Law on the redenomination of the domestic currency
Law No. 348 of 14 July 2004, published in Monitorul Oficial al Romāniei, Part One, No. 664 of 23 July 2004 including amendments laid down by subsequent regulations
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)* There is no time limit for exchanging ROL notes and coins for RON notes and coins at the National Bank of Romania branches performing cash operations and at the credit institutions authorised to perform such operations by order of the National Bank of Romania Governor.
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.
(3)* From 1 March 2005 to 30 June 2005, the information provided to the public regarding capital market developments shall be expressed in both ROL and RON.
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.
(31)* By 30 June 2005, joint-stock companies and joint-stock limited partnerships shall decide upon the redenomination of the face value of their equity shares so that the new face value shall be a multiple of 100, and upon the adequate increase or reduction in their share capital, by maintaining the number of equity shares and the equity stakes. The extraordinary general shareholders' meeting shall approve the changes to share capital. The same regulations shall apply to every economic entity.
(32)* Increases or reductions in share capital shall be recorded in the Trade Register free of charge, abiding by the provisions of Law No. 31/1990 on commercial companies, as republished.
(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 Romāniei of the change in the share capital and shares is not deemed necessary.
(41)* Where the companies referred to in para. (31) fail to observe the provisions of this Law, the National Trade Register Office shall record ex officio, on 1 July 2005, the reduction in the face value of the equity shares issued by the concerned companies in accordance with the provisions of para. (31).
(42)* The reduction in share capital shall be recorded by the respective companies according to the common norms issued by the Ministry of Public Finance and the National Securities and Exchange Commission.
(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)* Starting 1 July 2005, the entities referred to in Art. 1 of Law No. 82/1991-Accounting Act, as republished, shall prepare their financial statements in RON only.
(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.
*) Amendments pursuant to Law No. 101 of 3 May 2005 published in Monitorul Oficial al Romāniei, Part One, No. 378 of 5 May 2005