Establishment law for general framework and conditions for issuance of guaranteed bonds by issuers of Romanian legal entities, and to regulate rights and obligations conferred by them to their holders has been adopted.
An issuer may issue guaranteed bonds under a guaranteed bond programme, but must obtain prior approval of guaranteed bond programme from National Bank of Romania.
National Bank of Romania decides on an application for approval of a guaranteed bond programme within 60 calendar days from date of submission of application by the issuer.
National Bank of Romania may also withdraw the approval granted for a guaranteed bond programme if provisions relating to guaranteed bonds are not complied with and the issuer does not prove, by means of a plan to remedy the deficiencies, that there are prospects of remedying this situation as soon as possible. Decision of National Bank of Romania to withdraw the approval shall be communicated in writing to the issuer within 5 working days from date of adoption, together with the reasons on which it is based.
