Key Benefits:
Bs. Ace. 19/6/63.
VISTO the agreement signed on June 3 of the current year, by the Minister of Economics, Dr. José Alfredo Martinez de Hoz (h), Mr. President of the Central Bank of the Argentine Republic, Dr. Luis María Otero Monsegur and by S. E. Mr. Ambassador of the United States of America Don Roberto Mc Clintock, the representation of the Agency for International Development of the Government of the United States of America, for which it grants a loan of three million
CONSIDERING:
That specific projects that contribute to economic development can be analysed with the funds from the loan in order to determine the possibility and technical and economic solidarity of the loan;
That the importance of such studies will support requests for project financing by private investors or State institutions;
That in this way those projects that review priority can be selected, in line with the objectives of the Alliance for Progress;
That the loan agreed by the Agency for International Development is highly desirable for the country, given the conditions and timelines for the repayment of capital, as well as the agreed interest rate;
In accordance with articles 48 of Law 16,432 and 11 of Law 15,273 it is necessary to declare that the investment of funds from the agreed loan is of a national interest;
Accordingly, and in accordance with the provisions of article 48 of Act No. 16.432;
The President of the Argentine Nation, Decreta:Article 1. .Please approve the agreement signed on 3 June of the current year with the Agency for International Development, the Government of the United States of America, whose text is contained in annex and is an integral part of this Decree.
Art. 2°. . In accordance with Article 48 of Law 16.432 and Article 11 of Law 15.273 . the latter for the purposes of the exemption provided for in Article VI Section 6.6 of the Convention., declaring national interest the investments made through the use of funds from the loan.
Art. 3. . The Ministry of Economy and the Central Bank of the Argentine Republic, together or separately, as appropriate, shall designate the officials to be responsible for the signing of applications and documentation concerning the operation of the loan, as provided for in article VIII, section 8.2 of the agreement adopted by this decree.
Art. 4° presente This decree will be endorsed by the Ministers Secretaries in the Departments of Economics and Foreign Affairs and signed by the Minister of Finance.
Art. 5°. . Communicate, publish, give to the General Directorate of the Official Gazette and Prints and archvese.
GUIDE. . José A. Martínez de Hoz. . Juan C. Cordini. . Eduardo B. M. Tiscornia.
PROGRESS
CONTRACT OF PRESTAMContract held in support of the Alliance for Progress on the three days of June 1963, between the Argentine Republic ("Prestatario"), the Central Bank of the Argentine Republic ("Banco") and the United States of America working through its Agency for International Development ("A. I. D").
ARTICLE I
The Loan and the ProjectSection 1. The Loan. In accordance with the Foreign Assistance Act A. I. D. agrees to grant the beneficiary a loan of up to three million United States dollars ($30,000) to cover the cost of the Argentine dollars and pesos of the goods and services required for the implementation of the project defined in section 1.2. The total amount disbursed under this convention shall henceforth be called the "Principal".
Section 1. The Project. For the purposes of this Agreement the "Project" means the "Invoice Studies" carried out by the National Development Council, after the approval of A. I. D. To the extent established in this instrument, those that will see specific projects in the public and private sectors that contribute to the economic development of Argentina in the field of:
(1) Irrigation;
(2) Hydroelectric power;
(3) Roads;
4) Expansion, improvement and degradation of ports;
(5) Water supply systems;
6) Development of industrial zones;
7) Other sectors accruing to the grantor and A. I. D.
The "Invoice Studies" will be limited to the analysis of the possibility and technical and economic solidity of the specific projects mentioned above, and to the obtaining of adequate information on the engineering, economics and financing of the same, so that it will reasonably decontain a favorable consideration by private investments or public credit institutions, either within or outside the Argentine Republic. These "Invoice Studies" will be of importance enough to justify requests for financing such projects by those investors and institutions. This Agreement may not be financed by research or sectoral studies of a general nature.
ARTICLE II
Amortization and Credit TariffSection 2. Credit Tariff. The beneficiary will pay semiannually to A. I. D. In dollars, an interest of three quarters of one per cent (0.75 per cent) per year on the principal owed and its corresponding unpaid credit tariffs, calculated on the basis of 365 days. Credit tariffs will run from the dates of the respective refunds agreed at the present time, with the first payment of credit tariffs to be made not later than six (6) months after the first disbursement, on the date A. I. D. will be established.
