COUNCIL OF ADMINISTRATION OF THE NATIONAL BANK OF MOLDOVA DECISION no.

201 of 9 August 2007 On the approval of the Instruction on placement, circulation and redemption of state securities issued in book-entry form With the view of bringing in line with the provisions of Law no. 419-XVI of December 22, 2006 on public debt, state guarantees and state re-financing, based on Art.11, 26 and 40 of the Law on the National Bank of Moldova, the Council of Administration of the National Bank of Moldova HAS DECIDED: 1. To approve the Instruction on placement, circulation and redemption of state securities issued in book-entry form (see attached). 2. To abrogate the decision of the Council of Administration of the National Bank of Moldova, minutes no.2 of January 20, 1995 on the approval of the Instruction on placement, circulation and redemption of state securities issued in book-entry form (Official Monitor of the Republic of Moldova no.65-66/82 of 10.10.1996), with further modifications and completions. 3. This decision shall be published in the Official Monitor of the Republic of Moldova and shall come into effect on September 9, 2007. Chairman of the Council of Administration of the National Bank of Moldova Leonid TALMACI

Approved by Decision of the Council of administration of the National Bank of Moldova

Approved Ministry of Finance of the Republic of Moldova

No.201 of August 9, 2007

Mihail Pop Minister No. 08/3-1/308 of August 10, 2007

Official Monitor of the Republic of Moldova, 2007, no.136-140, Art.533

With further modifications approved by: Decision of CA of NBM: - no.139 of 31.07.2008 (OM no.171-173 of 12.09.2008) - no.202 of 23.10.2008 (OM no.198-200 of 07.11.2008) Ministry of Finance: - no.08/3-1/305 of 01.08.2008 - no.08/3-1/391 of 23.10.2008

INSTRUCTION on placement, circulation and redemption of state securities issued in book-entry form This Instruction has been worked out in accordance with Law no. 419-XVI of December 22, 2006 on public debt, state guarantees and state re-financing and Law no. 5489-XIII of July 21, 1995 on the National Bank of Moldova and regulates the placement, the circulation and the redemption of state securities in book-entry form. Chapter I. General Provisions 1. For the purpose of this Instruction, the following notions shall have the meaning: Market-maker actions - any trade activity conducted following public announcement of purchasing and selling prices of a certain amount of state securities providing the further commitment to buy and sell these state securities at announced prices. Treasury Bills (hereinafter referred to as T-Bills) - SS issued at discount and repurchased at their face value upon maturity with the circulation term of up to 1 year (short-term). Primary dealer - the bank that holds a current account with the National Bank of Moldova and that concluded the Agreement on fulfilling the functions of a primary dealer in the market of dematerialised state securities (Attachment no.16) and that conducts market-maker actions. Investor physical or legal person, resident or non-resident of the Republic of Moldova, on behalf of which the primary dealer submits the bids for participation in the auction of state securities selling. Only the primary dealers may submit bids on behalf of investors. Government Bonds (hereinafter GB) - state securities which are issued at discount, at face value or with premium, for medium and long terms, at a fixed or floating rate of interest, the interest (coupon) to be paid periodically, and are repurchased at their face value upon maturity. Participant - the bank and the Bank Deposit Guarantee Fund (hereinafter referred to as Fund), which have current accounts with the National Bank of Moldova and which concluded with the NBM the Agreement on participant in the primary market of dematerialised state securities (Attachment no.17). Premium the difference between the state securitys price at placement and its face value, in case the price is higher than the face value. 2

Discount the difference between the state securitys price at placement and its face value, in case the price is lower than the face value. Medium-term a period from 1 to 5 years inclusively. Long-term a period of over 5 years. State security (hereinafter SS) instrument of state debt issued in the form of a marketable security. Face value the announced value of a security to be paid upon maturity. 2. State securities (SS) shall be put into circulation by the Ministry of Finance of the Republic of Moldova in form of treasury bills and government bonds. The face value of a state security is 100 lei. Basic characteristics (face value, type and frequency of interest payment), as well as procedures of GB placement, coupon payment and repurchase are stipulated in Conditions of Placement, Circulation and Redemption of Government Bonds with Fixed / Floating Interest and the Official Communiqus of SS issue. The Ministry of Finance of the Republic of Moldova shall assign the SS a state registration number as in accordance with Attachment no.14. 3. The annual yield on T-Bills shall depend upon the discount value and shall be computed as follows: Pr Pa 365 -------* -------* 100 Pa T Where: Pr repurchase price of T-Bills Pa purchasing price of T-Bills T circulation term of T-Bills (in days)

The yield on GB shall depend upon the GB acquisition price, coupon value and frequency of coupon payment and shall be computed based on the following formula: C2 C1 Cn + N P= + + + t1 tn t2
(1 + r ) 365 Where: (1 + r ) 365 (1 + r ) 365

P price of GB (includes the accumulated coupon), (in lei); Cn coupon value n (in lei); N face value of GB; r yield on GB; t n - number of days before coupon n payment

4. SS shall be issued in the book-entry form; no special paper blanks shall be typed. 5. SS shall be placed in the primary market through auctions held by the National Bank of Moldova based on the Disposition of the Ministry of Finance. The Ministry of Finance in coordination with the National Bank of Moldova shall, on a quarterly basis, work out and approve the schedule of carrying out the auctions of SS selling. The Ministry of Finance may specify the offered amount and the SS maturity, notifying the NBM and the public 5 calendar days prior to the auction date. Under exceptional circumstances, the Ministry of Finance may conduct additional auctions of SS placement within limits provided in the Law on the Budget for the relevant year. 6. SS at auction shall be sold following the satisfaction of SS acquisition bids placed by auction participants. 7. Primary dealers and participants take part in the auctions. Primary dealers can participate in the auction in their own name and on their own account, as well as on the account of investors, upon their request. Participants can submit bids in the auction only in their own name and on their own account.

8. Primary dealers, participants or investors shall be allowed to hold 50% at the most of the value of state securities with the same ISIN code, offered for sale in the primary market or being in circulation. In the case of exceeding the specified amount the primary dealer, the participant or the investor shall be obliged to sell SS in the amount exceeding the established limit within a period of 5 working days from the date the limit is violated. With a view to ensuring the observance of the provisions under this item, the National Bank of Moldova may undertake the following measures: a) request the necessary information from primary dealers; b) reject the bid submitted by the primary dealer /participant, in case the limit set out in this item is exceeded; c) allow no primary dealer / participant / investor to one or more auctions until the requirements of this item are met, notifying the primary dealers with reference to the decision of the National Bank (Attachment no.18); d) other measures according to the enforced legislation. 9. The National Bank of Moldova shall, in accordance with the Criteria of selecting banks as primary dealers and of evaluating the activity thereof (Attachment no.3), determine and modify the list of primary dealers. The National Bank shall, on a quarterly basis, analyze the activity of primary dealers and, in the event of Criteria non-observance, may submit notifications and warnings or, upon its discretion, may suspend for a period or terminate the Agreement on fulfilling the primary dealers functions. In the event the Agreement on primary dealers is suspended, the bank can recover the capacity of primary dealer only after the expiration of 3 months from the agreement cancellation, by addressing NBM and relating all banks possibilities and intentions, including the financial and technical ones, to activate in the future as a primary dealer in the state securities market. At the same time, the bank shall display a well-organized activity in the SS market for a period of 3 months, by purchasing SS in own portfolio.

Chapter II. Auction Commission for Organisation and Holding of State Securities Selling Auctions
10. With the view to conducting SS selling auctions, the Auction Commission is created and includes three representatives of the National Bank of Moldova and two authorised representatives of the Ministry of Finance. Members of the Auction Commission on behalf of the Ministry of Finance are empowered to determine relevant conditions to satisfy placed bids. 11. The Auction Commission includes as follows: Chairman First Vice Governor / Vice Governor of the National Bank of Moldova; Vice Chairman Minister / Vice Minister of Finance governing the Division of domestic commitments. In case of the absence of the Minister and of the Vice Minister of Finances, the director of the General Division of Public Debt shall hold the position of Vice Chairman; standing members: Director of Market Operations Department of the National Bank of Moldova; Chief of Market Operations Division of the National Bank of Moldova; Chief of Domestic Commitments Division of the Ministry of Finance. 12. In the event one member of the Auction Commission is absent, the National Bank of Moldova and the Ministry of Finance shall consecutively nominate the substitute. 13. The Auction Commission shall have the following main attributions: - to organise SS selling auctions; - to determine conditions with regard to prices and decision-taking on satisfaction of placed bids; 4

- to satisfy the bids placed in amounts higher or lower than the offered amount indicated in the official Communiqu of state securities issue; - to conduct control over compliance with auction holding rules and conditions; - to analyse results of held auction. 14. The Auction Commission shall, under exceptional cases, have the right to satisfy the bids placed at the auction in an amount by maximum 30% higher than the offered volume indicated in the official Communiqu of state securities issue.

