REPUBLIC OF LITHUANIA                                         
                                                                                
           PROVISIONAL LAW ON THE CURRENCY FUNDS AND CONVERTIBLE                
                         CURRENCY DEDUCTIONS                                    
                                                                                
                                                                                
     Article 1.The System of Currency Funds of the Republic of                  
               Lithuania                                                        
                                                                                
     The system  of currency  funds of  the Republic of Lithuania               
shall consist  of the  State currency  fund of  Lithuania and the               
currency funds of higher level local governments.                               
                                                                                
     Article 2. The Objectives of the Currency Funds                            
                                                                                
     1. Resources from the State currency fund of Lithuania shall               
be allocated for:                                                               
     1) financing  the economic,  social, ecological, scientific,               
educational and cultural needs of the State;                                    
     2) accumulating  and increasing  the currency savings of the               
Bank of Lithuania;                                                              
     3) making donations to international organizations;                        
     4) clearing the foreign debt of the Republic of Lithuania;                 
     5) settling internal accounts; and                                         
     6) financing the currency expenditures of state authorities,               
government bodies, and state agencies abroad.                                   
     2. Resources  accumulated in local government currency funds               
shall be used to finance the economic, social, ecological, educa-               
tional and  cultural needs  of the  respective town  or district.               
Standards for  financing business  trips and other government ex-               
penditures shall be approved by the Government of the Republic of               
Lithuania.                                                                      
     3. The  State currency  fund of  Lithuania shall establish a               
currency reserve for the financing of unplanned currency expendi-               
tures.                                                                          
     4. The  rate of  the currency reserve, expressed by the per-               
centage of  income of  the State  currency fund  of Lithuania, as               
well as  by the  revenues and  expenditures of the fund, shall be               
approved by the Supreme Council of the Republic of Lithuania.                   
                                                                                
     Article 3. Income of the Currency Fund                                     
                                                                                
     1. The  currency fund income shall be composed of the profit               
(income) tax  of legal  and natural  persons, the income from the               
sale of  currency to  the State  in the compulsory procedure, ex-               
cise duties, and other convertible currency dues.                               
     2. In  1991 and  in the  first quarter  of 1992,  state  en-               
terprises and  state stock  corporations, in  accordance with the               
procedure established  by  the  Government  of  the  Republic  of               
Lithuania, must  deduct 20  percent of  their currency income for               
the State  (currency reserve).  Enterprises which  purchase goods               
intended for  sale must  deduct 20 percent of the currency income               
profit acquired  from the  sale of the said goods. This procedure               
shall also be valid for currency income attained from the sale of               
goods manufactured in state enterprises and stock corporations to               
other enterprises.  Deductions shall not be applied to the sum of               
currency receipts  (earnings) which  are apportioned  to  foreign               
legal and  natural persons. A different procedure for the sale of               
currency to  the currency  fund, provided  for in  the bylaws ap-               
proved by the founders, may be applied to state enterprises which               
have a specific purpose. (Amended 20 February 1992)                             
     3. Enterprises  of the  Republic of  Lithuania, whose income               
consists of  both local and convertible currency, shall pay their               
profit (income)  taxes in  both currencies.  The amount  that the               
enterprise shall  pay in  roubles (litas) and in convertible cur-               
rency shall  be proportional to the amount of roubles (litas) and               
convertible currency  in the  enterprise's  income.  Upon  estab-               
lishing these  proportions, the  currency income and expenditures               
of an  enterprise shall  be recalculated  in roubles (litas), ac-               
cording to  the official  exchange rate;  the profit  of  an  en-               
terprise shall be calculated in the same manner.                                
     The Government  of the  Republic of  Lithuania may, upon the               
request of  commercial-economic enterprises,  more than  half  of               
whose income  is comprised  of profits  from goods  which are im-               
ported or  exported for  convertible currency,  determine  profit               
taxes in  roubles (litas)  and convertible currency in proportion               
to the income of the enterprise (income exceeding material expen-               
ditures and other comparable expenditures) in roubles (litas) and               
convertible currency.                                                           
     The amount  of taxation  shall be established by the Laws of               
the Republic  of Lithuania on Income Taxes of Natural Persons, on               
Profit Taxes  of Legal Persons, and on Foreign Investments in the               
Republic of  Lithuania. Natural  persons who, according to labour               
contracts, are  payed in  convertible currency,  or  who  receive               
bonuses in  convertible currency,  shall pay  a 28 percent income               
tax in the same currency in which the income is received.                       
     4. Excise duties (indirect tax) shall be paid for goods sold               
(services  rendered)  in  the  Republic  of  Lithuania  for  con-               
vertible currency  according to the procedures established by the               
Government of the Republic of Lithuania.                                        
     Income taxes  shall be  calculated and paid according to the               
procedures established  by the  Government  of  the  Republic  of               
Lithuania.                                                                      
                                                                                
     Article 4.Distribution of Currency Income Among the State                  
               and Local Currency Funds of Lithuania                            
                                                                                