The dates of disbursements shall be considered for which A. I.D. verifies them directly to the beneficiary, or to its representatives, or to a bank institution on which a letter of commitment of those referred to in Section 4. 1.
Section 2 . 2. Amortization. The grantee shall reimburse the principal to A. I.D. in United States dollars, in sixty-one (61) equal semi-annual quotas, the first of them payable nine and a half years (9 1 / 2) after the first payment for credit tariffs is required.
Section 3. Application of the Payments. All payments will apply, first, to pay the interest due and then to the amortization of the Principal.
Section 2. Payments in advance, The Owner shall have the right to pay in advance, without penalty, the whole or part of the Principal at any of the dates provided for the payment of credit tariffs. Any advance payment shall be applied first to cover expired and accumulated receivable tariffs and then to the remaining assessed contributions of the Principal to pro rata.
Section 5. Renegotiation of deadlines. Taking into account that the United States of America, the Owner and the other signatories of the Bogotá Act and the Punta del Este Charter, have pledged to forge the alliance for Progress, the Provider agrees to negotiate with A. I. D. the acceleration of the repayment of the Principal, at any time or time as may be requested by A. I. D., however, that such application may not be made more than 2. The parties shall jointly determine whether such acceleration will take place on the basis of the following assumptions:
(1) The capacity of the Provider to meet more quickly the fulfilment of its obligations attentive to the internal and external financial position of Argentina and taking into account the arrears of any United States Agency or any international agency of which they are members;
(2) The capital needs of the beneficiary, appreciated in relation to those of the other signatories of the Act of Bogotá and the Charter of Punta del Este.
ARTICLE III
Prior ConditionsSection 3. General Conditions Prior to the First Disbursement. Prior to the first disbursement or issuance of a letter of engagement, the beneficiary will submit satisfactorily to A. I. D.;
(a) An opinion by the Procurator of the Treasury of the Nation or another legal adviser acceptable in the opinion of A. I. D., acknowledging that this Convention has been duly authorized or ratified by the Owner and the Bank and constitutes for both a legal and valid obligation;
(b) Proof of the competence of persons acting on behalf of the Beneficiary and the Bank as prescribed in Section 8.2, accompanied by duplicate registration of their duly authenticated signatures;
(c) Written reports containing the amounts and beneficiaries of any commission, schedule or payment of any nature that has been carried out or committed to any person signature or society (excluding the regular remuneration of the staff and agents with exclusive dedication of the Provider and the Bank), for services related to the preparation or submission of the application that resulted in the authorization of the loan by A.I.D. or in connection with negotiations inherent in obtaining the loan.
Section 3. Specific conditions. For each Feasibility Study to be funded by this Agreement, the Provider shall submit to A. I. D. for approval and as a precondition for issuance of letters of commitment or disbursements to finance the Invoice Study, the following background:
(1) A written report stating that the Invoice Study is a sufficient priority in the economic development of Argentina to justify its financing by A. I. D. under this Agreement, indicating the scope of the study to be carried out;
(2) The name of the person or entity chosen by the Owner to carry out the Billing Study.
(3) The Contract to be held between the Owner and the person or entity approved for the realization of the Billiibility Study.
Section 3. Final date for compliance with preconditions.
(a) Unless otherwise written by A. I.D., if the conditions required in Section 3. 1. had not been satisfied by 31 August 1963 and the conditions required in Section 3. 2. would not have been fulfilled by 30 November 1963 in respect of any Invoice Study, A.I. D. may at any time thereafter terminate this Agreement, in whole or in part, by notifying the beneficiary and the Bank, after which the obligations of the Parties shall cease to the extent specified by A. I. D. in its notification;
(b) No Feasibility Study shall be financed by this Agreement if all the conditions of Section 3. 2. have not been fully fulfilled by 20 June 1964.
ARTICLE IV
Section 4. Disbursements.
