Translation from Lithuanian Translation from Lithuanian GOVERNMENT OF THE REPUBLIC OF LITHUANIA R E S O L U T I O N No 374 On loans to finance dwelling-house and apartment renovation and thermal insulation Vilnius, 16 May 1994 In order to ensure more effective use of energy resources, improve dwelling-house and apartment maintenance and promote their renovation and thermal insulation the Government of the Republic of Lithuania r e s o l v e s:
- That the dwelling-house, apartment renovation and thermal insulation loan fund (hereinafter called "loan fund") of the Republic of Lithuania shall be set up.
- To establish that: 2.
- loan fund shall be formed from budget resources, loans of commercial banks, foreign loans, contributions of legal and natural persons, interest on deposits, resources of technical support, interest on the loans provided by the said loan fund, higher interest rate and money payable on delay for loans used not for their proper purpose, loans which were not repaid or repaid not in due time, issuing of loan fund securities and other resources; 2.
- loan fund is administered by the Ministry of Finance; 2.
- council of the loan fund (hereinafter called "council") composed of the representatives of the Ministry of Finance, Ministry of Construction and Urban Architecture, Ministry of Energy, the Bank of Lithuania, commercial banks, Association of Architects of Lithuania, Association of Apartment Maintenance and Association of Builders of Lithuania shall be formed to organise the work of loan fund; 2.
- personal composition of the council and regulations governing its work shall be approved by the Minister of Finance; 2.
- the council shall: 2.5.
- select dwelling-house and apartment renovation and thermal insulation projects on tender basis; 2.5.
- establish interest rate for the contracted loans; 2.5.
- organise the search of sources for the loan fund and submit proposals to the Government of the Republic of Lithuania; 2.5.
- select banks granting services to the fund on tender basis; 2.
- the council is granted services by the Ministry of Finance; 2.
- terms of use and repay of loans, the order and timing of interest payments shall be established by the Government of the Republic of Lithuania; 2.
- Ministry of Finance shall accumulate loans in the loan fund on tender basis signing agreements with the said banks; 2.
- loan to finance dwelling-house, apartment renovation and thermal insulation expenditures and other work maturity is limited to 10 years. It may comprise up to 70 % of the price subject to agreement on condition that the loan granted to one apartment (individual living-house) construction is not in excess of 20 000 Lt; 2.
- interest on the loan shall be paid in accordance with the rate established by the council and shall not be in excess of 5 % margin; 2.
- repaying of the loan shall be commenced upon finishing the renovation and thermal insulation work, but not later than 2 years after the signing of the loan agreement; 2.
- loans shall be granted to dwelling-house fellowships, individual owners and apartment maintenance enterprises to: renovate and provide thermal insulation of houses or some of their parts, to reconstruct them (including the construction of living space in the garrets), to upgrade interior engineering networks and heating systems as well as to build experimental dwelling-houses (to test the new building materials, constructions, engineering equipment and technologies as to their capacity to save heat) by signing loan agreements with the banks granting services to the loan fund; 2.
- Ministry of Finance shall enter into agreements with the banks granting services to the loan fund on the transfer of resources of the said fund to their accounts on terms specified by the council; 2.
- Ministry of Construction and Urban Architecture and Ministry of Energy shall establish loan granting priorities for dwelling-house, apartment renovation, thermal insulation and other works financed by the loan fund; 2.
- loan projects shall be submitted to the council. They should include technical and economic data (indices) allowing to establish the effectivity and justification of the planned activities, guarantees of one's own capital and in cases of experimental dwelling-house construction - mediation letter of the Ministry of Construction and Urban Architecture should be submitted; 2.
- Ministry of Construction and Urban Architecture as well as banks granting services to the loan fund shall monitor the loans being used for their proper purpose. 2.
- unless the loans are used for their proper purpose and the loan terms provided in the loan agreement and guarantees of loan repaying are violated, the bank granting services to the fund shall be authorised to call the loan before the expiry date for which it was granted and impose market rate interest accumulated in the said bank. Prime Minister Adolfas Ðleþevièius Minister of Finance Eduardas Vilkelis