In accordance with the recommendations contained in the Agreed Minute on the Reorganization of the Debt of the Russian Federation, signed at Paris on August 1, 1999 (the "Minute") by representatives of certain governments, including the Government of the United States (the "Participating Creditor Countries"), and by representatives of the Government of the Russian Federation;
In light of the April 2, 1993 Declaration by the Government of the Russian Federation confirming its liability to foreign creditors for the debts of the former Soviet Union described therein and the April 2, 1993 Statement by the Representatives of the Governments of the Participating Creditor Countries concerning such debts;
The Government of the United States of America (the "United States") and the Government of the Russian Federation (the "Russian Federation") agree as follows:
Application of the Agreement
1.In accordance with the terms and conditions of this Agreement the United States and the Russian Federation agree to consolidate and reschedule certain payments with respect to debts owed to or guaranteed by the United States Government or the Commodity Credit Corporation ("CCC"), an agency and instrumentality of the United States.
2.This Agreement shall be implemented between: (a) the Russian Federation and the United States Department of the Treasury with respect to the Contracts specified in Article II (1)(a), (1)(b), and (1)(e) below; and (b) the Russian Federation and CCC with respect to the Contracts specified in Article II (1)(b), (1)(c), (1)(d), and (1)(e) below. In implementing the Agreement, each agency shall notify the Russian Federation of the amounts consolidated and/or deferred hereunder and of a principal schedule of those amounts, in conformity with this Agreement and its annexes.
Definitions
1."Contracts" means:
(a) The Settlement of Lend Lease, Reciprocal Aid and Claims Agreement, signed October 18, 1972 (the "1972 Settlement Agreement"), and the related Agreement Regarding Settlement of Lend Lease Accounts, effected by a June 1, 1990 exchange of letters, which remain in force between the United States and the Russian Federation.
(b) The bilateral debt rescheduling agreement ("1993 Rescheduling Agreement") between the United States and the Russian Federation signed on September 30, 1993.
(c) The bilateral debt rescheduling agreement ("1994 Rescheduling Agreement") between the United States and the Russian Federation signed on October 25, 1994.
(d) The bilateral debt rescheduling agreement ("1995 Rescheduling Agreement") between the United States and the Russian Federation signed on October 9, 1995.
(e) The bilateral debt rescheduling agreement ("1997 Rescheduling Agreement") between the United States and the Russian Federation signed on February 6, 1997.
A table listing the relevant Contracts to be included under this rescheduling is attached hereto as Annex A.
2."Consolidation Period" means the period from July 1, 1999 through December 31, 2000, inclusive.
3."Consolidated Amounts" means one hundred (100) percent of the sum of unpaid principal and interest falling due during the Consolidation Period with respect to the 1972 Settlement Agreement, including unpaid principal and interest falling due on July 1, 2000, in respect of amounts deferred in 1994, 1995, 1996, and 1999 pursuant to the terms of the 1972 Settlement Agreement.
4."Previously Rescheduled Consolidated Amounts" means:
(a) One hundred (100) percent of the sum of principal and interest that was due and unpaid as of June 30, 1999 (including late interest), excluding Previously Rescheduled Non-Consolidated Amounts as defined in Paragraph 6 of this Article, with respect to:
(i) the 1993 Rescheduling Agreement, excluding amounts that were reorganized in accordance with Article III (2)(d) of that agreement;
(ii) the 1994 Rescheduling Agreement;
(iii) the 1995 Rescheduling Agreement; and
(iv) the 1997 Rescheduling Agreement; and
(b) One hundred (100) percent оf the sum of unpaid principal and interest falling due during the Consolidation Period with respect to:
(i) the 1993 Rescheduling Agreement, excluding amounts that were reorganized in accordance with Article III (2)(d) of that agreement;
(ii) the 1994 Rescheduling Agreement;
(iii) the 1995 Rescheduling Agreement; and
(iv) the 1997 Rescheduling Agreement.
5."1993 Non-Consolidated Amounts" means:
(a) One hundred (100) percent of the sum of principal and interest which was due and unpaid as of June 30, 1999 (including late interest) with respect to Article III (2)(d) of the 1993 Rescheduling Agreement; and
(b) One hundred (100) percent of the sum of unpaid principal and interest falling due during the Consolidation Period with respect to Article III (2)(d) of the 1993 Rescheduling Agreement.
