Approved by the Decision of the Council of Administration of the of Protocol No. 2 as of January 13, 1994

FOREIGN EXCHANGE REGULATIONS IN THE REPUBLIC OF MOLDOVA

These Regulations were written in accordance with the following legislative acts of the Republic of Moldova: “The Law On the National Bank of Moldova" dated July 21, 1995, “Law On Financial Institutions” dated July 21, 1995 and Decree No. 6 dated 13 January 1994 of the President of the Republic of Moldova "On Some Measures to Provide Currency Regulation on the territory of the Republic of Moldova".

CHAPTER I. DEFINITIONS.

The following definitions shall be used for the purpose of foreign exchange regulations:

1.1 AUTHORIZED BANK – a bank possessing a license issued by the National Bank of Moldova for the sale and purchase of foreign currency and for other transactions in foreign currency.

1.2 FOREIGN EXCHANGE OFFICE – an institution possessing a license issued by the National Bank of Moldova for the sale and purchase of foreign currency.

1.3 AUTHORIZED DEALER – an authorized bank or a foreign exchange office.

1.4 CURRENCY – the currency of the Republic of Moldova and foreign currency.

1.5 NATIONAL CURRENCY OF THE REPUBLIC OF MOLDOVA is (the sole legal tender on the territory of the Republic of Moldova) and it is represented by: - Bank notes and coins issued by the National Bank of Moldova being in circulation, withdrawn from circulation or being in the process of withdrawing, but accepted for exchange by the NBM; 2 - Available assets on accounts in Moldovan Lei with a bank located in Moldova or abroad; - Checks, in Moldovan Lei, issued and ensured by the balance of funds on accounts in Moldovan Lei with banks located in Moldova or abroad.

1. 6 FOREIGN CURRENCY is represented by: - Bank notes and coins (except Moldovan Lei) issued by the authorized institutions of foreign countries; in circulation, withdrawn or in process of withdrawing, but accepted for exchange by the respective authorized institutions; - Available assets on accounts in foreign currencies as well as in international currencies and international account monetary units; - Foreign currency checks issued and ensured by balance of funds on foreign currency accounts with banks located in Moldova or abroad. Freely convertible currencies used for the purpose of foreign exchange regulations on the territory of Republic of Moldova are listed in Attachment No 2 to these Regulations.

1.7 SECURITIES – stocks, certificates bonds and derivative securities.

1.8 PAYMENTS ON CURRENT INTERNATIONAL TRANSACTIONS – payments (in Moldovan Lei and foreign currency) made abroad and from abroad, as well as payments between residents and non-residents, for purposes other than transfer of capital and made without any restrictions: 1.8.1 Any payments made in connection with foreign trade and with other current operations, including services rendered and work done, as well as short-term banking and loan services. 1.8.2 Payments in the form of loan interest and of net income from other capital investments. 1.8.3 Payments against a loan and in the depreciation of equipment in direct investments, within the limits of quotas established by the National Bank of Moldova. 1.8.4 Payments and transfers of funds intended for family expenses.

Note: Payments between non-residents on the territory of the Republic of Moldova should be made in accordance with Moldovan effective legislation.

1.9 RESIDENTS - 1.9.1 Individuals permanently residing in the Republic of Moldova for one year or more. 1.9.2 The Government of the Republic of Moldova, and foreign diplomatic missions of the Republic of Moldova. 1.9.3 Legal entities, their association, as well as individual enterprises, and limited partnerships located and registered in Moldova, as well as agencies, located 3 abroad, of such legal entities, individual enterprises, and limited partnerships (subsequently named as "legal entities"). 1.9.4 Subsidiaries located and registered in Moldova, of legal entities, individual enterprises, and limited partnerships established outside Moldova.

The term "residents" shall not include foreign diplomatic missions located in Moldova, or accredited associates of such missions, agencies of international organizations located in Moldova, and subsidiaries, located abroad, of legal entities, individual enterprises and limited partnerships that are residents of Moldova.

1.10 NON-RESIDENTS – any individuals or legal entities that are not residents.

1.11 FOREIGN EXCHANGE OPERATIONS – transactions of buying and selling of foreign currency and payment documents in foreign currency.

1.12 OPERATIONS IN FOREIGN CURRENCY – type of authorized banks’ activity, which includes foreign exchange operations, and other operations with utilization of foreign currency and payment documents in foreign currency.

1.13 EXCHANGE RATE – the price of foreign currency expressed in the national currency of the Republic of Moldova.

1.14 FOREIGN EXCHANGE QUOTATION – setting of exchange rate of the national currency against foreign currencies.

CHAPTER II. IMPORT AND EXPORT OF BANK NOTES, COINS AND CHECKS.

2.1 IMPORT AND EXPORT OF BANK NOTES, COINS AND CHECKS BY RESIDENTS

2.1.1 IMPORT AND EXPORT OF MOLDOVAN LEI BY RESIDENTS

Residents arriving to Moldova shall have the right to import bank notes, coins, and checks in Moldovan currency in an amount not exceeding 2500 Moldovan Lei per individual. Residents departing from Moldova shall have the right to export bank notes, coins, and checks in Moldovan currency in an amount not exceeding 2500 Moldovan Lei per individual.