Chapter III. Auction Holding

15. The Ministry of Finance shall submit to the National Bank of Moldova: - within a 5-day term before the following quarter the schedule of SS-selling auctions; - within a 5-day term before the auction (in case of additional auctions the day preceding the auction date at the latest) the Disposition on Auction Holding (Attachment no. 2) and the Official Communiqu of SS Issue (Attachment no. 12). After receiving the Disposition and the Official Communiqu from the Ministry of Finance, the NBM shall, 4 days prior the auction date (in case of additional auctions during the auction day one hour before auction at the latest) send via the Automated Interbank Payments System (AIPS) transportation component or, under exceptional circumstances, if the transportation component is not accessible via fax, the Official Communiqu on State Securities Issue to primary dealers and participants. At the same time, the National Bank of Moldova and the Ministry of Finance shall publish the official Communiqu of SS issue on the official web-pages. 16. Primary dealers and participants shall send their bids for SS selling auctions separately for each type (ISIN) of SS to Market Operations Department of the National Bank of Moldova during the auction date using the Interbank Messages application through the AIPS transportation component. In the event the bid cannot be sent by the Interbank Messages application, the following can be used: - magnetic copy, as in accordance with the standard set in the Interbank Messages application, Commercial Banks version, providing the parallel submission of the original document; - paper-based copy bearing the signature of the manager of the bank / Bank Deposits Guarantee Fund and stamp. In event of sending auction bids by means different from those provided in para 1 of this article, the primary dealer / participant shall deliver to the National Bank relevant written explanations by duly indicating implied reasons. 17. The bid for T-Bills and GB with fixed interest shall be concluded in strict compliance with the pattern provided in Attachment no. 4 and for GB with floating interest in compliance with the pattern provided in Attachment no. 4a and shall include as follows: part I: On own account competitive bids, non-competitive bids; part II: At investors request and on investors account competitive bids, non-competitive bids. 18. Competitive bids mean bids placed by primary dealers, participants or investors, which are adjudged by application of one of the following methods: - multiple price method (in event of selling auctions of T-Bills and GB with fixed interest) bids shall be satisfied at prices proposed by bidders; - unique price method (in event of selling auctions of GB with floating interest) bids shall be satisfied at the maximum margin proposed by bidders, which cannot exceed the maximum margin announced in the Official Communiqu of SS Issue. 19. Non-competitive bids may be placed by primary dealers both on own account, as well as upon investors request and on investors account, without indicating the price / margin and shall be satisfied within multiple price auctions at average weighted price of competitive bids satisfied at auction and within unique price auction at maximum accepted margin. 5

The non-competitive bid placed on own account of the primary dealer shall not exceed 50% of the value of competitive bid on own account and shall not, at the same time, exceed 300 thousand lei at face value for each SS ISIN number. The non-competitive bid placed by an investor shall not exceed 300 thousand lei at face value for each SS ISIN number. 20. The primary dealer shall have the right to indicate in his bid up to 5 variants of prices / margin in own name and an unlimited number of variants of prices / margin following investors request. Foreign investors requests shall be indicated in the bid placed by the primary dealer in part II in separate lines; investors name and country of residence shall be indicated in the Note. The participant shall have the right to indicate up to 5 variants of prices / margin in own name and on own account. 21. The Market Operations Department of the National Bank of Moldova shall accept bids until 10.00 and shall register them according to the order of reception in the bids registration table (Attachment no. 5). The bids received within the established deadline shall not be replaced following the bids receipt deadline, due to the fact that these constitute firm commitments of auction participants. In the event that the primary dealer/participant submits more bids for an auction, the last bid received by NBM until the established time of receipt shall be considered valid. In the event the bid is submitted on paper basis or on hard copy within set time framework, the time of bid reception shall be considered the time of bid registration in the NBM automated system. Bids received after 10.00, as well as bids incorrectly or erroneously concluded shall not be admitted to auction. Simultaneously, the wording accepted or rejected shall be mentioned in the Note column of the Bids Registration Table (Attachment no. 5). Auction participants shall receive the note of registration or rejection of submitted bids with relevant explanation in event of rejection (Attachments nos. 6 and 6a). The authorised person of the primary dealer / participant shall observe the reception of the notification on bid registration in due time from bid sending. 22. Bids received and accepted shall be registered in the General Preliminary List of Bids Registration following the descendant order of proposed prices (Attachment no. 7) or the ascendant order of requested margin (Attachment no. 7a). 23. Based on the General Preliminary List, in order to take a relevant decision on satisfaction of competitive and non-competitive bids, Attachment A of the Program of determining the results of selling auctions of state securities issued in book-entry form for T-Bills and GB with fixed interest shall be concluded as in accordance with Attachment no. 8, and for GB with floating interest as in accordance with Attachment 8b. Competitive bids of primary dealers and participants shall be sorted following descendant/ascendant order from maximum price / minimum margin position to minimum price / maximum margin position and shall be included in Part I of the Program. Part II of the Program shall include non-competitive bids in total amount by each bank. 24. The auction results shall be determined by the Auction Commission following the deadline of bids receipt. In event the total volume of SS adjudged at the auction is equal or higher than the volume offered by the Ministry of Finance, the non-competitive bids shall be satisfied in an amount not exceeding 35% of the total adjudged volume. Non-competitive bids may be sold in an amount higher than 35% of the amount of the satisfied bids, in case the total volume of bids submitted to the auction is lower than the offer and the amount of submitted or satisfied competitive bids is lower than 65% of the total adjudged volume. In event the submitted non-competitive bids exceed the maximum volume admitted for adjudgment for non-competitive bids, they may be satisfied partially, proportionally to the volume of the submitted bid. Competitive bids shall be accepted starting from maximum price /minimum margin consecutively to lower prices /higher margins up to the volume of SS offered for sale by the Auction Commission as a sufficient volume to provide a fair determination of the price /margin for securities. Bids with accepted minimum price /maximum margin, shall be, when necessary, proportionally distributed according to the provisions of p. 25 of this Instruction. 6

25. In event the amount of competitive bids placed at auction exceeds the offer of the Ministry of Finance, the bids submitted at the minimum price / maximum margin shall be satisfied as follows: - the percentage of proportional distribution according to which placed bids shall be satisfied at minimum price / maximum margin is computed: Vc Vs k= * 100 VPa where: k percentage of proportional distribution; Vc value of SS at face value provided for satisfaction of competitive bids; Vs value of SS at face value sold according to bids with higher prices / lower margin as minimum price / maximum margin; Vpa total value of SS at face value according to bids placed at minimum price / maximum margin. - the value of SS sold according to bids placed at minimum price / maximum margin is determined: k Cd Cs = 100 where: Cs value of SS at face value sold according to bids placed at minimum price / maximum margin; (the Cs value shall be rounded off to the hundredth class); Cd value of SS at face value specified in bids placed at minimum price / maximum value. 26. In event of unique price auctions, the non-competitive bids accepted by the Auction Commission shall be satisfied at maximum accepted margin, and in event of multiple price auctions at the average weighted price of accepted competitive bids at the current auction, determined as follows:
n

Pn
i

Pmp =

i =1 n

n
i =1

where: Pmp average weighted price of satisfied competitive bids; Pi price of SS as indicated in satisfied competitive bid; Ni quantity of SS placed at price proposed in satisfied competitive bid. 27. If in multiple price auction, competitive bids are not submitted or are submitted in a value lower than 25% of the offer, the Auction Commission may decide to satisfy non-competitive bids at the average weighted price of the previous auction, provided that the average weighted price of the previous auction is lower than the average weighted price of the current auction. 28. Based on the decision adopted by the Auction Commission, attachment B of the Program to determine the results of selling auction shall be concluded, in case of multiple price auction in accordance with Attachment no. 8a, indicating the minimum limit price of competitive bids, and in case of unique price auction in accordance with Attachment no.8c, indicating the maximum margin. Programs to determine auction results shall be concluded in two copies: one copy for the National Bank of Moldova and the other one for the Ministry of Finance. The Ministry of Finance shall issue for the National Bank of Moldova a global Certificate (Attachment no. 1) on the total amount of sold SS. 29. Following auction conclusion, during the same day, the National Bank (MOD) shall send to auction participants via the AIPS transportation component or, under exceptional circumstances, via fax, the Notes on SS Acquisition (Attachment no. 9 / Attachment no. 9a) and the Official Communiqu of Auction Results (Attachment no. 15 / Attachment no. 15a / Attachment no. 15b).