6."Previously Rescheduled Non-Consolidated Amounts" means one hundred (100) percent of the sum of principal and interest (including late interest accrued as of December 31, 1998 pursuant to the corresponding Contracts) which fell due between August 1, 1998 and December 31, 1998, and was unpaid as of June 30, 1999, with respect to:
(i) the 1993 Rescheduling Agreement, excluding amounts that were reorganized in accordance with Article III (2)(d) of that agreement;
(ii) the 1994 Rescheduling Agreement;
(iii) the 1995 Rescheduling Agreement; and
(iv) the 1997 Rescheduling Agreement.
Terms and Conditions of Payment
1.The Russian Federation agrees to repay the Consolidated Amounts, Previously Rescheduled Consolidated Amounts, 1993 Non-Consolidated Amounts, Previously Rescheduled Non-Consolidated Amounts, and interest on such amounts in United States dollars in accordance with the following terms and conditions:
(a) The Consolidated Amounts shall be repaid in thirty-eight (38) consecutive semi-annual installments payable on February 20 and August 20 of each year, commencing on February 20, 2002, according to the following schedule:
0,90% on February 20, 2002; 0,90% on August 20, 2002;
1,68% on February 20, 2003; 1,78% on August 20, 2003;
2,08% on February 20, 2004; 2,18% on August 20, 2004;
2,29% on February 20, 2005; 2,40% on August 20, 2005;
2,43% on February 20, 2006; 2,43% on August 20, 2006;
2,55% on February 20, 2007; 2,68% on August 20, 2007;
2,81% on February 20, 2008; 2,94% on August 20, 2008;
3,08% on February 20, 2009; 3,23% on August 20, 2009;
3,37% on February 20, 2010; 3,53% on August 20, 2010;
3,69% on February 20, 2011; 3,85% on August 20, 2011;
4,02% on February 20, 2012; 4,20% on August 20, 2012;
4,38% on February 20, 2013; 4,57% on August 20, 2013;
4,76% on February 20, 2014; 4,96% on August 20, 2014;
5,17% on February 20, 2015; 5,38% on August 20, 2015;
5,60% on February 20, 2016; 2,16% on August 20, 2016;
0,50% on February 20, 2017; 0,50% on August 20, 2017;
0,50% on February 20, 2018; 0,50% on August 20, 2018;
0,50% on February 20, 2019; 0,50% on August 20, 2019;
0,50% on February 20, 2020; 0,50% on August 20, 2020.
(b) The Previously Rescheduled Consolidated Amounts shall be repaid in thirty (30) consecutive semi-annual installments payable on February 20 and August 20 of each year, commencing on February 20, 2002, according to the following schedule:
0,90% on February 20, 2002; 0,90% on August 20, 2002;
1,68% on February 20, 2003; 1,78% on August 20, 2003;
2,08% on February 20, 2004; 2,18% on August 20, 2004;
2,29% on February 20, 2005; 2,40% on August 20, 2005;
2,43% on February 20, 2006; 2,43% on August 20, 2006;
2,55% on February 20, 2007; 2,68% on August 20, 2007;
2,81% on February 20, 2008; 2,94% on August 20, 2008;
3,08% on February 20, 2009; 3,23% on August 20, 2009;
3,37% on February 20, 2010; 3,53% on August 20, 2010;
3,69% on February 20, 2011; 3,85% on August 20, 2011;
4,02% on February 20, 2012; 4,20% on August 20, 2012;
4,38% on February 20, 2013; 4,57% on August 20, 2013;
4,76% on February 20, 2014; 4,96% on August 20, 2014;
5,17% on February 20, 2015; 5,38% on August 20, 2015;
5,60% on February 20, 2016; 6,16% on August 20, 2016.
(c) The 1993 Non-Consolidated Amounts shall be repaid as follows: ninety (90) percent of the sum of unpaid principal and interest (excluding late interest) which was due and unpaid as of June 30, 1999 with respect to Article III (2)(d) of the 1993 Rescheduling Agreement; ninety (90) percent of the sum of unpaid principal and interest falling due during the Consolidation Period with respect to Article III (2)(d) of the 1993 Rescheduling Agreement; and one hundred (100) percent of late interest due and unpaid as of June 30, 1999 with respect to Article III (2)(d) of the 1993 Rescheduling Agreement shall be repaid in ten (10) equal and consecutive semi-annual installments payable on February 20 and August 20 of each year, commencing on February 20, 2001, and ending on August 20, 2005.
