Publication: Magyar Közlöny
Issue: MK-2008-136 (Year: 2008, Number: 136)
Era: 2004-2010
Section: 
Paragraph Index: 9

f) OECD Arrangement: OECD Arrangement on Officially Supported Export Credits effective on the day of contracting; Article 2 General objectives To strengthen the cooperation between the Republic of Hungary and the Republic of Indonesia, the Government of Hungary has offered non refundable official support through interest rate support and grant element under its tied aid credit program for deliveries of Hungarian Goods and related services available for financing projects for relief and reconstruction of the tsunami disaster hit region and other highlighted programmes of Indonesia selected based on the Indonesian prevailing regulations. The Government of Indonesia accepts the tied aid credit line and, acting in accordance with its own legal system and international obligations, supports the realisation of the present framework programme of tied aid credit ensuring the repayment of the credit spent and its additional charges through signing of the present Agreement by the Ministry of Finance. Article 3 Financial frame An indicative financial frame of USD 20 000 000 is made available for financing of mutually approved project in the period of two years from the signing of this Agreement. The definitive engagement arise on the basis of the individual credit agreements concluded with the Hungarian Export Import Bank Pte. Ltd. (further on: Eximbank). Tenor of the credits disbursed under the tied aid credit line shall not exceed 16 years, which includes maximum 2 years grace period. Grace period, repayment period, starting point, disbursement period will be mutually agreed by the 2008/136. szám Contracting Parties during the acceptance procedure in accordance with the characteristics of the related projects. The interest rates shall be 0,48% in order to meet the consessionality level at least 35% and will be stipulated in the individual credit agreements and it remains constant for the whole tenor of the credit. Relating to the credits disbursed under the tied aid credit line, a risk premia stipulated in the particular credit agreement will be calculated in line with the OECD Arrangement. Article 4 Utilisation of the tied aid credit line The tied aid credit line can be utilised for the realisation of projects not objected by signers of the OECD Arrangement during the procedure in conformity with the acceptance rules of the OECD Arrangement and the consultation procedure, respectively. The mutually selected projects will be realised by exports of Hungarian goods and related services through companies registered in Hungary. The financing realised under the tied aid credit line may include the foreign content in cases if at least 50 per cent of the export realised by companies registered in Hungary qualifies as of Hungarian origin. The Government of Indonesia or the executing agency appointed by it for realisation of the selected projects chooses, in conformity with its internal rules, acting in accordance with the Good Procurement Practice for ODA, companies registered in Hungary (further on: exporter) and gives the Ministry of National Development and Economy of Hungary information about its decisions. Article 5 Acceptance procedure The Contracting Parties, for acceptance of the projects financed under the credit line as per the present Agreement, will follow the procedure below:

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