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Law No. 23 Of March 12, 1992 On Ratification Of The Loan Agreement Between The Swiss Federal Council And The Government Of Romania

Original Language Title:  LEGE nr. 23 din 12 martie 1992 pentru ratificarea Acordului de împrumut dintre Consiliul Federal Elveţian şi Guvernul României

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LEGE No. 23 of March 12, 1992 for the ratification of the Loan Agreement between the Swiss Federal Council and the Romanian Government
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR NO. 46 of 20 March 1992



The loan agreement between the Swiss Federal Council and the Government of Romania worth $40 million is ratified, signed January 28, 1992 in Bern. + Annex 1 AGREEMENT between the Swiss Federal Council and the Romanian Government on a medium-term loan for the amount of 40 million U.S. dollars The Federal Council, hereinafter referred to as the borrower and The Romanian Government, hereinafter referred to as the borrower, considering that the peoples of the borrower and the borrower have close historical, economic and cultural relations, considering that the borrower undertakes fundamental political and economic reforms and has decided to adopt a market economy model, considering that the borrower entered into an agreement with the International Monetary Fund on the basis of the program initiated by the borrower to stabilize and modernize its economy and make its currency convertible, Considering that the G-24 of the industrialised countries, under the Presidency of the Commission of the European Communities, has promised to support the above mentioned programme, which must be implemented in a difficult external environment, considering that the lending by the borrower of a medium-term loan to the borrower is considered to be a close measure in order to support the borrower's balance of payments to strengthen its reserves and facilitate convertibility of its currency, have agreed as follows: + Article 1 The borrower grants the borrower a medium-term loan for an amount of $40 million U.S. ((forty million U.S. dollars), with a duration of 7 years (hereinafter referred to as loan). + Article 2 The loan will be made redundant to the borrower in a single tranche at 5 (five) working days after the signing of this Agreement. + Article 3 The interest rate to be paid on loan by the borrower, the borrower will be determined by Swiss National Bank on the basis of the interest at 6 months at the U.S. Tezaur Bonds, increased by 1/2%, on the date of signature of this agreement and will be Updated thereafter every 6 months on the same basis. Interest payments will go every 6 months. + Article 4 The loan will be returned to the borrower only once in a tranche 7 years after the borrower's layoff. Without contravening the above, the borrower will be entitled at any time, on the basis of a notification given, in advance by one month, to pay in advance the loan (or any part of it). + Article 5 It is agreed by the signatory parties of this agreement that for the implementation of this transaction, each of the parties will appoint an agent (in the following-agent) and such an agent will act on behalf of that party in all matters provided for by this agreement. It is agreed by the signatory parties of this agreement that, as a result of the above provisions of this article, the borrower will appoint Swiss National Bank as its agent and the borrower will appoint the National Bank of Romania respectively, as its agent. + Article 6 Swiss National Bank and the National Bank of Romania will conclude an implementation agreement to regulate the details of the loan. + Article 7 The borrower undertakes to automatically extend to the borrower any guarantees given to any participant in medium-term financial assistance to Romania granted by G-24. The borrower will inform the borrower of any such guarantees. + Article 8 1.Any dispute between the borrower and the borrower will be regulated by arbitration. In such a case, the regulations of section 10.04 of the General Conditions applicable to the loan and guarantee agreements of the International Bank for Reconstruction and Development of January 1, 1985 will be applied accordingly. 2. Subject of the General Conditions referred to in the above paragraph, this Agreement and the interpretation of any article of it shall be governed by the Law of the Helvetic Confederation. + Article 9 1. This Agreement shall become effective on the date of its signature by the Parties. 2. This Agreement shall expire with the repayment of the loan and the payment in full of interest accrued in accordance with the provisions contained in the Agreement. -----------