Terms and Conditions governing loro accounts for foreign banks and financial institutions

Decision of the National Bank of Slovakia
dated 19 December 2003

concerning the conditions of the National Bank of Slovakia
on the maintenance of loro accounts in Slovak korunas for foreign banks
and financial institutions in the National Bank of Slovakia

Under § 6(2g) and § 18 of Act No. 566/1992 Zb. on the National Bank of Slovakia in the wording of Act No. 149/2001 Z.z., the National Bank of Slovakia (hereinafter the “NBS”) has passed the following decision:

§ 1
Scope of Decision

This Decision of the National Bank of Slovakia is to determine the NBS’s conditions on maintaining loro accounts in Slovak korunas for foreign banks and financial institutions in the NBS.

§ 2
Definitions

For the purposes of this Decision of the National Bank of Slovakia:

1. a client of the NBS (hereinafter the “client”) shall mean a foreign bank or a financial institution (such as the International Monetary Fund) for whom the NBS maintains a loro account;
2. an authentication code shall mean a code used to authenticate a  transfer order;
3. a transfer order shall mean an originator’s instruction on the basis of which a transfer of funds is to be made, which is processed by the interbank payment system of the NBS in the order in which it was delivered;
4. a priority transfer order shall mean an originator’s  instruction on the basis of which a transfer of funds is to be made, which is preferentially processed in the interbank payment system of the NBS before other items.

§ 3
Conditions for opening a loro account

A client requesting that a loro account be set up on his behalf, shall be obligated to produce to the NBS:

1. an application for the opening of a loro account signed by the applicant and having a seal attached to it or one sent via a swift or telex message and furnished with an authentication code,
2. a written consent with this Decision of the National Bank of Slovakia,
3. signature specimens of persons authorised to handle the funds on loro account.

In addition to submitting the documents listed in subparagraphs a) to c), a client shall be obligated to exchange with the NBS swift or telex authentication codes.

§ 4
Transfer of funds

(1) The NBS shall transfer the funds in loro accounts exclusively in a cashless manner.

(2) A client shall handle the funds in a loro account by means of transfer orders sent to the NBS via SWIFT, telex or mail and furnished with valid authentication codes or signatures in accordance with valid signature specimens.

(3) A transfer order shall contain:

1. the name and number of an originator’s account;
2. the amount of funds to be transferred and the designation of currency,
3. the name and number of a beneficiary’s account;
4. details allowing for the identification of a beneficiary’s  performing institution,
5. a payment purpose; the list of payment purposes effective from 1 January 2004 is annexed hereto,
6. the place and date of making out the transfer order.

In addition to the details specified in subparagraphs a) to f), a  transfer order sent by mail must also contain an originator’s  signature identical with the signature specimen.

(4) If, in a transfer order, the day of delivering the transfer order to the NBS (or some of the lapsed days) is stated as a day on which the transfer is required to be made and the transfer order is received by 9.00 of the local time on this business day, the funds shall be debited from a loro account maintained with the NBS on this business day; if the transfer order is received after 9.00, the funds shall be debited from the loro account on the next business day.

(5) On the basis of a transfer order, the funds shall be credited to an account of a beneficiary’s bank by the end of the business following the day of debiting the funds from a loro account.

(6) On the basis of a priority transfer order, the funds shall be credited to an account of a beneficiary’s bank by the end of the same business day as is the day of debiting the funds from a  loro account.

(7) No interest shall be accrued on credit balances of loro accounts.

(8) A debit balance on loro account shall be inadmissible. A  transfer order shall be executed on a precondition that an amount of funds to be transferred and a charge for executing the transfer order are covered. A transfer order, in which an amount to be transferred, including a charge for executing the order, exceeds the balance of funds in a loro account on the requested transfer execution date, shall only be executed on this day in the event that on the basis of a priority transfer order, a sum needed to cover the amount to be transferred and the charge for executing the order is credited to the loro account in the NBS interbank payment system by 10.30 of the same day. If a cover for the amount to be transferred and the charge for executing the order is credited after this deadline, the transfer order shall be executed on the nearest possible business day.

(9) A client may ask the NBS to buy or sell Slovak korunas in return for a foreign currency. The NBS may sell Slovak korunas in return for foreign currency at a buy rate according to a list of exchange rates relating to foreign currency funds, which is only issued for the NBS purposes, and buy Slovak korunas in return for foreign currency at a sell rate according to a list of exchange rates relating to foreign currency funds, which is only issued for the NBS purposes.

(10) Statements of a loro account shall be sent by the NBS to a  client in the form of the swift message “MT950”, or by telex usually on a business day following the day of transaction in this account.

§ 5
Fees and charges

(1) No fees shall be charged for the maintenance of loro accounts.

(2) The NBS shall not charge any fees for the execution of transfer orders. A fee in the amount of eight Slovak korunas shall be charged for the execution of a priority transfer order.

§ 6
General and concluding provisions

(1) The NBS shall forthwith notify its clients, who had loro accounts opened with the NBS before the effective date of this Decision of the National Bank of Slovakia, of the abrogation of the hitherto Conditions of the National Bank of Slovakia concerning the maintenance of loro accounts in Slovak korunas for foreign banks in the National Bank of Slovakia. It shall concurrently send them this Decision of the National Bank of Slovakia requesting that they deliver their written consent with this Decision of the National Bank of Slovakia or notify it of the cancellation of their loro account in the NBS and let it know the number of an account to which the NBS is to transfer their funds.

(2) This Decision of the National Bank of Slovakia shall become effective on 1 January 2004.

