Act No. 220 / 2015 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. 21 / 1992 Coll., on Banks, as amended
Valid
Law
Effective from 01.10.2015
220
THE LAW
of 12 August 2015
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. 21 / 1992 Coll., on Banks, 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. and Act No. 230 / 2013 Coll., is amended as follows:
1. In Paragraph 1 (2), the words "activities carried out by the Export Guarantee and Insurance Company, a. s., hereinafter referred to as" Export Insurance Corporation, "which are related to export and are carried out on the basis of an authorisation granted by the Czech National Bank pursuant to § 3a," are inserted after the words "means."
2. in Paragraph 1 (2) (h):
"(h) reinsurance business consisting of taking risks from insurance under points (a), (b) and (f) agreed by foreign credit insurance undertakings;"
footnote 2 is deleted.
3. Paragraph 1 (3) reads as follows:
"(3) Supported funding for the purposes of this Act means short-term and long-term financing and the provision of export credits, credits to finance export production, investment credits and project financing and the short-term and long-term provision of export-related financial services under the terms of this Act in the form of:
(a) refinancing credit
1. the exporter's bank and the importer's bank for export financing;
2. the exporter's bank and the producer's bank to finance the export production;
3. the investor bank to finance the investment,
4. to the exporter's bank for project financing;
(b) direct credit
1. exporters, foreign companies or foreign persons for export financing;
2. exporters and producers to finance export production,
3. to the investor for financing the investment,
4. exporters for project financing,
5. non-banks for the purchase of export-related receivables by the exporter,
(c) export-related financial services which include in particular:
1. bank guarantees,
2. opening of letters of credit and payment and clearing,
3. reinsurance operations,
4. financing of local costs in the importer's country of residence or permanent residence. ';
4. in Article 2 (a) to (c), including footnote 15:
"(a) an investor bank a bank, a branch of a bank or a financial institution in accordance with the directly applicable European Union15), irrespective of its registered office or place of registration subject to the authorisation regime of the home State and the supervision of the home supervisory authority which grants an investment credit to an investor or a foreign person;
(b) the bank of the manufacturer's bank, branch of the bank or financial institution in accordance with the directly applicable European Union15 Regulation, irrespective of its registered office or place of registration subject to the authorisation regime of the home State and the supervision of the home supervisory authority which provides the manufacturer with a credit related to the manufacture of goods or services intended for subsequent export;
(c) the exporter's bank, branch of the bank or financial institution pursuant to the directly applicable European Union15 law, irrespective of its registered office or place of registration subject to the authorisation regime of the home State and the supervision of the home supervisory authority providing export-related credit to the exporter or to a foreign person;
(15) Regulation (EU) No 575 / 2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648 / 2012. ';
5. in § 2 (k), (l), (aa), (bb), (ii) the words "Commercial Code" shall be replaced by the words "Civil Code."
6. In Article 2 (p), the word "foreign 'is deleted and the words" as creditor and debtor' are replaced by the words "irrespective of its registered office or place of registration subject to the authorisation regime of the home State and the supervision of the home supervisory authority, as creditor and debtor whose drawing is provided to the exporter or debtor '.
7. At the end of § 2, the dot is replaced by a comma and the following points (kk) and (ll) are added:
"(kk) the bank of the importer is a foreign bank or other foreign person which provides the importer with a credit related to the export contract,
(ll) a non-banking company of a financial institution as referred to in Article 4 (1) (26) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648 / 2012 to purchase in the future the exporter's export-related claims due. ';
8. In Paragraph 3 (2), the words "Export Guarantee and Insurance Company, a. s. (" Export Insurance Company ')' are replaced by the words "Export Insurance Company '.
9. The following Section 3a is inserted after Section 3, including the title:
Granting authorisation to operate
(1) The provisions of the Insurance and Reinsurance Act relating to the granting of an authorisation for insurance and reinsurance activities of a domestic insurance or reinsurance undertaking shall apply mutatis mutandis to the granting of an export credit risk granted by the Czech National Bank on request, unless otherwise provided for in this Act.
