Act No 214 / 2020 Coll.
Act amending Act No. 58 / 1995 Coll., on Insurance and Financing of Exports with State Aid and supplementing Act No. 166 / 1993 Coll., on the Supreme Audit Office, as amended, as amended, and Act No. 218 / 2000 Coll., on Budgetary Rules and on Amendments to Certain Related Acts (Budgetary Rules), as amended
Valid
Law
Effective from 29.04.2020
Text versions:
29.04.2020
214
THE LAW
of 17 April 2020
amending Act No. 58 / 1995 Coll., on Insurance and Financing of Exports with State Aid and supplementing Act No. 166 / 1993 Coll., on the Supreme Audit Office, as amended, as amended, and Act No. 218 / 2000 Coll., on Budgetary Rules and on the Amendment of Certain Related Acts (Budgetary Rules), as amended
Parliament has decided on this law of the Czech Republic:
Amendment of the Act on Insurance and Export Financing with State Aid
Act No. 58 / 1995 Coll., on Insurance and Financing of Exports with State Aid and supplementing Act No. 166 / 1993 Coll., on the Supreme Audit Office, as amended, as amended, as amended, Act No. 60 / 1998 Coll., Act No. 188 / 1999 Coll., Act No. 282 / 2002 Coll., Act No. 377 / 2005 Coll., Act No. 23 / 2006 Coll., Act No. 293 / 2009 Coll., Act No. 230 / 2013 Coll., Act No. 220 / 2015 Coll., Act No. 371 / 2017 Coll., and Act No. 171 / 2018 Coll., are amended as follows:
1. In Article 1, at the end of paragraph 1, the sentence "This Act further provides for guarantees for repayment of the credit of exporters, manufacturing and commercial undertakings."
2. in Article 1 (2) (f):
"(f) insurance of direct and indirect guarantees and guarantees related to exports and investments or financial services provided by the exporter's bank, importer's bank and investor's bank against the risk of default of the exporter, investor, importer or debtor,"
3. In Article 1, at the end of paragraph 2, the dot is replaced by a comma and the following point (k) is added:
"(k) refinancing credit insurance provided by the Export Bank."
4. In Article 1, paragraphs 5 to 9 are added, including footnote 5:
"(5) For the purposes of this Act, guarantees for repayment of loans from exporters, production and business undertakings are guarantees for repayment of principal of loans for operations, working capital, innovation and improvement of production, and for the purpose of maintaining business provided to exporters, manufacturing and commercial undertakings. These guarantees are provided by the Export Insurance Corporation as an exceptional measure in order to mitigate the economic and social consequences of the disease pandemic COVID-19 in order to increase the availability of liquidity for export-oriented enterprises without the need to obtain authorisation under a specific legislation. The purpose and scope of the guarantees, the conditions for granting them, the amount of cover for outstanding credit principal and the procedure for the payment of all funds from the State budget to the Export Insurance Corporation for the provision of guarantees shall be laid down by the Government by regulation.
(6) The funds provided by the Export Insurance Corporation or the Export Bank are from the State Budget, in particular grants to cover losses, grants to strengthen funds, funds to supplement the primary capital of the Export Insurance Corporation, funds to increase the capital of the Export Bank, funds to refinance loans received or to repay debt securities issued, money for guarantees and claims received from the Export Insurance Corporation, the Export Insurance Corporation and the Export Bank receive to their bank accounts subordinate to the Treasury and held with the Czech National Bank pursuant to the Budget Rules Act 5). In its bank accounts subordinate to the Treasury, the Export Insurance Corporation or the Export Bank shall also keep other funds transferred or received by the Export Insurance Corporation.
(7) An Export Insurance Corporation or an Export Bank cannot invest the funds referred to in paragraph 6 in financial instruments on the financial market.
(8) The Ministry of Finance may allow the export insurance company or the export bank to keep a bank account outside the accounts of the subordinate Treasury with the Czech National Bank on their reasoned written request. In the application, the Export Insurance Corporation or the Export Bank shall state the reasons for the special consideration due to account management outside the accounts of the subordinate Treasury, the designation of the Bank and the amount that is or will be deposited in the account. The Ministry of Finance will examine the application in accordance with the Budget Rules Act (5).