Marian Jusko
Governor

Issuing unit: the Settlement Department of the Banking Transactions and Foreign Exchange Division

Drawn up by:

Ing. Anna Gajdosova, phone: 5787 2573 Ing. Jozef Chrvala, tel. 5787 2387

Annex to Decision No. 8/2003

List of Payment Purposes Effective from 1 January 2004

A PAYMENT PURPOSES

Group 1 COLLECTIONS AND PAYMENTS FOR GOODS

Group 1 refers to collections and payments relating to exports and imports of goods, the processing and repair of goods and leases for more than 12 months.

110 EXPORTS OF GOODS – collections for goods at an agreed-upon parity, including the interest included in the price of goods, adjusted for adjusting entries, such as recoveries, cancellations, rebates. The collections for goods include the cost of transport, warehousing, insurance, commissions, assembly and others, if these form part of the price of goods. Re-export is covered by the payment purpose 130.

112 FINANCIAL LEASING – EXPORTS – collections and eventual payments related to the exports of tangible assets in the form of their leasing for more than 12 months with a subsequent sale, or returning of instalment payments already made, if the follow-up sale is not realised. Collections and payments related to operating leasing for up to 12 months are covered by the payment purpose 352.

120 IMPORTS OF GOODS – collections for goods at an agreed-upon parity, including the interest included in the price of goods, adjusted for adjusting entries, such as recoveries and cancellations. The payments for goods include the cost of transport, warehousing, insurance, commissions, assembly and others, if these form part of the price of goods.

122 FINANCIAL LEASING – IMPORTS – payments and eventual collections related to the imports of tangible assets in the form of their leasing for more than 12 months with their subsequent sale, or returning of instalment payments already made, if the follow-up sale is not realised. Collections and payments related to operating leasing for up to 12 months are covered by the payment purpose 352.

130 RE-EXPORT – collections and payments for supplies of goods that were purchased and imported from abroad and then sold and exported without any subsequent adjustment and modification.

132 PROCESSING AND REPAIRS – collections and payments related to adding value and repairing the goods that were exported. In the event that the goods were not exported, such goods are covered by the payment purpose 325.

199 OTHER ITEMS OF GROUP 1 – unclassifiable items exhibiting the attributes of group 1.

Group 2 TRANSPORT SERVICES AND TOURISM

A part of the group 2 “transport services” concerns transportation services related to the conveyance of people and the conveyance of goods except for the cost allowed for in the price of goods, such as the cost of transport, warehousing, insurance that is covered by group 1.

A part of group 2 “tourism” concerns buying and selling of foreign currency funds by natural persons and legal entities, collections and payments of natural persons and legal entities in the area of international tourism.

FREIGHT TRANSPORT

210 RAIL FREIGHT TRANSPORT – collections and payments related to the conveyance of goods by rail.

215 SEA FREIGHT TRANSPORT – collections and payments related to the conveyance of goods by sea.

218 RIVER FREIGHT TRANSPORT- collections and payments related to the conveyance of goods by river.

220 AIR FREIGHT TRANSPORT – collections and payments related to the conveyance of goods by air.

222 ROAD FREIGHT TRANSPORT- collections and payments related to the conveyance of goods by road.

225 OTHER FREIGHT SERVICES – collections and payments

1. related to other types of transport, such as collections and payments for forwarding;
2. those related to other services in freight, such as taxes, customs duties and other payments made at the customs;
3. those related to services rendered at border crossings, airports, ports, such as collections and payments for handling of cargo, warehousing, packaging, rescue operations, collections and payments for nautical pilotage, maintenance of transport facilities; for lease of means of transportation with a crew to convey the cargo.

230 RAIL TRANSIT – collections and payments related to railway transport of foreign goods through the territory of the Slovak Republic.

232 ROAD TRANSIT – collections and payments related to the transit of goods via motor traffic through the territory of the Slovak Republic.

235 PIPELINE TRANSIT – collections and payments related to the transit of goods by pipelines through the territory of the Slovak Republic.

238 OTHER TRANSIT – collections and payments related to the transit of goods through the territory of the Slovak Republic by other means of transportation.

PASSENGER TRANSPORT

240 RAIL PASSENGER TRANSPORT – collections and payments related to the conveyance of persons by rail.

242 BUS PASSENGER TRANSPORT – collections and payments related to the conveyance of persons by bus.

245 AIR PASSENGER TRANSPORT – collections and payments related to the conveyance of persons by air.

250 OTHER PASSENGER TRANSPORT – collections and payments for other types of passenger transport, such as collections and payments for river transport, sea transport.

255 OTHER PASSENGER TRANSPORT SERVICES – collections and payments for other services provided at airports, ports, at border crossings and for the lease of means of transportation with a crew to convey passengers.

TOURISM

The payment purposes 260 to 299 solely concern tourist traffic. Cheques, bills of exchange, purchases of foreign currencies relating to commerce are designated by payment purposes according to the nature of a particular transaction.

260 BUYING FOREIGN CURRENCY FOR CASH – collections for purchases of foreign currency funds and cheques for Slovak currency in the form of banknotes, coins and cheques. Purchases of foreign currency funds from exchange offices other than banks are covered by the payment purpose 285.

261 FOREIGN CURRENCY BOUGHT AND CREDITED TO SKK NATURAL PERSON ACCOUNTS – collections for purchases of foreign currency funds and cheques for Slovak currency, where the exchanged amount is credited to a koruna account of a resident or non-resident natural person.

