Government Decree No. 364 / 2022 Coll.
Government Regulation on the implementation of certain provisions of the Act on Insurance and Financing of Exports with State aid in relation to the guarantee provided by the State aid to the economy in response to Russia's aggression against Ukraine
Valid
Regulation
Effective from 01.12.2022
Text versions:
01.12.2022
30.11.2022
364
GOVERNMENT REGULATION
of 16 November 2022
on the implementation of certain provisions of the Act on Insurance and Financing of Exports with State aid in relation to the guarantee provided under State aid to the economy in response to Russia's aggression against Ukraine
The Government orders pursuant to Sections 1 (5) and 4 (5) and 4 (7) of Act No. 58 / 1995 Coll., on Insurance and Financing of Exports with State Aid, as amended by Act No. 60 / 1998 Coll., Act No. 23 / 2006 Coll., Act No. 214 / 2020 Coll. and Act No. 363 / 2022 Coll.:
Definition of terms
For the purposes of this Regulation:
(a) a lending bank a bank, a foreign bank carrying out banking activities on the territory of the Czech Republic through its branch or other financial institution pursuant to the directly applicable European Union1 Regulation, irrespective of its registered office or place of registration subject to the authorisation regime of the home State and supervision of the home supervisory authority;
(b) an investment loan for innovation and improvement of production or service;
(c) a loan for working capital, a loan to ensure the operation or maintenance of business, including a loan granted in connection with the issue of financial guarantees or the issue of documentary letters of credit or the financing of costs associated with the provision of guarantees under this Regulation;
(d) the recipient of an exporter credit with the exception of a foreign company (2), a manufacturer or an export oriented enterprise (2), with the exception of a foreign company (2), which needs to ensure greater liquidity availability and is directly or indirectly affected by a serious disturbance of the economy (3) caused by Russia's aggression against Ukraine, the effects of the economic sanctions imposed or counter-measures related to it and are not subject to the sanctions adopted by the European Union (3);
(e) the last accounting year of the last financial year ending before 24 February 2022;
(f) the beneficiary's medium-sized enterprise falling within the category of micro, small and medium-sized enterprises defined directly by the European Union Regulation (4);
(g) a non-salaried person who is not registered with the authorities of the Financial Administration of the Czech Republic or with the authorities of the Customs Administration of the Czech Republic, with the exception of a non-payment which is allowed to delay his payment or the distribution of his payment on repayments, does not have an underpayment on insurance premiums and periodic penalty payments on public health insurance and does not have an underpayment on social security and social security charges and a contribution to the state employment policy, except for the underpayment which is permitted in repayments, and is not late in repayment of payments.
Purpose and scope of guarantees
(1) The guarantees for the repayment of new loans granted by the lending banks to the borrowers as working capital loans and investment loans are provided to ensure greater liquidity availability of the borrower. The purpose and scope of the guarantees must not exceed the definition given by the Communication from the European Commission on State aid conditions for the economy in response to Russia's aggression towards Ukraine (3).
(2) Guarantees shall be provided by 31 December 2023 at the latest, for commitments to repay the principal of a loan to one or more lending banks by the borrower up to the amount of the outstanding principal of the loan.
(3) Guarantees are not granted to business entities having the predominant economic activity in accommodation, travel agencies, offices and other booking and related activities, gambling, casinos and betting offices (5).
Conditions for granting the guarantee
(1) The Export Insurance Corporation may provide a guarantee for the repayment of a loan granted by the lending bank to the recipient of the loan which:
(a) has more than 100 employees over the last financial year according to the criteria laid down for the number of employees directly applicable to the European Union4);
(b) demonstrate to the lending bank that the share of exports in the total annual sales of products, services and goods during the last financial year has reached at least 25%, while the producer demonstrates the share of exports indirectly through the export share of the exporter;
(c) submit to the lending bank a solemn declaration that it is affected, directly or indirectly, by serious disturbance to the economy caused by Russia's aggression against Ukraine, the effects of the economic sanctions imposed or counter-measures in connection with it (3);
(d) does not benefit from the public aid instrument related to the disease pandemic COVID-196), which is provided in the form of liquidity guarantees above the limit referred to in paragraph 2 (b). (c) point 1;
(e) does not use, in connection with the promotion of the economy following the aggression of Russia against Ukraine (3), a public aid instrument which is granted by way of interest subsidies on the same underlying loan; and
(f) demonstrate to the lending bank, by attestations of the competent authorities which are no more than 30 days before the date on which the request for guarantee is lodged, that it is a non-salaried person.
