Selanjutnya

AGREEMENT
between the Government of the Republic of Indonesia
and the Government of the Hungarian People's Republic on rescheduling of Indonesia's debt obligations
The Government of the Republic of Indonesia and the
the Hungarian People's Republic desirous to improve
relations between the two countries based on mutual
as results of the discussions held from November 27
1972 in Budapest have agreed on the following:

Government of
the economic
benefit and
to November 30,

Article l
The subject of this Agreement is the rescheduling of Indonesia's
debt obligations which comprise maturities on principals and
interests originating from deliveries contracted on/or before
June 30, 1966 and delivered up to and including Decenber 31, 1968
under the Longterm Trade and Economic Cooperation Agreement of
September 5, 1961 between the two countries.

Article 2
The net total of debt obligations stipulated in Article 1 amounts
to US Dollars 18.618.764,97 as principal and US Dollars 1.981.821,75
as interests.
Article 3
The total amount of Indonesia's debt obligations referred to in Article 2
above, except those parts which shall be paid on December 31, 1972
will be covered by promissory notes issued by Bank Indonesia,

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Jakarta acting for and on behalf of the Government of the Republic
of Indonesia, in favour of National Bank of Hungary, Budapest.
The maturity dates as well as the amounts of the promissory notes
shall be detennined in accordance with Article 4 of this Agreement.

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The promissory notes will be forwarded by Bank Indonesia, Jakarta
to National Babk of Hungary, Budapest within (J:) /sixty/ days from
the date of entering into force of this Agreement.
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Upon receipt of the aforementioned promissory notes National Bank
of Hungary, Budapest shall deliver to Bank Indonesia, Jakarta free
of payment and charge those promissory notes which are held by
them in cover of Indonesia's debt obligations.

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Article 4

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1/ The total amount of principal mentioned in Article 2 shall be paid
by the Government of the Republic of Indonesia to the Government
of the Hungarian People's Republic in thirty equal annual instalments starting from the year 1970, each instalment amounting
to USDollars 6X>.625,50.

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The total amount of interest shall be paid in fifteen equal annual instalments starting from the year 1985, each instalment
amounting to USDollars 132.121,45.

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The payment of principal and interest shall be due and paid on
December 31 of each year.

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The instalments which became due for payment in the years 1970
and 1971 shall be paid together with the instalment of 1972 on

December 31, 1972 by telegraphic transfer through Bank Indonesia,
Jakarta in favour of National Bank of Hungary, Budapest.
No interest shall be charged on the rescheduled period of Indonesia's debt obligations.

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2/ The Government

of the Republic of Indonesia is entitled to
defer part of the payment of the first six annual instalments
of the principal to the period of 1992-1999 on the following
conditions:

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a/ each deferment will not be more than 50 per cent of the
relevant instalment1

b/ the total amount deferred will not exceed the total of
three annual instalmentss
c/ the amounts deferred will be repaid in eight equal annual
instalments, the first one becoming payable on December 31, 1992;

d/

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the amounts deferred. shall be covered by promissory notes
issued by Bank Indonesia, Jakarta acting for and on behalf of the Government of the Republic of Indonesia, in
favour of National Bank of Hungary, Budapest. The maturity
dates of such promissory notes as well as their amounts
shall be determined in accordance with para c/ above1

e/ in case the Government of the Republic of Indonesia wants
to avail itself of the option of deferment, a notice to
this effect shall be given through Bank Indonesia, Jakarta
to National Bank of Hungary, Budapest not later than (J:)
/sixty/ days before the maturity dates of the instalments

in questions

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f/ interest at the rate of 4 per cent per annun will be charged
on the outstanding deferred balances as from the due dates
until tee date of payment. The interest will be paid annually on December 31 in each year, firstly on December 31, 1973
and collected by National Bank of Hungary, Budapest through
Bank Indonesia, Jakarta.

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Article 5

The currency of
4 above and the
US Dollars. The
the City of New

the promissory notes referred to in Articles 3 and
currency of payment will be freely convertible
place of payment of each promissory note will be
York.
Article 6

The payment schedules stipulated in Article 4 may be reviewed in the
1980's through mutual consultations which, in the light of the then
prevailing economic situation of Indonesia, may lead to an acceleration of the payment of the maturities on principal and interest
or a reduction of the amount of interest mentioned in Article 2

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of this Agreement.
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Article 7
In the event of a change in the fine gold contents of the US Dollar,
being at present 1 US Dollar equivalent to 0,81851265 grams of
fine gold, the amounts referred to in this Agreement which are outstanding at the date of such a change shall be adjusted in such
a way that their equivalent expressed in fine gold remains the same
as before the Change. Consequently the outstanding promissory notes
referred to in Articles3,bbove will be replaced by new ones for
values adjusted accordingly.
Article 8

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The Government of the Republic of Indonesia accords treatment to
the Government of the Hungarian People's Republic no less favourable
than that which it has accorded or may hereafter accord to any

other creditor country for the rescheduling of Indonesia's debts
of a comparable nature and terms contracted before June30, 1966.

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The Government of the Republic of Indonesia will inform the Government of the Hungarian People 1 s Republic of all debt consolidation
agreements which have been or will be concluded.

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Article 9

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With the coming into force of the present Agreement all provisions
in the original contracts or agreements as referred to in Article 1
as well as the Protocol of September 16, 1967 concerning pending
financial matters, stipulating the terms and conditions and the
methods of calculations and payments which are not in coRformity
with the provisions of the present Agreement, are declared null
and void.

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This Agreement shall come into force on the date of its signing
and remains in effect until all obligations expressed therein
will be fulfilled.

