On the ratification of the Loan Agreement between the Republic of Kazakhstan and the Asian Development Bank
Decree of the President of the Republic of Kazakhstan dated December 14, 1995 N 2685
I decree:
1. To ratify the Loan Agreement (Ordinary Operations, Agricultural Sector Program) between the Republic of Kazakhstan and the Asian Development Bank, signed on December 12, 1995 and providing for the allocation of a loan in the amount of 100 million US dollars.
2. This Decree shall enter into force from the date of publication. President of the Republic of Kazakhstan Loan Agreement between the Republic of Kazakhstan and the Asian Development Bank (Agricultural Sector Program, Routine Operations) <*> (informal text) Loan Agreement between the Republic of Kazakhstan (hereinafter referred to as the Borrower) and the Asian Development Bank (hereinafter referred to as the Bank). Whereas, (A) The Bank has received from the Borrower a development policy letter dated October 13, 1995 (hereinafter referred to as the Policy Letter), which sets out certain objectives, policies and actions described in Table 1 to this Loan Agreement, developed for the development of the Borrower's agricultural sector (hereinafter referred to as (C) The Borrower has applied to the Bank for a loan from the Bank's regular own funds for the purposes of the Program; (C) The Government of the Borrower (hereinafter referred to as the Government) has also requested technical assistance from the Bank for (i) research on market reform in the agricultural sector, and (ii) research on agricultural loans and savings, and through Technical Assistance Agreements dated the same date as here, the Bank has agreed to provide the Government with technical assistance grants for this purpose for a total amount equivalent to one million five hundred and fourteen thousand dollars ($1,514,000); and (D) The Bank, among other things, has also agreed to provide the Borrower with a loan from its usual own funds on the terms set out below; thus, the parties have agreed as follows:
Article I of the Loan Instructions; Definitions Section 1.01. All provisions of the Bank's Ordinary Operations Loan Instructions dated July 1, 1986 are applicable to this Loan Agreement and have the same force and effect as if they were fully set forth herein, subject, however, to the following modifications (the said Ordinary Operations Loan Instructions, as amended, are hereinafter referred to as Loan Instructions): (a) Section 2.01(9) is omitted and replaced by the following sub-paragraph: "9. The term "Program" means the program for which the Bank has agreed to provide a Loan as described in the Loan Agreement, and this description may be supplemented from time to time by agreement between the Bank and the Borrower."; (b) Where the term "Program" is used in the Loan Instructions, it should be replaced by the term "Project"; (c) Section 2.01(10) has been deleted and replaced with the following subparagraph: "10. The term "Program Implementing Agency" means the organization or organizations responsible for the implementation of the Program as defined in the Loan Agreement."; (d) Where the term "Program Implementing Agency" is used in the Loan Instructions, it should be replaced by the term "Project Implementing Agency"; (e) Section 2.01(17) is deleted and replaced by the following: "The term "dollar" or "dollars" or the "$" sign means a dollar or dollars in the currency of the United States of America."; (f) Sections 2.01(26) and (27) have been deleted and the following new section has been included: "Dollar Pool" means the pooled fund of unpaid dollar loans used by the Bank for the purpose of financing dollar loans provided by the Bank from ordinary own funds."; (g) The last sentence of the first paragraph of Section 3.02 is omitted; (h) Section 3.02 (b)(ii) is omitted and replaced by the following: "(ii) "Eligible loans" in relation to the loan means unpaid loans of the Bank in the dollar pool received after June 30, 1992"; (i) The last The sentence of Section 3.06 (a) has been omitted, and the words "on a date acceptable to the Bank" in Section 3.06 (b) have been omitted; (j) Section 4.02 has been omitted and replaced with the following: "Withdrawals from the loan account will be made in dollars."; (k) Section 4.03(a) is deleted and replaced with the following: "The principal amount of the loan must be repaid in dollars."; (l) Section 4.04 is deleted and replaced with the following: "Interest on any part of the loan must be paid in dollars."; (m) In Section 4.05, the words "and collection for any special obligations under Section 5.02" are omitted; and (n) Section 4.09 has been omitted and the following new Section 4.09 has been included: Notwithstanding all contrary provisions in these instructions, withdrawals from the loan account in respect of this loan, in exceptional cases where the Bank determines that it cannot allocate dollars for the purposes of such payments, will be made in such currency or currencies, which the Bank considers acceptable. The corresponding principal amounts of the loan must be repaid and the corresponding interest paid in such currency or currencies. The interest rate that will be applied to the principal loan amounts paid in such currency or currencies will be based on the value at which such currency was purchased by the Bank, plus the difference to the value at which the currency is issued to the Borrower (spread), and both may be changed from time to time by the Bank within reasonable limits.