     1. Receipts  of currency  funds from  enterprises which  are               
owned by  legal and  natural persons  ( with the exception of en-               
terprises which  are owned  by local  governments) shall  be dis-               
tributed in the following manner:                                               
     85 percent  shall be allocated to the State currency fund of               
Lithuania; and                                                                  
     15 percent  shall be  allocated to the local government cur-               
rency fund with which the enterprise is registered.                             
     2. Receipts  of currency  funds from  enterprises which  are               
owned by  local governments shall be distributed in the following               
manner:                                                                         
     15 percent  shall be allocated to the State currency fund of               
Lithuania; and                                                                  
     85 percent  shall be  allocated to the local government cur-               
rency fund.                                                                     
     3. Receipts  of currency  funds from  sources  specified  in               
Paragraph 4,  Article 3  of this Law, shall be distributed in the               
following manner:                                                               
     70 percent  shall be allocated to the State currency fund of               
Lithuania;                                                                      
     30 percent  shall be  allocated to the local government cur-               
rency fund  on  whose  territory  the  products  have  been  sold               
(services rendered).                                                            
     4. Receipts  exacted upon the violation of this Law shall be               
distributed in  accordance with  the  proportions  set  forth  in               
Paragraphs 1-3 of this Article.                                                 
                                                                                
     Article 5.Payment for Currency Sold to Currency Funds or                   
               Received from Currency Funds                                     
                                                                                
     1. State  enterprises and  stock corporations  shall be paid               
for currency  sold in  1991 to  State and local currency funds of               
Lithuania from  the appropriate  budgets in  roubles (litas), ac-               
cording to the established settlement rate.                                     
     2. Enterprises,  institutions, and  organizations which  are               
allocated currency from currency funds shall pay for the currency               
                                                                                
in roubles  (litas),  according  to  the  established  commercial               
settlement rate.                                                                
     3. The  procedure for  settling accounts in convertible cur-               
rency shall  be established  by the Government of the Republic of               
Lithuania in conjunction with the Bank of Lithuania.                            
                                                                                
     Article 6.Control of Currency Fund Income (Taxes, Compul-                  
               sory Sale of Currency)                                           
                                                                                
     1. Currency  fund income  shall be controlled by tax inspec-               
tions in  accordance  with  the  procedures  established  by  the               
Government of the Republic of Lithuania.                                        
     2. Upon the sheltering of currency fund incomes, sums of un-               
remitted deductions  shall be recovered by financial institutions               
without suing for claims, and a fine of double the amount in cur-               
rency shall  be imposed  on an enterprise without refunding it in               
roubles (litas).                                                                
     3. The  utilization and formation of currency funds shall be               
controlled by  the State  Control Department and by control divi-               
sions of local governments.                                                     
                                                                                
     Article 7.The Procedure for the Utilization of Currency                    
               Funds of the Republic of Lithuania                               
                                                                                
     1. The  draft plan  for the utilization and formation of the               
State currency  fund  of  Lithuania  shall  be  prepared  by  the               
Government of the Republic of Lithuania.                                        
     2. The  plan for  the utilization and formation of the State               
currency fund  of Lithuania,  submitted by  the Government of the               
Republic of  Lithuania, shall  be approved by the Supreme Council               
of the Republic of Lithuania.                                                   
     3. The  plans for  the utilization  and formation  of  local               
government currency  funds, submitted by local government boards,               
shall be approved by local government town (district) Councils.                 
                                                                                
     Article 8. Supplementary Provisions                                        
                                                                                
     1. The  following shall  be exempt from currency fund deduc-               
tions: societies  for the  blind, the deaf and other invalids, as               
well as  their  organizations  and  enterprises;  the  Red  Cross               
Society; the  Bishop Motiejus  Valancius Sobriety  Movement;  the               
Fund of  Culture, Charity  and Health; the Children's Fund; other               
organizations and  funds whose  main goal  is charity, as well as               
their enterprises and organizations; and medical institutions, if               
their currency  income is  not used  to pay  wages, premiums,  or               
other payments. (Amended 28 November 1991)                                      
     2. Enterprises which sell products or render services in ex-               
change for  currency may transfer a certain portion of their cur-               
rency resources  to other enterprises connected with the manufac-               
turing of  said products  or rendering  of services in the amount               
specified in  a mutual  agreement. If the manufacturing of a good               
(product) sold  for convertible  currency requires  the supply of               
raw materials  or products which are distributed in a centralized               
manner, their manufacturer (enterprise registered in the Republic               
of Lithuania)  shall be paid no less than 50 percent of the fixed               
(agreed) price in currency, according to the settlement rate.                   
     3. It  shall be  established that  all enterprises, institu-               
tions, and  organizations of the Republic which have foreign cur-               
rency must keep their currency in separate Lithuanian accounts or               
in foreign banks.                                                               
                                                                                
                                                                                
Vytautas Landsbergis                                                            
                                                                                
President                                                                       
Supreme Council                                                                 
Republic of Lithuania                                                           
                                                                                
                                                                                
Vilnius                                                                         
21 March 1991                                                                   
No.I-1159