262 FOREIGN CURRENCY BOUGHT AND CREDITED TO SKK LEGAL PERSON ACCOUNTS – collections for purchases of foreign currency funds and cheques for Slovak currency, where the exchanged amount is credited to a koruna account of a resident or non-resident legal entity.

263 FOREIGN CURRENCY DEPOSITS AND WITHDRAWALS VIA A NATURAL PERSON ACCOUNT – deposits and withdrawals of cash, including cheques, via foreign currency accounts of resident and non-resident natural persons.

264 FOREIGN CURRENCY DEPOSITS AND WITHDRAWALS VIA A LEGAL PERSON ACCOUNT – deposits and withdrawals of cash, including cheques, via foreign currency accounts of resident and non-resident legal entities.

265 SELLING FOREIGN CURRENCY FOR CASH – payments for sales of foreign currency funds and cheques for Slovak currency in the form of banknotes, coins and cheques. Sales of foreign currency funds from exchange offices other than banks are covered by the payment purpose 285.

266 FOREIGN CURRENCY SOLD AND DEBITED FROM A SKK NATURAL PERSON ACCOUNT – payments for foreign currency funds and cheques sold for Slovak currency, where the exchanged amount is debited from the koruna account of a resident or non-resident natural person.

267 FOREIGN CURRENCY SOLD AND DEBITED FROM A SKK LEGAL PERSON ACCOUNT – payments for foreign currency funds and cheques sold for Slovak currency, where the exchanged amount is debited from the koruna account of a resident or non-resident legal entity.

270 INWARD TRAVEL – collections of natural persons and legal entities associated with the provision of services in tourism (settlement by both cash and eletronic fund transfers, including cheques). Collections associated with the settlement of spa treatment of non-residents in the Slovak Republic. Recoveries, if any, will be reported on the payments side.

275 OUTWARD TRAVEL – payments of natural persons and legal entities associated with the provision of services in tourism (settlement by both cash and electronic fund transfers). Payments associated with the payment for spa treatment of residents abroad. Recoveries, if any, will be reported on the collections side.

285 EXCHANGE OFFICES OTHER THAN BANKS – collections or payments for foreign currency bought from or sold to exchange offices that are not a bank or a branch office of a foreign bank (hereinafter the “bank”).

295 PAYMENT CARD TRANSACTIONS – collections and payments ensuing from the clearance of payment cards.

299 OTHER ITEMS OF GROUP 2 – unclassifiable items exhibiting the attributes of group 2.

Group 3 OTHER SERVICES

Group 3 refers to transactions relating to the provision of all kinds of services of commerce and non-commerce nature, with the exception of transport services and tourism.

310 POSTAL AND COURIER SERVICES – collections and payments related to postal and courier services, such as collections and payments for transport and delivery of letters, newspapers, brochures and packages.

312 TELECOMMUNICATION AND RADIO COMMUNICATION SERVICES – collections and payments related to telecommunication and radio communication services, such as collections and payments for services associated with the transmission of information by phone, teletext, satellite, television cable.

315 CONSTRUCTION AND ASSEMBLY WORK IN THE SR – payments for construction and assembly work, including the design work performed within the territory of the Slovak Republic, with the exception of construction and assembly costs included in the price of goods. In the event of collections, these are the collections for construction services purchased by non-residents in the Slovak Republic.

316 CONSTRUCTION AND ASSEMBLY WORK ABROAD – collections for construction and assembly work, including the design work performed in other countries, with the exception of construction and assembly costs included in the price of goods. In the event of payments, these are the payments for services purchased by residents abroad.

320 PROFIT-EARNING OPERATIONS WITH GOODS – collections and payments for goods that were purchased abroad and resold without passing the customs frontier of the Slovak Republic and without being cleared at the customs (direct re-export).

325 PROCESSING SERVICES AND REPAIRS – collections and payments for the adding value to and repairing of goods that are owned by an entity from another country and that have not passed the customs border.

329 INSURANCE OF GOODS – collections and payments for insurance of goods against damage or loss during the transport, with the exception of insurance included in the price of goods that is reported under the payment purpose 110 and 120 (indemnity is covered by the payment purpose 616).

330 NON-LIFE INSURANCE – collections and payments for insurance of property and persons against accidental events, including collections and payments for health insurance, insurance against accidents, insurance against natural disasters, travel insurance, insurance of loans and credit cards, with the exception of collections and payments for life assurance, pension insurance and insurance of goods (indemnity is covered by the payment purpose 616).

331 REINSURANCE OF INSURANCE COMPANIES – collections and payments associated with transactions related to the reinsurance of insurance companies and branch offices of foreign insurance companies under a separate regulation^2/ (hereinafter the “insurance company”) for the event that contractually agreed risks occur (settlements of claims between insurance companies are covered by the payment purpose 616 and 617).

332 ANCILLARY SERVICES FOR INSURANCE – collections and payments for other services associated with insurance, such as commissions to agents, fees and charges for intermediation and consulting services in surveying and risk assessment, claim settlement and enforcement of claims.

333 LIFE INSURANCE – collections and payments for life insurance paid by policy holders to insurance companies (indemnity is covered by the payment purpose 617).

334 PENSION INSURANCE – collections and payments for pension insurance paid by policy holders to pension funds (indemnity is covered by the payment purpose 618).

335 FINANCIAL SERVICES – collections and payments for financial services provided by banks and financial institutions under a  separate regulation^1/, except for insurance services. These for example include fees for intermediation services, services associated with the opening of letters of credit, the maintenance of accounts, securities management, financial leasing, factoring. Interest and yields provided by banks and financial institutions are reported under group 5.

340 ADVERTISEMENT – collections and payments for advertising, promotional and publicity services, market surveys and public opinion polls.

