support the development of science and technology at the various stages of the implementation of the solved tasks of the Science and Technology Development Plan by the following preferential special-purpose loans (Articles 28, 34 and 35):

(a) a loan for the cost of running-in;

(b) credit for future costs;

(c) investment credit for rationalisation measures;

(d) investment credit for buildings.

(5) When concluding credit agreements, the Bank makes the provision of credit to organisations' level of work in the field of the science and technology development plan conditional on the provision of loans.

(6) The Bank links the provision of Koran loans for technical development to the provision of foreign exchange funds, in particular foreign exchange loans (Articles 45 and 46).

HLAVA PÁTÁ

Loan of circulation

Čl. 25

The Bank grants special-purpose loans to orders11) to organisations to operate on the planned circulation cycle and to accelerate the mobilisation of reserves.

Čl. 26

(1) The provision of stock credit is made conditional on their efficient use, on improvement of the structure, by strengthening sales and reducing consumer stocks and by reconciling their development in each quarter of the year; to this end, it shall monitor and analyse, in particular in organisations, the types of stocks that are crucial to the overall efficiency of stock management.

(2) Organisations that do not ensure the efficient use of stocks and in an undesirable way increase the need for stocks or accumulate stocks, refuse to grant additional loans on stocks or apply penalty interest; as a condition for lending, the organisation shall require it to demonstrate in its request for a stock loan the link of stock standards to the provision of planned tasks in stocks.

(3) Favourable stock loans are supported by the Bank's pre-supply of fuel, pre-supply of imports under foreign exchange favourable conditions and supplies for the security of buildings abroad to support export of construction works.

(4) The interest-rate credit for quick sales enables the bank to provide sales and supply organisations or production organisations with flexibility to meet customers' needs, provided that consumer stocks are reduced by customers and delivery cycles are reduced.

(5) The loan is supported by the bank's clearance of unused stocks and its accelerated return to the reproductive process.

Čl. 27

(1) The loan for claims on domestic customers results in a level of production, sales and invoicing, compliance with billing and payment deadlines and early collection in order to consolidate payment discipline in the national economy and to strengthen supplier-customer relations.

(2) The loan for foreign receivables is used by the bank to return foreign receivables, accelerate collection and improve competition on foreign markets.

(3) The interest rate on the loan on claims on customers after maturity shall be set by the bank within the interest margin according to the length of time elapsed since the planned maturity of the claims covered by the loan.

Čl. 28

By lending for seasonal costs and future costs, the Bank allows organisations to bridge the seasonal fluctuations in costs related to the unevenness in the production process during the calendar year and to ensure the planned tasks; Furthermore, it shall credit the selected long-term costs of future periods related in particular to the advance of hiding, overhauls of energy aggregates, licence costs, preparation and closure of new production and services. In doing so, it operates on compliance with the planned costs. However, in order to measure the highest economy, the bank shall grant a loan for the costs actually incurred up to the planned amount. Above the planned amount, the loan is granted only exceptionally if the excess costs are related to the desired advance in performance.

Čl. 29

In lending uninvoiced works and supplies, the bank operates on the speedy completion of construction and integrated parts of construction, while respecting the necessary quality, speeding up construction, compliance with the deadlines for capacity disposal and reduction of construction.

Čl. 30

In lending the construction site facilities, the bank operates on the cost-effectiveness of building site facilities, compliance with budgetary costs, and, where appropriate, on improving the relationship between construction site facilities and construction budget costs.

Čl. 31

(1) In the lending of circulation funds, the Bank adapts its activities to the particularities of the circulation of funds in individual sectors of the national economy.

(2) In the agri-food and forestry complex, the Bank is active on the further development and intensification of agricultural, food and forestry production, in particular on the priority growth of plant production and on the provision of livestock production in accordance with the farm organisation's economic plan. The loan supports the creation of the necessary reserves, in particular the creation of provisions of feed and reserves in cereals. The loan also supports nominally determined seasonal stocks in agricultural production, forest production and downstream processing organisations. 12)

(3) In the internal trade sector, the credit works to improve the level of supply of the internal market and thus to create assumptions for the smooth implementation of the population's income and to strengthen the overall monetary balance in the internal market. To this end, the Bank promotes higher supplies of required shortages of goods for the internal market above the volumes set by the production organisation's economic plan, improving the structure of the goods stocks and reducing unwanted overstocks.

