Decree No. 216 / 2016 Coll.
Decree amending Decree No. 278 / 1998 Coll., implementing 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, Act No. 60 / 1998 Coll., as amended
Valid
Order
Effective from 15.07.2016
Text versions:
15.07.2016
13.07.2016
216
DECLARATION
of 8 July 2016
amending Decree No. 278 / 1998 Coll., implementing 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 by Act No. 60 / 1998 Coll., as amended
The Ministry of Finance provides pursuant to § 1 (4), § 4 (5) and (7), § 6 (4) and § 7b (7) of Act No. 58 / 1995 Coll., on Insurance and Financing of Exports with State Aid and on the Addition of Act No. 166 / 1993 Coll., on the Supreme Audit Office, as amended by Act No. 60 / 1998 Coll., Act No. 293 / 2009 Coll. and Act No. 230 / 2013 Coll.:
Decree No. 278 / 1998 Coll., implementing 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 by Act No. 60 / 1998 Coll., as amended by Decree No. 88 / 2000 Coll., Decree No. 355 / 2001 Coll., Decree No. 29 / 2003 Coll., Decree No. 407 / 2006 Coll., Decree No. 62 / 2010 Coll. and Decree No. 116 / 2015 Coll., are amended as follows:
1. Paragraph 2, including the title, reads:
Method of calculating insurance capacity of the Export Insurance Corporation
(K § 4 (5) of the Act)
The calculation of the required insurance capacity shall be carried out by the Export Insurance Corporation as a sum of the aggregate export credit risk values.
(a) covered by valid insurance contracts reduced by the value of the expected instalments of the insured loans;
(b) contained in contracts from an active reinsurance activity;
(c) contained in insurance promise contracts; and
(d) proposed in developed insurance contracts, the conclusion of which can be qualified in the calendar year for which the State budget is drawn up. "
2. In Paragraph 3 (2), the second sentence is replaced by the following: "This requirement shall be justified by the analysis of the export insurance undertaking:
(a) the state of the funds and provisions for export credit risk insurance linked to the current and foreseeable development of the insurance engagement (4); and
(b) the value of the current and foreseeable amount of primary capital in relation to the current and foreseeable development of the Solvency Capital Requirement and the Minimum Capital Requirement under Articles 4a (3) and 8 (7) of the Act and under the law governing the insurance sector. ';
3. In Article 3 (3), the words "under paragraph 2 (a) 'shall be inserted in the first sentence after the words" under paragraph 2 (a)', the words "from the state of technical provisions' shall be inserted after the words" calculated under the law governing insurance 'and the words "changes in the state of technical provisions' shall be deleted.
4. In Article 3, the sentence "When processing the draft amount of the subsidy from the sources of the State Budget to supplement the insurance funds referred to in paragraph 2 (b), the export insurance undertaking shall base itself on the actual values of the primary capital, the Solvency Capital Requirement and the Minimum Capital Requirement and on the assumptions of the values of those amounts at the end of each quarter of the year for which the State Budget is drawn up, depending on the current and anticipated evolution of the insurance liabilities during that period."
5. Paragraph 3 (4) reads as follows:
"(4) The release of approved subsidies from the State Budget shall take place, as decided by the Ministry, on the basis of a request from the Export Insurance Corporation to supplement the funds referred to in paragraph 1, following a requirement under paragraph 2, in which the Export Insurance Corporation shall indicate the current status of the insurance business, the state of the technical provisions calculated under the law governing insurance and insurance funds and the assumption of the evolution of the value of these quantities for the coming period of at least 90 days, taking into account the expected cash flows from the premiums received, the premiums paid, the premiums paid and the claims recovered during that period. Furthermore, the export insurance undertaking shall indicate in the application the actual values of the primary capital, the Solvency Capital Requirement and the Minimum Capital Requirement and the assumption of the values of these values at the end of each quarter of the current accounting year. These assumptions are a qualified estimate of export insurance companies. '
6. In Article 3, the following paragraph 5 is inserted after paragraph 4:
"(5) In the event of a decrease in the value of the primary capital of the Export Insurance Corporation below § 4a (3) of the Act or below the minimum capital requirement during the year, or if the Czech National Bank orders the Export Insurance Corporation to submit a recovery plan or a short-term financing plan to it for approval, it shall, without undue delay, request the Export Insurance Corporation, in accordance with § 8 (7) of the Act, to the Ministry to supplement the funds referred to in paragraph 1, following a request under paragraph 2. The application of the Export Insurance Corporation shall state the justification for the inadequacy of its primary capital to meet the Solvency Capital Requirement and the Minimum Capital Requirement, including the assumption of the future evolution of primary capital, Solvency Capital Requirement and the Minimum Capital Requirement at the end of each calendar year for the next three years, depending on the current and anticipated evolution of the insurance exposures during that period, and the proposal of measures to reduce its risk profile. These assumptions are a qualified estimate of export insurance companies. '
Paragraphs 5 to 8 shall be renumbered paragraphs 6 to 9.
7. In Paragraph 3 (8), in the introductory part of the provision, "6 'is replaced by" 7'.
8. in Paragraph 3 (8) (c), "1 (b)" is replaced by "2."
9. Paragraph 3 (9) reads as follows:
"(9) After assessing whether the requirements referred to in paragraphs 4, 5 and 8 (c) are justified, the amount requested shall be released as a subsidy from the State budget for the creation of funds for the insurance of export credit risks. ';
10.
