Decree No. 217 / 1995 Coll.
Decree of the Ministry of Finance implementing § 9 (a) and (b) 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
Valid
Effective from 05.10.1995
Text versions:
05.10.1995
217
DECLARATION
Ministry of Finance
of 11 September 1995
to implement § 9 (a) and (b) of Act No. 58 / 1995 Coll., on Insurance and Financing of Exports with State Aid and on supplementing Act No. 166 / 1993 Coll., on the Supreme Audit Office, as amended
The Ministry of Finance provides pursuant to § 9 (a) and (b) of Act No. 58 / 1995 Coll., on Insurance and Financing of Exports with State Aid and on supplementing Act No. 166 / 1993 Coll., on the Supreme Audit Office, as amended:
Creation of funds for insurance of export credit risks
(1) The Funds for the insurance of export credit risks created by the Export Guarantee and Insurance Company, the Joint Stock Company, Prague (hereinafter referred to as the Export Insurance Company) consist separately of:
(a) profit allocation based on decisions taken by the General Assembly;
(b) subsidies from the State budget.
(2) The requirement for a subsidy from the State Budget referred to in paragraph 1 (b) shall be applied by the Export Insurance Corporation to the Ministry of Finance when drawing up the State Budget for the relevant financial year. This requirement shall justify the analysis of the state of the funds and provisions for export credit risk insurance and the time distribution of insurance risks and the amount of retained earnings from previous years.
(3) The release of the approved subsidy during the year takes place in advance at the request of the Export Insurance Corporation as decided by the Ministry of Finance.
(4) In the event that, as a result of insurance transactions, the export insurance company would have decreased during the year the balance of funds and reserves (1) below the threshold set out in Section 2, the Export Insurance Corporation shall request the Ministry of Finance to supplement the funds referred to in paragraph 2.
(5) Total amount of funds and reservation 1) may not fall below CZK 1.5 billion for more than three months.
(6) In the event of an expected fall in funds and a reservation (1) below the threshold laid down in paragraph 5, the Export Insurance Corporation shall:
(a) at the end of the calendar quarter, notify the Ministry of Finance of the inventory of expected claims;
(b) on the date of completion of the protocol containing the results of the insurance claim investigation, notify the dates and amounts of the insurance claim;
(c) submit a reasoned request to the Ministry of Finance to supplement the funds set up under paragraph 1 (b).
(7) The Ministry of Finance shall transfer the amount required under paragraph 6 (c) to the Export Insurance Fund established under paragraph 1 (b), after assessing the eligibility.
The ratio between the amount of reserves and funds for the insurance of export credit risks and the amount of export credit risk insurance that the export insurance company may provide using those reserves and funds
In order to ensure safe operation, the Export Insurance Corporation maintains funds and reserves (1) of at least 15% of export credit risk insurance (2).
Maximum amount of individual export credit risk
The maximum amount of the individual credit risk of an individual commercial case accepted by the Export Insurance Corporation within the volume of export credit risks may not exceed CZK 4 billion.
Share of the export insurance undertaking in insurance claims using reserves and funds for insurance of export and credit risks
The share of the Export Insurance Corporation in the insurance claims results from the use of resources in the following order:
(a) provisions for insurance claims of export insurance companies (3) from export credit risks until they are exhausted;
(b) funds constituted pursuant to Article 1 (1) (a) until they are fully exhausted, including retained earnings from previous years;
(c) funds constituted under Article 1 (1) (b).
Scheme for the subsidy of losses from interest rate differences and exchange rate differences at the Czech Export Bank, Stock Company, Prague
(1) The State Budget is subsidised by losses 4) Czech Export Banks, Stock Companies, Prague ("Export Bank"), which consists of:
(a) differences between the cleared interest costs associated with the acquisition of financial resources and the cleared interest income associated with the use of those resources;
(b) differences in foreign exchange rates arising from the conversion of foreign currency into Czech currency on the date of implementation and settlement of the accounting case in the acquisition and supply of resources.
(2) The State budget shall grant to the Export Bank the losses referred to in paragraph 1 arising from operations involving financial derivatives carried out to reduce and limit future possible interest and exchange rate risks.
(3) The request for a subsidy from the State Budget will be made by the Export Bank against the Ministry of Finance when establishing the State Budget for the relevant financial year. This requirement shall justify information on the amount of the commitments resulting from the preferential financing contracts, the amount of the outstanding losses of the export bank from previous periods and the amount of debts recovered and unrecovered to be repaid to the export bank by the debtors in accordance with the business plan for the relevant year.
(4) The subsidy shall be made available in instalments during the year up to a maximum of the amount laid down in the State budget. These instalments shall be granted as quarterly advances within 15 days of the end of the quarter and shall take into account the actual drawing of the subsidy of the previous quarter and its real need for the current quarter.
This decree shall take effect on the day of its publication.
Minister:
Ing. Coachman CSc. v. r.
1) Paragraph 4 (3) of Act No. 58 / 1995 Coll., on Insurance and Financing of Exports with State Aid and on Adding Act No. 166 / 1993 Coll., on the Supreme Audit Office, as amended.
2) § 1 (a) of Act No. 58 / 1995 Coll.
3) Article 14 of Act No. 185 / 1991 Coll., on Insurance, as amended by Act No. 320 / 1993 Coll. Decree of the Ministry of Finance of the Czech Republic No. 52 / 1994 Coll., which provides for the creation, use and location of technical provisions of the insurance company.
4) Paragraph 6 (4) of Act No. 58 / 1995 Coll.
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Regulation Information
| Citation | Decree of the Ministry of Finance No. 217 / 1995 Coll., for the implementation of § 9 (a) and (b) of Act No. 58 / 1995 Coll., on Insurance and Financing of Exports with State Support and on the addition of Act No. 166 / 1993 Coll., on the Supreme Audit Office, as amended |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 05.10.1995 |
|---|---|
| Effective from | 05.10.1995 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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