2.1.2 IMPORT AND EXPORT OF FOREIGN CURRENCY

4 Residents departing from Moldova shall have the right (without presenting, to customs agencies, a foreign currency export permit issued by an authorized Moldovan bank or the National Bank of Moldova, or a customs declaration confirming import of currency into Moldova) to take out foreign currency in the form of bank notes, coins, and checks, in an amount not exceeding 5000 US dollars (or their equivalent) per departing individual. Residents departing from Moldova shall be obligated to present the following to a customs inspection agency for the amount exceeding this limit: a) A foreign currency export permit issued by an authorized bank or the National Bank of Moldova; and/or b) A customs declaration confirming import of this foreign currency into Moldova; and/or c) A transport employee’s currency registration book. Instead of foreign currency, indicated in the above-mentioned documents, is permitted to export an equivalent amount in another foreign currency.

2.1.3 Besides, residents departing from Moldova shall, complying with the above-mentioned conditions, have the right to export bank notes, coins, and traveler’s checks in foreign currency in an amount not exceeding 50,000 US dollars (or their equivalent) per person. Amounts exceeding 50,000 US dollars (or their equivalent) shall be transferred from Moldova on a clearing basis.

2.1.4 Residents departing/arriving from/to Moldova shall be obligated to declare bank notes, coins, and checks in the national currency of the Republic of Moldova, as well as bank notes, coins, and traveler’s checks in foreign currency in their possession to customs inspection agencies.

2.1.5 The following shall be subject to surrender to customs agencies upon departure from Moldova: a) Foreign currency export permits issued by an authorized bank of the National Bank of Moldova; b) Customs declaration on the basis of which foreign currency had been imported into Moldova.

2.2 Import and Export of Bank Notes, Coins, and Checks by Non-residents

2.2.1 Non-residents departing from Moldova shall have the right to export bank notes, coins, and traveler's checks in foreign currency in an amount not exceeding the sum indicated in the customs document concluded according to the procedure determined by Moldovan customs agencies at the time of non-residents' entrance in Moldova. Apart of this, departing from Moldova the non-residents have the right to export foreign currency indicated in the foreign currency export permit, issued by an 5 authorized bank or the National Bank of Moldova, in cases determined by acting legislation and normative acts of the National Bank of Moldova. Instead of foreign currency, indicated in the above-mentioned documents, is allowed to export an equivalent amount in another foreign currency. At the same time, complying with the above-mentioned conditions, non- residents have the right to export from Moldova bank notes, coins, and traveler's checks in foreign currency in an amount not exceeding 50,000 US dollars (or their equivalent) per person. Amounts exceeding 50,000 US dollars (or their equivalent) shall be transferred from Moldova on a clearing basis. Non-residents departing from Moldova shall be obligated to submit the following documents to customs agencies: a) A customs document concluded according to the set procedure, confirming import of foreign currency into Moldova, and/or b) A foreign currency export permit issued by an authorized Moldovan bank or the National Bank of Moldova. 2.2.2 Non-residents arriving to Moldova or departing shall be obligated to declare to customs inspection agencies all bank notes, coins, and checks in currency of the Republic of Moldova, as well as bank notes, coins, and traveler’s checks in foreign currency in their possession. 2.2.3 Import and Export of Moldovan Lei by Non-residents. Non-residents arriving to Moldova shall have the right to import bank notes, coins, and checks in currency of the Republic of Moldova in an amount not exceeding 2500 Moldovan Lei per individual. Non-residents departing from Moldova shall have the right to export bank notes, coins, and checks in currency of the Republic of Moldova in an amount not exceeding 2500 Moldovan Lei per individual.

2.3 The rules mentioned in paragraph 2.1 and paragraph 2.2 do not have an impact upon import to Moldova/export from Moldova of Moldovan Lei and foreign currency by banks, for which the National Bank of Moldova establishes special rules. Import/Export of Moldovan Lei and foreign currency by banks must be confirmed by customs declaration, issued and legalized by customs inspection agencies of the Republic of Moldova.

CHAPTER III. REPATRIATION AND MANDATORY SALE OF FOREIGN CURRENCY.

3.1 Resident legal entities of the Republic of Moldova shall be obligated to deposit in their accounts with authorized banks their proceeds (in foreign currency and Moldovan Lei) from export and other external economic transactions within the terms stipulated in the “Law on Settlement Repatriation of Money, Goods and Services Proceeded from External Economic Transactions” from January 29, 1998. Resident legal entities (except authorized banks) which export goods, rendered services and work done shall be obligated within 180 days from the date of customs 6 declaration which confirms export of goods, or from the date of issuing the invoice (statement, protocol), confirming services rendered or work done, to deposit their proceeds (in foreign currency as well as in Moldovan Lei) on their accounts with authorized Moldovan banks. Funds, earned from the export of goods, services and work done, shall be deposited to the accounts of resident legal entities of the Republic of Moldova trough clearing forms. Foreign currency and Moldovan Lei cash deposits in the accounts of resident legal entities, as payment for export of goods, services and work done, are allowed only in the cases indicated by the present Regulation and other regulations and rules of the NBM. One of compulsory condition for depositing cash money in the accounts of resident legal entities is presenting to the bank of the original of customs declaration that confirms the import of foreign currency and/or Moldovan Lei in Republic of Moldova. The term indicated in the customs declaration for that operation don’t have to exceed 180 days beginning with the date of money depositing to the exporter’s account.

3.2 Removed.

3.3 Removed.

3.4 Removed.

3.5 Hotels and other organizations, that have received special authorization from the National Bank of Moldova to receive foreign currency, shall be obligated to sell it to the authorized bank, if anything else is not stipulated in the license of the NBM. Organizations that, in accordance with effective legislation, shall have the right to confiscate (withdraw) foreign currency, also sell it to the authorized bank, if anything else is not stipulated by the National Bank of Moldova.