(4) With regard to local production and services organisations and production cooperatives, the Bank is lending support the acceptance of progressive tasks in services for the population, supplies for the internal market, the introduction of new types of services and the production of consumer items, the provision of materials and spare parts for repair activities and the repair of long-term consumption items. To this end, it also provides a loan for the excess stocks of materials and spare parts, the excess stocks of imports and the stocks of narrow-profile materials purchased from the occurrence.

HLAVA ŠESTÁ

Loan of investments

Čl. 32

(1) The Bank provides special-purpose investment loans to organisations for effective investment on the basis of an assessment of the use of existing basic funds, provided that the loan is repaid from its own resources within the set deadlines. the maximum repayment dates for the special-purpose investment loans are set out in the Annex. The maturities shall be calculated for construction loans from the date of the planned completion of the construction, for machine and equipment loans from their acquisition.

(2) For investments set out as binding tasks of the State Plan, the credit shall be granted preferably following the results of the State expertise on their effectiveness.

Čl. 33

(1) The criterion for assessing the effectiveness of the investment and the granting of the credit is the economic return on the investment on profits within the specified maximum repayment period of the loan or, where appropriate, the replacement return on profits and depreciation and the foreign exchange appreciation of national work, or another criterion expressing efficiency in terms of external economic relations.

(2) The extent of the loan to finance investments is derived from the benefits of the realisation of the relevant investment over the duration of the loan.

Čl. 34

(1) With a reduced basic interest rate, a loan is granted to agricultural and commercial organisations and national committees for action Z; for investments to increase the soil fund and other selected priority structures of agricultural organisations, the bank further favours the interest rate.

(2) The construction of small hydropower plants is supported by a loan with a basic interest rate lower by 2% than the interest rate of a long-term investment loan.

(3) The Bank provides a loan at a base interest rate of up to 2% below the basic interest rate of the long-term investment loan for buildings of a fast return and low share of construction works and for buildings with significant and efficient exports; If, exceptionally, the bank grants a loan for buildings with a high share of construction works and long-term return, it shall set a basic interest rate of up to 2% higher than the basic interest rate of the long-term investment loan.

Citation	Principles No. 135 / 1985 Coll., Internal and Foreign Banking Monetary Policy After 1985, approved by Resolution of the Government of the Czechoslovak Socialist Republic of 31 October 1985 No 289
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	20.12.1985
Effective from	-
Effective until	-
Status	Valid

Principles No 135 / 1985 Coll.

Principles of internal and foreign banking monetary policy after 1985 approved by the Government of the Czechoslovak Socialist Republic of 31 October 1985 No 289

Contents

ČÁST PRVNÍ

HLAVA PRVNÍ

Čl. 1

Čl. 2

HLAVA DRUHÁ

Čl. 3

HLAVA TŘETÍ

Čl. 4

Čl. 5

Čl. 6

Čl. 7

Čl. 8

ČÁST DRUHÁ

HLAVA PRVNÍ

Čl. 9

Čl. 10

Čl. 11

Čl. 12

Čl. 13

Čl. 14

Čl. 15

Čl. 16

Čl. 17

HLAVA DRUHÁ

Čl. 18

Čl. 19

Čl. 20

Čl. 21

HLAVA TŘETÍ

Čl. 22

Čl. 23

HLAVA ČTVRTÁ

Čl. 24

HLAVA PÁTÁ

Čl. 25

Čl. 26

Čl. 27

Čl. 28

Čl. 29

Čl. 30

Čl. 31

HLAVA ŠESTÁ

Čl. 32

Čl. 33

Čl. 34

Contents

Comments 0

Regulation Information

Partner Websites

Favorites

Browsing History