(a) In order to obtain disbursements in dollars, the Provider may periodically request from A. I. D. to issue letters of commitment in favour of one or more banks in the United States, designated by the Bank and approved by A. I. D., obliging A. I. D. to reimburse such banks, by means of letters of credit or by other means the payments made to the Provider or to any of their representatives, in accordance with the documentation. Bank expenses incurred in relation to the letters of commitment and disbursements mentioned in this section shall be borne by the beneficiary and may be fined for the present.
(b) In order to obtain payment in pesos, the beneficiary may periodically request from A. I. D. and to the extent of his immediate needs in pesos for the Project, which issues letters of commitment in favour of one or more Banks in the United States, designated by the Bank and approved by A. I. D. obliging A. I. D. to reimburse such banks the payments made to any representative of the Bank by means of documentation. These letters of engagement are issued, the Bank will make available to the Project in the manner that the parties will agree on an amount of equivalent weights, calculated in accordance with Section 6. 4.
(c) Disbursements may also be made for any other means that are agreed in writing by the Owner and A. I. D.
Section 4. Final date for requests for letters of engagement and disbursements. With the exception of a written provision contrary to A.I.D., no letter of commitment shall be issued to accommodate applications received after 31 August 1963, and no disbursements shall be made against documents received after 31 December 1965.
ARTICLE V
Obligations relating to the obligation of goods and servicesSection 5. Date. No good or service for this project may be financed in whole or in part by virtue of this Agreement, if it emanates from orders or contracts entered into in firm prior to the date of validity of this Convention.
Section 5. 2. Fair price. No more than reasonable price shall be paid for goods and services financed in whole or in part by this Agreement, and such goods and services (excluding professional services) shall be obtained on a fair and competitive basis. Reasonable prices (excluding professional services) should normally approximate the lowest competition price of such goods or services, taking into account operating costs, quality, time and cost of delivery, payment conditions and other factors.
Section 5. Countries. Suppliers.
(a) All goods and services excluded shipping and maritime insurance, financed under this Agreement under this Agreement, shall be original and acquired in Argentina or in the United States of North America. Maritime transport financed by this Convention must be originating and have the source in the United States. It will be understood that maritime transport is original and has its source in the United States when it is carried out on a U.S. flagship.
(b) All other goods and services required for this project shall be original and have their source in Argentina or in countries included in the Geographical Code of A. I.D. 899 in force at the time of obtaining such goods and services.
(c) With the exception of Section 5.(c), the letters of commitments issued pursuant to Section 4. 1. shall be used exclusively to finance the importation of goods and related services that are both originating and source in the United States ($-paid goods).
Section 5. Administration
(a) All goods payable in dollars will be transported to the Argentine Republic on Argentine vessels or countries included in the Geographical Code of A. I. D. Code No. 899 in force at the time of such transportation.
(b) Not less than fifty per cent (50 per cent) of the gross tonnage of all goods paid in dollars (discriminate in bulk goods, general freighters and tankers) to be transported on oceanic vessels will be shipped into United States privately owned vessels. No well paid in dollars may be transported on an ocean vessel if A. I. D. notifies the borrower that is inadequate for transport.
(c) The maritime insurance of goods payable in dollars may be financed by this Agreement, provided that it is contracted to the lowest competitive rate obtained in the Argentine Republic or in a country included in the Geographical Code of A. I. D. in force while taking the insurance.
With regard to the hiring of maritime insurances funded under U.S. law that authorizes the provision of assistance to other nations, if the Argentine Republic by law, decree or regulation favors any maritime insurance company of any country to the detriment of any maritime insurance company, authorized to operate in any state of the United States of America, the assets payable in dollars financed by this Agreement shall, as long as such discrimination is secured, be secured against maritime risks in the United States.
ARTICLE VI
Additional obligations and guaranteesSection 6. Execution of the Project and use of the Invoice Studies.
(a) The Provider shall take appropriate measures to ensure that the Project is carried out with due diligence and effectiveness, providing additional resources that may be required, and in accordance with sound professional, financial and engineering practices. In addition, the Owner shall perform the Project in accordance with any contract or technical agreement approved by A.I.D. and shall obtain its prior conformity for any significant modification or cancellation of such contracts or technical agreements;
(b) As stipulated with A. I. D., the Provider will take the necessary precautions to make available to the private sector, as well as in Argentina and abroad, all the Billiibility Studies of projects that could be funded by that sector.