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Done in Budapest on December 28 ,
1972 in two originals in the
English language, both texts being equally authentic.

for the

for the
REPUBLIC OF INJX)NESIA

HUNGARIAN PEOPLE'S REPUBLIC

Signed

Signed

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/ ffOeslan Baboe /

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OOVERNMENr OF THE

GOVERNMENr OF THE

/ ｄｲﾷｾ＠

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KB.roly Garamvolgyi'/

y
(

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Budapest, December 28, 1972.

Excellency,
Referring to our talks which resulted today in the Agreement between the Government of the Hungarian People's Republic
and the Government of the Republic of Indonesia on rescheduling

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of Indonesia's debt obligations the following understanding has
been reached between us:
In establishing the figures referred to in Article 2 of the
Agreement ref erred to above the Indonesian export proceeds retained
by National Bank of Hungary, Budapest were already taken into
account.
I shall be ｧｲ｡ｴｾｦｵｬ＠
to have your confirmation to the
correctness of the abovementioned understanding between our two
Governments.
Accept, Excellency, the assurances of my highest
consideration.
Yours faithfuljy,

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Signed

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Garamvolgyi /
/ Dr. ｾｲｯｬｹ＠
First Deputy Minister of Finance
His Excellency Mr. Roeslan Baboe
Ambassador Extraordinary and Plenipotentiary
of the Republic of Indonesia to the Hungarian People's Republic
Budapest.

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Budapest, December 28, 1972.

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Excellency,
I have the honour to confirm the correctness of our understanding expressed in your letter of today's date reading as
follows:

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"Referring to our talks which resulted today in the Agreement
between the Goverrvnent of the Hungarian People's Republic and the
Government of the Republic of Indonesia on rescheduling of Indonesia's debt obligations the following understanding has been reached
between us:
In establishing the figures ref erred to in Article 2 of the
Agreement ref erred to above the Indonesian export proceeds retained
by National Bank of Hungary, Budapest were already taken into
account.
I shall be grateful to have your confirmation to the
correctness of the abovementioned understanding between our two
Governments ...

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Accept, Excellency, the assurances of my highest
consideration.
Yours faithfully,

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Signed

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Roeslan Baboe I
Ambassador Extraordinary
and Plenipotentiary
His Excellency Dr. KB.roly Garamvolgyi
First Deputy Minister of Finance
of the Hungarian People's Republic
B u d a p e s t •

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Budapest, December 28 ,

1972.

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Excellency,

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With reference to Article 4 of the Agreement between the
Government of the Republic of Indonesia and the Government of the
Hungarian People's Republic on the rescheduling of Indonesiats debt
obligations of today's date and in view of the fact that the Government of the Republic of Indonesia has availed itself of such a deferment in respect of other creditor countries, I have the honour
to declare that the Government of the Republic of Indonesia will
avail itself of the option to defer the payment of 50 per cent
of the first three annual instalments on the principal debt.
Consequently, the total amount to be paid by telegraphic
transfer on December 31, 1972 will be 3 x 50% x US Dollars 62).625,50

=US Dollars 930.938,25.

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The balances of the relevant instalments will be covered by
eight promissory notes to be issued by Bank Indonesia, Jakarta acting
for and on behalf of the Government of the Republic of Indonesia,
for payment on December 31 of the years 1992 up to and including 1999
respectively, each time to the amount of US Dollars 116.367,28.
fhese promissory notes will be forwarded to National Bank of Hungary,
Budapest together with the promissory notes referred to in Article 3
of the Agreement.

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I shall be grateful if you will take note of the above.
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Accept, Excellency, the assurances of my highest
consideration.

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Yours,4.aiWlfully4
Signed
His Excellency Dr. KB.roly Garamvolgyi
/ ｾｯ･｢
･＠ /
First Deputy Minister of Finance
Amba ssador Extraor dinary
and Plenipot entiary
of the Hungarian People's Republic
B u d a p e s t •

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Budapest, December 28,1972.
Excellency,

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I have the honour to acknowledge receipt and take note
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of the contents of youx letter dated today reading as follows:
"With reference to Article 4 of the Agreement between
the Government of the Republic of Indonesia and the Government
of the Hungarian People's Republic on the rescheduling of
Indonesia's debt obligations of today's date and in view of the
fact that the Government of the Republic of Indonesia has availed
itself of such a deferment in respect of other creditor countries,
I have the honour to declare that the Government of the Republic
of Indonesia will avail itself of the option to defer the payment
of 50 per cent of the first three annual instalments on the
principal debt.
Consequently, the total amount to be paid by telegraphic
transfer on December 31, 1972 will be 3x50%xUS Dollars
62:>.625,50

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= US Dollars 930.938,25.

The balances of the relevant instalments will be covered
by eight promissory notesto be issued by Bank Indonesia,
Jakarta acting for and on behalf of the Government of the Republic
of Indonesia, for payment on December 31 of the years 1992 up
to and including 1999 respectively, each time to the amount of
US Dollars 116.367,28. These promissory notes will be forwarded
to National Bank of Hungary, Budapest together with the
promissory notes referred to in Article 3 of the Agreement.
I sha 11 be grateful if you will take note of the above.••
Accept,
consideration.
ｅｸ｣･ｬｮｾＬ＠

the assurances of my highest

Yours

ｦ｡ｩｴｨ

ｾ ｬｹｾ＠

Signed

Hi s Excel lency Mr. Roes l an Baboe I Dr. K4Yory"Garainvolg)ri'-t"
First Deputy Mi nister of \ Finance
Ambassador Extraordinary
and Plenipotenti ary of the Republic of Indonesia t o the Hungar ian
Peopl e ' s Repub, jc
B u d a p e s t
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