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The document ceased to be valid since  January 24, 2014 according to the Resolution of Administrative board of National Bank of the Republic of Moldova of December 9, 2013 No. 240

Approved by National Bank of Moldova of December 1, 1995 No. 3/09

Rules about "large" podverzhennost

(as amended on 03-11-2011)

Rules about "large" podverzhennost (further - Rules) 46 and 47 Laws No. 548-XIII of July 21, 1995 on National Bank of Moldova are drafted according to Articles 11, of 44, (Monitorul Oficial al Republicii Moldova, 1995 No. 56-57, of the Art. 624), with subsequent changes and amendments, and Articles 1, 25, 28, and 40 Laws on financial institutions No. 550-XIII of July 21, 1995 (Monitorul Oficial al Republicii Moldova, 1995, No. 1, the Art. 2), with subsequent changes and amendments.

I. General provisions

These rules set the most admissible limits of concentration risk of podverzhennost of bank before persons and/or group jointly of characters, concentration in portfolio of podverzhennost and requirements for management of "large" podverzhennost which purpose is minimization of possible losses of bank as a result of concentration of podverzhennost.

The concepts used in Rules have the following value:

A. Person is physical person or legal entity, including association or group of persons, acting jointly, registered as appropriate or not.

B. Jointly of characters treat group:

1. Two or more physical persons which are exposed to the same risk because one of them, directly or indirectly, controls another or others;

2. Two or more physical persons or legal entities, the relations between which are not controlled as it is stipulated in Item B. 1, but who need to be considered as put single risk because they jointly are effective in such a way that if one of them is in financial difficulties, another or others will also experience the difficulties connected with payment of podverzhennost.

In case of determination of collateral actions of persons subject to the same risk, will be considered, but not to be limited to them, the following situations: persons which are in the relations of I and II degrees; joint tenancy by property; availability of general heads; release of guarantees; implementation of mutual transactions which cannot be changed in short-term the plan; the fact that the majority of transactions is based on interrelation with certain person.

C. Exercise control - will be considered that person exercises control over other person in that case when this person, directly or indirectly, by means of voting power (at least 25% of the authorized capital), by means of power to appoint and dismiss most of heads or members of council, or by means of any other methods, directly or indirectly individually or together with other persons, exerts decisive impact on cases of other person. This determination is not applied to the relations connected with control of the public authorities over the companies (organizations).

D. Exposure - any asset and/or off-balance element reflected in balance and/or out of balance, accompanied with credit risk (risk that the debtor and/or the counterdrawing-up person will not be able to fulfill the obligations to bank).

Cumulative exposure of bank in relation to one person or to group of persons, jointly operating, includes the following:

1. podverzhennost, secure:

a) the government securities issued by the Ministry of Finance of the Republic of Moldova;

b) the securities issued by National Bank of Moldova (certificates of National Bank of Moldova);

c) the securities issued by the government of the member country of Organization for Economic Cooperation and Development with rating A-/A3 category appropriated to at least than one of the Standard & Poor's, Moody's and Fitch-IBCA agencies there is at least;

d) guarantee of the Government of the Republic of Moldova or government of the member country of Organization for Economic Cooperation and Development;

e) the international organizations and multilateral development banks listed in appendix 1;

provided that:

a. the right following from providing is performed only in case of inability of the client to fulfill the obligations to bank;

b. conditions on providing irrevocable are also accurately stated;

c. providing can be realized so that providing, other person had no right to protest the legitimate rights of bank proceeding from guarantee.

2. Receivables on financial leasing.

3. Contract commitments of bank to provide or invest as a loan money which includes, but are not limited to the following items:

a) obligations about issuance of credit;

b) obligations to perform payments (directly or indirectly) to the third party in case of failure to carry out of payment obligations by the client of bank according to terms of the contract of the client with the third party or based on other conditions;

c) the warranty obligation or the guarantee for benefit of the third party, including reserve letters of credit (stand by), guarantees and other similar agreements;

d) any obligation to acquire debt obligation or other rights to perform repayments of amount of money.

4. Equities in the capital of business entities.

5. The securities issued by economic agents, except for the securities which are in ownership of the bank acting as the agent (the professional broker).

6. The means placed in commercial banks with repayment period more than 15 days.

E. Net exposure before one person or before group jointly of characters includes cumulative exposure minus the amounts:

1. Podverzhennostya, provided with the government securities issued by the Ministry of Finance of the Republic of Moldova or securities issued by National Bank of Moldova (certificates of National Bank of Moldova) or securities issued by the government of the member country of Organization for Economic Cooperation and Development., and also podverzhennost completely and bezotzyvno provided with guarantee of the Government of the Republic of Moldova or the government of the member country of the Organization for economic cooperation and development provided that:

a) the only condition for application of the right following from guarantee is inability of the client to fulfill the obligations to bank;

b) all warranty conditions are clear;

c) the guarantee can be performed in such a way that neither the guarantor, nor any other person will be able to challenge the legitimate rights of bank following from guarantee.

2. Podverzhennostya of bank which bezotzyvno, until the end of repayment period are provided with persons which are not affiliated to bank are provided with pledge in the form of the money deposits placed in bank which undertakes exposure.

3. the money received by bank in the form of the credit in the part used for irrevocable providing the credits issued to them.

F. "Large" exposure is net exposure before one person or group jointly of characters, component ten or more percent of the aggregate normative capital of bank.

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