Section 6. Use of goods and services. The Provider shall make all goods and services financed in accordance with Subsection 4. 1. A) and all goods and services payable in national currency pesos financed by this Agreement are used exclusively for the Project.
Section 6. Information. The beneficiary will make the necessary arrangements, satisfactory to A. I. D., in order to inform the public that this loan is part of the US aid program in support of the Alliance for Progress.
Section 6. Exchange rates. The exchange rate to convert dollars to pesos in all transactions under this Agreement will be the one that you provide the highest amount of pesos per dollar and that at the time of the operation is not illegal in Argentina.
Section 6. Report on the material development of the project. The Provider and the Bank declare and guarantee that they have made known to A.I.D., all circumstances that may materially affect the project or the fulfilment of their obligations under this Agreement, and undertake to inform A.I.D. of any situation that interferes or which can reasonably be expected to interfere in any of the two cases mentioned above.
Section 6. Impositive exemption from the Loan Contract. This Agreement and the amount of the agreed loan shall be free of taxes and rights in force in the Argentine Republic; the payment of the Principal and the interest shall be made without deduction for such concepts.
Section 6. Commissions, fees or other retributions.
(a) The Provider and the Bank declare that no commission, honorary or retribution of any kind related to the preparation or submission of the application that led to the granting of the loan by A.I. D. or in connection with negotiations incidents in obtaining the loan, has been paid or paid to any person, signature or company if they do not conform to the regular compensations of the employees and of the employees with full dedication of the Benefit or the Bank or to the other technical benefits.
(b) The Beneficiary and the Bank agree that all fees, fees or other compensations that A.I.D. does not consider reasonable, shall be readjusted to A.I.D. satisfaction and that each of the beneficiaries of such commissions shall be informed of this condition;
(c) The beneficiary and the Bank shall promptly inform A.I.D. of the fees, or retributions specified in Sub-Section 6. 7.(a) that they have been paid or agreed to be paid after the period covered by the report referred to in Sub-Section 3. 1.(c).
Section 6. Records, reports, inspections.
(a) The Provider shall bear or arrange for appropriate books and records to be carried in accordance with sound accounting practices: to identify the goods and services financed by this Agreement; to disclose the use of them in the Project; to make known the nature and extent of the proposals submitted by natural persons or ideals for conducting Invoice Studies and the basis taken into account for the award of contracts; and to demonstrate the progress of the Project. Such books and records shall be carried and controlled during the period and in the form provided by A. I. D.;
(b) The Provider shall provide to A. I.D. any information that may reasonably request you concerning the Project, goods and services financed by this Contract and Loan;
(c) A. I. D. shall have the right to inspect at any reasonable time, the progress of the project, the use of all the goods and services financed by this Agreement for the Project, the aforementioned books and records and any other documents, correspondence, memorandum or records relating to this Loan or the Project. The Provider will provide A. I.D. with such inspections and will provide reasonable opportunities for authorized representatives of A. I.D. to visit any place in Argentina for the purposes related to the Loan;
(d) The Bank will carry books and records for disbursements in dollars under the letters of engagement issued in accordance with Sub-sections 4.1. b), 5.4. b) and 5.5. for those periods that A.I.D. may require.
These books and records will be inspected at the request of A.I.D. and the Bank will quickly provide you with the annotations and information that A.I.D. may reasonably require. The Bank will allow A.I.D. to examine on reasonable occasions, such books and records, as well as any other related documents or records.
ARTICLE VII
Rights of A. I. D.Section 7. Non-compliance. . Acceleration. The commission or occurrence of one or more of the following facts shall be held in breach of the obligations contracted.
(a) Mortgage of the beneficiary in the total payment of credit tariffs, assessed contributions of the Principal or any other amount owed under this contract;
(b) Violation by the beneficiary or the Bank of any other contractual obligation;
(c) Substantial incorrection in any presentation or warranty made by or on behalf of the borrower or the Bank for obtaining this loan;
(d) Failure to comply with an obligation contracted in any other beneficiary agreement or any of its agencies or the Bank with the United States of America or any of its agencies.
In these cases, A.I.D., on your option, may require immediate payment of all or part of the Principal due. Notified the option, if non-compliance is not subsidized within a period of sixty (60) days, the Principal and all accrued interests thus far will be required and payable immediately.
