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PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2006 With Comparative Figures For 2005 Expressed in millions of Rupiah, unless otherwise stated 46

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Interest Rate Swaps continued Bank Mandiri entered into an interest rate swap agreement with nominal amount of US125,000,000 full amount with counterparty bank in August 2002. The underlying transaction is the Bank’s US125,000,000 full amount fixed interest rate Subordinated Note issued in 2002 Note 29. Under the transaction, the Bank receives semi-annual fixed interest at the rate of 10.625 per annum and pays semi-annual floating interest at the rate of six-month LIBOR + 6.19 per annum for a 5-year period. The six-month Libor interest is stated in arrears. While the transaction is for the purpose of hedging the fixed rate coupon payments of the Subordinated Note with floating coupon payments, it does not qualify as a hedging transaction for accounting purposes. Cross Currency Swaps Bank Mandiri has entered into cross currency swap contracts, which are associated with the securities sold with agreements to repurchase with several counterparty banks. The contracts were initiated when Bank Mandiri sold its Government Recapitalization Bonds to the counterparty banks and received Rupiah funds. These funds were used to settle the spot leg of the cross currency swaps and Bank Mandiri will then receive US Dollar funds. On the settlement date, the Bank will receive Rupiah funds and pay US Dollar funds to the counterparty banks. Bank Mandiri is then obliged to use the Rupiah funds to repurchase the Government Recapitalization Bonds previously sold to counterparty banks Notes 7 and 22. A summary of the cross currency swap contracts is as follows: Type of Buy Sell Effective Date Maturity Date Transactions full amount full amount November 3, 2004 November 3, 2009 Spot US25 million Rp285,060 million Forward Rp285,060 million US25 million November 4, 2004 November 4, 2009 Spot US25 million Rp284,062 million Forward Rp284,062 million US25 million May 18, 2005 May 18, 2010 Spot US25 million Rp316,356 million Forward Rp316,356 million US25 million June 7, 2005 January 7, 2008 Spot US50 million Rp617,500 million Forward Rp617,500 million US50 million As of December 31, 2005, a summary of derivative transactions is as follows: Notional Amount Fair Value Derivative Derivative Transactions Contract Note 2k Receivables Payables Third parties Foreign Exchange Related : 1. Forward - buy US Dollar 622,074 605,772 1,655 17,957 Others 77,300 76,054 - 1,246 2. Forward - sell US Dollar 426,077 425,276 835 34 Others 59,919 59,401 594 76 3. Swap - buy US Dollar 2,666,750 2,644,010 1,239 23,979 4. Swap - sell US Dollar 4,869,156 4,601,502 312,921 45,267 Others 150,000 149,620 - 380 PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2006 With Comparative Figures For 2005 Expressed in millions of Rupiah, unless otherwise stated 47

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