Treaty Room - Treaty
TECHNICAL ARRANGEMENT
between
the Ministry of Finance of the Republic of Indonesia
and
the state corporation "The Bank for Development and
Foreign Economic Affairs (Vnesheconombank)"
on
the technical procedure of disbursements, settlements,
and keeping accounts under the state loan extended by the
Government of the Russian Federation to the Government of
the Republic of Indonesia
Preamble
In
accordance with
the Agreement
between
the
Government
of
the
Republic
of
Indonesia
and
the
Government of the Russian Federation on the extension of
a state loan to the Government of the Republic of
Indonesia dated September 6th, 2007 (hereinafter referred
to as "the Agreement") the Government of the Russian
Federation (hereinafter referred to as "the Lender") will
make available to the Government of the Republic of
Indonesia (hereinafter referred to as "the Borrower") the
state loan (hereinafter referred to as "the Loan") for
amount of up to US Dollars 1 (one) billion at the rate of
5, 3 percent per year for financing 85 percent of each
contract
value
of
individual
purchase
contracts
(hereinafter referred to as "Purchase Contract") between
the
exporters
domiciled
in
the
Russian
Federation
(hereinafter referred to as "the Exporter")
and the
Ministry
of
Defence
of
the
Republic
of
Indonesia
(hereinafter referred to as "the MoD of Indonesia") for
the deli very of military purpose equipment specified in
the Annex to the Agreement.
The remaining 15 percent of the value of each
Purchase Contract will make the advance payments to be
paid by the MoD of Indonesia to the Exporter in US
Dollars
in
accordance
with
the
terms
of
Purchase
Contract.
The Loan shall be utilized in accordance with the
Protocols to be concluded between the Ministry of Finance
of the Russian Federation and the Ministry of Finance of
the Republic of Indonesia (hereinafter referred to as
"the Protocols") as stated in the Agreement.
The state corporation "The Bank for Development and
Foreign Economic Affairs (Vnesheconombank)" (hereinafter
referred to as
"Vnesheconombank")
authorized by the
Lender and the Ministry of Finance of the Republic of
Indonesia
(hereinafter
referred
to
as
"the
MoF of
Indonesia") authorized by the Borrower have agreed as
follows:
Article 1. Credit Accounts
1.1.
For accounting the utilization and the
repayment of the Loan, as well as the calculation and the
payment of interest thereon, Vnesheconombank and the MoF
of Indonesia under each of the Protocols will open in
their books respective credit accounts in US Dollars,
basing on the following:
for accounting the amounts of the utilized Loan as
well as for the amounts received in repayment thereof an
account with index 2/**** (hereinafter referred to as
"Account 2");
for accounting the amount of interest accrued under
Account 2 as well as for the amounts received in payment
thereof
an
account
with
index
4/****
(hereinafter
referred to as "Account 4");
for accounting the amounts of overdue indebtedness
of principal and/or interest as well as for the amounts
received in repayment thereof an account with index
3/**** (hereinafter referred to as "Account 3");
for accounting the amounts of interest accrued on
overdue
indebtedness
under
Account
3
(hereinafter
referred to as "the Late Interest") as well as for the
amounts received in payment thereof an account with index
5/**** (hereinafter referred to as "Account 5").
1.2.
Vnesheconombank will inform the MoF of
Indonesia on the respective credit accounts opened under
each of the Protocols.
1. 3.
The
MoF
of
Indonesia
will
open
the
responsive accounts in its books
within
14
calendar
days
from
receipt
of
the
information
from
Vnesheconombank, and will inform the latter accordingly.
2
Article 2. Opening and Performing the Letters of Credit
The settlements under each Purchase Contract shall
be executed by way of letters of credit to be opened in
frameworks of each of the Protocols.
The MoF of Indonesia will take the necessary
measures for the opening of the letters of credit by Bank
Indonesia (hereinafter referred to as "the Issuing Bank")
through Vnesheconombank in favor of the Exporter in
accordance with the terms of Purchase Contract,
and
coordinate the execution of the operations required by
the terms and conditions of the letters of credit.
The opened letters of credit will be subject to the
Uniform Customs and Practice for Documentary Credits (ICC
Publication No. 600, 2007 Revision or other revision
effective at the moment of their opening)
and will
contain reference to the Agreement and the Protocols.
All opened letters of credit will stipulate the
transmission of full set of shipping and other documents
through Vnesheconombank and the Issuing Bank.