The remainder of the 1993 Non-Consolidated Amounts shall be repaid no later than July 1, 2000.
A table summarizing the reprofiled portion of the 1993 Non-Consolidated Amounts owed to the United States and CCC is attached hereto as Annex D.
(d) Seventy-six (76) percent of the Previously Rescheduled Non-Consolidated Amounts, together with 100% of late interest accruing between January 1, 1999 and June 30, 1999 on Previously Rescheduled Non-Consolidated Amounts (excluding the late interest portion thereof), shall be repaid in ten (10) equal and consecutive semi-annual installments payable on February 20 and August 20 of each year, commencing on February 20, 2001, and ending on August 20, 2005.
The remaining amounts of the Previously Rescheduled Non-Consolidated Amounts shall be or have been repaid as follows:
- Ninety-one (91) percent was due no later than November 30, 1999;
- Nine (9) percent shall be repaid no later than July 1, 2000.
A table of the reprofiled portion of the Previously Rescheduled Non-Consolidated Amounts owed to the United States and CCC is attached hereto as Annex E.
2.(a) Interest shall accrue under this Agreement at the rate of 6.5 percent per an. The rate is based on the U.S. Treasury average market yields in effect on the date of signature of this Agreement for a 10 year loan maturity plus one-half of one percent. Interest shall accrue as follows:
(i) with respect to the Consolidated Amounts, Previously Rescheduled Consolidated Amounts as defined in Article II (4)(b), and 1993 Non-Consolidated Amounts as defined in Article II (5)(b), beginning on the due dates specified in the corresponding Contracts; and
(ii) with respect to the Previously Rescheduled Consolidated Amounts as defined in Article II (4)(a), 1993 Non-Consolidated Amounts as defined in Article II (5)(a), and Previously Rescheduled Non-Consolidated Amounts, beginning on July 1, 1999.
(b) Interest shall be paid on February 20 and August 20 of each year, beginning on August 20, 2000.
(c) In the event any installment of Consolidated Amounts, Previously Rescheduled Consolidated Amounts, 1993 Non-Consolidated Amounts and Previously Rescheduled Non-Consolidated Amounts is not paid within 15 days of the due date specified in this Agreement, such installment shall thereafter accrue interest until paid in full at the rate of 6.5 percent per an plus one-half of one percent.
3.It is understood that adjustments may be made, as necessary and as mutually agreed in writing, in the amounts of Consolidated Amounts, Previously Rescheduled Consolidated Amounts, 1993 Non-Consolidated Amounts, and Previously Rescheduled Non-Consolidated Amounts.
General Provisions
1.The provisions of Article III of this Agreement will continue to apply unless:
(a) the Russian Federation has failed to make the payments due November 30, 1999, as provided for in Article III of this Agreement, and the Chairman of the Paris Club notifies the Russian Federation that the provisions of the Minute cease to apply; or
(b) the Russian Federation prior to March 31, 2000, ceases to have an appropriate arrangement with the International Monetary Fund, and the Chairman of the Paris Club notifies the Russian Federation that the provisions of the Minute cease to apply; or
(c) the Russian Federation prior to December 31, 2000 fails to make the payments due to the Participating Creditor Countries as specified in the Minute, and the Chairman of the Paris Club notifies the Russian Federation that the provisions of the Minute cease to apply.
2.Notwithstanding any terms of this Agreement to the contrary, if the provisions of Article III of this Agreement are suspended or the Agreement is terminated pursuant to Article IV (1) above, all payments under the Contracts shall be made according to the terms and conditions of the Contracts and payments that are past due according to such Contracts shall be paid immediately.
3.Except with respect to interest rates, the Russian Federation agrees to grant the United States and CCC treatment and terms no less favorable than that which it has accorded, or which it may accord, any other creditor country or its agencies for the consolidation and rescheduling or refinancing of debts of comparable maturities.
4.The Russian Federation will seek to secure from external creditors, including banks and suppliers, rescheduling or refinancing arrangements on terms comparable to those set forth in the Minute for credits of comparable maturities making sure to avoid inequality between different categories of creditors.
5.Except as they may be modified by this Agreement, all terms of the Contracts remain in full force and effect.