Section 7. Suspension of disbursements. de Transfer of goods to A. I. D. If at any time happens:
(a) Non-compliance;
(b) A fact that A. I. D. qualifies as an extraordinary situation that makes it unlikely to achieve the purposes of this Loan or that the Beneficiary or the Bank may fulfill the obligations contracted;
(c) a disbursement that is in violation of the law governing A.I.D.
You may: 1) Refuse issuance of new letters of engagement; 2) To suspend or terminate the letters of commitment already issued to the extent that they have not been used through the release of irrevocable letters of credit or other bank payment instruments, notified of this, immediately, to the beneficiary or the Bank; (3) Refuse to make other disbursements; and 4) At your expense, have the right of ownership over the assets financed by this Project Agreement transferred to you, provided that such goods are not originating from Argentina, that they are in good condition and that they have not been downloaded in ports of Argentina. Erogations for the purchase and transport of these goods to the extent that they have been financed by this contract shall be deducted from the Principal.
Section 7. Refunds. When in the opinion of A. I. D. any disbursement is not supported by a valid documentation in accordance with the terms of this Agreement or is not made or used in accordance with the terms of the same or violates at the time the law governing A. I. D., this one may, however the proceeding of the exercise of any of the other rights recognized in this Agreement, in particular those of the elapsed one. A. I. D. shall apply such amount first, to the payment of the interest due and, ludo, to the outright amortization of the unpaid assessed contributions of the Principal.
Section 7. Unrenunciable rights. No delay or omission in the exercise of any of the rights, powers or defences accorded to A.I.D. in this Agreement shall be regarded as a waiver of the exercise of the same.
Section 7. Collection costs. In the event of non-compliance with contractual obligations, reasonable expenses incurred by A. I. D. (excluding the remuneration of its staff) for the collection of amounts owed under this Agreement may be charged to the beneficiary and shall be reimbursed in the manner established by A. I. D.
ARTICLE VIII
Section 8. Contract date. This Agreement shall enter into force on the day, month and year of its celebration.
Section 8. Representates.
(a) All acts set forth in this Agreement or for which the Owner, the Bank or A. I. D., have been authorized may be executed by their respective duly appointed representatives;
(b) In accordance with the above Sub-Section, staff members appointed below shall have jurisdiction to represent the parties and may, in turn, designate other representatives. Unless otherwise duly notified to A. I.D., all such representatives shall be competent to agree on behalf of their representatives any modification or application of this Agreement if the obligations assumed by the parties are not substantially increased. While A. I. D. does not receive written communication by revoking the powers granted to its representatives by the Owner or the Bank, A. I. D. may accept any documentation signed by them as conclusive evidence of the origin of any emerging action of such instrument.
For the beneficiary, Minister of Economy.
For the Bank, President of the Central Bank of the Argentine Republic.
Section 8. Communications. Any communication or document delivered, made or sent by the Owner, the Bank or A. I. D. pursuant to this Agreement shall be made in writing and shall be duly delivered, made or sent to its addressee, if it has been delivered, hand or dispatched by mail, telegram, cable or radiogram to the following addresses:
The Owner: Postal Directorate: Ministry of Economy, Hipólito Yrigoyen 250, Buenos Aires, Argentina.
Cable management: Ministry of Economy, BAIRES.
To the Bank: Postal Address: Central Bank of the Argentine Republic: Reconquista 266, Buenos Aires, Argentina.
Cable address: Centroban BAIRES.
A. I. D. (2 copies).
Postal Address: USAID, Argentina.
Cable address: AMENBASSY BAIRES.
All submissions and documentation submitted to A. I.D. shall be in English and all technical and engineering specifications shall be made subject to American standards, except in cases where A. I.D. provides otherwise in writing.
In faith, the beneficiary, the Bank and the United States of America, each acting through their respective duly authorized representatives, celebrate this Convention on the day, month and year indicated above.
Signed: Por la República Argentina, José Alfredo Martínez de Hoz (h.) (Ministro de Economía).
By the Central Bank of the Argentine Republic, Luis María Otero Monsegur (President).
For the International Development Agency, Roberto Mc Clintock (Embasador).