In respect of the documents presented under the
letters of credit by the Exporter, Vnesheconombank, the
MoF of Indonesia and the Issuing Bank will operate in
accordance with the following procedure:
2.1. Upon receipt of invoices from the Exporter
with attached shipping and other documents required by
the terms and conditions of the opened letters of credit,
Vnesheconombank will enter the amounts of these invoices
to the debit of Account 2, and will forward within 3
working days
(in Moscow) the respective debit-advices
(statements) under Account 2 to the MoF of Indonesia for
responsive entry.
2.1.1. If Vnesheconombank receives no confirmation
or comments from the MoF of Indonesia on these documents
within a period of 30 calendar days starting from the
date of Vnesheconombank' s statement, the documents will
be considered accepted.
2.1.2. At the same time the respective invoices
with attached shipping and other documents will be
forwarded by Vnesheconombank to the Issuing Bank.
2 .1. 3. If Vnesheconombank receives no confirmation
or comments from the Issuing Bank on these documents
within a period of 14 calendar days starting from the
date of Vnesheconombank' s letter, the documents will be
considered accepted.
2. 2. The invoices from the Exporter will contain
references
to
the
Agreement
and
to
the
respective
Protocols, as well as will indicate number and date of
3
the Purchase Contract, number of the letter of credit,
and value date.
2. 3. The following dates will be considered the
dates of utilization of the Loan and the value dates for
interest calculation:
a)
for the delivery of the equipment with a
production period of more than one year - the date of a
statement that confirms completion of each equipment
production stage or the date of other documents provided
for in Purchase Contract;
b)
for the delivery of other equipment - the date
of a bill of lading, air consignment note or the date of
other
documents
provided
for
in
Purchase
Contract
including the documents confirming the rendered services
and/or accomplished works.
2.4.
In
case
Vnesheconombank
finds
any
discrepancies in the documents presented by the Exporter,
which cannot be eliminated within the period of their
presentation (hereinafter referred to as "the Discrepant
Documents"), Vnesheconombank will inform the Issuing Bank
without forwarding these documents to the Issuing Bank,
as
well
as
without
entering the
amounts
of
these
documents under Account 2.
2.4.1. In case of acceptance of the Discrepant
Documents by the MoD of Indonesia, the Issuing Bank will
inform Vnesheconombank accordingly, and
will request Vnesheconornbank to send these documents to
the Issuing Bank.
2.4.2. If Vnesheconombank receives no confirmation
or comments from the Issuing Bank on the Discrepant
Documents within a period of 30 calendar days starting
from the date of Vnesheconombank's letter, the documents
will be considered accepted.
2.4.3. Upon receipt of information from the Issuing
Bank on acceptance of the documents by the MoD of
Indonesia, but in any case not later than on 31 calendar
days
from
the
date
of
Vnesheconombank's
letter,
Vnesheconombank will forward to the Issuing Bank the
Discrepant Documents, and will enter the amounts of the
Discrepant Documents under Account 2 the value dates
stipulated in Point 2.3. of the present Article.
2.4.4. In case within the above 30 calendar days
Vnesheconombank receives information from the Issuing
Bank on non-acceptance of the Discrepant Documents by the
MoD
of
Indonesia,
Vnesheconombank
will
forward
the
Discrepant Documents to the Exporter for the settlement
of the matter with the MoD of Indonesia.
4
2.5. If the Issuing Bank finds discrepancies in the
set of the documents, which carne from Vnesheconornbank
without a notice on any discrepancies, the Issuing Bank
will pass copies of these documents to the MoD of
Indonesia in order to obtain their acceptance, and will
inform
Vnesheconornbank
accordingly
following
the
procedure of Point 2.1.3. of the present Article.
2. 5. 1. In case within a period of 30 calendar days
starting from the date of Vnesheconornbank' s letter the
Issuing Bank has not received the acceptance from the MoD
of Indonesia on the Discrepant Documents, the Issuing
Bank will return them to Vnesheconornbank. Vnesheconornbank
will forward these documents to the Exporter for the
settlement of the matter with the MoD of Indonesia.
2.6. Whereas in operations under letters of credit
Vnesheconornbank and the Issuing Bank deal with documents
only, and not with the goods (services and/or works), all
disagreements in respect of conforrni ty of the presented
documents with the actually delivered goods
(rendered
services
and/or
accomplished works)
will
be
settled
directly between the Exporter and the MoD of Indonesia in
accordance with the terms of Purchase Contract concluded
between them, but in any case with no reference to the
utilization or to the settlements and repayment under the
Loan.