29. The primary dealers shall, upon the request of the National Bank, send on the first working day following the auction date at the latest, until 10:00 a.m., the list of resident investors that purchased state securities at the auction according to Attachment no.19. In the event an investor purchased at the auction more than 50% of SS with the same ISIN number, the National Bank shall, on the first working day following the auction date, notify the respective primary dealers accordingly (Attachment no.20). 30. Primary dealers and participants shall ensure the availability of sufficient money means in settlement accounts with the NBM to the beginning of Payments and clearing execution stage of AIPS operational day to cover the total amount of satisfied bids during the second day following the auction date or at any other date as stipulated in the Official Communiqu on SS Issue. 31. During the second day following the auction date, or at any other date as indicated in the Official Communiqu on SS Issue, the National Bank of Moldova shall, following issuance of payment orders on the banks / Funds name, collect the payment for SS from the settlement accounts of primary dealers and participants, whose bids have been satisfied in full or partial amount; payments shall be furtheron transferred to the single Treasury account of the Ministry of Finance opened with the National Bank of Moldova. The date of SS acquisition shall be considered as the SS issue date (the date of money means transfer to the Ministry of Finance) as indicated in the Official Communiqu on SS Issue and the first date of SS maturity. The National Bank of Moldova shall register the property right over SS in the NBM SS bookentry system based on Reports on Auction Results (Attachment no. 13) following the collection of relevant money means. 32. In the event primary dealers or participants fail to comply with provisions stipulated in p. 30 of this Instruction, they shall be subject to a penalty accounting for 0.5% of overdue amount for payment of satisfied bids for each day of such deficiency. 33. The National Bank of Moldova and the Ministry of Finance shall publish auction results on the official web-pages.

Chapter IV. State Securities Redemption and Interest Payment

34. The Ministry of Finance, via the National Bank of Moldova, shall, according to the conditions of SS issue, carry out SS redemption and interest (coupons) payment on Government Bonds. 35. The National Bank of Moldova shall, on the day of maturity and/or of interest payment, but only after the receipt from the Ministry of Finance of the related money means, enter into the accounts of primary dealers and of participants opened with the National Bank of Moldova the amount transferred for SS redemption and /or interest (coupons) payment on GB. In event the date of the payment on state securities is a non-working day, the payment shall be carried out on the following first working day, at no additional interest.

Chapter V. Activity of Primary Dealers with Clients

36. The primary dealer shall inform the potential investors on SS market by placing official Communiqus of SS Issue and on the recent auctions results. The primary dealer shall, also, notify the potential investors on the need to observe the purchase limit of SS with the same ISIN number through other primary dealers, as well. 37. The primary dealer shall receive investors bids for SS acquisition (Attachment no. 10 / Attachment no. 11) from the moment the ordinary auction conditions are announced. Bids shall be received until the day preceding the auction date. 38. The banks employee shall record the investors bid in the register of received bids and shall deliver to this investor a Note worked out according to the pattern provided in Attachment no. 6. Primary dealer shall have the right to reject the bid for SS acquisition if this bid fails to comply with set elaboration norms. 8

Primary dealer shall not accept non-competitive bids submitted by the investor in an amount, which is higher than 300 thousand lei, for SS with the same registration number (ISIN). 39. Primary dealers shall generalize bids received from investors and shall submit the cumulative bid to the National Bank of Moldova during the auction date (Attachment no. 4 / Attachment no. 4a). 40. Primary dealers shall collect money means from investors that submitted bids until the day of auction holding by the National Bank of Moldova. According to agreements concluded between primary dealers and investors on money means collection as provided above, primary dealers shall have the right as follows: 1) to reserve means deposited by investors within bid amount; 2) to indisputably receive the amount of accepted bids from investors current accounts as in accordance with auction results, according to concluded agreements. 41. Primary dealers shall reimburse investors reserved amounts related to unsatisfied bids within one day following the date the National Bank sends the Note on satisfied bids. 42. The primary dealer shall be responsible for the proportional distribution of bids submitted at auction for its clients according to the percentage as announced by the National Bank of Moldova. 43. The primary dealer shall keep record of SS acquired on investors account in Tier II of the book-entry system of securities as in accordance with the Regulation of the National Bank of Moldova no. 9/08 of 02.02 .1996. 44. The primary dealer shall pass amounts of SS repurchased at face value and interest on GB to investors accounts within one working day after maturity at the latest. 45. The bank- primary dealer shall not accept investors bids in the primary market and shall conduct no transactions in the secondary market if knowing that such transaction shall lead to an investor holding a value exceeding the limit stipulated in p. 8 of this Instruction. For this purpose, each primary dealer shall request from the investor a written declaration on the observance of this limit. The primary dealer shall inform the investor on the obligation to sell the state securities purchased over the set out limit. The primary dealer shall notify the investors that are his clients that the National Bank, in the light of its attributions, may disclose the names of investors that failed to observe the requirements of item 8 of this Instruction. 46. Each primary dealer shall, upon the request of another primary dealer and of clients, organise the trade of SS in the secondary market at market interest rates, depending on the risk level that it may assume. 47. The primary dealer may conduct SS transactions on behalf and for the account of its client only by the order bearing the clients written signature or electronic signature. In case the clients order was executed or failed to be executed, the primary dealer shall be obliged to notify the client respectively within one day, in written form, via fax or other methods. The primary dealer shall ensure the good execution of the transaction within the existent market conditions. The clients shall be contacted via all branches and other subdivisions of the primary dealer by adequately qualified persons traders. The requirements for their qualification are provided for within the internal strategies and procedures of the primary dealer.

Chapter VI. State Securities Circulation in the Secondary Market

48. The transactions in the secondary market with SS issued for a short-term shall take place in the over-the-counter market, via primary dealers. Other licensed institutions (participants of the primary market) may trade SS in the secondary market only in /out of their own portfolio. 49. The transactions in the secondary market with SS issued for medium- and long-term shall take place in the over-the-counter market, via primary dealers and in the Stock Exchange of Moldova, in case these SS are included in the list of SS in circulation at the Stock Exchange. 50. With a view to maintaining the secondary market, the primary dealer shall be obliged to announce daily firm quotations in the minimum amount established upon its decision for minimum 9

three types of SS recently placed at primary market auctions or any other three types of SS available from its own portfolio. The primary dealer may announce the respective quotations for trading the government bonds and at the Stock Exchange as in accordance with the Stock Exchange rules.

10

Attachment no. 1

GLOBAL CERTIFICATE of issue no. _____ of State Securities ISIN number _________________
This Global Certificate is concluded for the amount of ____________________________
(name of state securities, circulation term)

sold at auction of ___ __________________ 20____. State securities shall be issued by the Ministry of Finance of the Republic of Moldova according to the Law on State Debt, State Guarantees and State Re-financing no. 419-XVI of 22 December 2006. The issue of state securities included in this Global Certificate was conducted in total value of _______________________ lei, providing the following attributions: Face value of one state security ___________________________ lei Quantity ___________________________ pieces Issue date _______________________ 20____ Issue form book-entry form Maturity date of each state security _______________________ 20____ Maturity date of Global Certificate _______________________ 20____ Annual interest rate * (fixed, ______% / floating) Interest payment terms * _______________________ 20____ _______________________ 20____ _______________________ 20____ Maximum margin set for this issue ** _______________________ p.p. Annual interest related to first coupon ** ______________________ % Interest rates related to further coupons shall be communicated through Official Communiqus of the Ministry of Finance five days before the term of relevant coupon period. ** The property right over state securities shall be established in book-entry form. Circulation of state securities shall be conducted as in accordance with the Instruction on Placement, Circulation and Redemption of State Securities issued in Book-Entry Form No.________, approved by the Ministry of Finance and the National Bank of Moldova on __________. The Ministry of Finance guarantees the payment of the Global Certificate upon maturity date. The Ministry of Finance may repurchase state securities provided for in this Certificate before maturity within stages. This Global Certificate is concluded in three identical copies, one copy for the Ministry of Finance and two copies for the National Bank of Moldova.