345 LEGAL SERVICES – collections and payments for provided legal counselling, representation in courts and administrative proceedings and legislative processes, collections and payments for drafting of legal documents.

346 ACCOUNTANCY AND AUDITING SERVICES – collections and payments for provided accountancy, auditing and tax services.

347 BUSINESS AND MANAGEMENT CONSULTANCY AND “PUBLIC RELATIONS” SERVICES – collections and payments for consultancy activities for business and formation of relations to the public and institutions, such as collections and payments for business policy and strategy, project management, production and financial marketing, expert appraisals, fairs, exhibitions of business nature.

348 RENTAL FOR REAL ESTATE – collections and payments for renting of buildings and apartments. Rent on land is covered by the payment purpose 550.

350 LEASING OF INTANGIBLE ASSETS – collections and payments for renting of films, audio and video recordings and other intangible assets.

352 LEASING OF MACHINERY AND EQUIPMENT – collections and payments for leasing of machinery and equipment for a period of up to 12 months.

355 RESEARCH AND DEVELOPMENT – collections and payments for services provided in the area of fundamental and applied research and development as part of real, social and humanitarian activities.

360 COPYRIGHT ROYALTIES, LICENSING FEES AND OTHERS – collections and payments related to charges for the use of intangible, non-production, non-financial assets and propriety rights, such as collections and payments for patents, copyrights, industrial designs (purchase and sale of intangible, non-production, non-financial assets and proprietary rights is covered by the payment title 650).

363 TRADEMARKS – collections and payments related to charges for the use of trademarks and the use of designs and processes, including the fees for training, assistance and promotion.

365 COMPUTER TECHNOLOGY SERVICES – collections and payments for services provided in the area of computer technology, such as collections and payments for the development of software, its installation, software support, lending of software where a change in ownership has not occurred, operating services, consultations and workshops associated with the operation of computer technology.

366 INFORMATION SERVICES – collections and payments in the information area, such as collections and payments for services provided by press and other agencies, the presentation of information via Internet, the subscription of newspapers and periodicals.

370 DIPLOMATIC REPRESENTATIONS OF THE SLOVAK REPUBLIC ABROAD – payments or eventual recoveries of funds associated with the operation of diplomatic and consular services in foreign countries (does not concern purchases of land and other real property).

372 FOREIGN DIPLOMATIC REPRESENTATIONS IN THE SLOVAK REPUBLIC – collections or eventual recoveries of funds associated with the operation of diplomatic and consular services of foreign countries (does not concern purchases of land and other real property).

376 SELECTED GOVERNMENT REVENUE AND EXPENDITURE – collections and payments of the state in connection with its participation in alliances aiming at political and military co-operation and collections and payments of the state in peace corps, such as collections and payments associated with the operations of peace corps of the Organisation of United Nations and the forces of North Atlantic Treaty Organization.

377 OTHER GOVERNMENT REVENUE AND EXPENDITURE – collections and payments related to administrative expenditure, such as collections and payments associated with the operations of humanitarian non-military missions, information and promotion centres.

378 AGENCY SERVICES – collections and payments for intermediary services, such as commissions, with the exception of services mediated by banks, financial institutions^1/ and insurance companies.

379 SERVICES OF INTERPRETING, TRANSLATION AND ACTIVITIES OF PERSONNEL AGENCIES AND REAL ESTATE AGENCIES – collections and payments for interpreting and translation services, for services connected with the activities of personnel, security and detective agencies, real estate agencies.

382 AUDIOVISUAL SERVICES – collections and payments relating to the use and dissemination of audiovisual works and their lending and introduction to the public.

386 EDUCATION SERVICES – collections and payments for services with focus on training and educational activities, such as collections and payments for lectures, symposiums, congresses and distance learning courses.

387 SERVICES IN THE AREA OF CULTURE, ENTERTAINMENT, SPORTS AND RECREATION – collections and payments for services focused on cultural, sporting, recreational, entertainment and other activities, such as collections and payments connected with the activities of libraries, museums, archives, exhibitions.

388 HEALTH CARE SERVICES – collections and payments related to medical treatment, laboratory services and health care services between local and foreign health care establishments.

390 TECHNICAL SERVICES – collections and payments for services of technical nature, such as collections and payments for building oversight, construction, architecture, design.

392 SERVICES IN THE AREA OF MINING AND PROCESSING INDUSTRIES AND AGRICULTURE – collections and payments related to the extraction and processing of raw materials, agricultural activities, forestry, fisheries and hunting, such as collections and payments for geological surveying, extraction of raw materials, wood cutting, plant selection, animal breeding, insect control. Collections and payments for the right to extract raw materials and to employ inland waters is covered by the payment purpose 550.

393 WASTE MANAGEMENT SERVICES – collections and payments related to the disposal of waste, including nuclear waste, the removal of environmental damage caused by mining and industrial operations, decontamination and reclamation work.

395 REPRESENTATION OF SLOVAK COMPANIES ABROAD – collections and payments related to the cost of representation of companies. Payroll costs, which belong to group 4, are not included.

397 REPRESENTATION OF FOREIGN COMPANIES IN THE SLOVAK REPUBLIC – collections and payments related to the cost of representation of companies. Payroll costs, which belong to group 4, are not included.

399 OTHER ITEMS OF GROUP 3 – unclassifiable items exhibiting the attributes of group 3.

Group 4 INCOME FROM WORK

Group 4 concerns transfers of funds earned by working activities.