(9) The permission of the Ministry of Finance is not subject to the use of a bank account held outside the accounts of a subordinate Treasury with the Czech National Bank if such an account is solely used to carry out the transfer of funds from the Treasury for the purposes of the supported financing, in immediate interbank payment operations.
5) Act No. 218 / 2000 Coll., on budgetary rules and amending certain related laws (budgetary rules), as amended. '
5. In Section 4, the words "and the provision of guarantees' are added.
6. In the fourth sentence of Paragraph 4 (1), the words "when carrying out export credit risk insurance 'shall be inserted after the words" insurance undertaking'.
7. In Paragraph 4 (3), the following sentence is inserted after the second sentence: "The Fund to cover the commitments of the guarantees provided shall consist of the appropriations allocated by the Government to the State budget on the basis of a government decision. The Financial Controller Act 10 shall not apply to the provision of funds from the State Budget on the basis of a government decision in the previous sentence in relation to the disease pandemic COVID-19. '
Footnote 10:
"10) Act No. 320 / 2001 Coll., on financial control in public administration and amending certain laws (Act on Financial Control), as amended."
8. In Article 4 (5), the first and second sentences are replaced by the following: "Export insurance undertakings may not accept export credit risks or provide guarantees for insurance to exceed their insurance capacity. For the purposes of this Act, insurance capacity shall mean the sum of the top limit of the insurance obligations of the insurance contracts concluded and the insurance promise contracts which, for the period up to the end of the calendar year, the Export Insurance Corporation may contractually bind and the volume of the credit guarantees covered by the guarantee provided under Sections 1 (5) and 5a. '
9. In Article 4 (5), the sentence "Part of the insurance capacity determined in accordance with the preceding sentence relating to the provision of the guarantee shall be inserted after the third sentence by the Government by regulation '.
10. In the last sentence of Article 4 (5), the words "for export credit risk insurance 'shall be inserted after the words" laid down'.
11. in the first sentence of Article 4 (7), the words "for export credit risk insurance" and the words "export credit risk insurance" shall be inserted after the words "for export credit risk insurance";
12. In Article 4, at the end of paragraph 7, the sentence "The Government Regulation provides for a method of establishing a fund to cover the guarantee commitments referred to in paragraph 3 and the ratio between that fund and the total guarantee commitments."
13. The following Section 5a is inserted after Section 5:
Provision of guarantees
(1) The provision of guarantees by an Export Insurance Corporation pursuant to Article 1 (5) shall not be considered as insurance of export credit risks under Article 1 (2) and shall not be subject to the Insurance Act.
(2) The Export Insurance Corporation shall produce on a quarterly basis an estimate of the expected loss from the provision of guarantees, together with an estimate of the value of the ratio between the Fund to cover the guarantee obligations and the total guarantee commitments accepted for the period of the following six months presented by the Ministry of Industry and Trade and the Ministry of Finance.
(3) There is no legal claim for a guarantee. "
14. in Article 8 (1), the following point (b) is added:
"(b) export insurance undertakings providing guarantees pursuant to § 1 (5) and § 5a; in the event of a fall in the fund to cover the guarantees provided below the amount laid down by the Government's Decree pursuant to Article 4 (3), the Ministry of Finance shall supplement the assets of the Export Insurance Corporation, on the basis of the Government's decision to provide funds for the provision of guarantees; This decision is taken by the Government on a proposal from the Ministry of Industry and Trade in cooperation with the Ministry of Finance on the basis of a request submitted to the Ministry of Industry and Trade and the Ministry of Finance by the Export Insurance Company, '.
Point (b) shall be renumbered (c).
Transitional provisions
1. For proceedings which were initiated pursuant to Act No. 58 / 1995 Coll., as effective before the date of entry into force of the Act and which have not been definitively completed by that date, Act No. 58 / 1995 Coll., as effective before the date of entry into force of the Act, shall apply.
2. The Export Guarantee and Insurance Company, a.s. ("Export Insurance Company") and the Czech Export Bank, a.s. ("Export Bank") shall transfer funds from existing accounts to banks or other payment service providers within 6 months of the date of entry into force of this Act and shall cancel these accounts.