2.7.
In case the MoD of
Indonesia
reasonably
refuses to accept the goods
(services and/or works)
delivered by
the
Exporter under
the
Agreement,
the
respective credit-note ( s) can be drawn by the Exporter
for the amount of the claims received from the MoD of
Indonesia as defined in the Purchase Contract.
Vnesheconombank can decrease the respective amount
of the utilized Loan only upon receipt of the above
credit-note ( s) from the Exporter and will inform to the
MoF of Indonesia within 3 working days.
Article 3. Interest Accrued on the Loan
3 .1.
During the period of utilization and the
period of repayment of the Loan under the each of the
respective
Protocols,
Vnesheconornbank
will
accrue
interest at the rate of 5, 3 percent per year on the
balance of Account 2.
3.2.
The
interest
will
be
accrued
each
year
starting from the date of utilization of the Loan as of
February 14 and paid by the MoF of Indonesia on February
15, and as of August 14 and paid by the MoF of Indonesia
5
on August 15. The interest will also be accrued on the
day of the last principal installment effected by the MoF
of Indonesia.
3. 3. The interest will be calculated on the basis
of the actual number of days elapsed in a 3 60-day year
(basis 365/360).
Article 4. Repayment of the Loan and Payment of Interest
4.1. The MoF of Indonesia will repay actually
utilized amount of the Loan as follows:
a)
the principal under Account 2 - in US Dollars,
semiannually in 20 equal installments on February 15 and
on August 15 of each year, first installment being due in
5 years
from the date of signing of each of the
Protocols;
b)
the interest under Account 4 - in US Dollars,
on February 15 and on August 15 of each year of
utilization and/or repayment of the Loan;
c)
the payment in cover of the last interest
installment
under
Account
4
should
be
effected
simultaneously with the payment in cover of the last
principal installment under Account 2.
4. 2. At least 30 calendar days before the first
principal installment is due, Vnesheconombank will draw
schedule
of
up
the
payments
in
repayment
of
the
and
will
forward
the
above
schedule
of
principal,
payments to the MoF of Indonesia with a copy to Bank
Indonesia.
In case Vnesheconombank receives no comments from
the MoF of Indonesia on the schedule of payments at least
10 calendar days before the first principal installment
is due, the schedule of payments is considered confirmed.
4.3. Any repayment of the Loan and payment of the
interest thereon (including the repayment of the overdue
indebtedness and payment of the Late Interest) should be
executed by the MoF of Indonesia free of any charge by
transfers of funds in US Dollars in accordance with the
payment instructions of Vnesheconombank to the account of
Vnesheconombank
with
its
third-country
corresponding
bank.
Vnesheconombank
will
forward
the
payment
instructions to the MoF of Indonesia and a copy to Bank
Indonesia at least 14 business days before each due date.
In case Vnesheconombank receives no comments from the MoF
of
Indonesia
on
the
payment
instructions
within
7
business
days
before
each
due
date,
the
payment
6
instructions forwarded by Vnesheconombank are considered
received.
4.4. The date of crediting funds to the account of
Vnesheconombank with its third-country corresponding bank
will be considered as the actual date of payment. This
date
will
also be
regarded as
the
value date
for
calculation of the interest and/or the Late Interest. If
the actual date of payment in cover of the principal
happens to be on any date before the original due date,
this payment will be considered as effected on the
respective original due date.
If the original due date of any payment under the
Loan falls on a non-business day this payment should be
effected on the first business day following the due
date.
4. 5. For the provisions defined in Article 4 the
business day is the day on which the banks in New York
are opened for business.
Article 5. Overdue Indebtedness
5.1.
If
any
installment
in
repayment
of
the
principal and/or in payment of the interest is not
effected at all or is effected partly on the original due
date,
the
outstanding
installment
is
considered
as
overdue, and Vnesheconombank transfers the amount of this
installment from Accounts 2 and/or 4 to Account 3 value
the original due dates.
Vnesheconombank will charge the Late Interest on
the overdue amounts under Account 3 starting from the
original due dates up to the date of complete repayment
of such overdue amounts.
The Late Interest will be
calculated on the basis of the actual number of days
elapsed in a 360-day year (basis 365/360) at the rate of
6,3 percent per year.
