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Agreement
between the Government of the Republic of Indonesia and the Government of the Czechoslovak Socialist Republic on the consolidation of Indonesia's debt
obli-gations
The Government of the Republic of Indonesia and the Government of the Czechoslovak Socialist Republic, with reference to the Agreement between the Republic of Indonesia and the Czechoslovak Socialist Republic on the Payments of Indonesian Obligations, and to the Protocol to the said Agreement, both concluded in Praha on September 22, 1967, and
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IIlle Government of the Czechoslovak Socialist Republic recognizing urgent needs of the Indonesian national economy for adoption of exceptional measures for a long-term rearran- 1
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gement of payments of Indonesia s external debts and exceptio-nally meeting a request of the Government of the Republic of Indonesia in this matter,
As a result of the discussions held in Praha,
Have agreed on the following:
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Article l
The subject of this Agreement is the consolidation of Indonesia's debt obligations which comprise maturities of principal and interest originating from
a) Short-term obligations and credits as well as long-term credits, based on trade agreements, agreement on industrial development of 1956 and protocol of 1959, agreement on
economic cooperation of 1960;
b) Long-term credits concerning deliveries of special mate-rials and technical aids, baaed on agreements signed in the years 1958 - 1962, the protocol on rescheduling of May 18, 1964 and the agreement of October 29, 1964.
Article 2
The total of debt obligations, stipulated in Article 1, which were made the object of the agreement of September 22, 1967, amount as of the date of January 1, 1970, to US Dollars 78.017·.198,94 consisting of principal of US Dollars
68.746.354,17 and interest of US Dollars 9.270.844,77.
Article 3
The total amount of principal shall be repaid by the Government of the Republic of Indonesia to the Government of the Czechoslovak Socialist Republic in thirty equal annual instalments starting from the year 1970, each instalment
amounting to OS Dollars 2.291.545,14 •
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The total amount of interest shall be repaid in fifteen equal annual instalments starting from the year 1985, each instalment amounting to US Dollars 618.056,32.
The payment of principal and interest shall be made not later than December 10 of the current year.
The instalment of principal due for 1970 shall be paid not later than June 30, 1971.
The instalment of principal due for 1971 shall be paid not later than December 10, 1971.
Article 4
No moratorium or any other interest shall be charged to
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the consolidation and repayment schedule stipulated in Article 3,
except in the case of deferment mentioned in Article 6 hereunder
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Article 5
Currency of accounting will be the US Dollar, and the currency of repayments will be US Dollar or other freely convertible currency acceptable to aeskoslovenska obchodni b&nka, a.s., Praha.
Article 6
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a) Each deferment will not be more than Ｕｾ＠ of the relevant instalment and
b) The total amount deferred will not exceed the total of three annual instalments. The amount deferred will be repaid in eight equal annual instalments, the first one becoming payable not later than December 10, 1992.
Interest at the rate of Ｔｾ＠ per annum will be charged on the outstanding defj rred balances as from the dates of deferment, payable always not later than December 10
of each year starting in the year which will follow the year ｾｮ＠ which the deferment was requested •
Article
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The payment schedules stipulated in Articles 3 and 6 will be subject to a review in the 1980's through mutual consultations which in the light of the then prevailing economic situation in Indonesia may lead to either an ao-celeration of the payments of the maturities of principal and interest or to a reduction in the payment of interest·•'
Article 8
The Government of the Republic of Indonesia .will accord to the Government of the Czechoslovak Socialist Republic treatment no less favourable than that which it has accorded or may hereafter accord to any other creditor country for the consolidations of Indonesian debts of a comparable nature and term contracted before 31st December, 1966.
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Article 9
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Agreement, Bank Indonesia and ｾ･ｳｫｯ｡ｬｯｶ･ｮｳｫ｡＠ obchodni banka, a.a., each acting for and on behalf of their respective
Governments, will come into an agreement for the implemen-tation of the present Agreement. Any instalment as indicated in Article 3 of the present Agreement shall be payable on the dates stipulated therein irrespectively of whether the inter-bank agreement will have or will have not been concluded in due time.
Article 10
With the coming into force of the present Agreement all provisions in the original contracts, agreements and protocols referred to in Article l of the present Agreement as well as the agreement and protocol of September 22, 1967 on the payments of Indonesia's obligations stipulating the terms and conditions as well as methods of calculations of payments which are not in conformity with the provisions
of the present Agreement are declared null and void.
The present Agreement shall come into force on the date of its signing.