410 TRANSFERS OF INCOME FROM WORK – collections and payments for transfers of wages, salaries and other compensations received by natural persons during their work stay abroad (concerns residents abroad and non-residents in the Slovak Republic). Also concerns cases where a Slovak entity employs non-residents with the place of work abroad.

499 OTHER ITEMS OF GROUP 4 – unclassifiable items exhibiting the attributes of group 4.

Group 5 INCOME FROM PROPERTY AND BUSINESS ACTIVITIES

Group 5 concerns collections and payments reflecting income ensuing between residents and non-residents from financial assets and liabilities.

510 INCOME FROM DIRECT INVESTMENT – collections and payments related to the transfer of a share in the profits earmarked for distribution (dividends, royalties) and collections and payments relating to other forms of earnings, such as the revenue from rental of real property.

520 INCOME FROM PORTFOLIO INVESTMENT – collections and payments related to transfer of yield from portfolio investment (this concerns revenue from portfolio investment linked to payment purposes 718 and 818).

530 INTEREST ON LOANS – DIRECT INVESTMENT – interest collected and paid on loans made and received as part of direct investment.

531 INTEREST – PORTFOLIO INVESTMENT – SHORT-TERM – interest collected and paid on portfolio investment made and received (bonds), with the original maturity period of up to one year (this concerns revenue from portfolio investment linked to the payment purposes 720, 725 and 820, 825).

532 INTEREST – PORTFOLIO INVESTMENT – LONG-TERM – interest collected and paid on portfolio investment made and received, such as bonds, financial derivatives – interest rate swaps, with the original maturity period of more than one year (this concerns revenue from portfolio investment linked to the payment purposes 722 and 822).

533 INTEREST ON SHORT-TERM FINANCIAL LOANS – interest collected and paid on short-term financial loans made and received in relation to foreign banks and foreign financial institutions as well as other foreign entities. Also included is interest on government loans.

535 INTEREST ON LONG-TERM FINANCIAL LOANS – interest collected and paid on long-term financial loans made and received in relation to foreign banks and foreign financial institutions as well as other foreign entities. Also included is interest on government loans.

540 OTHER SHORT-TERM INTEREST – interest collected and paid on short-term deposits and time transactions of a short-term nature.

545 OTHER LONG-TERM INTEREST – interest collected and paid on long-term deposits and time transactions of a long-term nature.

550 INCOME FROM LAND – collections and payments ensuing from ownership of land, such as collections and payments relating to rental accruing from agricultural land, built-up land, from the employment of available areas, from forested land, from the employment of inland waters and land-related activities, such as collections and payments for the right to extract raw materials.

599 OTHER ITEMS OF GROUP 5 – unclassifiable items exhibiting the attributes of group 5.

Group 6 UNILATERAL TRANSFERS

Group 6 concerns current and capital transfers of unilateral nature.

611 INHERITANCE – collections and payments in connection with transfer of inheritance.

612 DONATIONS – collections and payments in connection with transfer of donations.

613 GRANTS, WINNINGS AND OTHER UNILATERAL TRANSFERS TO NATURAL PERSONS – collections and payments in connection with grants, the payout of winnings, sponsoring, transfers of funds between family members.

614 GRANTS, DEPOSITS, DISTRAINTS AND OTHER UNILATERAL TRANSFERS TO LEGAL ENTITIES – collections and payments in connection with grants, sponsoring, caution money and seizures.

615 DOWRIES, ALIMONIES, FEES FOR STUDY STAYS AND WORKSHOPS – collections and payments arising from transfers of amounts relating to alimony, dowries and fees for study stays and workshops.

616 NON-LIFE INSURANCE – CLAIM SETTLEMENT – collections and payments relating to claims settlement due from non-life insurance.

617 LIFE INSURANCE IDEMNITY – collections and payments relating to life insurance idemnity.

618 PENSIONS – collections and payments arising from old-age and other pensions.

620 CONTRIBUTIONS TO INTERNATIONAL ORGANISATIONS FROM THE STATE BUDGET – collections and payments made by the government in connection with contributions to international organisations from budget resources. Membership interests in international monetary and financial organisations are included in the payment purpose 770.

622 CONTRIBUTIONS TO INTERNATIONAL ORGANISATIONS FROM EXTRA-BUDGETARY RESOURCES – collections and payments made in connection with contributions to international organisations from other than budget resources. Membership interests in international monetary and financial organisations are included in the payment purpose 770.

625 TRANSFERS IN CONNECTION WITH EXPATRIATION – collections and payments in connection to migration of population.

628 FOREIGN AID OF NON-INVESTMENT NATURE – collections and payments in connection with voluntary contributions to international and non-governmental institutions, such as charitable, scientific and cultural institutions, collections and payments for provided subsidies, scholarships and other forms of financial aid of non-investment nature.

629 NON-INVESTMENT SUBSIDIES – collections and payments in connection with non-returnable subsidies to banks and undertakings intended exclusively for operating purposes (loans and funds to increase the share capital are not included here).

631 GOVERNMENTAL FOREIGN AID OF INVESTMENT NATURE – collections and payments ensuing from governments in return for the destruction or damage of tangible fixed assets (buildings and structures, machinery and equipment, breeding animals and areas planted with permanent growth – vineyards, orchards, hop gardens) or intangible fixed assets (geological surveying, computer software, originals of works of entertainment, literature and art as well as other intangible fixed assets), military operations, political events or natural disasters, such as floods.