6.With respect to amounts owing to CCC under this Agreement, the Russian Federation agrees to the additional terms and conditions set forth in Annex F, which is an integral part of this Agreement.
7.With respect to amounts owing to the United States under the 1972 Settlement Agreement and consolidated or otherwise rescheduled by this Agreement, the Russian Federation agrees to the additional terms and conditions set forth in Annex G, which is an integral part of this Agreement.
Suspension or Termination
1.The United States may, in its discretion, suspend or terminate all or parts of this Agreement if the Participating Creditor Countries, in accordance with the provisions of the Minute, declare that the terms of the Minute have ceased to apply and the Chairman of the Paris Club has notified the Russian Federation to that effect. The United States may affect such suspension or termination by giving sixty (60) days written notice to The Russian Federation through the diplomatic channel.
2.This Agreement may be amended or modified by mutual consent of the United States and The Russian Federation.
Entry Into Force
This Agreement shall enter into force following signature and receipt by the Russian Federation of written notice through the diplomatic channel from the United States that all necessary domestic legal requirements for entry into force of the Agreement have been fulfilled. A Russian language text shall be prepared which shall be considered equally authentic upon an exchange of diplomatic notes confirming its conformity with the English language text.
Done at Moscow, Russia, in duplicate, this 26 day of May, 2000.
Annex A
CONTRACTS SUBJECT TO RESCHEDULING
The Settlement Agreement
10/18/72
9/30/93
2/6/97
Commodity Credit Corporation Credit Number
9/30/93
10/25/94
10/9/95
2/6/97
Annex В
SUMMARY OF CONSOLIDATED AMOUNTS
(thousands of USD)
1972 Settlement Agreement USD 155,027
TOTAL USD 155,027
SUMMARY OF PREVIOUSLY RESCHEDULED CONSOLIDATED AMOUNTS
(thousands of USD)
CCC USD 269,478
1972 Settlement Agreement USD 10,916
TOTAL USD 280,394
1993 NON-CONSOLIDATED AMOUNTS
(thousands of USD)
CCC USD 5,531
1972 Settlement Agreement USD 34
TOTAL USD 5,565
PREVIOUSLY RESCHEDULED NON-CONSOLIDATED AMOUNTS
(thousands of USD)
CCC USD 44,402
TOTAL USD 44,402
ADDITIONAL TERMS AND CONDITIONS
WITH RESPECT TO AMOUNTS OWING TO CCC
A.Payments
1.Payments. All payments of principal and interest are payable in immediately available funds, free and clear of, and without deduction for, any taxes, levies, imposts, deductions, and withholdings whatsoever now or hereafter imposed, levied, collected, or assessed with respect thereto by any central or local authority of the Russian Federation, except to the extent that such taxes may be required by Russian law. If any such taxes are deducted or withheld, the Russian Federation shall pay such additional amount simultaneously with the payment of principal and interest then due and payable as may be necessary for the United States to receive the amount that would have been received if such taxes had not been deducted or withheld.
2.Funds and Place of Payment. All payments to be made by the Russian Federation under this Agreement shall be made in United States dollars in immediately available funds to the Federal Reserve Bank of New York for credit to CCC's account at the U.S. Treasury Department as identified below or as otherwise directed in writing by the Treasurer or Controller of CCC. The United States shall, at least thirty days before the due date of any payment hereunder, provide Vnesheconombank with a statement specifying the amount to be paid. The failure to provide such a statement does not affect the obligation of the Russian Federation to make the payment when due.
U.S.Treasury Department
021030004
TREASNYC/(8585)/CCC
AGREEMENT DATE____, DUE DATE_____ FROM THE RUSSIAN FEDERATION
3.Payment on a Non-Business Day. Repayments which are due on a Saturday, Sunday, or U.S. federal holiday shall be made on the next succeeding day that is not a Saturday, Sunday, or U.S. federal holiday. Any such extension of time for repayment shall be included, however, in computing the interest due and payable in the next interest period.
4.Application of Payments. All payments by the Russian Federation to CCC under this Agreement shall be applied to amounts then due and payable in the following order of priority: first to satisfy the interest payable under Article III (2)(b) of this Agreement, then to satisfy other interest due and payable under this Agreement, with the remainder, if any, to satisfy the principal amount due.