3.6 The National Bank of Moldova through authorized banks is supervising the cashing of money proceeded from the export made by resident legal entities of the Republic of Moldova. The method of supervision is stipulated in regulations and rules of the National Bank of Moldova.

3.7 Removed.

CHAPTER IV. FOREIGN CURRENCY ACCOUNTS OF RESIDENTS.

4.1 Residents have the right to open any foreign currency accounts with authorized Moldovan banks. Budget organizations (organizations that are financed from the budget) might have accounts in foreign currency that shall be opened in conformity with effective 7 legislation of the Republic of Moldova and having the authorization of the Ministry of Finance. Trough these accounts should be made only operations that are stipulated in the authorization of the Ministry of Finance of the Republic of Moldova within the limits of normative documents of the National Bank of Moldova. The methods through which the foreign currency operations should be made by budget organizations, that don’t have accounts in foreign currency, is established separately by the National Bank of Moldova together with the agreement of the Ministry of Finance of the Republic of Moldova. 4.2 The issue of local and international cards and their use as non-cash payment instrument is regulated by Regulation No 58/11-02 on the organization by banks of payments with cards on the territory of the Republic of Moldova, approved by the Decision of the Council of Administration of National Bank of Moldova (No.23 / 22.05.97). 4.2.1 International cards may be issued as follows: a) Based on accounts in Moldovan Lei and in foreign currency of legal entities resident of the Republic of Moldova b) Based on accounts in Moldovan Lei and on accounts in foreign currency of type “A” and type “B” of individuals resident of the Republic of Moldova c) Based on accounts in Moldovan Lei and in foreign currency of legal entities and individuals non-resident of the Republic of Moldova

4.2.2 The international cards issued from Moldovan Lei account and/or type “B” foreign currency accounts of individuals may be used abroad for the purpose of: a) Cash withdrawals – 200 $ USD equivalent per day and maximum 5000 $ USD equivalent per month calculated at the official exchange rate of the National Bank of Moldova for the day of cash withdrawal. b) For payment at commercial entities (shops, hotels, petrol stations etc) – 20000 $ USD equivalent per month calculated at the official exchange rate of the National Bank of Moldova for the payment day; 4.2.3 Resident individuals of the Republic of Moldova have the right to make payments by card issued from accounts in Moldovan Lei and in accounts in foreign currency of type “B” only for international current transactions. Resident legal entities of the Republic of Moldova have the right to make payments by card issued from accounts in Moldovan Lei and accounts in foreign currency only for the purpose of paying business trips and related expenses. 4.2.4 Resident individuals possessing cards issued from accounts in Moldovan Lei and accounts in foreign currency of type “B” do not have the right to perform “quasi-cash” transactions (gambling, casino, lottery, deposits, etc.). Resident legal entities are not allowed to make payments by card related to capital transfer and payment of import contracts concluded with non-residents. 4.2.5 Foreign currency gained following the selling of goods or rendering of services within the Republic of Moldova by resident legal entities by means of cards shall be bought by the authorised bank; the equivalent in Moldovan Lei shall be entered in the current account of the relevant legal entity.. 8 On the territory of the Republic of Moldova it is not permitted to withdraw foreign currency cash by cards issued based on accounts in Moldovan Lei and on accounts in foreign currency held by resident legal entities. 4.2.6 Checks in foreign currency of any type (except traveler’s checks) may be issued only from accounts on foreign currency held by resident and non-resident legal entities as well as from accounts in foreign currency held by non-resident individuals and from accounts in foreign currency of type “A” held by resident individuals. Checks in foreign currency issued by authorized banks of the Republic of Moldova from accounts held by resident legal entities may be used only abroad.

4.3 Except for authorized banks, residents shall not have the right to transfer amounts in their foreign currency accounts to the accounts of non-residents, except in the cases foreseen by paragraphs 7.1 and 7. 2. Residents do not have the right to transfer amounts from their accounts in foreign currency to accounts in foreign currency held by other residents, except authorized banks.

4.4 Residents can open and maintain foreign currency accounts in banks located outside Moldova if these residents: a) Are authorized banks, or b) They have permission from the National Bank of Moldova to open such an account. Resident legal entities including commercial banks may open accounts in Moldovan Lei with non-resident banks only after obtaining the authorization of the National Bank of Moldova. Resident individuals shall have the right to open accounts abroad only for their temporary duration of stay abroad. Such accounts may be opened without any authorization of the NBM. Upon returning, resident individuals have to close such accounts.

