Publication: Magyar Közlöny
Issue: MK-2011-48 (Year: 2011, Number: 48)
Era: contemporary
Section: A Kormány 77/2011. (V. 6.) Korm. rendelete
Paragraph Index: 420

i) ODA: Official Development Assistance; Article 2 Establishment of the framework programme for financial co-operation To strengthen the cooperation between the Democratic Socialist Republic of Srí Lanka and the Republic of Hungary, the Government of Hungary has offered non refundable official support through interest rate support and grant element under its tied aid credit programfor deliveriesof Hungarian Goods and related servicesavailablefor financing projectsforreliefandreconstructionofthetsunamidisasterhitregionandotherhighlightedprogrammesofSríLanka. The Government of the Democratic Socialist Republic of Srí Lanka 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 by issuing sovereign guarantees or accepting payment obligations as the sovereign borrower to ensure the repayment of the credit spent and its additional charges. Contracting Parties express their willingness with respect to the participants of the credit transactions belonging to the present tied aid credit line and will confirm by declarations that pursuant to the provisions of the action statement of the OECD on „Briberyand officiallysupported exportcredits” they did not participatein any bribery in relationto the transactions and they are not aware of any corruption. Article 3 Amount of the tied aid credit line and its financial conditions The total value of the project financed under the tied aid credit line is maximum 51 Million EUR. The firm commitment arises on the basis of the individual credit agreement concluded between the Ministry of Finance and Planning of the Democratic Socialist Republic of Srí Lanka and Hungarian Export-Import Bank Pte. Ltd. (further on: Eximbank) as stipulated in Article 7 of this Agreement. The concessionality level of credit payable under the tied aid credit line shall not be less than 35 per cent. Tenor of the credit disbursed under the tied aid credit line shall not exceed 15 years, which includes maximum 3 years grace period and 12 years principal repayment period. Due date of the first instalment is 42 months after the SPOC as defined in the OECD Arrangement. The disbursement period of each credit disbursed under the tied aid credit line will be stipulated in the individual credit agreement depending on the particular project. The disbursement period for the individual credit shall not exceed 4 years. Relating to the credit disbursed under the tied aid credit line an interest rate will be set on the basis of the OECD Arrangement and will be stipulated in the individual credit agreement, which remains constant for the whole tenor of the credit. Relating to the credit disbursed under the tied aid credit line, a risk premium stipulated in the individual credit agreement will be charged in line with the OECD Arrangement. The financing covers 100% of the value of the accepted projects and the amount of the grant element. 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. Contracting Parties agree that The Government of the Democratic Socialist Republic of Srí Lanka will apply the tied aid credit line for project specified in the Appendix forming an integral part of this Agreement. The selected project will be realised by Hungarian exports 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 performed on the territory of the Democratic Socialist Republic of Srí Lanka. The Government of the Democratic Socialist Republic of Srí Lanka or the organisation appointed by it for realisation of the projects specified in the Appendix, chooses in conformity with its legislation, acting in accordance with the Good Procurement Practice for ODA, companies registered in Hungary (further on: exporter) and gives the Ministry for National 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 this Agreement, will follow the procedure below:

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