5.Prepayments. The Russian Federation shall have the right to prepay at any time and from time-to-time without penalty or premium, all or part of the principal then outstanding under this Agreement; provided that the Russian Federation shall have paid all amounts due and payable under this Agreement at the date of such prepayment, together with interest which has accrued to the date of prepayment on the amount prepaid.
B.Computation of Interest
Interest shall be computed on the basis of the actual ber of days elapsed, using a 365-day year. With respect to any interest period, interest shall be calculated from but excluding the first day of the period to and including the last day of the period.
C.REPRESENTATIONS
D.MISCELLANEOUS PROVISIONS
2.Communications. All communications between the Russian Federation and CCC under this Agreement shall be in writing, in the English language (or accompanied by an accurate English translation). All communications to the Russian Federation shall be addressed to the Russian Federation at the address designated by the Russian Federation from time-to-time in writing to CCC; all communications to CCC shall be addressed to CCC at the following address:
Commodity Credit Corporation
P.O. Box 2415
Washington, D.C. 200013
Attention: Controller
РОС, 12th floor
Telephone: 703-305-1386
Facsimile: 703-305-2842
Annex G
REPAYMENT PROVISIONS
ON SETTLEMENT OF LEND LEASE TO THE UNITED STATES GOVERNMENT
A.Payments
1.Payments. All payments of principal and interest are payable in immediately available funds, free and clear of, and without deduction for, any taxes, levies, imposts, deductions, and withholdings whatsoever now or hereafter imposed, levied, collected, or assessed with respect thereto by any central or local authority of the Russian Federation, except to the extent that such taxes may be required by Russian law. If any such taxes are deducted or withheld, the Russian Federation shall pay such additional amount simultaneously with the payment of principal and interest then due and payable as may be necessary for the United States to receive the amount that would have been received if such taxes had not been deducted or withheld.
2.Funds and Place of Payments. The terms of this Agreement require payment in United States dollar in immediately available funds. To meet this requirement, the Russian Federation will wire transfer payment to the Federal Reserve Bank of New York for credit to the account of the United States Treasury, accounting stations 20-18-0099 exactly as identified below or as otherwise directed in writing by the Department of Treasury. The United States shall, at least thirty days before the due date of any payment hereunder, provide Vnesheconombank with a statement specifying the amount to be paid. The failure to provide such a statement does not affect the obligation of the Russian Federation to make the payment when due.
021030004
TREASNYC/CTR/
BNF = /AC-20180099 OBI = FOR CREDIT TO THE UNITED STATES
TREASURY, P.G. CENTER II BUILDING, 3700 EAST-WEST
HIGHWAY, HYATTSVILLE, MD 20782
3.Payment on a Non-Business Day. Repayments which are due on a Saturday, Sunday, or U.S. federal holiday, shall be made on the next succeeding business day. Any such extension of time for repayment shall be included, however, in computing the interest due and payable in the next interest period.
4.Application of Payments. If an installment payment made by the Russian Federation is insufficient to satisfy the aggregate amount of principal and interest then due, such repayment shall be applied first to satisfy the interest due with the remainder, if any, applied to satisfy the principal amount of the installment.
5.Prepayments. The Russian Federation shall have the right to prepay at any time and from time-to-time without penalty or premium, all or part of the principal then outstanding under this Agreement; provided that the Russian Federation shall have paid all amounts due and payable under this Agreement as of the date of such prepayment, together with interest which has accrued to the date of prepayment on the amount prepaid.
B.Computation of Interest
Interest shall be computed on the basis of the actual ber of days using a 365-day year. With respect to any interest period, interest shall be calculated from and including the first day of the period to but excluding the last day of the period.
C.REPRESENTATIONS
D.MISCELLANEOUS PROVISIONS
2.Communications. All communications between the Russian Federation and the Department of Treasury under this Agreement shall be in writing, in the English language (or accompanied by an accurate English translation). All communications to the Russian Federation shall be addressed to the Russian Federation at the address designated by the Russian Federation from time-to-time in writing to the Department of the Treasury; all communications to the Department of the Treasury shall be addressed to the Department of the Treasury at the following address:
The Department of the Treasury
Financial Management Service
Credit Accounting Branch
P.G.Center II Building
3700 East-West Highway
Hyattsville, MD 20782
Telephone: (202) 874-8218
Facsimile: (202) 874-7900