4.5 Foreign Currency Accounts of Residents Individuals. 4.5.1 Authorized banks shall open two types of foreign currency accounts for resident individuals: "A" and "B". The accounts shall be opened on the basis of a client’s new account application and passport (or a document substituting for it). 4.5.2 Type "A" accounts: 4.5.2.1 Type "A" accounts are supplied with: a) Foreign currency (cash and traveler’s checks) from a source its possessor can confirm by presenting, to the authorized bank: - A customs declaration confirming import of this foreign currency, or a transport employee’s currency registration book; - A foreign currency export permit issued by an authorized Moldovan bank or the National Bank of Moldova. 9 When amounts are deposited into the accounts of clients on the basis of a transport employee’s currency registration book, a certificate from the transport organization indicating the amount to be deposited into the account shall be submitted to the authorized bank. The book bearing a notation from the bank regarding the amount withdrawn shall be returned to the client. An authorized bank depositing foreign currency into the accounts of its clients shall collect from them their customs declarations, foreign currency export permits, and transport organization certificates, and fill them with the day’s documents. If the amount of foreign currency indicated in a customs declaration or in a foreign currency export permit is greater than the amount the client wishes to deposit into his account the above-indicated documents shall also be collected, and a new foreign currency export permit shall be made out for the difference. b) Foreign currency received by transfer from abroad in the name of the account bearer; c) Foreign currency to be paid on checks issued by foreign banks. 4.5.2.2 Foreign currency in a type "A" account shall be paid out to a client by an authorized bank within the limits of the account balance, in compliance with the requirements of paragraph 2.1.2. and 2.1.3. Simultaneously, upon paying out foreign currency cash and traveler’s checks in foreign currency, the authorized bank is obligated to issue to the client the foreign currency export permit. The following transactions may be carried out with funds in a type "A" account within the limits of the account balance: a) Transfer abroad to any legal entity or individual (except payments made by account owners or their entitled persons within the limits of entrepreneurial activity); b) Transfer to another authorized bank in Moldova in the name of the account bearer for deposit in a type "A" account. 4.5.3 Foreign currency accounts opened by authorized banks prior to January 15, 1994 shall be considered to be type "A" accounts. 4.5.4 Foreign currency for which the possessor of the currency is unable to submit documents regarding its source indicated in the paragraph 5.4.2.1. shall be deposited in type "B" accounts. Foreign currency in a type "B" account may be: a) Cash or traveler’s checks paid out by an authorized bank within the limits of the account’s balance without making out a foreign currency export permit; b) Transferred to another authorized bank in Moldova in the name of the account bearer for deposit in a type "B" account. Transfer of funds in foreign currency abroad from types "B" accounts shall not be permitted, except in the case foreseen in paragraph 6. 2. 3. 4.5.5 Moldovan Lei may be paid out from funds in type "A" and type "B" accounts at the buying rate of the authorized bank, applied for the transactions of buying currency in cash from individuals (as foreseen in paragraph 6. 1. 9.). 4.5.6 Funds in type "A" and "B" accounts may not be transferred to other foreign currency accounts of resident and non-resident individuals and legal entities in the given or some other authorized Moldovan bank, except in cases when the right 10 to dispose of the funds arises by way of inheritance, on the basis of a testamentary disposition, or by a court decision (regarding alimony or regarding division of the deposit). The foreign currency transfer should be made in accordance with relevant documents submitted by the individual in original form and, if needed, in form of legalized copies (in accordance with the current legislation). The authorized bank shall, eventually, attach to the day’s documents the above-mentioned original or copies. 4.5.7 Funds in type "A" account redrafted in the name of another bearer according to the procedure indicated in paragraph 4. 5. 6. may be used by the latter in accordance with the conditions of a type "A" account. Funds in type "B" account redrafted in the name of another bearer according to the procedure indicated in paragraph 4. 5. 6. may be used by the latter in accordance with the conditions of a type "B" account.

4.6 Foreign Currency Accounts of Resident Legal Entities. 4.6.1 Resident legal entities might make payments in foreign currency to non- residents, in accordance with paragraphs 7. 1. and 7. 2. of the present Regulation, only from their foreign currency accounts, opened with authorized Moldovan banks (and having received the authorization of the National Bank of Moldova - opened with foreign commercial banks), in the case when the funds of these accounts were deposited within the limits of current international operations, acquired at the domestic , or received by other ways not conflicting with the effective legislation of the Republic of Moldova. Resident legal entities may make payments abroad using only clearing forms of settlement, in which case they shall provide documents confirming the need to make these payments. In the resident legal entities accounts the funds might be deposited using only clearing forms of settlement, if the National Bank of Moldova does not provide otherwise. 4.6.2 Non-residents or persons appointed by them may deposit into the accounts of resident legal entities foreign currency in cash as well as foreign currency in accordance with traveler’s check, simultaneously respecting the following conditions: a) Foreign currency is deposited into the account in case of: - payment of export contracts of goods and rendered services; - non-residents funds’ invested in the social capital of resident legal identities. b) Presenting to the authorized banks the customs declaration that confirms the introduction of respective foreign currency in Moldova. The term of indication on the customs declaration for a specified operation do not have to exceed 180 days from the date the funds have been deposited into the respective legal entity’s account. The original of the customs declaration is hold and is attached to the day documents of the bank. In case when the amount of foreign currency indicated in the 11 customs declaration exceed the amount deposited into the account, the customs declaration is hold and for the difference amount is released the license of foreign currency export. c) Presenting to the authorized bank the mandate issued by non-resident, which is attached to the daily banks’ documents. 4.6.3 Withdrawal of foreign cash and issue of traveler’s check in foreign currency may be only for: a) Travel expenses; b) Transport and custom expenses associated with a business trip. Authorized banks will provide to resident legal entities foreign currency in cash and/or travel checks for travel expenses abroad in stipulated paragraphs a) and b) in the maximum amount, equivalent to 5.000 US$ for one month and for one person (who represents the resident legal entity), issuing the correspondent permission to export foreign currency abroad. The amounts, exceeding this limit, are provided with the permission of the National Bank of Moldova. In the permission to export foreign currency for travel expenses abroad, exceeding the established limit, the authorized bank shall make reference to the correspondent permission of the National Bank of Moldova. If the above-mentioned funds were not used, they are returning to the account and the authorization that gives the permission to export the foreign currency and/or the declaration of importing currency in Moldova have to be returned to the bank.. 4.6.4 Removed.

CHAPTER V. NON-RESIDENT ACCOUNTS.

