Resolution of the Government of the Republic of Lithuania of 6 February 1998 No

Resolution of the Government of the Republic of Lithuania of 6 February 1998 No Official translation GOVERNMENT OF THE REPUBLIC OF LITHUANIA RESOLUTION No 152 On the Approval of the Procedure for the Use and Accounting of Funds of the Privatisation Fund 6 February 1998 Vilnius Pursuant to the Law on the Privatisation of State-Owned and Municipal Property of the Republic of Lithuania (Official Gazette No 107-2688, 1997), the Government of the Republic of Lithuania hereby h a s r e s o l v e d:

1. to approve the Procedure for the use and accounting of funds of the Privatisation Fund (attached).
2. to establish that: 2.1 in cases when payments for an object under privatisation are deferred, the interest rate in the privatisation transaction shall be fixed according to an average annual interest rate fixed to resident time deposits in Litas accepted by commercial banks within the last month preceding the announcement of that rate by the Bank of Lithuania on the date of the approval of the privatisation programme for that object; 2.2 in cases when municipal property is privatised under the agency agreement signed by the State Property Fund (hereinafter referred to as the Property Fund) and an authorised representative of a municipality, the amount established in the agreement and deducted to the Property Fund shall not exceed 10 per cent of the receipts from the privatisation transaction.
3. to instruct the Property Fund to communicate data on the receipts projected for every six months from privatisation transactions to the Ministry of Finance.
4. to declare invalid: 4.1 Resolution of the Government of the Republic of Lithuania No 1294 of 2 October 1995 On the Approval of the Procedure for the Use and Accounting of Funds of the Privatisation Fund (Official Gazette No 82-1876, 1995); 4.2 Paragraph 5 of Resolution of the Government of the Republic of Lithuania No 902 of 11 August 1997 On the Establishment of the Fund for the Satisfaction of Employment-Related Claims of Employees of Enterprises under Bankruptcy and Enterprises Adjudicated Bankrupt (Official Gazette No 76-1960, 1997). Prime Minister Gediminas Vagnorius Minister of Finance Algirdas Šemeta Approved by Resolution of the Government of the Republic of Lithuania No 152 of 6 February 1998 Procedure for the use and accounting of funds of the Privatisation Fund General provisions This Procedure lays down the rules for the use and accounting of funds (including those in convertible currency) transferred to the account of the Privatisation Fund opened for the Ministry of Finance for the state-owned property under privatisation in accordance with the Law on the Privatisation of State-Owned and Municipal Property of the Republic of Lithuania (Official Gazette No. 107-2688, 1997), except for the funds received using the method of privatisation established in Article 18 of the aforementioned Law. Funds of the Privatisation Fund
5. The following funds shall be transferred to the Privatisation Fund: 2.
6. receipts from privatisation transactions; 2.
7. interest and default interest on payments deferred under privatisation transactions. Use of the funds of the Privatisation Fund
8. The funds of the Privatisation Fund shall be used for: 3.
9. the restoration of savings of the population and payment of interest on the funds borrowed to this end; 3.
10. the setting up of the small and medium business promotion fund and the implementation of national programmes approved by the Government of the Republic of Lithuania; 3.
11. deductions to a special fund for the satisfaction of employment-related claims of employees of enterprises under bankruptcy or enterprises adjudicated bankrupt; 3.
12. covering the expenses related to the fulfilment of functions of the Privatisation Commission and the Property Fund established under the Law on the Privatisation of State-Owned and Municipal Property; 3.
13. remuneration of experts for their service. The procedure for the use of the funds of the Privatisation Fund
14. The funds of the Privatisation Fund shall be used in accordance with the estimate approved every six months by the Government of the Republic of Lithuania on the proposal of the Ministry of Finance.
15. The funds of the Privatisation Fund shall be planned and allocated according to the following proportions: 5.
16. no less than two thirds of the funds shall be earmarked to the restoration of savings of the population and payment of interest on the funds borrowed to this end; 5.
17. up to one third of the funds shall be used for financing the expenditure referred to in subparagraphs 3.2-3.5 hereof.
18. The funds for the restoration of savings of the population and payment of interest on the funds borrowed to this end shall every month and not later than before the tenth day of the following month be transferred to a special savings restoration account of the Ministry of Finance opened at the Lithuanian Savings Bank.
19. The funds for the establishment of the small and medium business promotion fund and the implementation of national programmes approved by the Government of the Republic of Lithuania in accordance with the expenditure estimates without exceeding the fixed amounts shall be transferred to the relevant governmental or municipal institutions responsible for the implementation of the aforementioned programmes.
20. The funds to the special fund for the satisfaction of employment-related claims of employees of enterprises under bankruptcy or bankrupt enterprises shall be earmarked on a quarterly basis in conformity with the expenditure estimates approved by the Government.
21. The share of privatisation funds subject for transfer to the Property Fund (in percentage of the receipts referred to in paragraph 2 hereof) and the expenditure estimate of the funds of the Privatisation Fund shall be approved by the Government every six months on the proposal of the Ministry of Finance. The funds for the fulfilment of the functions of the Privatisation Commission and the remuneration of experts for their services shall be transferred to the Property Fund in accordance with the certificates confirmed by the Manager or Deputy Manager of the Fund.
22. A half-yearly estimate of the funds needed for the financing of expenditure referred to in subparagraphs 3.2 - 3.5 hereof shall be submitted 15 days prior to the start of the next six-month period to the Ministry of Finance by the relevant governmental or municipal institution responsible for the implementation of the programme approved by the Government, as well as by Chairman of the Board of the Special Fund for the satisfaction of employment-related claims of employees of enterprises under bankruptcy or enterprises adjudicated bankrupt, Chairman of the Privatisation Commission, and Chairman of the Board of the Property Fund.
23. The funds received into the Privatisation Fund in freely convertible currency, except those in the base currency shall be sold on the currency market, whereas the base currency accumulated in the Fund's account shall be converted into Litas at the official exchange rate of Litas. The said funds shall be transferred to the account of the Privatisation Fund and shall be used to finance the expenditure referred to in subparagraph 3 hereof.
24. The funds of the Privatisation Fund shall be placed at the disposal of the Ministry of Finance. These funds shall be accumulated in a special treasury account opened for the Ministry of Finance in a bank registered in the Republic of Lithuania.
25. The privatisation funds received from the privatisation of property owned by the municipality shall be transferred into the special account of the municipality upon deducing from the amounts sums due to the Property Fund under the agency agreement signed by the Property Fund and the authorised representative of the municipality. The procedure for the use of the funds allocated to the municipality shall be established by the municipal council. Accounting of the funds of the Property Fund
26. The Ministry of Finance shall be responsible for the management of revenue and expenditure accounting of the Privatisation Fund in conformity with the rules on the formation and use of non-budgetary revenue of institutions and organisations financed from the state budget, approved by Government Resolution No. 579 of 28 July 1993 On Non-budgetary Revenue of Institutions and Organisations Financed from the State Budget of the Republic of Lithuania (Official Gazette No. 34-784, No 71-1339, 1993; No 42-768, 1994; No. 3-51, 1995; No 55-1300, 1996; No 57-1308, 1997).