Translation from Lithuanian

Translation from Lithuanian Translation from Lithuanian GOVERNMENT OF THE REPUBLIC OF LITHUANIA R E S O L U T I O N No. 694 On the Establishment and Utilization of the Rehabilitation Fund Vilnius, 13 September 1993 Upon implementation of the Law of the Republic of Lithuania on Enterprise Bankruptcy, the Government of the Republic of Lithuania r e s o l v e s:

1. To approve the procedure for the establishment and utilization of the Rehabilitation Fund (attached).
2. To establish that paragraph 2.2 of the procedure for the establishment and utilization of the Rehabilitation Fund approved by this Resolution will enter into force upon the adoption by the Seimas of the Republic of Lithuania of appropriate amendments and supplements to the Law of the Republic of Lithuania on the Initial Privatization of State Property and the Resolution of the Supreme Council of the Republic of Lithuania "On the Approval of Regulations for the Privatization Funds of the Republic and of the Higher Level Local Governments". Prime Minister Adolfas Ðleþevièius Minister of Economics Julius Veselka APPROVED by Resolution No. 694 of 13 September 1993 of the Government of the Republic of Lithuania Procedure for the Establishment and Utilization of the Rehabilitation Fund General Provisions
3. This procedure shall regulate funds acquired from the State budget of Lithuania as well as the accumulation of means acquired from the privatization of State property and from other sources in the Rehabilitation Fund (hereinafter referred to as "the Fund") and the utilization thereof. Fund Means
4. The means of the Fund shall be accumulated in the Bank of Lithuania in a special account of the Rehabilitation Fund which shall be opened for the Ministry of Economics. The means of the Fund shall include: 2.
5. Allocations from the State budget of Lithuania; 2.
6. 10 percent of the funds acquired from the privatization of State property; 2.
7. Fees for documents of the rehabilitation project contest; and 2.
8. Voluntary contributions of natural and legal persons of the Republic of Lithuania and foreign states as well as of international organizations. Use of the Fund's Means
9. The means of the Fund shall be disposed of by the administrators of the fund accounts, who shall be appointed on the order of the Ministry of Economics.
10. The means of the Fund shall be allocated: 4.
11. to grant credits for the rehabilitation projects of enterprises against which bankruptcy proceedings have been instituted or in which extrajudicial bankruptcy procedures are being implemented pursuant to the rehabilitation procedure approved by the 20 April 1993 Resolution No. 276 of the Government of the Republic of Lithuania "On the Declaration of Enterprises as Insolvent and the Procedure for Conducting Proceedings concerning the Implementation of the Law on Enterprise Bankruptcy of the Republic of Lithuania" for enterprises which are in a difficult economic positions and which are unable to fulfil financial obligations; and 4.
12. to cover expenses incurred in the organization and implementation of the rehabilitation project contest.
13. Credits from the Fund shall be granted under the following conditions: 5.
14. when a natural or legal person who has won the rehabilitation project contest submits a credit application to the Ministry of Economics; 5.
15. when, taking into consideration the estimates of the rehabilitation projects, the Ministry of Economics announces its decision to the applicant within 5 workdays; and 5.
16. when, if the decision is positive, the Ministry of Economics and the applicant (credit recipient) sign a credit agreement (2 copies) which indicates the amount of credit, the purpose of the credit, the terms of repayment of the credit, the method of granting the credit, the credit insurance, the guarantee of repayment of the credit or the mortgage contract, the amount of interest on the credit, and the procedure for the payment thereof.
17. The interest rate on credits received from the Fund may not be less than the actual inflation rate during the month prior to the receipt of the credit.
18. Credits must be repaid to the Fund within two years of the conclusion of the enterprise's rehabilitation, which shall be established by court or by a meeting of the creditors.
19. The results of the utilization of the Fund shall be considered by the Board of the Ministry of Economics each quarter which shall, if necessary, submit proposals to the Government of the Republic of Lithuania.
20. The procedure of accounting of the Fund shall be established by the Ministry of Finance. ______________________________