TAXATION continued e. Deferred Tax Assets

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated 88

29. SUBORDINATED LOANS continued

Two-Step Loans TSL a Nordic Investment Bank NIB This account represents a credit facility obtained from NIB to the Government of the Republic of Indonesia, through the Ministry of Finance of the Republic of Indonesia, which re-lent the proceeds to participating banks to finance projects in Indonesia. The details of these facilities are as follows: Credit Facility Purpose Repayment Period Nordic Investment Bank IV Nordic Investment Bank III To promote and finance high priority investments in Indonesia, primarily in the private sector, or joint Indonesian and Nordic interests. To promote and finance high priority investments in Indonesia, primarily in the private sector, or joint Indonesian and Nordic interests. April 15, 1997 - February 28, 2017 with the 1 st installment on August 31, 2002. August 4, 1993 - August 15, 2008 with the 1 st installment on February 15, 1999. The details of credit facilities from Nordic Investment Bank are as follows: 2008 2007 a Nordic Investment Bank IV NIB IV 181,089 202,394 b Nordic Investment Bank III NIB III - 11,330 181,089 213,724 The interest rate on the NIB III and IV facility are based on a variable interest rate as determined by Bank Indonesia based on the prevailing average interest rates for the past six months for three-month Certificates of Bank Indonesia. Bank has settled NIB III loan facility on August 15, 2008. b ASEAN Japan Development Fund - Overseas Economic Cooperation Fund AJDF-OECF This account represents a credit facility obtained from AJDF-OECF to the Government of the Republic of Indonesia, through the Ministry of Finance of the Republic of Indonesia, which re-lent the proceeds to participating banks to finance projects in Indonesia. The details of these facilities are as follows: Credit Facility Purpose Repayment Period Pollution Abatement Equipment Program PAE Small Scale Industry SSI To purchase equipment to prevent pollution To finance small-scale industry August 19, 1993 - August 19, 2013, with 1 st installment on August 15, 1998 August 19, 1993 - August 19, 2013, with 1 st installment on August 15, 1998 Details of outstanding credit facilities from the International ASEAN Japan Development Fund Overseas Economic Cooperation Fund AJDF-OECF are as follows: 2008 2007 a Pollution Abatement Equipment Program PAE 56,633 69,218 b Small Scale Industry SSI 1,872 2,288 58,505 71,506