Vnesheconombank will debit Account
5 with
the
amounts of the Late Interest accrued under Account 3 as
of February 14 and/or as of August 14. Vnesheconombank
will also debit Account 5 with the amounts of the Late
Interest accrued under Account 3 as
on the day of
complete repayment of the overdue indebtedness under
Account 3.
5. 2. Vnesheconombank will forward to the MoF of
Indonesia and a copy to Bank Indonesia respective debitadvices (statements) under Accounts 3 and/or 5 for the
responsive
entries.
If
Vnesheconombank
receives
no
confirmation or comments from the MoF of Indonesia on the
7
debit-advices (statements) within a period of 30 calendar
days
starting
from
the
date
of
Vnesheconombank's
statement, the documents are considered accepted.
Article 6. Allocation of Payments
Upon receipt of an advice from the third-country
corresponding bank, stating that a respective amount in
US Dollars is credited to the account of Vnesheconombank,
the latter will reduce the indebtedness under Accounts 2,
3, 4, 5 in the following order:
1) the Late Interest under Account 5;
2) the interest under Account 4;
3) the overdue indebtedness of the interest and/ or
of the principal under Account 3;
4) the principal under Account 2.
Article 7. Information Forwarded
7.1. As of January 01 of each year within the
period
of
utilization
and
repayment
of
the
Loan
Vnesheconombank will forward to the MoF of Indonesia the
Tables of Payments, and as of January 01 and as of July
01 of each year Vnesheconombank will forward to the MoF
of Indonesia the Balances of the credit accounts.
If Vnesheconombank receives
no
confirmation or
comments from the MoF of Indonesia on the Tables of
Payments and/ or on the Balances of the credit accounts
within a period of 30 calendar days starting from the
date of their dispatch, the documents will be considered
accepted.
7.2.
All
notices,
advices,
correspondence,
and
other
communications
under
the
present
Technical
Arrangement
will
be
confidential,
conducted
in
the
English language, and addressed as follows:
The MoF of Indonesia:
Attn:
Directorate
of
Evaluation,
Settlements
Directorate General of Debt Management
Jalan
Lap.
Banteng
Timur
No.
2-4,
Indonesia
Tel: + 62 (21) 386-47-78
Fax: + 62 (21) 384-37-12
E-mail: Setelmen@dmo.or.id
8
Accounting
Jakarta
and
10710,
Bank Indonesia:
Attn: International Directorate
Syafruddin Prawiranegara Building 4th floor
Jalan M.H. Thamrin No. 2, Jakarta 10110, Indonesia
Tel: + 62 (21) 231-01-95
Fax:
+ 62 (21) 231-15-29
SWIFT: INDOIJA
Vnesheconombank:
Attn: Intergovernmental Debt Obligations Directorate
Ak. Sakharov Ave. 9, Moscow 107996, Russia
Telex: 64, 412232 VEBX RU
Tel: + 7 (495) 204-65-18, + 7 (495) 204-67-23
Fax: + 7 (495) 975-21-20
SWIFT: BFEARUMM
Article 8. Expenses
The
MoF
of
Indonesia,
the
Issuing
Bank
and
Vnesheconombank, will execute all transactions under the
Agreement at their own expense and shall not charge the
counterparty
with
any
commission,
SWIFT/fax/mail/cable/telex and/or other expenses.
Article 9. Amendments and Dispute Resolution
9.1.
The present Technical Arrangement may be
modified
and/or
amended
by
mutual
consent
of
Vnesheconombank and the MoF of Indonesia in writing. Such
amendments will be made in a form of an addendum or
letters exchanged between Vnesheconombank and the MoF of
Indonesia.
9. 2. In case any dispute or controversy arise out
of or in relation to the present Technical Arrangement,
Vnesheconombank and the MoF of Indonesia will undertake
all necessary steps to resolve the matter by means of
negotiations in good faith, bearing in mind that the
provisions
of
the Agreement
and
of
the
respective
Protocols will prevail.
9
Article 10. Entry into Force and Validity
The present Technical Arrangement will enter into
force on the date of its signing by the MoF of Indonesia
and Vnesheconombank,
will equally cover each of the
Protocols,
and
will
remain
valid
until
complete
fulfillment of the obligations of the Borrower under the
Agreement.
Done in Jakarta on September 6th, 2007 in two
originals each in English, with one original each for the
MoF of Indonesia and Vnesheconombank having the same
effect.