3. The procedure referred to in point 2 shall not apply to funds granted to the capital of an export bank before the date of entry into force of this Act pursuant to Act No. 58 / 1995 Coll., as effective before the date of entry into force of this Act, and to funds granted to the capital of the Export Bank, pursuant to Paragraph 1 (9) of the Act No. 58 / 1995 Coll., as effective from the date of entry into force of the Act.
4. The funds in the current accounts, which are deposit accounts or which could not be cancelled and could not be transferred to the Czech National Bank within the period referred to in point 2, shall be transferred by the Export Insurance Company and the Export Bank to the accounts set up with the Czech National Bank without delay after the end of the period for which the accounts were opened, or immediately after the reason for which the funds could not be transferred earlier.
5. If the funds referred to in point 4 are to be held in an account outside an account opened with the Czech National Bank for more than 6 months from the date of entry into force of this Act, the approval of the Ministry of Finance is required to keep such an account.
6. The acquisition of the effectiveness of this Act is without prejudice to the transactions of the Export Insurance Corporation and the Export Bank concerning investment vehicles until their due date.
Amendment of the budgetary rules law
Act No. 100 / 2009, Act No. 100 / 2011, Act No. 100 / 2011, Act No. 100 / 2011, Act No. 100 / 2011, Act No. 100 / 2011, Act No. 100 / 2011, Act No. 100 / 2011, Act No. 100 / 2011, Act No. 100 / 2011, Act No. 100 / 2011, Act No. 100 / 2011, Act No. 100 / 2011, Act No. 100 / 2011, Act No. 100 / 2011, Act No. 100 / 2011, Act No. 100 / 2011, Act No. 100 / 2011, Act No. 100 / 2011, Act No. 100 / 2011, Act No. 100 / 2011 / 2011, Act No. 100 / 2011, Act No. 100 / 2011 / 2011, Act No. 100 / 2011, Act No. 100 / 2011 / 2011, Act No. 100 / 2011, Act No. 100, Act No. 100 / 2011, Act No. 100, Act No. 100 / 2011, Act No. 100, Act No. 100, Act No. 100, No. 2011, No 2011, No. 2011, No. 100, No. 2011, No 2011, No. 2011, No. 2011, No. 2011, No. 2011, No. 2011, No. 100, No. 2011, No. 2011, No. 2011, No. 2011, No. 2011, No. 2011, No. 2011, No. 2011, No. 2011
1. In Article 3, the following points 17 and 18 are added at the end of point (h):
"17. accounts of the Export Guarantee and Insurance Company, a.s., or accounts of other legal entities established under the Act governing insurance and financing of exports with State aid which do not have a bank licence,
18. accounts of the Czech Export Bank, a.s., intended to receive the funds provided from the state budget or from the Export Guarantee and Insurance Company, a.s., and other funds which the Czech Export Bank, a.s., transfers to them or receives from them, "
2. In Paragraph 33 (7), "and 15 'is replaced by", 15, 17 and 18';
3. In Article 33 (8), the second sentence is replaced by the following: "The funds of the Treasury held in the accounts referred to in Article 3 (h) (1) to (10), (15), (17) and (18) may not be kept outside the accounts of the State Treasury. The funds of the Treasury held in the accounts referred to in points (17) and (18) of Section 3 (h) may be held outside the accounts of the Treasury subject to the provisions of the Act governing insurance and export financing with State aid. '
4. In the first sentence of Paragraph 33 (11), the words "to 18 'shall be inserted after the words" and 16'.
5. In Paragraph 33, at the end of paragraph 11, the sentence "A similar transaction replacing interest may be negotiated by the Ministry with account holders in accordance with § 3 (h) (17) and (18)."
EFFECTIVE
This Act shall take effect on the day of its publication.
Vondracek v. r.
Zeman v. r.
Babiš v. r.
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Regulation Information
| Citation | Act No 214 / 2020 Coll., amending Act No. 58 / 1995 Coll., on Insurance and Financing of Exports with State Aid and supplementing Act No. 166 / 1993 Coll., on the Supreme Audit Office, as amended, as amended, and Act No. 218 / 2000 Coll., on Budgetary Rules and on the Amendment to Certain Related Acts (Budgetary Rules), as amended |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 29.04.2020 |
|---|---|
| Effective from | 29.04.2020 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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