CREDIT AGREEMENT BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND
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 Govern- • ment 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
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-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 per-centl, payable at the end of each period of six months on
st st .
January 1 , and July 1 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
Ita-lian 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 sig-nature and i t shall remain in force until the last payment
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-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
A tmono Suryo
Director General for Foreign Economic Relations,
Department of Foreign Affairs.
FOR THE GOVERNMENT OF THE REPUBLIC OF ITALY
Signed
Giorgio VECCHI
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 GovernAgree-ment of the Republic of Italy and the Government of the Republic of Indo-nesia, 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 reply thereto be regarded as an exchange of letters in 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.
H.E. Atmono Suryo
Director General for Foreign Economic Relations,
Department of Foreign Affairs J a k a r t a
Yours very truly,
Signed
Giorgio VECCHI