For
the Ministry of Finance
of the Republic of Indonesia
For
the state corporation
"The Bank for
Development and ｆｾＮｲｮ＠
Economic Affairs
(Vnesheconombank)
Signed
Signed
10
between
the Ministry of Finance of the Republic of Indonesia
and
the state corporation "The Bank for Development and
Foreign Economic Affairs (Vnesheconombank)"
on
the technical procedure of disbursements, settlements,
and keeping accounts under the state loan extended by the
Government of the Russian Federation to the Government of
the Republic of Indonesia
Preamble
In
accordance with
the Agreement
between
the
Government
of
the
Republic
of
Indonesia
and
the
Government of the Russian Federation on the extension of
a state loan to the Government of the Republic of
Indonesia dated September 6th, 2007 (hereinafter referred
to as "the Agreement") the Government of the Russian
Federation (hereinafter referred to as "the Lender") will
make available to the Government of the Republic of
Indonesia (hereinafter referred to as "the Borrower") the
state loan (hereinafter referred to as "the Loan") for
amount of up to US Dollars 1 (one) billion at the rate of
5, 3 percent per year for financing 85 percent of each
contract
value
of
individual
purchase
contracts
(hereinafter referred to as "Purchase Contract") between
the
exporters
domiciled
in
the
Russian
Federation
(hereinafter referred to as "the Exporter")
and the
Ministry
of
Defence
of
the
Republic
of
Indonesia
(hereinafter referred to as "the MoD of Indonesia") for
the deli very of military purpose equipment specified in
the Annex to the Agreement.
The remaining 15 percent of the value of each
Purchase Contract will make the advance payments to be
paid by the MoD of Indonesia to the Exporter in US
Dollars
in
accordance
with
the
terms
of
Purchase
Contract.
The Loan shall be utilized in accordance with the
Protocols to be concluded between the Ministry of Finance
of the Russian Federation and the Ministry of Finance of
the Republic of Indonesia (hereinafter referred to as
"the Protocols") as stated in the Agreement.
The state corporation "The Bank for Development and
Foreign Economic Affairs (Vnesheconombank)" (hereinafter
referred to as
"Vnesheconombank")
authorized by the
Lender and the Ministry of Finance of the Republic of
Indonesia
(hereinafter
referred
to
as
"the
MoF of
Indonesia") authorized by the Borrower have agreed as
follows:
Article 1. Credit Accounts
1.1.
For accounting the utilization and the
repayment of the Loan, as well as the calculation and the
payment of interest thereon, Vnesheconombank and the MoF
of Indonesia under each of the Protocols will open in
their books respective credit accounts in US Dollars,
basing on the following:
for accounting the amounts of the utilized Loan as
well as for the amounts received in repayment thereof an
account with index 2/**** (hereinafter referred to as
"Account 2");
for accounting the amount of interest accrued under
Account 2 as well as for the amounts received in payment
thereof
an
account
with
index
4/****
(hereinafter
referred to as "Account 4");
for accounting the amounts of overdue indebtedness
of principal and/or interest as well as for the amounts
received in repayment thereof an account with index
3/**** (hereinafter referred to as "Account 3");
for accounting the amounts of interest accrued on
overdue
indebtedness
under
Account
3
(hereinafter
referred to as "the Late Interest") as well as for the
amounts received in payment thereof an account with index
5/**** (hereinafter referred to as "Account 5").
1.2.
Vnesheconombank will inform the MoF of
Indonesia on the respective credit accounts opened under
each of the Protocols.
1. 3.
The
MoF
of
Indonesia
will
open
the
responsive accounts in its books
within
14
calendar
days
from
receipt
of
the
information
from
Vnesheconombank, and will inform the latter accordingly.
2
Article 2. Opening and Performing the Letters of Credit
The settlements under each Purchase Contract shall
be executed by way of letters of credit to be opened in
frameworks of each of the Protocols.
The MoF of Indonesia will take the necessary
measures for the opening of the letters of credit by Bank
Indonesia (hereinafter referred to as "the Issuing Bank")
through Vnesheconombank in favor of the Exporter in
accordance with the terms of Purchase Contract,
and
coordinate the execution of the operations required by
the terms and conditions of the letters of credit.
The opened letters of credit will be subject to the
Uniform Customs and Practice for Documentary Credits (ICC
Publication No. 600, 2007 Revision or other revision
effective at the moment of their opening)
and will
contain reference to the Agreement and the Protocols.
All opened letters of credit will stipulate the
transmission of full set of shipping and other documents
through Vnesheconombank and the Issuing Bank.
