Decree Ministr- Chairman of the State Planning Commission and Minister of Finance No. 46 / 1963 Coll.
Decree of the Administration-President of the State Planning Commission and Minister of Finance on rationalisation measures of an investment nature in state economic organisations
Valid
Effective from 25.06.1963
46
DECLARATION
Administration - Chairman of the State Planning Commission and Minister of Finance
of 6 June 1963
on rationalisation measures of an investment nature in state economic organisations
The Minister-President of the State Planning Commission and the Minister of Finance, after consulting the participating ministers and central authority heads of the Ministry of Finance, pursuant to Section 11 of Act No. 83 / 1958 Coll., on the modification of financial planning and financial management of national enterprises and other economic organisations of the state socialist sector, and under Section 26 of Act No. 165 / 1960 Coll., on the Third Five Year Plan for the Development of the National Economy of the Czechoslovak Socialist Republic:
General provisions
The rationalisation measures of an investment nature (hereinafter referred to as "rationalisation measures') are an important means of technical development in industry and other sectors of the national economy and help to ensure faster growth in social productivity and better use of basic resources. Their implementation shall be ensured for state economic organisations (hereinafter referred to as" organisations'):
(a) in the investment construction plan within the total volumes of limited investments and general repairs provided for by the plan or by the amendment of the limited investment plan and general repairs. To this end, the authorities drawing up the plan, i.e. central investors and other authorities and organisations, shall also establish adequate reserves within the limits of the approved indicators;
(b) above the volumes of limited investments and overhauls provided for by the Czechoslovak State Bank loan plan (hereinafter referred to as "the Bank") in those cases where the need for rationalisation measures will only result during the year and cannot be secured under (a). Such rationalisation measures must not be carried out at the expense of the planned tasks, either by the customer or by suppliers (in the case of the supply method), and must comply with the following conditions.
(1) A rationalisation measure the implementation of which is ensured in accordance with Article 1 (b) shall mean a measure,
(a) making savings or other improvements to the economic outcome (hereinafter referred to as "savings") sufficient to fully repay a loan for rationalisation measures of an investment nature (hereinafter referred to as "credit");
(b) whose total cost does not exceed 0,5 million in each case for each individual rationalisation measure (individual complete action);
(c) which shall be put into service no more than one year after the date of the first drawing of the loan.
(2) In implementing the rationalisation measure, organisations are primarily using their own material reserves and local available raw materials. Otherwise, general rules on material technical supplies apply to the procurement of material and products for the implementation of the credit rationalisation measures.
(3) The rationalisation measures linked to the new construction or to the complete reconstruction of individual buildings and operating files can only be provided under § 1 (a).
(1) In order to cover the costs of rationalisation measures within the meaning of Article 1 (b), whether for supply or for own production, the bank grants a loan to the organisation (*) which the organisation is obliged to pay up no more than two years from the date of its planned entry into service.
(2) The loan is repaid on the savings resulting from the rationalisation measure. In the current year, credit payments are paid by the organisation on the basis of overpaid profits or overpaid savings, using mainly its share of the preplanned profit (savings). If there is not enough extra profit (savings) to repay the loan, the organisation shall pay the remaining amount of the funds representing the company's financial reserve. * *) If the funds are not sufficient, the organisation shall pay the repayment of the loan from the funds earmarked for limited investment, unless the superior authority grants the subsidy from its financial reserve.
(3) In the following years, the organisation plans credit instalments as a use of the company's financial reserve and, if not created or not sufficient, as a use of profit or as a use of the remuneration of planned losses.
More detailed provisions on the granting and repayment of credit, control and penalties
(1) The credit claim organisation shall submit to the branch of the Bank for each individual rationalisation measure:
(a) an application for credit using a form the model of which is attached;
(b) the calculation of the effectiveness of the rationalisation measure, the proposal for the start-up date of the works and the putting into service of the rationalisation measure, the proposal for the deadline by which the planned savings are to be achieved and the proposal for repayment deadlines.
(2) The Bank is authorised to request the necessary project and budget documentation from the organisation; the authorisation shall be used if there is a greater degree of rationalisation or if it is necessary to verify the effectiveness of the rationalisation measure or the reality of the time limits within which the planned savings or repayment of the loan are to be achieved.
(1) A loan may also be granted to an organisation which has an unplanned loss or does not generate a planned profit or has a loan outstanding within the deadline. If the organisation has a loan outstanding within the deadline on the ground that it did not repay the repayment of the loan granted for the rationalisation measure, the branch of the bank shall discuss with the organisation on the basis of an analysis of the causes of the measures to remedy this situation. If the organisation complies with the agreed measures, it may be granted a loan for further rationalisation measures.