Done in Praha on
ｾ ｾＸ
Ｌ ＱＹＷＱ＠
in two originals in the Englishｬ｡ｮｧｵ｡ｧ･Ｌ
ｃＧＢｾ ｾｴｨ＠
being equally authentic.ｾ ＭＭ
the Government Por the Governmentof
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of Indonesia ofｴｨｾｺＭ･｣ｨｯＭｳｬＮｑｶ｡ｫ＠
Socialistｒ･ｰｵ｢ｬｾ＠
Signed
Signed
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Chairman
of the Indonesian Delegation
Excellency,
Praha,
ｊｾ＠
ｾ［＠
1971 ConfidentialReferring to the Agreement between the Government of the Republic of Indonesia and the Government of the Czecho-slovak Socialist Republic on the consolidation of Indone-sia' a debt obligations signed on ｴｯｾＧｳ＠ date, I have the honour to confirm the following understanding reached be-tween us.
1. The Government of the Republic of Indonesia will avail itself of the option to defer the payment of
50%
of each annual instalment of the principal during the years 1970 -1975, as provided for in Article 6 of the abovementioned Agreement.,
2. The proceeds of Indonesia s rubber exports still to be transferred by ｾ･ｳｫｯｳｬｯｶ･ｮｳｫ｡＠ obchodni banka, a.s., Praha to the amount o.f US Dollars 2.832.391,49 will be settled in the following manner:
a) Each year one-eighth of the rubber export proceeds
referred to above will be compensated as partial payment of the annual instalments of principal due to the Government of the Czechoslovak Socialist Republic during the years 1970 up to and including 1977.
b) Consequently, the Government o t the Republic of Indonesia
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2.
1970
us
Dollars791.723,64
1971
us
Dollars791.723,64
1972
us
Dollars791.723,64
1973
US Dollars791.723,64
1974
us
Dollars791.723,64
1975
us
Dollars791.723,64
1976
us
Dollars1.937.496,21
1977
us
Dollars1.937.496,21
J.
ｾ･ｳｫｯｳｬｯｶ･ｮｳｫ｡＠ obchodni banka, a.s., Praha as well asthe respective Czechoslovak importers are hereby absolved from liabilities towards Indonesian exporters and/or banks arising from the abovementioned export proceeds •
The present letter and your reply will constitute
an integral part of the Agreement referred to above.
I shall be grate:tul if you will confirm the correctness of this understanding.
Please accept, Excellency, the assurances of my highest consideration.
Yours sincerely,
Excellency
Ing. Andrej B a r
c a
k Minister of Foreign Tradeof the Czechoslovak Socialist Republic Chairman of the Czechoslovak Delegation
Pr aha
,;
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Chairman
of the Czechoslovak Delegation
Excellency,
Praha,
ｾＳ
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ＱＹＷＱ＠
Conf(dential
I have the honour to acknowledge receipt of your letter of today's date reading as follows:
"Referring to the Agreement between the GovenlIJlent of the Republic of Indonesia and the Government of the Czecho-slovak Socialist Republic on the consolidation of Indone-sia' a debt obligations signed on today's date, I have the honour to confirm the following understanding reached
be-tween us.
l. The Government of the Republic of Indonesia .will avail itself of the option to defer the pa)'Dlent of Ｕｾ＠ of each annual instalment of the principal during the years 1970 -1975, as provided for in Article 6 of the abovementioned Agreement.
2. The proceeds of Indonesia's rubber exports still to be transferred by Ceskoslovenska obchodni banka, a.s., Praha to the amount of US Dollars 2.832.391,49 will be settled in the f ollowi.ng manner:
a) Each year one-eighth of the rubber export proceeds
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b) Consequently, the Government of the Republic of Indonesia will pay in cash the balance of the annual instalments of the principal during the first 8 years according to the following schedule:
1970
us
Dollars 791.723,64 1971us
Dollars 791.723,64 1972us
Dollars 791.723,64 1973us
Dollars 791.723,64 1974us
Dollars 791.723,64 1975us
Dollars 791.723,64 1976us
Dollars 1.937.496,21 1977us
Dollars 1.937.496,213. ｾ･ｳｫｯｳｬｯｶ･ｮｳｫ｡＠ obchodni banka, a.s., Praha as well as
the respective Czechoslovak importers are hereby absolved from liabilities towards Indonesian exporters and/or banks arising from the abovementioned export proceeds.
The present letter and your reply will constitute
an integral part of the Agreement referred to above.
I shall be grateful if you will confirm the correctness of this understanding."
In reply I have the honour to confirm the above under-standing.
Please accept, Excellency, the assurances of my highest consideration.
Excellency
H. Adam M a l i k
Minister of Foreign Affairs of the Republic of Indonesia
Chairman of the Indonesian Delegation P r a h a
GOVERNMENT OF THE CZECHOSLOVAK SOCIALIST REPUBLIC
Whereas an agreement is to be signed which may represent an outcome of the negotiations concerning the rearrangement of maturities of Indonesian debts owed to the Czechoslovak Socialist Republic, the Government of the Czechoslovak Socialist Republic have appointed and do hereby appoint
Ing • And re j B a r
c a
k ,Minister of Foreign Trade of the Czechoslovak Socialist Republic,
as their plenipotentiary and invest him with full powers to sign the above- said agreement.
Prague, May
f ,
1971.