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The document ceased to be valid since March 1, 2019 according to Item 2 of the Order of the Government of the Republic of Moldova of February 14, 2019 No. 29

IT IS APPROVED NATIONAL BANK OF MOLDOVA

August 14, 2008.

 

ACT OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF MOLDOVA

of August 14, 2008 No. 08/3-1/323

Approved BY THE MINISTRY OF FINANCE OF THE REPUBLIC OF MOLDOVA

Conditions of placement, the address and the redemption of government bonds with fixed rate

I. General provisions

1. These conditions are developed according to provisions of the Law on public debt, the state guarantees and the state recrediting of N419-XVI of December 22, 2006, other existing regulations and establish the main conditions of placement, the address and redemption of Government bonds with fixed rate.

2. Government bonds with fixed rate (further Government bonds) are the government securities in the form of record on the account issued by the Ministry of Finance on behalf of the Government with average term of the address from one to five years inclusive which profitability is paid once a quarter/half a year as it is established in these conditions.

3. Government bonds grant to their holders the right to nominal value on repayment date and on receipt of the fixed yield (coupon) established quarter/half-yearly.

II. Release, placement and circulation of Government bonds

4. Nominal value of the Government bond makes 100 lei. Government bonds can be issued with discount (at the price below, than nominal value), at par value, or with award (at the price above, than nominal value).

5. Appropriates to each release of the Government bonds Ministry of Finance according to requirements of international standards the state registration number.

6. The amount of release of Government bonds is established by the Ministry of Finance in coordination with National Bank of Moldova in limits of the internal public debt provided by the Law on the government budget for the corresponding year.

7. For each release of the Government bonds Ministry of Finance establishes the following indicators which appear in the official report about placement of government securities:

a) date of auction;

b) circulation period of government security;

c) registration number;

d) nominal value of one government security;

e) offer amount;

f) annual fixed interest rate;

g) date of issue and repayments of Government bonds;

h) payment due dates of percent (coupons).

The Ministry of Finance represents to National Bank of Moldova in 5 (five) calendar days prior to day of holding the auction the official report about placement of government securities, and the National Bank of Moldova in 4 (four) calendar days prior to holding the auction sends it to primary dealers and participants.

8. At auctions for sale of Government bonds the primary dealers and participants authorized by National Bank of Moldova can participate.

Primary dealers can submit applications for auction on its own behalf and at own expense, as well as at the expense of investors, legal entities and physical persons - residents and nonresidents of the Republic of Moldova.

9. The applications submitted for auctions for sale of Government bonds are satisfied by method of the multiple prices.

10. Transactions with Government bonds in the secondary market are performed in the curb market through primary dealers and in the stock exchange market in case of inclusion of these government securities in the list which are in circulation on the Stock exchange of Moldova.

III. Interest payment and redemption of Government bonds

11. The Ministry of Finance establishes for each release of Government bonds the size of fixed interest rate, proceeding from the current level of interest rates in the financial market of the Republic of Moldova which appears in the official report about placement of government securities.

12. Interests (coupon) are paid in the dates specified in the official report about placement of government securities and determined by the following formula:

Формула к Акту Мин.фин. от 14.08.2008 №083-1323(2)

where:

C - the coupon size according to Government bonds;

N - nominal value of Government bonds;

Ts - the number of days in the corresponding coupon period;

Ds - the established annual fixed interest rate.

13. The last coupon is paid in repayment date of Government bonds along with payment of nominal value.

14. If date of the redemption or payment of the added percent on Government bonds matches the day off, the redemption (payment) is made the next working day, without payment of additional percent.

15. The tax regime state valuable, securities issued according to these conditions is regulated by the current legislation.

16. These conditions become effective from the date of publication in the Official monitor of the Republic of Moldova.

17. On the date of entry into force of these conditions to recognize invalid conditions of placement, the address and the redemption of government bonds with fixed rate, with the subsequent amendments (The official monitor of the Republic of Moldova, 2003, N 116-120, Art. 145).

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

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