(2) Settlement documents for the costs of the credit rationalisation measures are paid directly by the bank from the credit account for the rationalisation measures.
(1) The branch of the bank may grant the loan to the organisation only after the credit limit has been allocated to the relevant rationalisation measures by the Bank's headquarters. The bank's head office shall request the allocation of the limit from the bank authority which is entitled to grant the loan.
(2) The consent to grant the credit gives
(a) up to 100,000.
(b) up to 250,000.
(c) up to 500,000.
(3) If a regional branch or sector management of the bank's headquarters gives its consent to the loan, the branch will send them the loan documents (Section 4) with its own opinion.
(1) The organisation is obliged to start paying back the loan within one month of the date on which the rationalisation measure was to be put into operation.
(2) If the rationalisation measure has not been put into operation within the planned time limit without the fault of the organisation, the organisation may request a deferral of the loan instalments.
(3) The repayment of the loan may be postponed for a maximum period of three months, but the annual period for putting the rationalisation measure into operation [Paragraph 2 (1) (c)] or the two-year period for repayment of the loan (Paragraph 3 (1)) may not be exceeded.
(4) The institution of the bank referred to in Section 6 (2) shall decide on the deferral of the loan instalments.
(5) The organisation shall submit transfer orders to the branch of the bank at the beginning of each quarter, indicating the dates on which they are due. If the organisation simultaneously pays more loans for rationalisation measures, the branch of the bank shall set the aggregate instalments for each month each quarter separately.
(6) The organisation may agree to repay the entire loan in one instalment with the bank's branch. If the organisation achieves higher savings during the repayment period, it shall request a new adjustment of the instalments.
(1) The Bank may, while carrying out work on the rationalisation measure, require the organisation to report to it within agreed deadlines on the progress of the rationalisation measure. After putting into service each rationalisation measure, the organisation shall, upon request by the Bank, assess the effectiveness of the rationalisation measure.
(2) If necessary, the bank's branch will verify on-the-spot whether the credit rationalisation measure is implemented economically, whether the loan is used for a specified purpose and whether it is repaid in amounts corresponding to the savings actually achieved.
(3) If work on the implementation of the rationalisation measure is interrupted and is not continued, the organisation is obliged to notify the bank's branch without delay and repay the loan.
(4) If the organisation does not use the loan for the intended purpose, or if it provides incorrect information to the bank, the bank shall apply sanctions in accordance with the applicable rules. *)
Provisions common and final
(1) The State Planning Commission, together with the Ministry of Finance, may, for serious economic reasons, authorise an exemption from the provisions of Part One of this Order.
(2) Exceptions and derogations from the provisions of Part Two of this Order are authorised by the Director General of the Czechoslovak State Bank.
The Order of the Minister of Finance and Administration of the State Office of Planning No. 17 / 1959 Ú. l., on the rationalisation measures of certain state socialist sector organisations, the Finance Minister's Directive No. 9 / 1957 Ú. l., on the granting of a loan for rationalisation measures by the Investment Bank, and the State Bank's Directive No. 8 / 1957 Ú. l., on the granting of a loan for rationalisation measures, as amended by the Guidelines of the State Bank of Czechoslovakia No. 18 / 1959 Úl., amending certain provisions on the granting of loans for rationalisation measures.
This decree shall take effect on the day of its publication.
Minister of Finance:
Děuriš v. r.
Minister-Chairman of the State Planning Commission:
Indra v. r.
Annex to Decree No 46 / 1963 Coll.
[Paragraph 4 (1) (a)]
Model - Application for credit
*) The rationalisation measures of an operational nature are granted, according to their nature, for future costs, for stock credit, etc., under the conditions laid down by the applicable operating credit rules.
* *) Point 4 of Part A "Guidelines to ensure the transition to a special method of financing enterprises and national committees for 1963," published in the Ministry of Finance Bulletin No 7 / 1962.
*) Decree of the Director General of the Czechoslovak State Bank No. 142 / 1960 Coll., on providing operating credits and applying sanctions.
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Regulation Information
| Citation | Decree Ministr- President of the State Planning Commission and Minister of Finance No. 46 / 1963 Coll., on rationalisation measures of an investment nature in state economic organisations |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 25.06.1963 |
|---|---|
| Effective from | 25.06.1963 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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