(2) The Czech National Bank shall decide on the application for authorisation referred to in paragraph 1 within 6 months of its receipt.
(3) The authorisation referred to in paragraph 1 may not be granted for the pursuit of an insurance and reinsurance activity to an extent other than insurance and reinsurance of export credit risks under this Act. ';
10. in the third sentence of Article 4 (1), the words "the special law governing insurance undertakings (3)" shall be replaced by the words "the law governing insurance undertakings, relating to the operation of non-life insurance and reinsurance and supervision by the Czech National Bank of this activity; the export insurance company is considered an insurance company for supervisory purposes under the Act governing the activities of the Czech National Bank."
11. in Paragraph 4 (1), the fourth sentence of the "Commercial Code" is replaced by "the Commercial Corporation Act."
12. in Article 4 (2) (c), the word "special" shall be deleted;
footnote 3 is deleted, including the reference to this footnote.
13. the following Sections 4a to 4c are inserted after Section 4, including the headings:
Conditions of activity of the Export Insurance Corporation
(1) The Export Insurance Corporation can only operate insurance and reinsurance activities to the extent of the authorisation granted by the Czech National Bank pursuant to § 3a.
(2) The provisions of the law governing insurance shall not apply to the activities of the Export Insurance Corporation.
(a) assessment of persons participating in and changes to the Export Insurance Corporation;
(b) the assessment of the origin and sources of the assets or other financial resources of the Export Insurance Corporation;
(c) insurance against non-life insurance in excess of the authorisation granted;
(d) the establishment of a branch in the territory of another Member State or in the territory of another Member State and the freedom to provide temporary services.
(3) The inadequacy of the capital used to meet the Solvency Capital Requirement is replaced by a State guarantee for the liabilities of the Export Insurance Corporation. The amount of basic own funds under the law governing the insurance business of the Export Insurance Corporation must allow the continued performance of its liabilities, which must not fall below 30% of the value of the Solvency Capital Requirement; the minimum capital requirement under the law governing insurance shall not exceed 30% of the Solvency Capital Requirement of the Export Insurance Corporation.
Supervision
(1) The supervision of the Czech National Bank over the activities of the Export Insurance Corporation is subject to compliance with the conditions of authorisation granted under § 3a and those laid down for the operation of insurance and reinsurance activities in the Insurance Act and other legislation within the scope of paragraphs 3, 4 (1) and 4a.
(2) In the exercise of supervision over the activities of the Export Insurance Corporation, the Czech National Bank shall comply with the relevant provisions of the Insurance Act concerning the supervision of the activities of the domestic insurance and reinsurance undertaking, unless otherwise provided for in this Act.
(3) The provisions of the law governing the insurance sector relating to the introduction of forced administration, the transfer of the insurance tribe or part thereof, the transfer of the tribe of reinsurance contracts or parts thereof, the withdrawal of authorisations of the domestic insurance undertaking and the domestic reinsurance undertaking, the conversion of the domestic insurance undertaking or the domestic reinsurance undertaking and the provision for co-insurance within the Member States shall not apply to the activity of the export insurance undertaking.
