FUND BORROWINGS continued 2004 06 Full Audited Financial Statements w Notes

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 87

27. FUND BORROWINGS continued

c Exchange Offer Loans In accordance with the Government’s debt restructuring program for banks, Bank Mandiri exchanged certain non-Rupiah denominated obligations obtained from foreign banks for new borrowings with extended maturities, and guaranteed by Bank Indonesia pursuant to the exchange offer memorandum in the Master Loan Agreement as follows: June 30, 2004 June 30, 2003 US Rupiah US Equivalent Full amount Equivalent Full amount Rupiah Exchange Offer Loan II 182,100,000 1,709,009 566,955,000 4,685,883 182,100,000 1,709,009 566,955,000 4,685,883 April 30, 2003 US Rupiah Full amount Equivalent Exchange Offer Loan II 928,290,000 8,053,380 928,290,000 8,053,380 Exchange Offer Loan II with original maturities before January 1, 2002 will mature in four 4 tranches every June 1 from 2002 to 2005. These borrowings bear interest calculated every six months equal to six months LIBOR for the periods plus an applicable margin determined for each maturity period. The Bank settled the Exchange Offer Loan II with nominal value amounting to US335,702,500 full amount in May 2004, and bought back US49,500,000 full amount in November 2003. d PT Permodalan Nasional Madani Persero This account represents credit facilities obtained from PT Permodalan Nasional Madani Persero, whose borrowings were re-loaned by Bank Mandiri’s to the members of the Primary Cooperative Kredit Koperasi Primer kepada Anggotanya KKPA. These facilities are subject to interest at 9 per annum. The loan terms and installment payments schedule reflect the terms of the individual loan agreements. e Others - Rupiah June 30, 2004 June 30, 2003 April 30, 2003 Bank Panin, Jakarta 100,000 - - HSBC, Jakarta 90,000 - - 190,000 - - f Others - Foreign currency June 30, 2004 June 30, 2003 April 30, 2003 Direct off-shore loans 281,550 247,950 260,265 Trade facilities 93,932 - - Others 5,541 126,519 182,663 381,023 374,469 442,928 PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 88

28. ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES