Law on the redenomination of domestic currency

Law No. 348 of 14.07.04

Published in Monitorul Oficial al României, Part I No. 664 of 23.07.04 on the redenomination of the domestic currency.

The Parliament of Romania passes the present law.

Art.1.

(1) On 1 July 2005, the leu, Romania's legal tender, shall be redenominated so that 10,000 old lei, in circulation on that date, shall be exchanged for 1 new leu.

(2) Redenomination is the process of reducing the nominal value of the currency.

(3) The new leu shall be Romania's currency unit, hereinafter called the leu and shall be divided into 100 bani.

Art.2.

(1) In compliance with the provisions under Art. 1, the National Bank of Romania shall put into circulation the new banknotes and coins starting 1 July 2005.

(2) The existing banknotes and coins, i.e. the old lei, shall be legal tender until end-December 2006 and shall be accepted for payment at a value calculated according to the provisions under Art. 1 para. (1).

(3) Starting 1 January 2007, the National Bank of Romania shall exchange the old banknotes and coins for the new ones, in accordance with its regulations.

(4) The exchange shall be made at the NBR branches carrying out payments and at the offices of the credit institutions authorised by the NBR Governor's order to perform the exchange, during a three-year period, at most, until 31 December 2009.

Art.3.

During 1 July 2005 - 31 December 2006, the banknotes and coins in circulation before 1 July 2005, hereinafter referred to as old currency, shall be gradually replaced by the new banknotes and coins issued by the National Bank of Romania, hereinafter referred to as new currency.

Art.4.

(1) Starting 1 March 2005 up to 30 June 2006, the prices and tariffs of goods and services shall be displayed in both old and new currency.

(2) The amounts established in the contracts of utility providers, in progress on 1 March 2005, as well as the invoices for utility payments shall be notified to the parties in both old and new currency.

Art.5.

(1) Goods, rights and obligations, which may be valued in cash, created prior to 1 July 2005, shall be converted in accordance with the report referred to in Art. 1, in all the cases where such goods, rights and obligations are subject to valuation, payment or drawing-up of any other legal report.

(2) Conversion in the new currency unit, as provided in para. (1), shall be performed in compliance with the state of affairs on 30 June 2005.

(3) Redenomination is made pursuant to this Law and a previous statement in this respect from authorised persons is not deemed necessary.

(4) On 1 July 2005, the National Office of Trade Register shall record the redenomination of share capital and shares of registered legal entities and shall publish on its website the list of these entities and the new values, along with the old ones. In this case, the publication in Monitorul Oficial al României of the change in the share capital and shares is not deemed necessary.

(5) All the amounts expressed in old currency provided for in the legal acts issued prior to 1 July 2005 are replaced by the amounts expressed in new currency, by division to 10,000.

Art.6.

(1) As of 1 July 2005, the persons referred to in Art. 1 of Law No. 82/1991 - Accounting Act, republished, as subsequently amended and supplemented, shall draw up their financial statements using both the old and the new currency by 31 December 2005.

(2) Annual financial statements for 2005 are made using the new currency, under the conditions set by order of the minister of public finance.

Art.7.

(1) Non-compliance with provisions of Art. 4 shall be deemed as infringement.

(2) The fine charged for the infringement provided for in para. (1) ranges from ROL 10,000,000 to ROL 30,000,000, expressed in old currency, and shall be applied to persons found guilty of non-compliance with the provisions of this Law.

(3) Identification of infringement and implementation of sanctions are to be made by the governing bodies in the Ministry of Public Finance and its subordinated units, the National Control Authority and the National Authority for Consumer Protection, as well as by the authorised personnel of the city halls.

(4) The provisions of this Law related to infringements are supplemented by provisions of Government Ordinance No. 2/2001 on the legal regime of infringements, as approved, altered and supplemented by Law 180/2002, as subsequently amended.