In respect of the documents presented under the
letters of credit by the Exporter, Vnesheconombank, the
MoF of Indonesia and the Issuing Bank will operate in
accordance with the following procedure:
2.1. Upon receipt of invoices from the Exporter
with attached shipping and other documents required by
the terms and conditions of the opened letters of credit,
Vnesheconombank will enter the amounts of these invoices
to the debit of Account 2, and will forward within 3
working days
(in Moscow) the respective debit-advices
(statements) under Account 2 to the MoF of Indonesia for
responsive entry.
2.1.1. If Vnesheconombank receives no confirmation
or comments from the MoF of Indonesia on these documents
within a period of 30 calendar days starting from the
date of Vnesheconombank' s statement, the documents will
be considered accepted.
2.1.2. At the same time the respective invoices
with attached shipping and other documents will be
forwarded by Vnesheconombank to the Issuing Bank.
2 .1. 3. If Vnesheconombank receives no confirmation
or comments from the Issuing Bank on these documents
within a period of 14 calendar days starting from the
date of Vnesheconombank' s letter, the documents will be
considered accepted.
2. 2. The invoices from the Exporter will contain
references
to
the
Agreement
and
to
the
respective
Protocols, as well as will indicate number and date of
3
the Purchase Contract, number of the letter of credit,
and value date.
2. 3. The following dates will be considered the
dates of utilization of the Loan and the value dates for
interest calculation:
a)
for the delivery of the equipment with a
production period of more than one year - the date of a
statement that confirms completion of each equipment
production stage or the date of other documents provided
for in Purchase Contract;
b)
for the delivery of other equipment - the date
of a bill of lading, air consignment note or the date of
other
documents
provided
for
in
Purchase
Contract
including the documents confirming the rendered services
and/or accomplished works.
2.4.
In
case
Vnesheconombank
finds
any
discrepancies in the documents presented by the Exporter,
which cannot be eliminated within the period of their
presentation (hereinafter referred to as "the Discrepant
Documents"), Vnesheconombank will inform the Issuing Bank
without forwarding these documents to the Issuing Bank,
as
well
as
without
entering the
amounts
of
these
documents under Account 2.
2.4.1. In case of acceptance of the Discrepant
Documents by the MoD of Indonesia, the Issuing Bank will
inform Vnesheconombank accordingly, and
will request Vnesheconornbank to send these documents to
the Issuing Bank.
2.4.2. If Vnesheconombank receives no confirmation
or comments from the Issuing Bank on the Discrepant
Documents within a period of 30 calendar days starting
from the date of Vnesheconombank's letter, the documents
will be considered accepted.
2.4.3. Upon receipt of information from the Issuing
Bank on acceptance of the documents by the MoD of
Indonesia, but in any case not later than on 31 calendar
days
from
the
date
of
Vnesheconombank's
letter,
Vnesheconombank will forward to the Issuing Bank the
Discrepant Documents, and will enter the amounts of the
Discrepant Documents under Account 2 the value dates
stipulated in Point 2.3. of the present Article.
2.4.4. In case within the above 30 calendar days
Vnesheconombank receives information from the Issuing
Bank on non-acceptance of the Discrepant Documents by the
MoD
of
Indonesia,
Vnesheconombank
will
forward
the
Discrepant Documents to the Exporter for the settlement
of the matter with the MoD of Indonesia.
4
2.5. If the Issuing Bank finds discrepancies in the
set of the documents, which carne from Vnesheconornbank
without a notice on any discrepancies, the Issuing Bank
will pass copies of these documents to the MoD of
Indonesia in order to obtain their acceptance, and will
inform
Vnesheconornbank
accordingly
following
the
procedure of Point 2.1.3. of the present Article.
2. 5. 1. In case within a period of 30 calendar days
starting from the date of Vnesheconornbank' s letter the
Issuing Bank has not received the acceptance from the MoD
of Indonesia on the Discrepant Documents, the Issuing
Bank will return them to Vnesheconornbank. Vnesheconornbank
will forward these documents to the Exporter for the
settlement of the matter with the MoD of Indonesia.
2.6. Whereas in operations under letters of credit
Vnesheconornbank and the Issuing Bank deal with documents
only, and not with the goods (services and/or works), all
disagreements in respect of conforrni ty of the presented
documents with the actually delivered goods
(rendered
services
and/or
accomplished works)
will
be
settled
directly between the Exporter and the MoD of Indonesia in
accordance with the terms of Purchase Contract concluded
between them, but in any case with no reference to the
utilization or to the settlements and repayment under the
Loan.