Ministry of Finance of the Republic of Moldova _____________________________________

(signature, name, surname)

Stamp: ____ ___________________ 20____ * - to be filled in only for Government Bonds ** - to be filled in only for Government Bonds with floating interest

11

Verso: To be filled in following payment: - placement auction was held on ____ _______________ 20____; - redemption was conducted on ____ ____________20____ in an amount of ____ lei.

Budget, Finance and Accounting Department of the NBM _________________________

(signature, name, surname)

Stamp:

12

Attachment no. 2 DISPOSITION on Holding Placement Auction of State Securities Issued in Book-Entry Form
In accordance with the Agreement on Fiscal Agent of _____________, the Ministry of Finance of the Republic of Moldova hereby authorizes the National Bank of Moldova to hold on ___ ________________ 20___ placement auctions of state securities in book-entry form and to transfer means collected following state securities selling to the single Treasury account opened with the National Bank of Moldova.
SS type Issue no. State registration number (ISIN) Circulation term (days/years) Offered value (thou lei)

Total

The Ministry of Finance of the Republic of Moldova authorizes the following responsible executors as listed below to act as members of the Auction Commission with the right to determine prices of bids satisfactions. Name, surname; position; contact details.

Ministry of Finance ________________________________

(signature, name, surname)

This Disposition was received and accepted in a total value of ________ thousand lei. ____ _____________________ 20__ National Bank of Moldova _________________________________
(signature, name, surname)

13

Attachment no. 3 CRITERIA on Selection of Banks as Primary Dealers and Evaluation of Banks Activity in the book-entry SS market 1. The Bank has been acting in the SS market for 3 months at least and has conducted acquisitions of SS in own portfolio. 2. The Bank has and maintains the quantum of minimum capital provided by law. 3. No remedial measures were applied towards the Bank by NBM forbidding deposits acceptance. 4. The Bank maintains the current account with the National Bank of Moldova. 5. The Bank participates at the BES system of the NBM and has a book-entry automated system at Tier 2. 6. The participation at auctions of state securities selling in the primary market shall provide as follows: - primary dealers, whose assets value exceeds or equals to 800 million lei, shall participate at each auction (each ISIN number) of state securities selling; - primary dealers, whose assets value is lower than 800 million lei, shall participate at minimum 50% of total number of auctions of state securities selling (each ISIN number) conducted within the period of one month. 7. The Bank shall procure, within a quarter, SS at face value in a minimum quantum of: - 2.0% of the average quarterly value offered by the Ministry of Finance over the previous four quarters for primary dealers, whose assets value exceeds or equals to 800 million lei; - 1.0% of the average quarterly value offered by the Ministry of Finance over the previous four quarters for primary dealers, whose assets value is lower than 800 million lei. 8. The Bank contributes to the establishment of SS secondary market liquidity by performing, on a quarterly basis, transactions in a minimal value of 1.5% of total selling/buying transactions with SS conducted by all primary dealers (except NBM open market operations) in the previous quarter. 9. The Bank has a separate room and required qualified staff at least one person responsible for operations with securities. 10. The bank has: phone and fax lines and Reuters connection or internet.
Note: * Criteria may be subject to modification and completion by the National Bank of Moldova and the Ministry of Finance following consultation with the Banks Association of Moldova (respective subdivision), based on market conditions and on the activity of primary dealers in the market. ** Ps. 6, 7 and 8 refer only to the period of activity as primary dealer.

14

Attachment no. 4
Registration no. ________________
(to be filled in by NBM)

BID For Selling Auction of State Securities Issued in Book-Entry form of ____ _____________ 20_____
__________________________ expresses its availability to buy SS with the circulation term of
(name of primary dealer/participant)

_______ days / years, ISIN no. _________________, at following prices: Face value Volume requested of 1 SS (at face value) (2*3) (pieces) (lei) (lei) 1 2 3 4 Part I On own account Competitive bids Price variant no. SS volume Proposed price for 1 SS (in % against face value) 5 Proposed price of total volume (4*5)/100 (lei) 6 Note

Total competitive bids: Non-competitive bids Total non-competitive bids: Total Part I: Part II At investors request and on investors account Competitive bids

Total competitive bids Non-competitive bids

Total non-competitive bids Total Part II: Total general (I + II): Hereby ___________________________________ authorizes the National Bank of Moldova
(name of primary dealer / participant)

15

- to receive from the settlement account with NBM the payment for SS purchased at auction; - to register in the Book-Entry System the ownership on these SS. Authorized person: ________________________________
(name, surname)

Note: Competitive bids shall be indicated following descendant order of proposed price; two digits are allowed after coma. Non-completive bids shall be filled in one line for the total amount requested by investors (except foreign investors, which shall be indicated as in accordance with p.20 of this Instruction); columns nos. 5 and 6 shall not be filled in.

16

Attachment no. 4a
Registration no. ________________
(to be filled in by NBM)

BID for Selling Auction of Government Bonds with Floating Interest of ____ _____________ 20_____
__________________________ expresses its availability to buy Government Bonds with
(name of primary dealer/participant)

floating interest, circulation term of ______ years, ISIN no. ____________, at following margin: Margin SS Face value of Volume requested Requested Note variant volume 1 SS (at face value) margin for 1 no. (2*3) GB (pieces) (lei) 1 2 3 Part I On own account Competitive bids (lei) 4 (p.p.) 5

Total competitive bids Non-competitive bids Total non-competitive bids: Total part I: Part II At investors request and on investors account Competitive bids:

Total competitive bids: Non-competitive bids:

Total non-competitive bids: Total Part II: Total general (I + II): Hereby ___________________________________ authorises the National Bank of Moldova
(name of primary dealer /participant)

- to receive from the settlement account with the NBM payment for SS purchased at auction; - to register in the Book-Entry System the ownership on these SS. 17

Authorized person: ________________________________

(name, surname)

Note: Competitive bids shall be indicated following ascendant order of proposed margin; two digits are allowed after coma. Non-completive bids shall be filled in one line for the total amount requested by investors (except foreign investors, which shall be indicated as in accordance with p.20 of this Instruction); column no. 5 shall not be filled in.

18

Attachment no. 5 TABLE of Bids Registration for the Placement Auction of State Securities Issued in Book-Entry form of ____ ___________20____
Registration no. Date of bids reception Hour of bids reception Name of primary dealer / participant Note

_______________________________
(position, signature, name, surname)

19

Attachment no. 6
National Bank of Moldova ___________________________________
(name of primary dealer / participant)

___________________________
(date)

NOTE
Hereby be informed that your Bid for auction of __________________ on placement of state securities issued in book-entry form with the circulation term of _____________ has been recorded at
(days or years)

_______________ under the registration number ______________________.

Chief of Section

__________________________
(signature, name, surname)

20

Attachment no. 6a
National Bank of Moldova ___________________________________
(name of primary dealer / participant)

___________________________
(date)

NOTE
Hereby be informed that your Bid, received at _________ for auction of __________________ on placement of state securities issued in book-entry form with the circulation term of ___________________ has been rejected based on following reasons:
(days or years)

__________________________________________________________________________.
(reason of rejection)

Chief of Section

__________________________
(signature, name, surname)

21

Attachment no. 7 PRELIMINARY GENERAL LIST of Bids for SS Selling Auction

State Security Description: ISIN: Date of SS issue: Date of SS maturity: Reg. Name of Quantity of no. primary dealer / SS in each bid participant (pieces) 1. 2. Part I. On own account Competitive bids 3.

Amount at face value 3*100 (lei) 4.

Proposed price for 1 SS (in % against face value) 5.

Proposed price of total amount (4*5)/100 (lei) 6.

