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CREDIT AGREEMENT
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OFTHEREPUBLIC OF ITALY

CREDIT AGREEMENT
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE REPUBLIC OF ITALY

The Government of the Republic of Indonesia and the Government of the Republic of Italy, in the spirit of friendship
and economic cooperation between the two countries,

have

agreed as follows :
Article

1

The Government of the Republic of Italy shall extend to the
Government of the Republic of Indonesia a loan to the amount
of US dollars 7.500.000 (seven million and five hundred
thousand) to be utilized for the improvement of the economic
situation of Indonesia within the framework of the

Italian

participation in cooperation schemes and programmes to

be

agreed between the two Governments.

Article

2

The credit referred to in Article 1, shall be granted at the

following conditions :

•

- 2 -

Repayment in 20 (twentyl consecutive equal half-yearly prin
cipal installments on January ｬｾｴ＠

and July 1st of each year

starting from the first January 1st or July 1st whichever
comes immediately after 126 (one hundred twenty six) months
from the date of effectiveness of the financial convention
referred to in the following Article.
- Interest rate : Nominal annual 1.50% (one point fifty percentl, payable at the end of each period of six months on
January 1

st

, and July 1

st

.
of each year, start1ng from that

of each drawdown.

The technical arrangements and the other conditions for the
grantinq of the above mentioned credit will be agreed in a
separate financial couvention to be concluded between the
Mediocredito Centrale, acting on authorization of the Italian Government, and the Director General for InternaT.ional
Monetary Affairs, Department of Finance, acting on account
of the Republic of Indonesia.

Art·icle

4

This Agreement shall come into force on the day of its signature and it shall remain in force until the last payment
to the Hediocredito Centrale, to oe due under previous Article 2, is made.

- 3 -

Done in Jakarta on tb.e twentysixth day of May ,1986

in two

originals in English language.

FOR THE GOVERNMENT OF THE
REPUBLIC OF INDONESIA

Signed

Atmono Suryo
Director General for Foreign
Economic Relations,
Department of Foreign Affairs.

FOR THE GOVERNMENT OF THE
REPUBLIC OF ITALY

Signed

Giorgio VECCHI
Ambassador Extraordinary
and Plenipotentiary of
toe Republic of Italy to
tne Republic of Indonesia.

CONFIDENTIAL
Jakarta,

May

26, 1986

Dear Sir,

I have the honour to acknowledge receipt of your letter of
today's date, by which you inform me of the following :
"Excellency,
I nave the honour

to 1nform you that the Government of the

Republic of Indonesia is willing to allocate the sum of up
to 7.500.000 US dollars as mentioned in the Credit

Agree-

ment signed under today;s date between the Government of the
Republic of Italy and the Government of the Republic of Indonesia, to finance supplies of Italian goods and/or services
made by Italian firms for the construction of an engineering
safety laboratory of the Research Center at Serpong.
I would like to propose that this letter and

your

thereto be regarded as an exchange of letters in

reply

order

to

establish a definitive commitment of loan funds, which shall
enter into force on the date of Your Excellency's letter.
Accept, Excellency, the assurances of

my highest consider-

ation."
I have the honour to inform you of the Agreement of the
Government of the Republic of Italy on the above.
Yours very truly,

Signed

Giorgio VECCHI
H.E. Atmono Suryo
Director General for Foreign
Economic Relations,
Department of Foreign Affairs
J

a k a r t a

Ambassador Extraordinary
and Plenipotentiary of
the Republic of Italy to
the Republic of Indonesia.