632 NON-GOVERNMENTAL FOREIGN AID OF INVESTMENT NATURE – collections and payments ensuing from non-governmental entities in return for the destruction or damage of tangible fixed assets (buildings and structures, machinery and equipment, breeding animals and areas planted with permanent growth – vineyards, orchards, hop gardens) or intangible fixed assets (geological surveying, computer software, originals of works of entertainment, literature and art as well as other intangible fixed assets), military operations, political events or natural disasters, such as floods.

634 GOVERNMENTAL INVESTMENT GRANTS (SUBSIDIES) – collections and payments related to investment grants ensuing from governments which are to fund tangible and intangible fixed assets.

635 NON-GOVERNMENTAL INVESTMENT GRANTS (SUBSIDIES) – collections and payments related to investment grants ensuing from non-governmental entities, such as entrepreneurs or natural persons, which are to fund tangible and intangible fixed assets.

637 PHARE PROGRAMME – collections and payments related to foreign aid under the PHARE programme.

640 FINES, PENALTIES – collections and payments in connection with the payment of fines, penalties, court penalties and other sanctions imposed.

645 TAXES ON INCOME AND PROPERTY – collections and payments related to taxes on personal and corporate income and collections and payments related to property taxes (taxes on real estate, taxes on land and other taxes on property from natural persons and legal entities).

646 TAXES ON CAPITAL – collections and payments related to taxes on the acquisition of assets that include taxes collected irregularly and very rarely on the value of assets or equity (net worth) owned by economic entities or on the value of assets that are subject to transfers between economic entities, such as inheritance tax, donation tax.

650 PURCHASE AND SALE OF PATENTS, LICENSES – collections and payments related to purchases and sales of intangible non-production non-financial assets and proprietary rights, such as collections and payments for patents, trademarks, copyrights, industrial designs, manufacturing processes.

690 OTHER ITEMS OF GROUP 6 – unclassifiable items exhibiting the attributes of the group.

693 FINANCIAL TRANSFERS – collections and payments related to transfer of funds for the purposes of their further investment in financial and non-financial assets, such as collections and payments for purchase and sale of securities, the incorporation of a company. Where the purpose to which the funds are to be applied is known, the payment purpose from groups 7 or 8 will be directly assigned.

695 UNSPECIFIED ITEMS OF PAYMENT PURPOSES FROM GROUPS 1 TO 6 – unclassifiable collections from abroad that exhibit the attributes of payment purposes from groups 1 to 6.

Group 7 TRANSACTIONS WITH FINANCIAL ASSETS VIS-R-VIS THE REST OF THE WORLD

Group 7 concerns transactions with financial assets relating to abroad.

710 FOREIGN DIRECT INVESTMENT – SHARES – collections and payments for purchase and sale of foreign shares by residents. This is a direct investment, where a direct investor – resident owns or acquires at least a 10% interest in the share capital of a  non-resident – direct investment enterprise or at least 10% of its voting rights.

712 FOREIGN DIRECT INVESTMENT – OTHER EQUITY PARTICIPATION – collections and payments related to increases or decreases in participating interests of residents abroad (except for shares). This is a direct investment, where a direct investor – resident owns or acquires at least a 10% interest in the equity capital of a  non-resident – direct investment enterprise or at least 10% of its voting rights.

713 FOREIGN DIRECT INVESTMENT – SHARES OF UP TO 10% – collections and payments for purchase and sale of foreign shares by residents that do not exceed a 10% interest in the share capital of a non-resident – direct investor who owns at least a 10% interest in the share capital of a resident – direct investment enterprise.

714 FOREIGN DIRECT INVESTMENT – OTHER EQUITY PARTICIPATION OF UP TO 10% – collections and payments related to increases or decreases in participating interests of residents that do not exceed a 10% interest in the share capital of a non-resident – direct investor who owns at least a 10% interest in the share capital of a resident – direct investment enterprise.

715 FOREIGN DIRECT INVESTMENT – LOANS PROVIDED BY DIRECT INVESTORS – RESIDENTS – drawdowns and payments on loans provided by a direct investor – resident to a direct investment enterprise – non-resident.

716 FOREIGN DIRECT INVESTMENT – LOANS PROVIDED BY DIRECT INVESTMENT ENTERPRISE – RESIDENTS – drawdowns and payments on loans provided by a direct investment enterprise – resident to a direct investor – non-resident.

717 ACCOUNT POOLING – transfers and reposting of credit balances from a current account of a direct investment enterprise (resident) to a current account of a direct investor (non-resident) or to current accounts of enterprises (non-residents) with property relationship to the direct investor.

718 FOREIGN PORTFOLIO INVESTMENT – SHARES – collections and payments for purchase and sale of foreign shares by residents. This is a portfolio investment where the interest of an investor – resident in the share capital of a non-resident is less than 10%.

720 FOREIGN SHORT-TERM SECURITIES – collections and payments for purchase and sale of foreign securities (except for shares) with a  maturity of up to one year, such as collections and payments for purchase and sale of commercial paper, T-bills, certificates of deposit, participation certificates. Also included here are collections and payments for repo operations.

722 FOREIGN LONG-TERM SECURITIES – collections and payments for purchase and sale of foreign securities (except for shares). This concerns debt securities with a maturity of more than one year, such as bonds, mortgage bonds, participation certificates, certificates of deposit. Also included here are collections and payments for repo operations.

725 FINANCIAL DERIVATIVES – collections and payments arising from operations with financial derivatives, such as premiums on options, premiums on futures and other charges relating to financial derivatives, such as charges for currency swaps, except for the settlement of the underlying instrument, which will be classified to the respective payment purpose according to the nature of the operation executed.

735 PURCHASE AND SALE OF REAL ESTATE ABROAD – collections and payments in connection with purchase and sale of real estate by residents in foreign countries.