(2) A guarantee may be granted to the lending bank, subject to the conditions laid down in paragraph 1, provided that:
(a) the lending bank shall submit to the export insurance undertaking:
1. a request for a guarantee, which shall include at least the identification data of the lending bank, the recipient of the loan and the persons forming an economically linked group7) with the borrower, the resulting internal rating grade of the lending bank as a result of the assessment of the beneficiary of the loan on the basis of the results for the last financial year, the purpose, amount and timing of the drawdown and repayment of the loan provided, data on any further guarantee of repayment of the principal of the loan and the duration and amount of the guarantee,
2. Honorable declaration by the beneficiary of the credit on the need for liquidity,
3. An honest declaration by the beneficiary that he was not bankrupt on 24 February 2022 is a non-salaried person and has no obligation to the State beyond maturity and has not been a firm in difficulty in the last financial year (8),
4. an affidavit by the recipient of the credit that it is affected, directly or indirectly, by serious disturbance to the economy caused by Russia's aggression against Ukraine, the effects of the economic sanctions imposed or counter-measures in relation to Ukraine (3);
5. An affidavit by the recipient of the credit that it agrees to grant the guarantee and its terms and conditions and undertakes to pay the Export Insurance Corporation on the basis of its call for performance to the lending bank on the basis of the guarantee;
6. a declaration of honour by the recipient of the credit that it fulfils the conditions laid down in paragraph 1 (d) and (e);
7. an affidavit by the beneficiary of a public aid instrument in connection with the disease pandemic COVID-196), of the amount of the principal outstanding,
8. an affidavit by the lending bank to verify the purpose and evidence of export orientation and export and liquidity needs referred to in point (c) (2); and
9. the conclusions of the examination of the beneficiary of the credit that the recipient of the credit is not subject to a penalty adopted by the European Union and persons, entities, bodies and undertakings listed in the European Commission Communication on the conditions of State aid to the economy in response to Russia's aggression against Ukraine (3),
(b) the export insurance undertaking shall, on the basis of the information and supporting documents referred to in point (a), assess the creditee's creditworthiness with the lowest internal rating corresponding to B-; the creditee's creditworthiness shall be assessed solely on the basis of financial statements for at least the last and 2 preceding closed financial years;
(c) credit granted by the lending bank to the borrower
1. the sum of all loans guaranteed by the Export Insurance Corporation shall be at most 15% of the average annual turnover of the beneficiary of the loan for the last and 2 preceding the closed financial year, where the turnover corresponds to the total revenue from the sale of products, the provision of services and the sale of goods, and the amount calculated shall be reduced by the amount of the outstanding principal of the loans covered by any guarantee granted to the beneficiary of the liquidity support loan in connection with the disease pandemic COVID-196); and
2. is provided for the purpose of Article 2 (1), where proof of export orientation and export is considered to be proof of export share as referred to in paragraph 1 (b) and proof of liquidity needs is considered to be proof of the credit beneficiary's declaration as referred to in point (a) (2);
(d) the purpose of the loan granted by the lending bank is demonstrated to the lending bank in accordance with the usual procedures of the lending bank, except for proof of the liquidity needs referred to in point (c) (2);
(e) the total amount of all guarantees guaranteed by the Export Insurance Corporation secured by the outstanding principal of the loan granted to one beneficiary of the loan does not exceed CZK 1 200 000 000 per beneficiary or per person forming an economically linked group7), if the beneficiary of the loan is a member of the loan,
(f) the lending bank has committed the borrower in the credit agreement to fulfil the following obligations, which it will control during the duration of the loan within the deadlines set by the credit agreement,
1. the proper and timely payment of obligations to suppliers; payment shall be deemed to have been made properly and in a timely manner within 30 days of the due date, provided that such late payment does not exceed 10% of the balance of all liabilities due at the end of the calendar month;
2. the proper and timely payment of wages to employees;
3. the limitation of the payment of dividends or other interest in profit, the prohibition on the sale of property shares and the sale of all tangible and intangible assets in the long term, or the burden on third parties' rights without the consent of the lending bank for the period for which the guarantee is granted; and
4. other obligations necessary for the proper issue of guarantees required by the Export Insurance Corporation; and
(g) the lending bank undertakes not to transfer the right of guarantee and the right of performance from the guarantee to another person without the consent of the Export Insurance Corporation and to apply the procedures laid down in Article 6 (2).
(3) The resulting amount of the loan granted in accordance with paragraph 2 (c) (1) shall be at least equivalent to CZK 5 000 000, the margin of the lending bank for the loan granted not exceeding the following value for the period for which the loan is granted:
| Úvěr do 1 roku | Úvěr do 3 let | Úvěr do 6 let |
|---|---|---|
| 1,50 % p. a. | 1,75 % p. a. | 3,00 % p. a. |
(4) The Export Insurance Corporation will inform the lending bank on request of the use of the limit referred to in paragraph 2 (e).