5.1 Non-resident Accounts in Moldovan Lei. 5.1.1 Non-residents have the right to open accounts in Moldovan Lei with authorized banks of the Republic of Moldova in accordance with the current legislation of the Republic of Moldova. These accounts may include Moldovan Lei received: a) From the sale of foreign currency by non-residents on the Moldovan foreign exchange market; b) As a result of the sale of goods and/or rendering of services by non residents in accordance with the current legislation; c) As income obtained from the possession, use and administration of non- residents’ property on the territory of the Republic of Moldova, as well as income earned by non-resident individuals from work activity on the territory of the Republic of Moldova; d) Amounts obtained in accordance with court decision. 5.1.2 Non-residents shall have the right to convert Moldovan Lei into foreign currency and to transfer the respective foreign currency to accounts opened with foreign banks only if these funds were obtained as a result of a current international transaction, except in the cases indicated in paragraph 7. 4, and to transfer any amount of foreign currency to the accounts in banks abroad only when: 12 a) These non-residents are banking institutions, or b) Payment is allowed by paragraph 7. 3. 5.1.3 Banks from the Republic of Azerbaijan, Republic of Kazakhstan and Republic of Uzbekistan have the right to open correspondent accounts in Moldovan Lei only with the permission of the of the relevant state. Legal entities from the Republic of Armenia, Republic of Azerbaijan, Republic of Belarus, Russian Federation, Republic of Kazakhstan, Republic of Tajikistan, Ukraine and Republic of Uzbekistan have the right to open accounts in Moldovan Lei only with the permission of the Central Bank of the relevant state. Individuals from the Republic of Azerbaijan, Republic of Belarus, Republic of Kazakhstan, and Ukraine have the right to open accounts in Moldovan Lei only with the permission of the Central Bank of the relevant state. Individuals from the Republic of Belarus and from Ukraine, for the duration of stay in the Republic of Moldova, have the right to open accounts in Moldovan Lei without the permission of the Central Bank of the relevant state. 5.1.4 All settlements in Moldovan Lei of non-resident legal entities (including commercial banks) shall be carried out only through a banking transfer. Non-residents may perform payments from their accounts in Moldovan Lei for exported goods, for services rendered by residents as well as other payments in accordance with the current Regulations and the legislation in effect. Moldovan Lei in cash can be provided only from the accounts of foreign official and international resident offices, and representations of non-resident legal entities for: a) Remuneration of the resident offices’ employees; b) Travel and transport expenses associated with business trip; c) Current expenditures related to the maintenance of the resident offices on the territory of the Republic of Moldova, according to the regulation established for the resident legal entities. Moldovan Lei in cash may also be withdrawn from “Loro” accounts of non- resident banks with the view to exporting abroad, in conformity with the Regulation regarding cash flow to/from the Republic of Moldova by Commercial Banks, approved following the Decision of the Council of Administration of the National Bank of Moldova, No 340 of 18.11.98.

5.2 Non-resident Accounts in Foreign Currency. 5.2.1 Non-resident legal entities and individuals have the right to open accounts in foreign currency with the authorized banks from the Republic of Moldova in accordance with the legislation in effect. 5.2.2 The following may be deposited in non-resident accounts: a) Foreign cash or amounts in foreign currency to be paid based on traveler’s checks upon their submission to an authorized bank: – the customs declaration on the basis of which this foreign currency was imported into Moldova; 13 – a currency export permit issued by an authorized Moldovan bank or the National Bank of Moldova. Foreign currency shall be deposited in an account in compliance with the rules foreseen by paragraph 2. 2. 1. b) Foreign currency received by transfer from a non-resident. c) Foreign currency earned from work activity of non-resident individuals employed by diplomatic missions and counsel offices of foreign states, international organizations representatives as well as non-resident legal entities’ representatives located on the territory of the Republic of Moldova. d) Foreign currency to be paid on the basis of registered checks issued by foreign banks. e) Foreign currency gained from international current transactions. f) Foreign currency transferred by residents for the purpose of servicing private foreign commitments, registered by the National Bank of Moldova in accordance with the Regulation on the NBM Registration and Authorization of the Private External Debt approved following the Decision of the Council of Administration of the National Bank of Moldova No 319 of 05-11-98. g) Foreign currency gained from counsel services rendered by foreign diplomatic missions and counsel offices located on the territory of the Republic of Moldova. h) Foreign currency gained following the conversion of means on accounts in Moldovan Lei in accordance with paragraph 5. 1. 1. of the current Regulations. Authorized banks depositing foreign cash and foreign currency traveler’s check into the accounts of non-residents shall collect from them their customs declarations and/or foreign currency export permits, and files them with the day’s documents. If the amount of foreign currency indicated in a customs declaration or in a foreign currency export permit is greater than the amount the client wishes to deposit into his account the above-indicated documents shall also be collected, and a new foreign currency export permit shall be made out for the difference. When non-resident individuals make deposits in foreign currency indicated in point c) of the current paragraph, the documents confirming the obtaining of foreign currency as a result of the work activity on the territory of the Republic of Moldova shall be submitted. 5.2.3 Non-residents shall have the right to transfer abroad, as well as to the accounts from Moldova of residents and non-residents, any amounts from the accounts, on the condition that these payments are made from the funds allowed by paragraph 7.3. Non-resident natural persons may receive foreign currency in cash as well as in travel checks from foreign currency accounts within the limits of account balances. Concomitantly, at the foreign currency cash/ travel checks payment a foreign currency export permission shall be made out. As for non-resident legal entities authorized banks could provide foreign currency in cash only: 14 1) From the correspondent accounts “Loro” of the non-resident banks, within the limits on this account balances, for the export in accordance with stipulations of the Instruction on Cash Import/Export by Banks to/from the Republic of Moldova, approved following the Decision of the Council of Administration of the National Bank of Moldova no. 340 of 18.11.98; 2) From the accounts of official foreign and international resident offices, and resident offices of non-resident legal entities for: a) Travel expenses abroad, transport and customs expenses associated with a business trip in the amount that does not exceed equivalent of 5.000 US$ in cash and/or travel checks for one month and for one person (who represents the non- resident legal entity), with appropriate permission issued by the authorized bank for export of foreign currency abroad. The amounts, exceeding this limit, are provided with the authorization of the National Bank of Moldova. In the permission to export foreign currency for travel expenses abroad, exceeding the established limit, the authorized bank shall make reference to the corresponding authorization of the National Bank of Moldova; b) Remuneration of non-resident employees of foreign official and international resident offices, resident offices of the non-resident legal entities, conducting their business in the Republic of Moldova on the basis of the contract (agreement) in accordance with the current legislation. 5.2.4 Moldovan Lei may be paid out of funds held in non-resident individuals’ foreign currency accounts at the buying rate of the authorized bank, applied for transactions of buying currency in cash from individuals (as foreseen in paragraph 6.1.9). Moldovan Lei may be paid out of funds held in non-resident legal entities’ foreign currency accounts at the buying rate of the authorized bank, as foreseen in paragraph 6. 1. 8. of these Regulations.