740 PROVIDED SHORT-TERM FINANCIAL LOANS – drawdowns and payments on loans made to a non-resident for a period of up to one year.

741 FACTORING – collections and payments related to surrender of short-term export receivables.

745 PROVIDED LONG-TERM FINANCIAL LOANS – drawdowns and payments on loans made to a non-resident for a period of more than one year.

746 FORFAITING – collections and payments related to surrendered long-term export receivables.

750 CURRENT AND SHORT-TERM DEPOSITS – collections and payments in connection with deposits and withdrawals from bank accounts held in foreign countries with a maturity of up to one year.

755 LONG-TERM DEPOSITS – collections and payments in connection with deposits and withdrawals from bank accounts held in foreign countries with a maturity of more than one year.

760 CONVERSION, ARBITRAGE AND OTHER OPERATIONS – collections and payments arising from gainful and other operations with foreign exchange assets, such as foreign currencies, foreign securities, gold. They include dealing operations relating to bank accounts abroad, including the selling and buying of foreign currencies for SKK.

769 FOREIGN EXCHANGE OPERATIONS WITH THE NBS – collections and payments for the buying and selling of foreign currency funds from and to the National Bank of Slovakia for SKK realised via nostro accounts of banks abroad.

770 MEMBERSHIP INTERESTS IN INTERNATIONAL ORGANISATIONS – payments to cover membership interests in international monetary and financial organisations.

790 DOMESTIC PAYMENTS REALISED VIA FOREIGN NOSTROS – collections and payments for goods and services, other receivables and payables and transfers between residents realised in foreign currencies via nostro accounts of banks abroad.

795 TRANSFERS IN AND OUT OF TELLERS – collections and payments in connection with transfers to and from tellers.

799 OTHER ITEMS OF GROUP 7 – collections and payments in connection with other transactions exhibiting the attributes of group 7.

Group 8 TRANSACTIONS WITH FINANCIAL LIABILITIES VIS-R-VIS THE REST OF THE WORLD

Group 8 concerns transactions with financial liabilities in relation to foreign countries.

810 DOMESTIC DIRECT INVESTMENT – SHARES – collections and payments for purchase and sale of local shares to non-residents. This is a direct investment where a direct investor – non-resident owns or acquires at least a 10% interest in the share capital of a  resident – direct investment enterprise or at least 10% of its voting rights.

812 DOMESTIC DIRECT INVESTMENT – OTHER EQUITY PARTICIPATION – collections and payments related to increases or decreases in participating interests in Slovakia, with the exception of shares. This is a direct investment, where a direct investor – non-resident owns or acquires at least a 10% interest in the share capital of a  resident – direct investment enterprise or at least 10% of its voting rights.

813 DOMESTIC DIRECT INVESTMENT – SHARES OF UP TO 10% – collections and payments for purchase and sale of local shares to non-residents that do not exceed a 10% interest in the share capital of a resident – direct investor who owns at least a 10% interest in the share capital of a non-resident – direct investment enterprise.

814 DOMESTIC DIRECT INVESTMENT – OTHER EQUITY PARTICIPATION OF UP TO 10% – collections and payments related to increases or decreases in participating interests of non-residents in Slovakia that do not exceed a 10% interest in the share capital of a  resident – direct investor who owns at least a 10% interest in the share capital of a non-resident – direct investment enterprise.815 DOMESTIC DIRECT INVESTMENT – LOANS RECEIVED BY DIRECT INVESTMENT ENTERPRISE – RESIDENTS – drawdowns and payments on loans made by a direct investor – non-resident to a direct investment enterprise – resident.

816 DOMESTIC DIRECT INVESTMENT – LOANS RECEIVED BY DIRECT INVESTORS – RESIDENTS – drawdowns and payments on loans made by a  direct investment enterprise – non-resident to a direct investor – resident.

817 ACCOUNT POOLING – transfers and reposting of funds from a  current account of a direct investor – non-resident or from current accounts of enterprises – non-residents with a property relationship to the direct investor to a current account of a  direct investment enterprise – resident with a view to covering a  debit balance.

818 DOMESTIC PORTFOLIO INVESTMENT – SHARES – collections and payments for purchase and sale of local shares to non-residents. This is a portfolio investment where the interest of an investor – non-resident in the share capital of a resident is less than 10%.

820 DOMESTIC SHORT-TERM SECURITIES – collections and payments for purchase and sale of local securities (except for shares) with a maturity of up to one year, such as commercial paper, T-bills, participation certificates, certificates of deposit.

822 DOMESTIC LONG-TERM SECURITIES – collections and payments for purchase and sale of local securities (except for shares). This concerns debt securities with a maturity of more than one year, such as bonds, mortgage bonds, participation certificates, certificates of deposit.

825 FINANCIAL DERIVATIVES – collections and payments arising from operations with financial derivatives, such as premiums on options, premiums on futures and other charges relating to financial derivatives, such as charges for currency swaps, except for the settlement of the underlying instrument, which will be classified to the respective payment purpose according to the nature of the operation executed.

835 PURCHASE AND SALE OF REAL ESTATE IN SLOVAKIA – collections and payments related to purchase and sale of real estate by non-residents in Slovakia to the extent defined by the Foreign Exchange Act.

840 RECEIVED SHORT-TERM FINANCIAL LOANS – drawdowns and payments on loans received from non-residents for a period of up to one year.

845 RECEIVED LONG-TERM FINANCIAL LOANS – drawdowns and payments on loans received from non-residents for a period of more than one year.