2.7.
In case the MoD of
Indonesia
reasonably
refuses to accept the goods
(services and/or works)
delivered by
the
Exporter under
the
Agreement,
the
respective credit-note ( s) can be drawn by the Exporter
for the amount of the claims received from the MoD of
Indonesia as defined in the Purchase Contract.
Vnesheconombank can decrease the respective amount
of the utilized Loan only upon receipt of the above
credit-note ( s) from the Exporter and will inform to the
MoF of Indonesia within 3 working days.
Article 3. Interest Accrued on the Loan
3 .1.
During the period of utilization and the
period of repayment of the Loan under the each of the
respective
Protocols,
Vnesheconornbank
will
accrue
interest at the rate of 5, 3 percent per year on the
balance of Account 2.
3.2.
The
interest
will
be
accrued
each
year
starting from the date of utilization of the Loan as of
February 14 and paid by the MoF of Indonesia on February
15, and as of August 14 and paid by the MoF of Indonesia
5
on August 15. The interest will also be accrued on the
day of the last principal installment effected by the MoF
of Indonesia.
3. 3. The interest will be calculated on the basis
of the actual number of days elapsed in a 3 60-day year
(basis 365/360).
Article 4. Repayment of the Loan and Payment of Interest
4.1. The MoF of Indonesia will repay actually
utilized amount of the Loan as follows:
a)
the principal under Account 2 - in US Dollars,
semiannually in 20 equal installments on February 15 and
on August 15 of each year, first installment being due in
5 years
from the date of signing of each of the
Protocols;
b)
the interest under Account 4 - in US Dollars,
on February 15 and on August 15 of each year of
utilization and/or repayment of the Loan;
c)
the payment in cover of the last interest
installment
under
Account
4
should
be
effected
simultaneously with the payment in cover of the last
principal installment under Account 2.
4. 2. At least 30 calendar days before the first
principal installment is due, Vnesheconombank will draw
schedule
of
up
the
payments
in
repayment
of
the
and
will
forward
the
above
schedule
of
principal,
payments to the MoF of Indonesia with a copy to Bank
Indonesia.
In case Vnesheconombank receives no comments from
the MoF of Indonesia on the schedule of payments at least
10 calendar days before the first principal installment
is due, the schedule of payments is considered confirmed.
4.3. Any repayment of the Loan and payment of the
interest thereon (including the repayment of the overdue
indebtedness and payment of the Late Interest) should be
executed by the MoF of Indonesia free of any charge by
transfers of funds in US Dollars in accordance with the
payment instructions of Vnesheconombank to the account of
Vnesheconombank
with
its
third-country
corresponding
bank.
Vnesheconombank
will
forward
the
payment
instructions to the MoF of Indonesia and a copy to Bank
Indonesia at least 14 business days before each due date.
In case Vnesheconombank receives no comments from the MoF
of
Indonesia
on
the
payment
instructions
within
7
business
days
before
each
due
date,
the
payment
6
instructions forwarded by Vnesheconombank are considered
received.
4.4. The date of crediting funds to the account of
Vnesheconombank with its third-country corresponding bank
will be considered as the actual date of payment. This
date
will
also be
regarded as
the
value date
for
calculation of the interest and/or the Late Interest. If
the actual date of payment in cover of the principal
happens to be on any date before the original due date,
this payment will be considered as effected on the
respective original due date.
If the original due date of any payment under the
Loan falls on a non-business day this payment should be
effected on the first business day following the due
date.
4. 5. For the provisions defined in Article 4 the
business day is the day on which the banks in New York
are opened for business.
Article 5. Overdue Indebtedness
5.1.
If
any
installment
in
repayment
of
the
principal and/or in payment of the interest is not
effected at all or is effected partly on the original due
date,
the
outstanding
installment
is
considered
as
overdue, and Vnesheconombank transfers the amount of this
installment from Accounts 2 and/or 4 to Account 3 value
the original due dates.
Vnesheconombank will charge the Late Interest on
the overdue amounts under Account 3 starting from the
original due dates up to the date of complete repayment
of such overdue amounts.
The Late Interest will be
calculated on the basis of the actual number of days
elapsed in a 360-day year (basis 365/360) at the rate of
6,3 percent per year.
Vnesheconombank will debit Account
5 with
the
amounts of the Late Interest accrued under Account 3 as
of February 14 and/or as of August 14. Vnesheconombank
will also debit Account 5 with the amounts of the Late
Interest accrued under Account 3 as
on the day of
complete repayment of the overdue indebtedness under
Account 3.