Total competitive bids: Non-competitive bids:

Total non-competitive bids: Total Part I: Part II: At investors request and on investors account: Competitive bids:

Total competitive bids: Non-competitive bids:

Total non-competitive bids: Total Part II: Total General (I + II) Chief of Section __________________________
(signature, name, surname)

22

Attachment no. 7a PRELIMINARY GENERAL LIST of Bids for Selling Auction of Government Bonds with Floating Interest Security description: ISIN: Date of security issue: Date of security maturity: Reg. Name of primary dealer / Quantity of GB in Amount at face Requested no. participant each bid value (lei) margin (pieces) 3*100 (p.p.)
1. 2. Part I On own account Competitive bids: 3. 4. 5.

Total competitive bids: Non-competitive bids:

Total non-competitive bids: Total part I: Part II At investors request and on investors account Competitive bids:

Total competitive bids: Non-competitive bids:

Total non-competitive bids: Total part II: Total general (I + II): Chief of Section __________________________
(signature, name, surname)

23

Attachment no. 8 PROGRAM to determine Results of Selling Auction of State Securities issued in Book-Entry Form of ____ ________________ 20____
(auction date)

Annex A
Description of State Security: ISIN: Date of SS Issue: Date of SS Maturity: Offer by the Ministry of Finance: ________ Proposed price for 1 SS in % against face value * 1 Part I. Competitive bids SS (pieces) quantity Value of bids at proposed price (lei) 3 Total cumulative value of bids at proposed price (lei) 4 Total cumulative value of bids at face value (lei) 5 Bid no. registration Nominal rate (%) interest Effective interest rate (%) Submitted bids from Parts I and II

Total part I Part II. Noncompetitive bids Total part II

Total general
* to be filled in only for competitive bids Weight of bids in offer: Total: including: competitive bids non-competitive bids Volume adjudged by Auction Commission ___________ lei, including: Competitive bids ________ lei Non-competitive bids _______ lei

Chairman of Auction Commission: Members of Auction Commission:

Attachment no. 8a PROGRAM to determine Results of Selling Auction of State Securities issued in Book-Entry Form

of ____ ________________ 20___

(auction date)
Description of State Security: ISIN: Date of SS Issue: Date of SS Maturity: Offer by the Ministry of Finance: ________

Annex B

Proposed price for 1 SS in % against face value *

SS volume (pieces) 2

Value of bids at proposed price (lei) 3

Total cumulative value of bids at proposed price (lei) 4

Total cumulative value of bids at face value (lei) 5

Name of primary dealer/participant

Bid registration no. 7

Nominal interest rate (%) 8

Effective interest rate (%) 9

1
Satisfied bids Part I. Competitive Bids Total I Part II. Non-competitive bids Total II Total I+II Rejected Bids Part I. Competitive Bids Total I Part II. Non-competitive bids

Satisfied bids from Parts I and II 10

Total II Total I+II Total general in case of competitive bids the proposed price shall be indicated, in that of non-competitive bids the average weighted price of satisfied competitive bids. % of proportional distribution Minimum price set by Auction Commission ______ of competitive bids at minimum price ___ Average weighted price of satisfied competitive bids % of proportional distribution Total satisfied value _________ of non-competitive bids ____ Satisfied value of competitive bids ________ Weight of satisfied bids in offer value: Satisfied value of non-competitive bids ______ competitive _____ Nominal average weighted rate of satisfied non-competitive ________ competitive bids ______________ Effective average weighted rate of satisfied competitive bids __________________

Chairman of Auction Commission: Members of Auction Commission:

25

Attachment no. 8b PROGRAM to determine Results of Selling Auction of Government Bonds with Floating Interest of ____ ________________ 20____
(auction date)

Annex A

Description of Security: ISIN: Date of Security Issue: Date of Security Maturity:

Offer by the Ministry of Finance: ________ Variable interest rate announced by the Ministry of Finance for the calculation of first coupon: _________ Maximum margin announced by the Ministry of Finance (percentage point): ________________
Requested margin for 1 GB (p.p.) SS volume (pieces) Requested value at face value (lei) Total cumulative value of bids placed at face value (lei) Bid registration no. Satisfied bids from Parts I and II

Part I. Competitive bids Total part I Part II. Non-competitive bids Total part II Total general Weight of bids in offer: Total: including: - competitive bids: - non-competitive bids:

Volume adjudged by Auction Commission ___________ lei, including: Competitive bids ________ lei Non-competitive bids _______ lei

Chairman of Auction Commission: Members of Auction Commission:

26

Attachment no. 8c
PROGRAM to determine Results of Selling Auction of Government Bonds with Floating Interest of ____ ________________ 20____
(auction date) Description of Security: ISIN: Date of Security Issue: Date of Security Maturity: Offer by the Ministry of Finance: ________ Variable interest rate announced by the Ministry of Finance for the calculation of first coupon: _________ Maximum margin announced by the Ministry of Finance (percentage point): ________________ Requested margin for 1 GB SS volume Requested value at Total cumulative value of bids (p.p.) (pieces) nominal value (lei) placed at face value (lei)

Annex B

Name of primary dealer/ participant

Bid no.

registration

Satisfied bids from Parts I and II

1
Satisfied bids Part I. Competitive bids Total I Part II. Non-competitive bids Total II Total I+II Rejected bids Part I. Competitive bids Total I Part II. Non-competitive bids Total II Total I+II Total general

Maximum margin set by Auction Commission Annual interest rate applied on payment of first coupon Total value of satisfied bids Total value of satisfied competitive bids Percentage of proportional distribution of competitive bids Total value of satisfied non-competitive bids Percentage of proportional distribution of non-competitive bids Chairman of Auction Commission: Members of Auction Commission:

___________ ___________ ___________ ___________ ___________ ___________ ___________

27

Attachment no. 9 No. ______________ _____ _________________ NOTE on State Securities Acquisition Date of issue: As in accordance with results of action of ____________________, the National Bank of Moldova hereby informs that your bids for state securities acquisition have been accepted (have not been accepted) as follows: Acquisition value No. of price variant Acquisition price of 1 % of bid acceptance SS (in % of nominal) volume (pieces) at set price (lei) * at face value (lei) ** 1 2 3 4 5 6 SS description ISIN no. Part I. On own account Competitive bids: Non-competitive bids: Total Part I Part II.. At investors request and on investors account Competitive bids Non-competitive bids: Total Part II Total SS
Reception of money means from the settlement account of _________________________________ (name of primary dealer/participant) with NBM for purchased SS, as well as registration of these SS in the Book-Entry System of NBM shall be conducted on __________________________ (date). Note: * - amount collected at payment date from primary dealer / participant settlement account with NBM for further transferring to the Ministry of Finance. ** - amount to be paid by the Ministry of Finance upon SS maturity. Chief of Section ________________________________
(signature, name, surname)

Name of primary dealer (participant)

28

Attachment no. 9a
No. ______________ _____ _________________ Name of primary dealer (participant)

NOTE on Acquisition of Government Bonds with Floating Interest

Date of issue: As in accordance with results of action of ____________________, the National Bank of Moldova hereby informs that your bids for acquisition of government bonds with floating interest have been accepted (have not been accepted) as follows: No. of margin variant % of bid acceptance Acquisition value volume (pieces) at face value (lei)*
SS description ISIN no. Part I. On own account Competitive bids: Non-competitive bids: Total Part I Part II. At investors request and on investors account Competitive bids: Non-competitive bids: Total Part II Total SS
Reception of money means from the settlement account of _________________________________ (name of primary dealer/participant) with NBM for purchased GB, as well as registration of these GB in the Book-Entry System of NBM shall be conducted on __________________________ (date). Note: * - amount collected at payment date from primary dealer / participant settlement account with NBM for further transferring to the Ministry of Finance. At GB maturity date the Ministry of Finance shall pay the amount indicated in c.4 and relevant interest calculated in accordance with Conditions on Placement, Circulation and Redemption of Government Bonds with Floating Interest, applying the maximum margin set by the Auction Commission for this issue - _______ p.p. Annual interest rate for calculation of first coupon as of _______________ is _______%. Chief of Section ________________________________
(signature, name, surname)

29

____ _______________ 20____ City of ______________________

Attachment no. 10 Registration no. ____________

BID for State Securities Acquisition Auction ____ _________________ 20____

Company _____________________________________________
(name, bank details)

Individual ____________________________________________
(name, surname, domicile)

acting as Investor, hereby requests to purchase on own account SS with the circulation term of _______days at following prices. SS based on non-competitive prices to be purchased at average weighted price of satisfied competitive bids. Bid variant SS volume Face value Acquisition Price Proposed Note (pieces) of 1 SS value by proposed price of (lei) face value for 1 SS in total value (lei) % of face (lei) (2*3) value (4*5)/100 1 2 3 4 5 6 7 Competitive bids

Non-competitive bids x x x x

Total general

I declare on own responsibility that the total amount of purchasing bids of SS at nominal value submitted for this auction, including through other primary dealers, does not exceed 50% of the amount of SS with the same ISIN number offered for selling in the primary market.

