Publication: Magyar Közlöny
Issue: MK-2011-48 (Year: 2011, Number: 48)
Era: contemporary
Section: A Kormány 77/2011. (V. 6.) Korm. rendelete
Paragraph Index: 423

c) In case the Hungarian Party agrees, it will, through diplomatic channels, confirm in writing the export contracts approved by the Party of Srí Lanka. Article 6 Disbursement of the tied aid credit Detailed conditions of the tied aid credit provided to finance the projects accepted by the Contracting Parties is to be stipulated in the individual credit agreement between the borrower authorised by the Government of the Democratic Socialist Republic of Srí Lanka in accordance with the provisionslaid down in Article 7 on the one part and Eximbank as the lender on the other. Eximbank,forthe accountof its ownresources,lends,up to the amountof credit lineagreed inthisAgreement,tied aid credit to the borrower authorised by the Government of the Democratic Socialist Republic of Srí Lanka for the realisation of the accepted projects. Commercial and political risks of the tied aid credit will be insured by the Hungarian Export Credit Insurance Pte Ltd. (further on: MEHIB). Eximbank and MEHIB, in accordance with the international obligations, notify beforehand their intention to lend tied aid credit related to the particular projects. After successful execution of the procedure of approval Eximbank will give notice to the importer/buyer and the exporter, and the Contracting Parties, respectively. Article 7 Conditions of the individual credit agreements The Government of the Democratic Socialist Republic of Srí Lanka issues a sovereign guarantee or accepts a payment obligation as the sovereign borrower according to the Laws of the Democratic Socialist Republic of Srí Lanka securing the repayment of the credit, the payment of interests and additional charges based on the present tied aid credit line in the case of the projects specified in the Appendix. The Democratic Socialist Republic of Srí Lanka shall set aside the amount of its payment obligation in the applicable year in its state budget. Eximbank and MEHIB shall conclude credit insurance contracts complying with the conditions fixed by the Hungarian law in force. Article 8 Taxes, fees The Contracting Parties are obliged to pay the taxes,fees and other publicchargesarisingon the basisof the execution of this Agreement in their owncountry. These costscannotbe paid from the individual tied aid credits and they cannot be separated. Costs arising during the individual credit agreement shall be paid by the parties of the credit agreement in their own country and they cannot be charged on the individual tied aid credit. During the repayment of the principal of the loan and the payment of the interest the amounts to be paid cannot be decreased by the tax levied by the Democratic Socialist Republic of Srí Lanka or other amounts arising as a result of other payment obligations. Article 9 Dispute Settlement TheContractingPartiesshallsettleanydisputeinconnectionwiththisAgreementinthecourseofdirect negotiations. Article 10 Governing Law and Arbitration The individual credit agreements shall be governed by the laws of the Republic of Hungary and international arbitration shall be applied. Article 11 Closing Provisions

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