CHAPTER VI. TRANSACTIONS IN FOREIGN CURRENCY.

6.1 The Foreign Exchange Market 6.1.1 The National Bank of Moldova shall carry out foreign currency sales and purchase transactions with authorized dealers, foreign banks, and the Government of the Republic of Moldova. Authorized dealers shall have the right to purchase and sell foreign currency to both residents and non-residents (except non-resident banks) in accordance with the provisions of licenses issued to them, as well as on the basis of standards and other documents developed by the National Bank of Moldova. The authorized banks can order non-resident banks to buy non-convertible foreign currency, and to sell any foreign currency in the domestic foreign currency market. 6.1.2 The Government of the Republic of Moldova may purchase and sell foreign currency through the National Bank of Moldova and authorized banks. 15 6.1.3 The National Bank of Moldova and authorized banks may buy and sell foreign currency at the Inter Bank Foreign Currency Exchange. Fixing sessions of the Inter Bank Foreign Currency Exchange take place on daily basis in accordance with the Procedure of Fixing Sessions of the Inter Bank Foreign Currency Exchange approved by the National Bank of Moldova. 6.1. 4 Removed. 6.1.5 The Administrative Council of the National Bank of Moldova shall determine the list of currencies for which the exchange rate shall be established at fixing sessions. 6.1.6 The procedure of performing foreign exchange operations out of the Inter Bank Foreign Currency Exchange shall be set following the Agreement on Inter Bank Foreign Currency Exchange Operations Market. 6.1.7 The National Bank of Moldova shall publish the rate of exchange of the Moldovan Lei upon foreign currencies. The exchange rate of Moldovan Leu against US Dollar shall be set up at the fixing sessions of the Inter Bank Foreign Currency Exchange or following other methods set by the National Bank of Moldova. The rate of exchange of Moldovan Leu upon other foreign currencies shall be determined by way of the cross exchange rate with respect to the US dollar, quoted at the international foreign exchange market (data of the informational system Reuters) at 12:30 AM of the corresponding day. The exchange rate of the Moldovan Leu upon soft currencies shall be determined on the basis of average exchange rates at the foreign exchange market of the corresponding day. 6.1.8 Authorized banks shall independently set the rates of buying and selling of foreign currencies on transactions with legal entities. These exchange rates can be set the same for all clients – legal entities, or individually for each client – legal entity. 6.1.9 Authorized banks and foreign exchange offices have the right to carry out transactions of buying and selling bank notes, coins, and traveler’s checks in foreign currency with individuals at the buying and selling rates determined independently by these authorized dealers.

6. 2 Foreign Currency Transactions of Residents and Non-residents. 6.2.1 Residents, except for authorized dealers, and non-residents shall have the right to purchase foreign currency only from authorized dealers, and sell foreign currency only to authorized dealers. 6.2.2 Resident legal entities, except for authorized dealers, shall have the right to purchase foreign currency only in the event that this foreign currency is needed for payments allowed by paragraphs 7. 1. and 7. 2., as well as for reimbursement of in foreign currency, received from authorized banks in Moldova in accordance with the effective legislation. 6.2.3 Resident individuals shall have the right to make transfers and payments on current international transactions in foreign currency, upon submission of documents confirming the necessity to make these payments. The above-mentioned documents shall be submitted in original form and also in form of authenticated 16 transcripts according to the legislation in force. The transcripts of documents are filed in bank’s current business day register. Foreign currency transfers in an amount exceeding 1000 US dollars (or their equivalent) need the authorization of the National Bank of Moldova. Resident individuals have the right to transfer foreign currency acquired on the internal foreign currency market of the Republic of Moldova provided for family expenses in the amount of up to 1000 USD (or their equivalent) per quarter. Such transfers may be performed only to the benefit of parents, children, and spouses and only with the authorization of the National bank of Moldova. Such authorization is issued on the basis of a written request submitted by the resident individual, identification card and documents that confirm the kinship relations between the relevant individual and the recipient. 6.2.4 If during 30 banking days, from the moment of foreign currency purchase by resident legal entities, these entities did not utilize purchased currency for settlements with non-residents, in accordance with paragraphs 7.1 and 7.2, these legal entities, except for authorized banks, shall be obligated to offer it for sale to one of the authorized banks after expiration of the set up deadline. 6.2.5 Resident legal entities shall not have the right to acquire foreign currency at the foreign exchange market if the contract provides payment in Moldovan Lei. 6.2.6 Non-resident individuals importing bank notes, coins, and checks in foreign currency into Moldova and purchasing bank notes and coins in Moldovan Lei with these funds, shall have the right to offer the bank notes and coins in Moldovan Lei for sale to an authorized dealer when departing from Moldova.