(1) The period for which the loan and guarantee are granted may not exceed 6 years.
(2) Before the expiry of the period referred to in paragraph 1, the lending bank may not, without the consent of the Export Insurance Corporation, apply for early repayment of the loan or make a payment of the loan guaranteed by the guarantee, or submit a proposal to initiate insolvency proceedings or join such a proposal. The beneficiary of the loan may at any time repay the loan at any time earlier without paying any payments and costs associated with it.
(1) The Export Insurance Corporation as an exhibition guarantees compliance with the obligation of the beneficiary of the credit up to the amount and under the conditions specified in the guarantee note. The obligation of the Export Insurance Corporation on the guarantee is reduced proportionally over time to the extent of the loan principal paid up. The recipient of the credit shall replace the export insurance company with what it has carried out under the guarantee provided.
(2) The lending bank shall pay the export insurance undertaking a remuneration for the guarantee, the amount of which shall be determined by multiplying the total amount of the principal of the loan granted or the total outstanding principal of the loan, if the loan is repaid continuously, by a rate of remuneration corresponding to the internal rating of the recipient of the credit established by the export insurance undertaking and the relevant year of validity of the guarantee. The rates of remuneration shall correspond to the amount of coverage of the outstanding principal of the loan referred to in Article 6 and shall be determined as follows:
| Interní rating exportní pojišťovny | Sazba odměny za 1. rok (p. a.) | Sazba odměny za 2. a 3. rok (p. a.) | Sazba odměny za 4. až 6. rok (p. a.) | |||
|---|---|---|---|---|---|---|
| běžná sazba | snížená sazba pro střední podniky | běžná sazba | snížená sazba pro střední podniky | běžná sazba | snížená sazba pro střední podniky | |
| do B+ | 0,50 % | 0,25 % | 1,00 % | 0,50 % | 2,00 % | 1,00 % |
| B | 0,68 % | 0,34 % | 1,35 % | 0,68 % | 2,00 % | 1,00 % |
| B– | 1,30 % | 0,65 % | 2,00 % | 1,00 % | 2,25 % | 1,13 % |
(3) The remuneration referred to in paragraph 2 shall be determined for the period of validity of the guarantee with the possibility of repayment in each year of the guarantee. If the export insurance company is to comply with the guarantee, the remuneration of the lending bank is paid in proportion to the amount of the guarantee. If it is not fulfilled by the guarantee and the guarantee at the request of the lending bank is terminated prematurely, the remuneration shall be determined only for the actual duration of the guarantee.
Amount of coverage of outstanding principal credit
(1) The guarantee may be granted up to 90% of the principal of the credit if the credit rating of the credit provider by the internal rating of the Export Insurance Corporation is better than the level B-. In the case of an assessment by an internal rating of an export insurance company corresponding to grade B- the guarantee may be provided only up to 80% of the principal of the credit. In the part of the principal of the loan for which the guarantee is not granted, the lending bank bears the credit risk.
(2) In the case of the performance of the guarantee provided, the lending bank is obliged, on the basis of the requirement of the Export Insurance Corporation to recover the credit beneficiary and the claim of the Export Insurance Corporation for compensation or in connection with the performance of the guarantee. The lending bank and the borrower are obliged to arrange for any further collateral to be provided for the repayment of the principal of the credit in such a way as to guarantee the future claim of the Export Insurance Corporation on compensation or in connection with the performance of the guarantee. The lending bank shall provide the Export Insurance Corporation with a share of all the proceeds from further securing the repayment of the principal of the credit guaranteed by the Export Insurance Corporation in proportion to the risk sharing with the Export Insurance Corporation.
Method of setting up the Fund to cover commitments under guarantees
(1) The Fund to cover the guarantees provided under this Regulation (hereinafter referred to as "the Fund") consists of funds provided by the State budget to the Export Insurance Corporation on the basis of a government decision, revenues accruing from the guarantees issued and interest income on the investments of the Fund.
(2) The initial money contribution from the state budget is CZK 500,000 000.
(3) The Export Insurance Corporation may submit a request to supplement the Fund to the Ministry of Industry and Trade and to the Ministry of Finance in the event that the Fund's funds have fallen below the amount calculated in accordance with Section 9, or within the following 6 months.
(4) The Export Insurance Corporation, in its application to supplement the Fund, will justify the amount of the required funds from the State Budget by qualified estimates of expected losses from the provision of guarantees. When estimating expected losses from the provision of guarantees, the Export Insurance Corporation shall, in particular, take into account the impact of the proceeds from the guarantees issued, the interest income from the investment in the funds and the costs borne by the Fund. The costs borne by the Fund are the costs of the guarantee, the proportion of the operating costs of the Export Insurance Corporation and the costs of the investments of the Fund's funds.