Exclusion of the scope of the Financial Conglomerates Act
The activity of the Export Insurance Corporation shall not be covered by the Act governing the supplementary supervision of banks, savings and credit cooperatives, insurance companies and securities dealers in financial conglomerates. ';
14. the introductory part of Paragraph 6 (1) reads:
"(1) The operation of the supported financing is entrusted to the Export Bank. The condition for operating the supported financing is that the export bank's shares are at least two thirds State-owned. The State shall exercise its shareholder rights through the relevant ministries. Unless otherwise provided for in this Act, the provisions of the special laws governing banking are applicable to the Export Bank (9). The statutes of the Export Bank shall contain, in addition to those laid down in the Commercial Code. '
15. in Article 6, the following paragraph 5 is inserted after paragraph 4:
"(5) The Ministry of Finance shall check the accuracy of the determination of the amount of the subsidy requested by the Export Bank to cover its losses resulting from the operation of the supported financing. In order to carry out such a check, the Export Bank shall, at the request of the Ministry of Finance, submit data and documents relating to specific business cases, including data relating to the creation of adjustments, and financial market operations, and, where appropriate, allow the Ministry of Finance access to such documents stored only in electronic form, as well as to provide the Ministry of Finance with the necessary synergies in carrying out the check. The persons carrying out the inspection shall be obliged to maintain confidentiality regarding all facts which they have learned about in connection with the performance of the inspection activity. '
Paragraphs 5 to 8 shall be renumbered paragraphs 6 to 9.
16. in Article 8 (1), the words "where the value of the primary capital of the Export Insurance Corporation falls below the amount of Paragraph 4a (3) or below the minimum capital requirement shall be added to the Ministry of Finance within 6 months of the date on which it received the written application from the Export Insurance Corporation for capital replenishment, the assets of the Export Insurance Corporation at such an amount as to ensure that, after the expiry of that period, the cover of the Solvency Capital Requirement is provided for in Section 4a (3) or the Minimum Capital Requirement."
17. in Article 8 (2) and (3), the words "(b)" shall be deleted;
18. In Article 8, the following paragraph 7 is added:
"(7) The Export Insurance Corporation shall request the Ministry of Finance to increase the primary capital referred to in paragraph 1 (a) without undue delay after having found that the amount of primary capital is not respected to cover the Solvency Capital Requirement referred to in § 4a (3) or the Minimum Capital Requirement, or if the Czech National Bank has ordered the Export Insurance Corporation to submit a recovery plan or a short-term financing plan to it for approval. This application shall be accompanied by a justification for the decline in its primary capital, including an estimate of the future evolution of the Solvency Capital Requirement or Minimum Capital Requirement over the next 3 years and a draft of measures leading to a reduction in its risk profile. ';
Transitional provisions
1. The authorisation granted by the Export Guarantee and Insurance Company, a. s. for its activities under the existing legislation, shall be deemed to be an authorisation granted under § 3a of Act No. 58 / 1995 Coll., as effective from the date of entry into force of this Act.
2. The Czech National Bank shall issue within 6 months of the date of entry into force of this Act an Export Guarantee and Insurance Company, a. s. a certificate indicating the scope of the insurance and reinsurance business authorisation granted to this insurance undertaking. This certificate shall be considered as a document of the facts to be entered in the Commercial Register.
3. Proceedings initiated before and until the date of entry into force of this Act shall be completed and the rights and obligations relating thereto shall be assessed in accordance with the existing legislation.
4. The primary capital limit referred to in Article 4a (3) shall be reached by the Export Insurance Corporation in successive annual steps by the end of 2020 at the latest. The minimum capital requirement under the law governing insurance is 12,5% on 31 December 2016 and 25% on 31 December 2017 on the value of the Solvency Capital Requirement.
Amendment to the Banking Act
In Article 38 (3) of Act No. 21 / 1992 Coll., on Banks, as amended by Act No. 61 / 1996 Coll., Act No. 306 / 1997 Coll., Act No. 57 / 2006 Coll., Act No. 70 / 2006 Coll. and Act No. 254 / 2008 Coll., the words "or the Act on Insurance and Financing of Exports with State Aid 'are added at the end of the text in point (e).
EFFECTIVE
This Law shall take effect on 1 October 2015, with the exception of points 1, 9 to 13 and Article II, which shall take effect on 1 January 2016.
z. Jerman v. r.
Zeman v. r.
Sobotka v. r.
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Regulation Information
| Citation | Act No. 220 / 2015 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. 21 / 1992 Coll., on Banks, as amended |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 10.09.2015 |
|---|---|
| Effective from | 01.10.2015 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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