5. 2. Vnesheconombank will forward to the MoF of
Indonesia and a copy to Bank Indonesia respective debitadvices (statements) under Accounts 3 and/or 5 for the
responsive
entries.
If
Vnesheconombank
receives
no
confirmation or comments from the MoF of Indonesia on the
7
debit-advices (statements) within a period of 30 calendar
days
starting
from
the
date
of
Vnesheconombank's
statement, the documents are considered accepted.
Article 6. Allocation of Payments
Upon receipt of an advice from the third-country
corresponding bank, stating that a respective amount in
US Dollars is credited to the account of Vnesheconombank,
the latter will reduce the indebtedness under Accounts 2,
3, 4, 5 in the following order:
1) the Late Interest under Account 5;
2) the interest under Account 4;
3) the overdue indebtedness of the interest and/ or
of the principal under Account 3;
4) the principal under Account 2.
Article 7. Information Forwarded
7.1. As of January 01 of each year within the
period
of
utilization
and
repayment
of
the
Loan
Vnesheconombank will forward to the MoF of Indonesia the
Tables of Payments, and as of January 01 and as of July
01 of each year Vnesheconombank will forward to the MoF
of Indonesia the Balances of the credit accounts.
If Vnesheconombank receives
no
confirmation or
comments from the MoF of Indonesia on the Tables of
Payments and/ or on the Balances of the credit accounts
within a period of 30 calendar days starting from the
date of their dispatch, the documents will be considered
accepted.
7.2.
All
notices,
advices,
correspondence,
and
other
communications
under
the
present
Technical
Arrangement
will
be
confidential,
conducted
in
the
English language, and addressed as follows:
The MoF of Indonesia:
Attn:
Directorate
of
Evaluation,
Settlements
Directorate General of Debt Management
Jalan
Lap.
Banteng
Timur
No.
2-4,
Indonesia
Tel: + 62 (21) 386-47-78
Fax: + 62 (21) 384-37-12
E-mail: Setelmen@dmo.or.id
8
Accounting
Jakarta
and
10710,
Bank Indonesia:
Attn: International Directorate
Syafruddin Prawiranegara Building 4th floor
Jalan M.H. Thamrin No. 2, Jakarta 10110, Indonesia
Tel: + 62 (21) 231-01-95
Fax:
+ 62 (21) 231-15-29
SWIFT: INDOIJA
Vnesheconombank:
Attn: Intergovernmental Debt Obligations Directorate
Ak. Sakharov Ave. 9, Moscow 107996, Russia
Telex: 64, 412232 VEBX RU
Tel: + 7 (495) 204-65-18, + 7 (495) 204-67-23
Fax: + 7 (495) 975-21-20
SWIFT: BFEARUMM
Article 8. Expenses
The
MoF
of
Indonesia,
the
Issuing
Bank
and
Vnesheconombank, will execute all transactions under the
Agreement at their own expense and shall not charge the
counterparty
with
any
commission,
SWIFT/fax/mail/cable/telex and/or other expenses.
Article 9. Amendments and Dispute Resolution
9.1.
The present Technical Arrangement may be
modified
and/or
amended
by
mutual
consent
of
Vnesheconombank and the MoF of Indonesia in writing. Such
amendments will be made in a form of an addendum or
letters exchanged between Vnesheconombank and the MoF of
Indonesia.
9. 2. In case any dispute or controversy arise out
of or in relation to the present Technical Arrangement,
Vnesheconombank and the MoF of Indonesia will undertake
all necessary steps to resolve the matter by means of
negotiations in good faith, bearing in mind that the
provisions
of
the Agreement
and
of
the
respective
Protocols will prevail.
9
Article 10. Entry into Force and Validity
The present Technical Arrangement will enter into
force on the date of its signing by the MoF of Indonesia
and Vnesheconombank,
will equally cover each of the
Protocols,
and
will
remain
valid
until
complete
fulfillment of the obligations of the Borrower under the
Agreement.
Done in Jakarta on September 6th, 2007 in two
originals each in English, with one original each for the
MoF of Indonesia and Vnesheconombank having the same
effect.
For
the Ministry of Finance
of the Republic of Indonesia
For
the state corporation
"The Bank for
Development and ｆｾＮｲｮ＠
Economic Affairs
(Vnesheconombank)
Signed
Signed
10