6.2.7 PURCHASE AND SALE OF FOREIGN CURRENCY WITH THE PERSONAL RESOURCES OF CITIZENS. a) Authorized dealers may acquire traveler’s checks in foreign currency and foreign currency cash from resident and non-resident individuals. A purchase of an amount above 50,000 US dollars (or their equivalent) from one client shall be made with the permission of the National Bank of Moldova; b) Authorized dealers may sell to resident and non-resident individuals traveler’s checks in foreign currency and foreign currency cash. A foreign currency export permit is not issued in case of selling foreign currency to individuals. At the same time authorized dealers shall be obligated to inform their clients regarding established regulations and rules of importing and exporting foreign currency into/out of the Republic of Moldova. The authorized dealers are obliged to inform the clients, when selling foreign currency to individuals, about the possible restrictions on importing/exporting foreign currency and Moldovan Lei into/out other states in accordance with these states’ legislation. 6.2.8 The National Bank of Moldova has the right to establish a limit on the amount of cash in foreign currency available in the vaults of resident legal entities that have obtained the authorization of the National Bank of Moldova to receive 17 foreign currency (in cash, cards, and checks). Amounts exceeding the limit shall be surrendered to an authorized bank for ultimate selling. Resident legal entities that do not have the authorization of the National Bank of Moldova, are not allowed to keep foreign currency in their vaults, except the means received from the authorized bank for travel allowances, that may be kept in the vault for the period of time permitted by the legislation in force of the Republic of Moldova. 6.2.9 Resident and non-resident individuals may receive transfers in foreign currency from abroad through the authorized banks. Moldovan Lei may be paid out of transfers from abroad in favor of individuals at the buying rate of the authorized bank, applied for transactions of buying currency in cash from individuals (as foreseen in paragraph 6. 1. 9.). Transfers from abroad in foreign currency made in favor of individuals, in accordance with recipient’s will may be: – Deposited in his foreign currency account opened with authorized bank; – Paid out in foreign currency cash / in traveler’s checks, concomitantly issuing an export permit for this currency in conformity with currently effective legislation. – Transferred abroad. 6.2.10 Authorized banks may perform transfers abroad based on orders of resident individuals and according to paragraph 6.2.3 of these Regulations. For performing the above-mentioned transfers the authorized bank can receive from individuals: – Foreign currency, without submitting customs documents confirming the import of this foreign currency in Moldova, or the foreign currency export permit, or – Moldovan Lei that will be afterwards converted into foreign currency at the exchange rate used by the bank for operations of selling foreign currency in cash to individuals at the day the funds’ receiving. Except in cases mentioned above, the authorized bank can receive foreign currency from resident and non-resident individuals on the basis of customs document, confirming the import of foreign currency in Moldova, or on the basis of a permit to export the foreign currency abroad, and according to their orders, it can make a transfer abroad within the limits of the amount indicated in the said documents. Documents, which served as basis for transfer performance, shall be enclosed to the daily documents of the authorized bank. The authorized bank must issue a foreign currency export permit for the difference between the amount indicated in the above-mentioned documents and the transferred amount. The individual shall, when performing a transfer abroad, mandatory indicate, besides other information, the transfer purpose and recipient. The performance of above-mentioned transfers in entrepreneurial activities is not allowed.

CHAPTER VII. ALLOWED PAYMENTS AND TRANSFERS OF FUNDS.

18 7.1 Resident legal entities shall have the right to make payments to non- residents only as follows: a) If payments are made within the framework of current international transactions; or b) For the purpose of payment of private external debts registered by the National Bank of Moldova in accordance with stipulations of the Instruction on Registering and Authorization by the National Bank of Moldova of External Debts approved following the Decision of the Council of Administration of the National Bank of Moldova no. 319 of 05.11.98; c) For the purpose of payment of state debts and guarantees registered by the Ministry of Finance of the Republic of Moldova in accordance with stipulations of the Law on State Loans and State Guarantees no. 943-XIII of 18.07.96; d) The authorization issued by the National Bank of Moldova stipulates other payment performances to non-residents’ advantage.

7.2 On resident legal entities disposal the authorized banks shall make the payments for the import in the way stipulated by the regulations and rules of the National Bank of Moldova. These legal entities shall be obligated to import the goods and services under the payments for import or to deposit to their accounts the amounts transferred in advance for the import that has not been made within the terms stipulated in the “Law on Settlement Repatriation of Money, Goods and Services Proceeded under External Economic Transactions” from January 28, 1998. The National Bank of Moldova through commercial banks is supervising the import of goods and services by resident legal entities of the Republic of Moldova that transfers money for import. The method of supervision is stipulated by the regulations and rules of the National Bank of Moldova.

7.3 Non-residents shall have the right to transfer funds in foreign currency from Moldova exclusively if these funds: a) Were registered on the account according to the stipulations of paragraph 5.2.2 of this Regulations; b) Had been previously placed on a Moldovan Lei deposit in an authorized bank on the territory of the Republic of Moldova, and were met the conditions set in the paragraph 5.1.1.

7.4 Removed.

CHAPTER VIII. PAYMENTS EFFECTED BY AUTHORIZED BANKS.