Signature of company manager _________________________________ Chief accountant: _________________________ Stamp:

Individual _____________________________
(signature, name, surname)

____ _______________ 20____ City of ______________________

Attachment no. 11 Registration no. ____________

BID for State Securities Acquisition Auction ____ _________________ 20____

Company _____________________________________________
(name, bank details)

Individual ____________________________________________
(name, surname, domicile)

acting as Investor, hereby requests to purchase on own account Government Bonds with floating interest with the circulation term of _______years as follows. Bid variant SS volume Face value of Acquisition value Requested Note (pieces) 1 SS (lei) at face value (lei) margin (p.p.) 1 2 3 4 5 6 Competitive bids

Non-competitive bids

Total I declare on own responsibility that the total amount of purchasing bids of SS at nominal value submitted for this auction, including through other primary dealers, does not exceed 50% of the amount of SS with the same ISIN number offered for selling in the primary market.

Signature of company manager _________________________________ Chief accountant: _________________________ Stamp:

Individual _____________________________
(signature, name, surname)

31

Attachment no. 12 OFFICIAL COMMUNIQU On State Securities Issue

Hereby the Ministry of Finance proposes _____________________________ lei.
(in words and figures)

for

selling

state

securities

in

total

amount

of

State Securities shall be placed in the primary market at auctions held by the National Bank of Moldova on ____ _________________ 20____. The National Bank of Moldova shall receive bids for State Securities acquisition from primary dealers and participants authorized to participate at selling auctions of state securities issued in book-entry form. Investors bids for state securities acquisition shall be received by primary dealers authorized by the National Bank of Moldova. CONDITIONS OF STATE SECURITIES ISSUE Name of SS / issuance parameters SS circulation term Registration number Face value of 1 SS (lei) Offer value (million lei) Selling conditions Annual interest rate on Government Bonds with fixed interest (%)* Maximum margin accepted for Government Bonds with floating interest (p.p.)* Variable annual rate for calculation of first coupon on Government Bonds with floating interest ** (%) Issue date (date of means transfer to the Ministry of Finance) Maturity date Terms of interest payment* * To be filled in upon government bonds issue ** Variable annual rate average rate on T-Bills calculated as in accordance with Conditions of Placement, Circulation and Redemption of Government Bonds with Floating Interest. Variable annual rates for calculation of further coupons shall be announced in the Official Communiqus of the Ministry of Finance five days prior to the beginning of the relevant coupon period. Ministry of Finance _________________________________ (signature, name, surname)

32

Attachment no. 12a

OFFICIAL COMMUNIQU
Hereby, the Ministry of Finance communicates that the annual interest rate to be applied for calculation of the value of coupons related to Government Bonds with floating interest issued under ISIN registration number ___________________ on ____________________________ to be paid on _____________________________ accounts for __________% (average rate of _____% on TBills with the circulation term of _______ days plus margin of _________p.p.).

Ministry of Finance _______________________________________

(signature, name, surname)

33

Attachment no. 13 REPORT on Results of State Securities Selling Auction of __________________________ Issue (payment) date: ISIN no.: Security description: Maturity date: Terms of interest payment: Annual interest * (fixed, ___%, floating): Annual interest related to first coupon ** _____% Value of accepted margin ** _____ p.p. Offer of the Ministry of Finance: _______________ million lei. No. Name of primary dealer / participant 2 Selling price of 1 SS (lei) 3 Volume (pieces) Total From own means (account no.1 in BES) at selling price (lei) 7 at face value (lei) 8 From investors means (account no.2 in BES) at selling price (lei) 9 at face value (lei) 10 From indirect participants means (account no.2 in BES) at selling at face price (lei) value (lei) 11 12

at selling price (lei) 5

at face value (lei) 6

Total: Total general: * to be filled in only for Government Bonds ** to be filled in only for Government Bonds with floating rate Chairman of Auction Commission

34

Attachment no. 14 Method to Calculate the State registration number of SS issued in book-entry form
The state registration number of State Securities in book-entry form issued by the Government of the Republic of Moldova in the person of the Ministry of Finance shall be assigned as in accordance with requirement provided in standard International Securities Identification Numbers (ISIN) and shall be composed of 12 symbols. Symbols one and two are presented in form of letters and confirm the code of the country within which the issuer has its legal address. Letters MD are used as code of the Republic of Moldova. Symbol three is expressed in figures or numbers and is assigned depending on the type of issued security. Figure 5 is used for T-Bills and figure 3 for Government Bonds. Symbols four and five represent the issuer code and are formed of two letters. For the Republic of Moldova the issuer code starting with the 1000th issue of SS is RM. Symbol six may be expressed in figures and indicates the circulation term of SS: 1 up to 1 year 2 from 1 year to 5 years 3 over 5 years (except SS issued for undetermined term) 4 for undetermined term Symbol seven is a reserve symbol used together with symbols 8, 9, 10 and 11 and indicates the order number of SS issue. Symbol eight is a reserve symbol used together with symbols 7, 9, 10 and 11 and indicates the order number of SS issue. Symbol nine is a reserve symbol used together with symbols 7, 8, 10 and 11 and indicates the order number of SS issue. Symbol ten is a reserve symbol used together with symbols 7, 8, 9 and 11 and indicates the order number of SS issue. Symbol eleven indicates the order number of SS issue. It is used together with symbols 7, 9, 10 to identify the 99999th SS issue. Symbol twelve is a control figure and is calculated according to two plus two model. The control symbol calculation is conducted as follows: Operation 1: Alphabetic characters are assigned the following numeric values, according to table 1: Letter Value Letter Value Letter Value Letter Value Letter A 10 F 15 K 20 P 25 U B 11 G 16 L 21 Q 26 V C 12 H 17 M 22 R 27 W D 13 I 18 N 23 S 28 X E 14 J 19 O 24 T 29 Y Z

Value 30 31 32 33 34 35

Operation 2. The value of each second figure starting with the first sign from the right, including zero, is doubled. Operation 3. Individual figures received following operation 2 are summed up. Operation 4. The result of operation 3 is deducted from the value of the following superior order number ended in zero. The obtained figure shall be the control figure. In case the result of operation 3 is a number, which ends in zero (50, 60, etc.), the control figure shall be 0. Example: the calculation of the state registration number of the 1000th issue of Treasury Bills: M D5 R M101000 22 13 5 27 22 1 0 1 0 0 0 _____________________ 21 21 2 12 12 1 2 1 2 1 2 4 2 2 3 10 2 14 2 4 1 0 1 0 0 0 4+2+2+3+1+0+2+1+4+2+4+1+0+1+0+0+0 = 27; 30 27 = 3 The control figure is 3. The state registration number of the 1000th issue of Treasury Bills is: MD5RM1010003

35

Attachment no. 15 __________________________ (date) COMMUNIQU Hereby the National Bank of Moldova communicates that selling auction/auctions of state securities has/have been held on ______________________. (date) Auction / auctions indicators are as follows:
SS type SS circulation term ISIN no. Amount announced by MoF (thou lei) Submitted bids at face value No. of participants Range of prices of accepted bids min max. (lei) (lei) Average weight. price Amount sold at face value Nominal interest rate Effective interest rate Maturity date

total (thou lei)

incl. noncompetitive (thou lei)

total (thou lei)

incl. noncompetitive (thou lei)

min (%)

max (%)

average weight. (%)

min (%)

max (%)

average weighted (%)

10

11

12

13

14

15

16

17

18

19

National Bank of Moldova ____________________________________

(signature, name, surname)

