TAXATION continued e. Deferred tax assets continued

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated 84

29. SUBORDINATED LOANS continued

Two-Step Loans TSL a Nordic Investment Bank NIB This account represents a credit facility obtained from NIB through 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: 2007 2006 a Nordic Investment Bank IV NIB IV 202,394 223,698 b Nordic Investment Bank III NIB III 11,330 22,660 213,724 246,358 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. b Export-Import Bank of Japan EBJ This account represents credit facilities obtained from the EBJ through 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 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: 2007 2006 Export-Import Bank of Japan IV EBJ-TSL IV - 9,765 PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated 85

29. SUBORDINATED LOANS continued