Romania: Emergency Ordinance No. 138 of 18 October, 2001

This document articulates the amendment that was brought about in Law No. 83 of the Bank Insolvency Act of Romania through an emergency ordinance.

The different articles of the law cover the following aspects of bank insolvency process. These include:

• Institutions to which this law will be applicable;
• The conditions under which a bank can be termed insolvent;
• The tasks and powers of the liquidator;
• The duration within which the institution being declared insolvent can file a petition and appeal against the insolvency decision.

Some of the salient features of the amended ordinance are:

• The collateral set up by the insolvent institution at the time of constitution of the firm can be used to clear all pending financial obligations;
• Once any institution is declared insolvent, it cannot transfer funds to other accounts without taking a prior approval of appropriate institutions;
• The National Bank of Romania, in its capacity as banking supervision authority, can file a petition against the insolvent credit institution and can designate a special administrator to look into the case until the final enforceable court order gets commenced.

The document mentions that indent 1 of article 9, and whole of article 13 will be repealed and that the ordinance will be placed in the parliament for discussion. Once passed by the Government, it will be republished after renumbering of the articles.