8.1 Authorized banks shall have the right to transfer amounts in foreign currency exclusively when: a) Such transfers are permitted by the provisions of these Regulations; b) The recipients of the transfers are authorized banks; 19 c) Removed. d) Removed.

8.2 The authorized banks have the right to effectuate, at the resident individuals disposal, payments in Moldovan Lei within the limits of the international current operations, observing the stipulations from paragraph 6.2.3.

CHAPTER IX. TRANSFER OF CAPITAL.

9.1 Transactions in foreign currency and Moldovan Lei related with the transfer of capital from non-residents to residents or from residents to non-residents include: 9.1.1 Direct investments – that is, equity investments in an enterprise, setting up of branches and affiliate enterprises, with the purpose of deriving income and obtaining the rights to participate in the administration of enterprise (acquiring the control package of shares). 9.1.2 Portfolio investments – that is, placing of capital into the shares of enterprises (without acquiring the control package), bonds, and other securities with the purpose of deriving income. 9.1.3 Transfers in payment of the right of ownership of a building, construction, or other property, including land and its subsoil, considered by legislation of the country of its location to be real property, as well as other real property rights. 9.1.4 Deferment of payment on import of goods, work, and services for a period of more than one year from the date the import of goods was made (external commercial loan). 9.1.5 Long-term and short-term loans (including deferred), and guarantees (sureties) on them. 9.1.6 Investment of resources in accounts and deposits. 9.1.7 Other investments.

9.2 Residents shall be obligated to register at the National Bank of Moldova all transactions associated with receiving loans and guarantees from non-residents, as well as receiving of foreign capital. Residents must obtain the authorization of the National Bank of Moldova for each transaction of granting loans and guarantees to the non-residents, as well as other transfers of capital to the non-residents.

9.3 The Administrative Council of the National Bank of Moldova shall have the right to establish limits above which capital may be transferred abroad by residents only on the basis of a special permit from the National Bank of Moldova.

9.4 Non-residents making investments in Moldova shall be obligated to register transferred capital in accordance with the Law of the Republic of Moldova "On Foreign Investments. "

20 9.5 The National Bank of Moldova shall have the right to establish the obligatory presentation by the residents of reports on effected operations in foreign currency and Moldovan Lei concerned to the transfers of capital between residents and non-residents.

CHAPTER X. Removed.

CHAPTER XI. OBLIGATIONS OF AUTHORIZED DEALERS.

11.1 In their activities, authorized dealers shall be obligated to display the necessary conscientiousness and care to ensure that any payments, transfers, or foreign exchange transactions conducted by residents and non-residents shall be in accordance with provisions of these Regulations and normative acts published on their basis.

11.2 Authorized banks purchasing foreign currency from and selling foreign currency to residents and non-residents shall be obligated not to exceed the quotas of the open currency position established by the National Bank of Moldova.

11.3 All authorized dealers shall be obligated to submit reports on transactions in foreign currency to the National Bank of Moldova under conditions determined by the National Bank of Moldova.

11.4 Authorized banks shall be obligated to oversee compliance of residents and non-residents with the provisions of these Regulations, as well as other normative documents developed by the National Bank of Moldova.

CHAPTER XII. EFFECTIVE DATE.

These Regulations shall take effect as of January 17, 1994.

21 ATTACHMENT No. 1

Removed

ATTACHMENT No. 2

LIST OF HARD CURRENCIES

Item No. Currency ------1. Danish krone 2. Icelandic krona 3. Norwegian krone 4. Swedish krona 5. Australian dollar 6. Canadian dollar 7. New Zealand dollar 8. U. S. dollar 9. Greek drachma 10. Portuguese escudo 11. Euro 12. Belgian franc 13. Swiss franc 14. French franc 15. Luxembourg franc 16. Netherlands guilder 17. Irish pound 18. Italian lira 19. Pound sterling 20. Finnish markka 21. Deutsche mark 22. Spanish peseta 23. Austrian schilling 24. Japanese yen

ATTACHMENT No. 3

Removed

22

NOTE: The text of these Regulations includes the amendments from the following supplements approved by the decisions of the Council of Administration of the National Bank of Moldova: • Supplement No. 1: Protocol No. 6 as of January 27, 1994; • Supplement No. 2: Protocol No. 11 as of March 1, 1994; • Supplement No. 3: Protocol No. 22 as of May 6, 1994; • Supplement No. 4: Protocol No. 33 as of July 21, 1994; • Supplement No. 5: Protocol No. 35 as of August 2, 1994; • Supplement No. 6: Protocol No. 50 as of October 31, 1994; • Protocol No. 3 as of February 1, 1995; • Supplement No. 7: Protocol No. 18 as of June 19, 1995; • Supplement No. 8: Protocol No. 21 as of July 11, 1995; • Supplement No. 9: Protocol No. 25 as of September 8, 1995; • Protocol No. 40 as of December 26, 1995. • Protocol No. 23 as of May 17, 1996. • Protocol No. 53 as of November 29, 1996 • Protocol No. 11 as of July 8, 1997 • Protocol No. 142 as of May 22, 1998 • Protocol No. 296 as of October 27, 1998 • Protocol No. 303 as of October 30, 1998 • Protocol No. 200 as of July 26, 1999 • Protocol No. 403 as of December 23, 1999 • Protocol No. 415 as of December 30, 1999 • Protocol No. 340 as of November 14, 2000

Note:

This English language version of the Regulations is for guidance only and while every care has been taken in its preparation, the National Bank of Moldova, its officers and agents accept no responsibility or liability for losses arising from errors in translation. The version is the legal version of these Regulations.