850 CURRENT AND SHORT-TERM DEPOSITS – collections and payments in connection with deposits and withdrawals from accounts of foreign banks or accounts of non-residents with a maturity of up to one year.

855 LONG-TERM DEPOSITS – collections and payments in connection with deposits and withdrawals from accounts of foreign banks or from accounts of non-residents with a maturity of more than one year.

899 OTHER ITEMS OF GROUP 8 – unclassifiable items exhibiting the attributes of group 8.

Group 9 TRANSFERS OF FOREIGN CURRENCY FUNDS BETWEEN RESIDENT ENTITIES

Group 9 concerns transfers of foreign currency funds between resident banks and between banks and their clients – residents.

910 INTRABANK TRANSFERS – transfers between branch offices and the head office of a bank or between accounts within one organisational subdivision of the respective bank in Slovakia (with the exception of branch offices abroad).

920 INTERBANK TRANSFERS – transfers of foreign currency funds in connection with loans made and received and deposits made and taken between resident banks.

930 FOREIGN CURRENCY LOANS – foreign currency collections and payments in connection with the provision and repayment of loans by a resident bank to resident legal entities and resident natural persons.

940 NATURAL PERSON FOREIGN EXCHANGE ACCOUNTS – collections and payments in connection with operations in foreign exchange accounts of resident natural persons.

945 LEGAL PERSON FOREIGN EXCHANGE ACCOUNTS – collections and payments in connection with operations in foreign exchange accounts of resident legal entities.

946 FOREIGN EXCHANGE MARKET – the buying and selling of foreign currency funds executed between resident banks in the interbank foreign exchange market via resident nostro and loro bank accounts.

947 INTEREST ON NATURAL PERSON FOREIGN EXCHANGE ACCOUNTS – foreign currency payments in connection with the crediting of interest to foreign exchange accounts of resident natural persons. Taxes on these interest are reported on the collections side.

949 INTEREST ON LEGAL PERSON FOREIGN EXCHANGE ACCOUNTS – foreign currency payments in connection with the crediting of interest to foreign exchange accounts of resident legal entities. Taxes on these interest are reported on the collections side.

950 TRANSFERS WITH THE NBS- transfers of foreign currency funds between banks and the National Bank of Slovakia in connection with loans made and received and deposits made and taken.

960 TRANSFERS OF GOVERNMENT LOANS – transfers of foreign currency funds related to the drawing and repayment of government loans.

970 EXCHANGE RATE DIFFERENCES IN ACCOUNTS OF RESIDENTS – a  difference between the foreign exchange position vis-r-vis residents as of the end of a reported month, the opening foreign exchange position vis-r-vis residents as of 1 January of the current year and a difference between collections and payments for the lapsed period converted to SKK and a balance of errors, if any; a resident is taken to mean a legal entity seated in the Slovak Republic, a foreign person who has an undertaking or a branch located within the territory of the Slovak Republic and is entered in the Companies Register or a natural person with a permanent residence or long-term stay within the territory of the Slovak Republic.

971 EXCHANGE RATE DIFFERENCES IN ACCOUNTS OF NON-RESIDENTS – a  difference between the foreign exchange position vis-r-vis non-residents as of the end of a reported month, the opening foreign exchange position vis-r-vis non-residents as of 1 January of the current year and a difference between collections and payments for the lapsed period converted to SKK and a balance of errors, if any; a non-resident is taken to mean a natural person or a legal entity who does not meet the criteria for a resident.

972 CURRENCY SPREAD IN ACCOUNTS OF RESIDENTS – a difference between the buying rate and mid rate and the selling rate and mid rate in relation to accounts of residents.

973 CURRENCY SPREAD IN ACCOUNTS OF NON-RESIDENTS – a difference between the buying rate and mid rate and the selling rate and mid rate in relation to accounts of non-residents.

990 INTERMEDIARY OPERATIONS – collections and payments executed vis-r-vis the rest of the world by other banks or for other banks.

999 OTHER ITEMS OF GROUP 9 – unclassifiable items exhibiting the attributes of group 9.

B PAYMENT PURPOSES SUBJECT TO REPORTING OBLIGATION^3/

Group 5 INCOME FROM PROPERTY AND BUSINESS ACTIVITIES

530 Interest on loans – direct investment

533 Interest on short-term financial loans

535 Interest on long-term financial loans

Group 7 TRANSACTIONS WITH FINANCIAL ASSETS VIS-R-VIS THE REST OF THE WORLD

710 Foreign direct investment – shares

712 Foreign direct investment – other equity participation

715 Foreign direct investment – loans provided by resident direct investors

716 Foreign direct investment – loans provided by resident direct investment enterprise

717 Account pooling

740 Provided short-term financial loans

745 Provided long-term financial loans

Group 8 TRANSACTIONS WITH FINANCIAL LIABILITIES VIS-R-VIS THE REST OF THE WORLD

810 Domestic direct investment – shares

812 Domestic direct investment – other equity participation

815 Domestic direct investment – loans received by resident direct investment enterprise

816 Domestic direct investment – loans received by resident direct investors

817 Account pooling

818 Domestic portfolio investment — shares

840 Received short-term financial loans

845 Received long-term financial loans

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Note:

1/ Act No. 483/ 2001 Z.z. on Banks and on the Modification and Amendment of Certain Laws, as amended
2/ Act No. 95/2002 Z.z. on Insurance Business and on the Modification and Amendment of Certain Laws
3/ Decree of the Ministry of Finance of the Slovak Republic and the National Bank of Slovakia No. 390/1999 Z.z., which is to implement certain provisions of the Foreign Exchange Act, as amended.