OTHER LIABILITIES continued SUBORDINATED LOANS

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated 87

29. SUBORDINATED LOANS continued

Two-Step Loans TSL continued a Nordic Investment Bank NIB continued The interest rate on the NIB II facility is based on the past six months’ average interest rate for three- month Certificates of Bank Indonesia which should: • Not be higher than the average interest rate for three-month time deposits for the past six months in the five 5 state-owned banks. • Not be lower than the interbank interest rate to the Government of the Republic of Indonesia plus 1.75 per annum. The interest rate on the NIB III facility is 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. The interest rate on the NIB IV facility is 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. b Export-Import Bank of Japan EBJ This account represents credit facilities obtained from the EBJ through the Government of the Republic of Indonesia, via 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 EBJ-TSL I To finance private sector projects included in Priority Scale List from or approved by the Investment Coordinating Board. July 7, 1988 - January 15, 2005 with the 1 st installment on July 15, 1992. EBJ-TSL II To finance private and state-owned company projects in sectors prioritized by the Government and that are export- oriented. October 14, 1989 - October 1, 2004 with the 1 st installment on April 1, 1993. EBJ-TSL III To finance private and state-owned company projects in sectors prioritized by the Government and that are export- oriented. January 21, 1991 - July 15, 2005 with the 1 st installment on January 15, 1994. EBJ-TSL IV To finance projects which help to increase investments in the private sector and which are export-oriented. January 28, 1992 - January 15, 2007 with the 1 st installment on July 15, 1995. The details of credit facilities from the EBJ are as follows: 2005 2004 a Export-Import Bank of Japan I EBJ-TSL I - 3,364 b Export-Import Bank of Japan II EBJ-TSL II - - c Export-Import Bank of Japan III EBJ-TSL III - 29,568 d Export-Import Bank of Japan IV EBJ-TSL IV 29,294 48,823 29,294 81,755 PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated 88

29. SUBORDINATED LOANS continued