Part of insurance capacity attributable to guarantees granted
(1) The part of insurance capacity of the Export Insurance Corporation for the year 2022 for the provision of guarantees under this Regulation is CZK 6 250 000 000.
(2) The part of the insurance capacity of the Export Insurance Corporation for the year 2023 for the provision of guarantees under this Regulation shall be the amount referred to in paragraph 1 reduced by the total amount of guarantees covered by guarantees granted under this Regulation in 2022.
(3) The part of the insurance capacity of the Export Insurance Corporation for the provision of guarantees after the period referred to in Article 2 (2) has expired for each subsequent year of the duration of the obligations of the Export Insurance Corporation for the provision of guarantees is equivalent to an estimate of the amount of outstanding principal of the loan covered by the guarantees already provided on 1 January of the year for which the draft State budget is submitted. The Export Insurance Corporation shall inform the Ministry of Finance, on the basis of its call, of the estimate of the amount of the part of the insurance capacity for the provision of guarantees for the year for which the draft State Budget is submitted and for the relevant medium-term perspective.
The ratio between the Fund to cover guarantee commitments and total guarantee commitments
The amount of funds in the Fund to cover the guarantee commitments shall not fall below 8% of the total guarantee commitments.
Efficacy
This Regulation shall enter into force on the day following that of its publication.
Prime Minister:
Prof. PhDr. Fiala, Ph.D., LL.M., v. r.
Minister for Industry and Trade:
Ing. Síkela v. r.
(1) Regulation (EU) No 575 / 2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648 / 2012, as amended.
2) Article 2 of Act No. 58 / 1995 Coll., as amended.
3) Communication from the Commission Temporary Crisis Framework for State aid measures to support the economy following Russia's aggression towards Ukraine (2022 / C 426 / 01).
(4) Article 2 (2) and Annex I to Commission Regulation (EU) No 651 / 2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in accordance with Articles 107 and 108 of the Treaty.
5) Classification of economic activities (CZ-NACE) in accordance with Regulation (EC) No 1893 / 2006 of the European Parliament and of the Council of 20 December 2006 establishing a statistical classification of economic activities NACE Revision 2 and amending Council Regulation (EEC) No 3037 / 90 and certain EC Regulations on specific statistical areas.
6) Communication from the Commission Temporary Framework for State aid measures to support the economy in the current spread of Coronavirus disease COVID-19 (2020 / C 91 I / 01), as amended.
(7) Point (39) of Article 4 (1) of Regulation (EU) No 575 / 2013 of the European Parliament and of the Council, as amended.
8) Article 2 (18) of Commission Regulation (EU) No 651 / 2014.
Sign in for notes, favorites and notifications
Regulation Information
| Citation | Government Decree No. 364 / 2022 Coll., on the implementation of certain provisions of the Act on Insurance and Financing of Exports with State Aid in relation to the guarantee provided by the State aid to the economy in response to Russia's aggression against Ukraine |
|---|---|
| Regulation Type | Regulation |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 30.11.2022 |
|---|---|
| Effective from | 01.12.2022 |
| Effective until | - |
| Status | Valid |
Public Contracts 5
Dodatek č. 1 ke Smlouvě o poskytnutí finanční záruky
Exportní garanční a pojišťovací společnost, a.s.
Československá obchodní banka, a. s.
14.04.2025
Notifications
Dodatek č. 1 ke Smlouvě o poskytnutí finanční záruky a úprava s finanční zárukou souvisejících práv...
Exportní garanční a pojišťovací společnost, a.s.
Československá obchodní banka, a. s.
15.01.2025
Notifications
DODATEK Č. 1 KE SMLOUVĚ O POSKYTNUTÍ FINANČNÍ ZÁRUKY č. 400000477/001/2023
Exportní garanční a pojišťovací společnost, a.s.
UniCredit Bank Czech Republic and Slovakia, a.s.
20.12.2023
Notifications
Dodatek č. 1 ke Smlouvě o poskytnutí finanční záruky
Exportní garanční a pojišťovací společnost, a.s.
MONETA Money Bank, a.s.
04.12.2023
Notifications
Smlouva o poskytnutí finanční záruky
Exportní garanční a pojišťovací společnost, a.s.
Raiffeisenbank a.s.
170 568 000 CZK
28.06.2023
Source:
Hlídač státu
(CC BY 3.0 CZ)
The regulation text is for informational purposes only.
Comments 0