Amendment to the Order on Foreign Exchange Act

Order of the Ministry of Finance of the Slovak Republic and the National Bank of Slovakia No. 522/2001 Coll. amending and supplementing the Order of the Ministry of Finance of the Slovak Republic and the National Bank of Slovakia No. 390/1999 Coll. executing certain provisions of the Foreign Exchange Act as amended by the Order No. 477/2000 Coll.

The amendment to the Order to the Foreign Exchange Act has changed provisions relating to a notification duty in connection with securities, pursuant to which a Slovak resident, save for banks and branch offices of foreign banks, fulfils a notification duty according to the provisions of the Foreign Exchange Act towards NBS by notifying of facts relating to securities, specifically

• collections of payments related to sale of domestic (Slovak) securities (shares) to a foreign subject,
• payments connected with purchase of domestic securities (shares) from a foreign subject and
• payments connected with purchase of employee shares and shares otherwise financially on an arm's length basis, the issuer of which is a foreign subject.

In connection with transactions with foreign securities, the amendment stipulates that a foreign exchange licence is not required for issue of foreign securities to be traded in the Slovak Republic or for trading in foreign securities in the Slovak Republic.

Under the amendment to the Order to the Foreign Exchange Act, a foreign exchange licence is also not required for conclusion of an agreement on purchase of a foreign security and for purchase of a foreign security or for receipt of a foreign security from a foreign subject as payment for a monetary receivable of a domestic subject towards the foreign subject.

The foreign exchange licence is neither required for sale of foreign securities.

This Order is in force from 1 January 2002.

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