Section 1.02. Used in this loan agreement, until another context is required, the terms defined in the loan instructions have the appropriate meanings set out below, and the following additional terms have the following meanings: (a) "Parallel Funds" means funds in tenge accumulated by the Borrower and originating from the program loan funds referred to in Section 5, paragraph 7, of this Agreement; (b) "KIIC" means the Committee on the Use of Foreign Capital under the Cabinet of Ministers, and any relevant successor; (c) "Eligible goods" means goods imported under the Program (with the exception of those specifically excluded in accordance with Annex 1 to Section 3 of this loan agreement), the value of which in foreign currency is acceptable for financing from the loan funds; (d) "First tranche" means a portion of the loan funds in the amount of not exceeding fifty million dollars ($50,000,000), which will initially be withdrawn from the account and used; (e) "Government" means the central executive body referred to in Section I of the Borrower's Constitution of 1995 and any relevant legal successor; (f) "Current Account" means the account to be opened with the NBK pursuant to Section 3, paragraph 4, of this Loan Agreement; (g) "Ministry of Agriculture" means The Ministry of Agriculture of the Borrower, and any relevant successor; (h) "MF" means the Ministry of Finance of the Borrower, and any relevant successor; (i) "NBK" means the National Bank of Kazakhstan, and any relevant legal successor; (j) "RIU" means the Project Coordination Office operating under the KIIC; (k) "Program Implementing Agency" for the purposes and within the understanding of the loan instructions means the Ministry of Finance, which is responsible for the implementation of the program(l) "Program Period" means the period beginning on the effective date and ending on December 31, 1997, or on such other date as may be agreed between the Borrower and the Bank; (m) "Second tranche" means the balance of the loan funds remaining after the use of the first tranche, which will be withdrawn from the account in accordance with the provisions of Section 3, paragraph 7, of this Loan Agreement; (n) "CMTC" means the Standard International Trade Classification, Edition 3 (CMTC, ed.3), published by the United Nations in the Statistical Report, Series M, number 34/ed.3 (1986); (o) "Tenge" or "T" means tenge in the borrower's currency.
Article II Loan Section 2.01. The Bank agrees to provide the Borrower with an amount of one hundred million dollars ($100,000,000.00) from the Bank's usual own funds.
Section 2.02. The Borrower will pay interest to the Bank in accordance with Section 3.02 of the Loan Instructions.
Section 2.03. (a) The borrower will pay a commission fee at a rate of three quarters of one percent (0.75%) per year. Such fee will accrue to the loan funds (less funds withdrawn from time to time from the account, for a subsequent period beginning 60 days after the date of this Loan Agreement, as follows: for the first period of twelve months for $15,000,000; for the second period of twelve months for $45,000,000; during the third period of twelve months for $85,000,000; and after that for the entire loan amount. (b) If any part of the loan is cancelled, the amount of each part of the loan specified in paragraph (a) of this Section will be reduced in the same proportion as the cancelled part of the loan was to the full amount of the loan prior to such cancellation.
Section 2.04. Interest and other fees on the loan will be paid every six months, on June 1 and December 1 of each year.
Section 2.05. The Borrower will repay the principal amount of the loan withdrawn from the loan account in accordance with the depreciation schedule set forth below in Schedule 2 to this agreement.
Article III Use of loan funds
Section 3.01. The Borrower will use the loan funds to finance the Program expenses in accordance with the provisions of this loan agreement. Section 3.02. Loan funds may be withdrawn from the Loan account only for the purpose of financing expenses in foreign currency for eligible goods under the Program in accordance with the Provisions of Schedule 3 to this Loan agreement, however, such schedule may be changed from time to time by agreement between the Borrower and the Bank.
Section 3.03. Until the Borrower and the Bank agree otherwise, all eligible goods to be financed from the loan funds must be manufactured and purchased in the Bank's member countries in accordance with the provisions of Schedule 4 to this loan agreement. The Bank will not finance the contract for goods that have not been purchased in accordance with the procedures agreed between the Borrower and the Bank, or if the terms of the contract do not satisfy the Bank.
Section 3.04. Unless otherwise agreed with the Bank, withdrawals from the loan account may only be made to cover the costs of eligible goods incurred no more than 180 days prior to the effective date of the loan.
Section 3.05. The final date for withdrawals from the loan account for the purposes of Section 8.03 of the Loan Instructions will be September 3, 1997, or any other date that may be agreed from time to time between the Borrower and the Bank.