36

Attachment no. 15a __________________________ (date) COMMUNIQU Hereby the National Bank of Moldova communicates that selling auction/auctions of Government Bonds with floating interest has/have been held on ______________________. (date) Auction/auctions indicators are as follows:
GB circulation term ISIN number Amount announced by MoF (thou lei) Submitted bids at face value total incl. non(thou competitive lei) (thou lei) Amount of GB sold at face value total incl. non(thou competitive lei) (thou lei) No. of participants Range of margins proposed in banks bids Maximum accepted margin (p.p.) Annual interest rate applied for first coupon payment (%) Coupon frequency Maturity date

10

11

12

13

National Bank of Moldova ____________________________________

(signature, name, surname)

37

Attachment no. 15b __________________________ (date) COMMUNIQU Hereby the National Bank of Moldova communicates that selling auction/auctions of Government Bonds with fixed interest has/have been held on ______________________. (date) Auction/auctions indicators are as follows:
SS circulation term Annual interest rate (coupon) (%) ISIN number Amount announced by MOF (thou lei) Submitted bids at face value in total (thou lei) incl. noncompetitive (thou lei) Number of participants Range of prices of accepted bids min max (lei) (lei) Average weighted price Amount sold at face value in total (thou lei) incl. noncompetitive (thou lei) Effective interest rate Coupon frequency Maturity date

min (%)

max (%)

average weighted (%)

10

11

12

13

14

15

16

17

National Bank of Moldova ____________________________________

(signature, name, surname)

38

Attachment no. 16 AGREEMENT on Fulfilling the Functions of a Primary Dealer in the Market of Dematerialised State Securities Chisinau ___ ________20___

With a view to ensuring the constant demand of dematerialised state securities in the primary market, as well as to developing the secondary market of these securities, the National Bank of Moldova in the person of ____________________ and the bank_______________,
(position of NBM representative) (name of the bank)

hereinafter referred to as the Primary Dealer, in the person of_________________,

(position of bank representative)

have concluded this Agreement on the following. I. OBJECT OF THE AGREEMENT

1.1. This Agreement shall determine the relations between the National Bank of Moldova and the Primary Dealer, in the process of issuance and circulation of dematerialized state securities (SS), issued by the Ministry of Finance under the name of the Republic of Moldova in accordance with the effective laws.

II. RIGHTS AND OBLIGATIONS OF THE NATIONAL BANK OF MOLDOVA 2.1. The National Bank shall, in accordance with the Criteria on selection of banks as Primary Dealers and evaluation of banks activity (hereinafter Criteria), provided for in the Instruction of the Ministry of Finance and of the National Bank On placement, circulation and redemption of state securities issued in book-entry form approved _____________ (Attachment no.3) and in the requirements set out in this Agreement, determine and modify the list of Primary Dealers. Criteria may be modified and completed by the National Bank after having consulted the Banks Association of Moldova, taking into account the market conditions and the Primary Dealers activity in the market. The Primary Dealers shall be given a 3-month notification with regard to the intentions of the National Bank to modify this Agreement. 2.2. The National Bank shall, upon its discretion, have the right to suspend or terminate the Agreement of Primary Dealer, by a 1-month notification to primary Dealer in case of: a) non-participation or insufficient participation in the state securities primary market as indicated under pts. 6 and 7 of Criteria; b) non-participation or insufficient participation in the state securities secondary market as indicated under p.8 of Criteria; c) non-observance of provisions set out under p.p. 3.7 and 3.8 of this Agreement;
39

d) worsening of the Primary Dealers financial situation, which could harm the investors rights; e) other unforeseen reasons. 2.3. In event of this Agreements suspension or termination, the National Bank shall inform other Primary Dealers accordingly. 2.4. The National Bank shall be obliged to notify the Primary Dealer on all modifications and completions to the normative acts worked out on placement and circulation of state securities issued in book-entry form within three days from the date of these modifications operation. 2.5. The National Bank shall, within 4 working days prior to the carrying out of state securities-selling auction (in case of additional auctions on the auction day one hour prior to auction carrying out at the latest), send to the Primary Dealer the Communiqu of state securities issue submitted by the Ministry of Finance, through the transportation component of the automated interbank payment system (hereinafter - AIPS) or, under exceptional cases, via fax, if the transportation component is not available. 2.6. After the conclusion of the auction, the National Bank shall, on the same day, send to the Primary Dealer via the AIPS transportation component or, under exceptional cases, via fax, the note on SS purchase and the official communiqu on auction results. 2.7. The National Bank has, on the payment date, the right to receive, from the settlement account in AIPS (LORO account) of the Primary Dealer, the payment for state securities purchased at auctions by issuing a payment order on the name of the Primary Dealer, and entering the payment into the single Treasury account. 2.8. On the day of the payment performance by the Primary Dealer the National Bank shall enter into the book-entry system the nominal amount of state securities purchased by the Primary Dealer at the auction of state securities selling in the primary market. 2.9. The National Bank shall enter into the settlement account of the Primary Dealer in AIPS (LORO account) the nominal amount of state securities subject to redemption on the maturity date and the related interests on the payment date after having obtained from the Ministry of Finance of the respective means for the payment of interests and the repurchase of state securities. 2.10. The National Bank shall have the right to follow up the prices quotations displayed by the Primary Dealer in the secondary market and to request the information on marker trends, prices level, transactions volume and other issues. 2.11. The responsible employees of the National Bank of Moldova that have access to commercial information shall be obliged to observe the confidentiality thereof. 2.12. In the event of the financial situation worsening, which could result in the impossibility of the free performance by clients of SS operations and the repurchase of SS from the portfolios of the Primary Dealers clients, the National Bank of Moldova shall have the right to transfer all SS from the portfolios of the Primary Dealers clients (account no.2 in BES) to be recorded by other Primary Dealer under the conditions stipulated in the Contract on the participation in the book-entry system of the National Bank of Moldova. III. RIGHTS AND OBLIGATIONS OF THE PRIMARY DEALER 3.1. The Primary Dealer shall assume the obligation to observe the provisions of the normative acts of the National Bank of Moldova and of the Ministry of Finance with reference to state securities issuance and circulation, to comply permanently with the requirements as
40

established by the National Bank for the position of Primary Dealer in the dematerialised state securities market. The Primary Dealer shall keep an adequate and accurate record of its clients patrimonial rights on state securities, shall ensure the confidentiality on state securities holders and transactions. 3.2. The Primary Dealer shall be obliged to fulfil the market maker function creator of SS market as follows: availability of necessary financial resources, employment of the qualified staff, necessary rooms for offices, equipment, etc. 3.3. The Primary Dealer shall set out business relationships with banks primary Dealers and shall have the right to participate in the open market operations conducted by the National Bank of Moldova. 3.4. The Primary Dealer shall contribute to the process of primary market formation, and shall place realistic bids at auctions with prices proposals which take into consideration the current situation of SS market. 3.5. The Primary Dealer shall not accept bids in the primary market and shall not conduct transactions in the secondary market, in case, based upon the available information, it is known that such operations may result in an investor or primary Dealer holding an amount which exceeds 50% of the value of state securities with the same ISIN code offered for sale in the primary market or being in circulation. 3.6. The Primary Dealer shall ensure the bids collection from its clients and shall transfer to the National Bank a Moldova the general bid through the AIPS transportation component on the auction date until 10:00 a.m. 3.7. The Primary Dealer shall be obliged to ensure, on the payment date, by the beginning of the Payments and clearing performance stage of the AIPS operational day program, the availability of money means on the settlement account in AIPS with a view to pay for the purchased state securities. 3.8. The Primary Dealer shall be obliged to ensure the availability on its clients accounts of money means received for the repurchased state securities on the next following day after maturity at the latest. 3.9. The Primary Dealer shall be obliged to ensure the daily quotation of state securities in the secondary market, announcing on a daily basis the selling prices of available state securities and purchasing prices of requested state securities, as well as the volume of state securities to be traded under these prices. 3.10. The Primary Dealer shall work out and implement internal regulations and procedures describing own operations and activities within the process of conducting transactions with state securities, which do not contravene the legislation in force. 3.11. The Primary Dealer shall submit to the National Bank of Moldova various reports and information on market trends, prices level and positions of each type of state security in accordance with the requirements established by NBM. 3.12. The Primary Dealer has the right to require from the National Bank the transfer of means for dematerialised state securities repurchase at face value and the interest payment within the terms and the conditions provided for under p. 2.9 of this Agreement. 3.13. In event this Agreement is suspended or cancelled by the National Bank, the Primary Dealer shall be obliged to inform its clients respectively within ten calendar days from the date the National Bank dispatches the note on suspension or cancellation of this Agreement.
41

