Monitoring of the Federal Legislation dated 12.08.2004

Decision of the Government of the Russian Federation No. 406 of August 7, 2004 on the Restructuring in 2004 of the Debt in State Credits Received in 1992-1998 by the Subjects of the Russian Federation and Russian Organisations through Release of Precious Metals from the State Fund of Precious Metals and Precious Stones of the Russian Federation

Defines the terms and procedure of the restructuring in 2004 of the debt in the mentioned state credits as of December 31, 2003. The restructuring of the debt of the subjects of the Russian Federation is carried out under the condition of redrawing of the debt into the state debt of the subject of the Russian Federation, and the debt of the Russian organisations - under the condition of securing of the obligations in the form of the state guarantee of the subject of the Russian Federation acting as a guarantor under the agreement (contract) of the granted state credit. Decisions on the restructuring of the debt are taken by the Ministry of Finance of Russia.

The Decision provides the form of the application submitted to the Ministry of Finance of Russia and lists the documents submitted together with the application. Defines the schedule of redemption of the amounts of the main consolidated debt due for redemption by the debtor on the annual basis.

Unredeemed residue of the main consolidated debt shall accrue interest on the annual basis to be paid out before December 31 for the use of resources of the federal budget in the amount of 1% annual.

If 40% of the main consolidated debt is paid out before December 31, 2012, 40% of the consolidated interest, fines and penalties, as well as 40% of the amount of the mentioned accrued interest for the use of resources of the federal budget will be written off.

In cases of a full and timely execution of obligations in redemption of the main consolidated debt and interest before December 31, 2015, consolidated interest, fines and penalties will be written off completely.

Decision of the Government of the Russian Federation No. 405 of August 7, 2004 on the Amendments to the Decision of the Government of the Russian Federation No. 626 of October 14, 2003

Amends the list of commodities (equipment, including component and spare parts for it) imported to the Russian Federation under the contracts (agreements) with financing opened before August 1, 1998 inclusive and carried out at the expense of the tied credits of the governments of foreign states, banks and companies attracted under the guarantees of the Government of the Russian Federation.

Besides, there are amendments to the list of organisations having concluded the mentioned contracts for supplies of these commodities.