Article IV Special conditions
Section 4.01. (a) The Borrower will carry out the Program with due diligence and efficiency, as well as in accordance with basic administrative, financial, agricultural, social and environmental standards. (b) Upon completion of the Program, the Borrower will fulfill all obligations set forth in Schedule 5 to this agreement.
Section 4.02. The borrower will immediately, if necessary, provide funds, necessary services, collateral, land and other required resources in addition to the loan funds for the implementation of the Program.
Section 4.03. The Borrower must ensure that the activities of all structures and bodies aimed at implementing the Program are coordinated in accordance with best administrative policies and procedures.
Section 4.04. (a) The Borrower will maintain records and documents to identify eligible products financed from the loan, as well as to determine the level of progress achieved under the Program. (b) The Borrower will provide the Bank's representatives with the opportunity to verify any relevant records and documents referred to in paragraph (a) of this section.
Section 4.05. (a) The Borrower will provide the Bank with all information and reports requested by the Bank regarding (i) the loan, as well as the disbursement of the loan funds and the performance of related services; (ii) eligible goods financed from the loan funds; (iii) parallel funds and their use; (iv) the implementation of the Program(v) financial and economic conditions in the Borrower's territory and the state of the Borrower's international balance of payments; (vi) any other matters related to the objectives of the loan. (b) Without prejudice to the above, the Borrower will provide the Bank with brief semi-annual reports on the implementation of the program and the implementation of the objectives and activities specified in the Policy Letter. These reports will be provided in such form and contain such information for such time period as the Bank requests, and they should also reflect, among other things, the progress made and problems encountered during the six-month period under review, as well as steps taken and planned to overcome the problems encountered, and the planned action program and expected progress during the reporting period. a follow-up period of six months. (c) Immediately after the final withdrawal date of the loan, but in any case no later than three (3) months thereafter, or such later date as is agreed for this purpose between the Borrower and the Bank, the Borrower will prepare and submit to the Bank a Program implementation report in such form and with such details that the Bank may request, including its Cost, the Borrower's fulfillment of its obligations under this Loan Agreement, and the completion of project objectives.
Section 4.06. (a) By mutual agreement of the Borrower and the Bank, no other external debt to a lender other than the Bank will have an advantage over the loan by seizing the Borrower's assets. In this regard, the Borrower undertakes the following: (i) before agreeing with the Bank on other conditions, if a situation arises of seizing the Borrower's assets as collateral for any external debt, such seizing shall, in fact, equally ensure payment of the principal amount, interest, service fees and any other charges on the Loan; and (ii) The Borrower will take appropriate precautions in the event of any such seizure or any signs of it. (b) The provisions of paragraph (a) of this section shall not apply to (i) any seizure of property, at the time of acquisition, solely as security for payment of the purchase value of such property; or (ii) any seizure arising from ordinary banking transactions and the securing of debt incurred no later than one year from the date of acquisition. the time of its date. (c) The term "assets of the Borrower" used in paragraph (a) of this section includes the assets of any administrative unit or any body of the Borrower and the assets of any department of any such administrative unit, including the NBK and any other institution performing the functions of the central bank of the Borrower.
Article V Entry into force
Section 5.01. The date coming ninety (90) days after the date of this loan agreement is determined for the entry into force of the Loan Agreement for the purposes of Section 9.04 of the loan instructions.
Article VITHE opposite
Section 6.01. The Ministry of Finance is appointed by the Borrower on behalf of the Republic of Kazakhstan for the purposes of Section 11.02 of the Loan Instructions.
Section 6.02. The following addresses are defined for the purposes of Section 11.01 of the Loan Instructions:
For the borrower: Ministry of Finance St. Ablay Khan, 97 Almaty 480091 Republic of Kazakhstan Fax number: (3272) 628-079 (3272) 636-984 For the Bank: Asian Development Bank Mailbox 789 Philippines, Manila Telegraphic Address: Asian Bank Manila Telex Number: 63587 ADB PN (ETPI) 42205 ADB PM (ITT) 29066 ADB PH (RCA) Fax Number: (632) 741-7961 (632) 632-6816 (632) 631-6816 In confirmation of the above, the Parties hereby testify, acting through their authorized representatives, that they have done everything necessary to sign this agreement under their respective names., and also to provide it to the central office of the Bank in accordance with the above-mentioned date and year.
Republic of Kazakhstan ________________________ Authorized Representative of the Asian Development Bank _________________________ Authorized representative
President
Republic of Kazakhstan
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