IV. TERMS AND CONDITIONS OF THE AGREEMENT ACTION AND TERMINATION 4.1. This Agreement shall enter into force on the date of its signing by parties and shall be terminated upon 1-month written notification from one of the parties. 4.2. The Agreement may be terminated by the National Bank of Moldova as a result of the banks failure to comply with the provisions therein and the bank may become again a Primary Dealer on the state securities market only within a three-month lapse from the Agreement termination, provided the compliance with the Criteria of Primary Dealers selection and activity. 4.3. The termination of the Agreement on Primary Dealer may be carried out only after the transfer to the National Bank of all state securities from the clients portfolio (account no.2 in BES) to be recorded and served by another Primary Dealer. 4.4. The completions and the modifications to this Agreement shall be operated through an additional agreement of parties. V. SETTLEMENT OF LITIGATIONS AND DISPUTES BETWEEN PARTIES 5.1. Disputes arising within the process of carrying out the conditions of this Agreement shall be examined by parties with a view to adopting mutually acceptable decisions. 5.2. Litigations and disputes arising in the course of this Agreements execution shall be examined by the competent court. This Agreement shall be concluded in three copies with the same legal power.

NATIONAL BANK OF MOLDOVA Chiinu 7 Renaterii Ave. _____________________________ (signature, name, surname, position)

PRIMARY DEALER ________________ (address) _____________________________ (signature, name, surname, position)

Stamp

Stamp

42

Attachment no.17 AGREEMENT of the Participant in the Primary Market of Dematerialised State Securities* Chiinu _____________200__

With a view to ensuring the constant demand of dematerialised state securities in the primary market, the National Bank of Moldova in the person of _______________________ and the bank_______________________________, (position of NBM representative)
(name of the bank)

hereinafter referred to as the Participant, in the person of_____________________,

(position of bank representative)

have concluded this Agreement on the following.

I.

OBJECT OF THE AGREEMENT

1.1. This Agreement shall determine the relations between the National Bank of Moldova and the Participant, in the process of issuance and circulation of dematerialized state securities (SS), issued by the Ministry of Finance under the name of the Republic of Moldova as in accordance with the effective laws.

II. RIGHTS AND OBLIGATIONS OF THE NATIONAL BANK OF MOLDOVA 2.1. The National Bank shall be obliged to inform the Participant on all modifications and completions to the normative acts of the National Bank of Moldova with regard to the dematerialised state securities placement and circulation within three days from the date of these modifications operation. 2.2. The National Bank shall, within 4 working days prior to the carrying out of state securities-selling auction (in case of additional auctions on the auction day one hour prior to auction carrying out at the latest), send to the Participant the Communiqu of state securities issue submitted by the Ministry of Finance, through the transportation component of the automated interbank payment system (hereinafter - AIPS) or, under exceptional cases, via fax, if the transportation component is not available. 2.3. After the conclusion of the auction, the National Bank shall, on the same day, send to the Participant via the AIPS transportation component or, under exceptional cases, via fax, the note on SS purchase and the official communiqu on auction results.

* Shall be applied for Participants - licensed banks

43

2.4. The National Bank has, on the payment date, the right to receive, from the settlement account in AIPS (LORO account) of the Participant, the payment for state securities purchased at auctions by issuing a payment order on the name of the Participant, and entering the payment into the single Treasury account. 2.5. On the day of the payment performance by the Participant the National Bank shall enter into the book-entry system the nominal amount of state securities purchased by the Participant at the auction of state securities selling in the primary market. 2.6. The National Bank shall enter into the settlement account of the Participant in AIPS (LORO account) the nominal amount of state securities subject to redemption on the maturity date and the related interests on the payment date after having obtained from the Ministry of Finance of the respective means for interests payment and state securities repurchase. 2.7. The National Bank shall have the right to terminate the Agreement of the Participant in the primary market in case the commercial bank acts as the primary Dealer in the SS market. III. RIGHTS AND OBLIGATIONS OF THE PARTICIPANT 3.1. The Participant shall assume the obligation to observe the provisions of the normative acts of the National Bank of Moldova and of the Ministry of Finance with reference to the dematerialized state securities issuance and circulation. 3.2. The Participant shall have the right to participate at auctions of dematerialised state securities placement for purchasing in own portfolio only, submitting bids within the limits of 50% of the volume offered by the issuer for each type of SS (with the same ISIN code). 3.3 The Participant shall have the right to conduct transactions with SS in the secondary market only from /in own portfolio. 3.4. The Participant shall have the right to hold in own portfolio 50% at the most from the amount of SS with the same ISIN code, offered in the primary market or being in circulation. 3.5. The Participant shall be obliged to ensure, on the payment date, by the beginning of the Payments and clearing performance stage of the AIPS operational day program, the availability of money means on the settlement account in AIPS with a view to pay for the purchased state securities. 3.6. The Participant shall have the right to require from the National Bank the transfer of money means for dematerialised state securities repurchase at face value and for the interest payment within the terms and the conditions under p. 2.6 of this Agreement. 3.7. The Participant shall assume to conclude the Contract of participation in the bookentry system with NBM at one time with the conclusion of this Agreement. IV. TERMS AND CONDITIONS OF THE AGREEMENT ACTION AND TERMINATION 4.1. This Agreement shall enter into force on the date of its signing and shall work for an indefinite period of time and shall be terminated upon 3-day written notification from one of the parties. 4.2. The completions and the modifications to this Agreement shall be operated through an additional agreement of parties.
44

V. SETTLEMENT OF LITIGATIONS AND DISPUTES BETWEEN PARTIES 5.1. Disputes arising within the process of carrying out the conditions of this Agreement shall be examined by parties with a view to adopting mutually acceptable decisions. 5.2. Litigations and disputes arising in the course of this Agreements execution shall be examined by the competent court. This Agreement shall be concluded in three copies with the same legal power.

NATIONAL BANK OF MOLDOVA Chiinu 7 Renaterii Ave. _____________________________ (signature, name, surname, position)

PARTICIPANT ________________ (address) _____________________________ (signature, name, surname, position)

Stamp

Stamp

45

Attachment no.18
To: primary dealers

NOTE List of owners holding more than 50 per cent of the volume of SS with the same ISIN number in circulation on ______________20__
no.
Legal entity / name, surname of the individual State identification number tax code (IDNO) / passport (identity card) number and series
3

Country of residence

ISIN number of securities

Volume of SS at nominal value (lei)

Share within the volume of SS with the same ISIN number in circulation* (%)
7

* In case of SS purchase in the primary market, the maximum share of 50% shall be determined from the supply volume

The National Bank of Moldova is informing you that the indicated SS owners shall not be admitted at the SS selling auction of ____________20__, and the bids thereof to participate at the auction shall not be accepted by primary dealers.

First Vice Governor / Vice Governor National Bank of Moldova

_______________________
(signature, name, surname)

46

Attachment no.19
Name of the primary dealer

List of resident investors that purchased more than 5 per cent of the volume of SS with the same ISIN number placed at the SS selling auction from _____________20__

no.

Legal entity / name, surname of the individual

State identification number tax code (IDNO) / identity card number and series
3

ISIN number of securities

Volume of purchased SS, at nominal value (lei)

Share within the volume of placed SS with the same ISIN number* (%)
6

Authorized person __________________________

(name, surname)

Date and time of dispatch ________________________ DD MM YYYY HH:MM

47

Attachment no.20
To primary dealers (according to the list)

NOTE List of investors that purchased more than 50 per cent of the supplied volume of SS with the same ISIN number at the primary market auction from ____________200__
no.
Legal entity / State identification number name, surname of - tax code (IDNO) / the individual identity card number and series Country of residence*
1 2

ISIN number of securities

Volume of purchased SS, at nominal value (lei)

Share within the volume of supplied SS with the same ISIN number* (%)
6

* shall be filled in for non-resident investors

First Vice Governor /Vice Governor National Bank of Moldova

_________________________
(signature, name, surname)

48