Method of submission of the application for loss subsidy and method of payment of subsidies
(K § 6 (4) of the Act)
(1) The request for a subsidy to cover losses resulting from the operation of the aided financing from the State Budget (hereinafter referred to as the "loss payment subsidy") is submitted by the Export Bank to:
(a) when drawing up the State budget for the financial year in question, on the last day of February of each year, on the basis of a qualified estimate of the amount of the grant to cover losses;
(b) prior to the grant of the loss payment for the year in question in the manner set out in paragraph 2.
(2) The subsidy for the reimbursement of losses referred to in paragraph 1 (b) shall be granted on a quarterly basis during the year in question in the form of an advance on the basis of the facts reported in the accounts at the end of each quarter. The advance calculation of the loss payment subsidy shall be submitted by the Export Bank to the Ministry by the 20th day of the month immediately following the end of the quarter. The advance calculation of the loss payment subsidy for the fourth quarter shall be submitted by the Export Bank to the Ministry on 31 December of the year at the latest by 10 January of the following year, according to the preliminary facts reported in the export bank's accounts. The subsidy to cover losses for the relevant quarter shall be granted within 30 days of the start of the correctness check by quantifying the amount of the subsidy to cover losses by the Ministry. A check on the accuracy of the calculation of the amount of the loss subsidy shall be initiated by the Ministry on the following working day following receipt of the application; The Ministry shall inform the Export Bank of this initiation without undue delay. In the event that the Ministry finds in the quantification of the subsidy to cover the loss of inaccuracy, it shall inform the Export Bank of them within 3 working days and set a deadline for their removal. The deadline for the payment of losses for the relevant quarter shall be suspended until the irregularities have been corrected by the exporting bank. The Export Bank shall finance the grants granted to cover losses for the calendar year in accordance with the principles and within the time limits laid down by the Ministry's Decree on Financial Settlement with the State Budget.
(3) The application for a subsidy referred to in paragraph 1 (a) contains the estimated amount of the subsidy for the loss for the financial year concerned. The application shall be accompanied by an analysis of the expected need for the amount of the loss subsidy, an overview of the state of commitments resulting from the contracts for the acquisition of long-term financial resources concluded at the date of the application, an overview of the estimated amount of long-term financial resources in the financial year due, the estimated need to obtain new financial resources in connection with their use on 31 December of the financial year concerned, the supporting documents and documents on the basis of which the analysis was carried out.
(4) The application for a subsidy referred to in paragraph 1 (b) shall contain at least:
(a) information on the state guarantee status;
(b) information on the agreed commercial cases; the number of the contract or commercial case, the full identification of the parties to each commercial case, which is the name, registered office and company identification number, if assigned, and an indication of whether, for example, the exporter, manufacturer, importer, guarantor, guarantor, type of transaction (e.g. direct credit, refinancing loan, guarantee, derivative operations), the amount of the closed transaction, expressed in the currency in which the transaction was concluded, and in the Czech koruna, the amount of the credit framework and commitment, the manner in which the contract is drawn up, the amount of the security, the amount of the claim without an adjustment and the amount of the right to the claim; an overview of business cases is organised by type of business, credit transactions broken down by asset assessment rules issued by the Czech National Bank under the Banking Act; and
(c) information on activities under the securities and book-entry programmes over the period.
(5) The application referred to in paragraph 1 (b) shall always be accompanied, in electronic form, by an electronic data medium:
(a) the main book of accounts, to the extent of the data / information to be provided for the supported financing, with a subsidy entitlement in detail, concluded on the last day of the period to which the application relates;
(b) all the data and information on the basis of which the export bank has calculated the subsidy for the loss of the supported financing, in a structured form. "
11.
Comparison of interest differences
(K § 7b (7) of the Act)
(1) The interest difference is calculated using the formula:
OU = JU × Rfix100 × Ds365-JU × Rt + Mb100 × Ds365,
where:
The interest is the interest difference,
The JO is the principal of the loan,
Rfix is the agreed fixed interest rate per year,
Ds is the number of days of interest-bearing balance of the principal of the credit in the settlement period,
Rt is the floating interest rate as a percentage of the year,
Mb is the system margin of the exporter bank.
(2) For the purposes of determining the floating interest rate, the six-month IBOR interest rate shall be used for the currency in which the export credit is granted, published by Reuters two working days before the beginning of the period for which the comparison is made.
(3) The IBOR interest rate on the currency in which the export credit is granted is as follows:
(a) EURIBOR for EUR;
(b) LIBOR for other currencies for which it is designated and published;
(c) national - IBOR for currencies for which LIBOR is not defined and published.
(4) For the purposes of converting the interest difference into Czech crowns, the exchange rate of the Czech koruna to the currency in which the export credit is granted, announced by the Czech National Bank for the last day of the interest period on which the interest difference is calculated, shall be used. The resulting amount shall be rounded down to the nearest crown. '
12.
Amount of the systemic margin of the exporter bank
(Paragraph 1 (4) of the Law)
The system margin of the exporter's bank shall be set at a premium of 0,5% per year to the floating interest rate IBOR in accordance with Paragraph 8 (2). ';
13. Annex No 2 is deleted.
14. footnote 5a is deleted.
Efficacy
This Decision shall enter into force on 15 July 2016.
Minister:
Ing. Babiš v. r.
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Regulation Information
| Citation | Decree No. 216 / 2016 Coll., amending Decree No. 278 / 1998 Coll., implementing 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, Act No. 60 / 1998 Coll., as amended |
|---|---|
| Regulation Type | Order |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 13.07.2016 |
|---|---|
| Effective from | 15.07.2016 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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