ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of March 29, 2008 No. 483

About approval of the Regulations on procedure for letting of idle assets

Based on Item c) parts (1) Article 6 and article 17 of the Law N121-XVI of May 4, 2007 on management of public property and its privatization (The official monitor of the Republic of Moldova, 2007, N 90-93, Art. 401) DECIDES: the Government

1. Approve Regulations on procedure for delivery in employment of idle assets it (is applied).

2. Determine that determination of the amount of rent of property of the state/municipal companies and commercial societies with completely or mainly the public capital will be performed according to the procedure established in the law on the government budget for the corresponding year.

3. To bodies of the central and local public authority to bring the regulations regulating procedure for letting of idle assets into compliance with this resolution.

Approved by the Order of the Government of the Republic of Moldova of March 29, 2008 No. 483

Regulations on procedure for letting of idle assets

I. General provisions

1. This provision establishes procedure for letting of rooms which can be used not under housing, fixed assets and other assets, except for lands (further - property).

2. Action of regulations on procedure for letting of idle assets (further - provision) extends to the state/municipal companies, public bodies / public organization on self-financing, commercial societies with completely or mainly the public capital (further - the companies).

3. The rent is established in the employment contract on all hired assets. The amount of rent cannot be less municipal size, calculated according to the law on the government budget for the corresponding year.

4. The financial resources received from letting of property are used by the company (except for the budget bodies / budgetary institutions) first of all for repayment of debts to the national public budget, and the means which remained after these payments according to the decision of council are invested in development of the company.

5. The income of public bodies / public organizations on self-financing received from letting of idle assets are used according to the profit and loss budgets constituted and approved in accordance with the established procedure.

6. The companies operating by the principle of self-financing include the income and expenses connected with letting of property in general financial result which are reflected in Sections profit and losses and are assessed with tax according to the procedure, established by the legislation.

7. The budget bodies / budgetary institutions are exempted from payment for use of non-residential premises of the organizations financed from the same budget. They pay only utility bill, the electric power and other services. In these cases based on the agreement of the room are transferred to free use based on the decisions made by bodies or organizations in which management/use there are respective rooms.

8. The idle property of the state/municipal companies, budget bodies / budgetary institutions, commercial societies with completely or mainly the public capital can be rented from prior consent of the central or local public authorities (further - authorized bodies). In the permission issued by authorized body object (the name of property) which is rented the duration of the agreement, the area of real estate, purpose of its use, the amount of annual payment for hiring is specified.

Change, treaty extension of hiring can be performed with the consent of body which issued permission to its conclusion.

9. The sublease can be performed only with the consent of the lessor and authorized body. The duration of the agreement of subhiring cannot exceed employment contract term. Opportunity and conditions of delivery of the hired property or its part in the sublease make a reservation in the employment contract.

I-1. Determination of idle assets

9-1. The company constitutes the list of the idle property offered to letting within the next year. Determination of idle assets which can be offered for letting during the period directly following after accounting year, will be performed by results of the annual inventory which is carried out according to regulations.

9-2. Criteria of determination of the assets which are not used in activities of the companies are:

1) long non-use (more than 1 year) of assets in the course of activities or for their direct appointment;

2) long absence of production volumes and orders for separate assets;

3) unprofitable use of assets in connection with change of service conditions;

4) replacement of assets by more effective;

5) impossibility of further use of assets in connection with high degree physical and/or obsolescence;

6) excess of assets and shortage of the personnel/orders for their use and operation.

9-3. For the purpose of determination of idle assets of the company the order of the administrator (managing director) creates the commission on determination of idle assets (further – the commission) as a part of 5 – 7 people.

Conclusions and offers of the commission are drawn up by the protocol signed by all members of the commission who are present at meeting. If opinions of members of the commission disperse, all opinions accompanied with the corresponding arguments are reflected in the minutes.

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