Subsidiary Credit Agreement
(Pilot Cultural Heritage Project)
between
BOSNIA AND HERZEGOVINA
and
FEDERATION OF BOSNIA AND HERZEGOVINA
and
CITY OF MOSTAR
Dated August 18th, 1999.
AGREEMENT, dated August 18th, 1999. between BOSNIA AND HERZEGOVINA (the Borrower), the FEDERATION OF BOSNIA AND HERZEGOVINA (the Federation), and the CITY OF MOSTAR.
WHEREAS
(A) by a Development Credit Agreement (the Development Credit Areement) dated
as of July 5, 1999. between the Borrower and the International Development
Association (the Association), the Association has agreed to make available to
the Borrower an amount in various currencies (the Credit) equivalent to three
million Special Drawing Rihts (SDR 3,000.000).
(B) by
the Projece Agreement dated as of July 5. 1999. between the Association and the
City of Mostar, the City of Mostar has alreed to carry out the Project;
(C) the
Borrower has agreed to relend the proceeds of the Credit to the Federation. and
the Federation has agreed to relend the proceeds of the Credit to the City, of
Mostar for purposes of carrying out the Project; and
(D) the Borrower, the Federation and the City of Mostar, in consideration of the Association's entry into the Development Credit Agreement with the Borrower, and in consideration of the City of Mostar's agreement to carry out the Project, have agreed to undertake the obligations set forth in this Agreement.
Section
1.01. The provisions of the General Conditions and the terms and conditions of
the Development Credit Agreement shall, mutatis mutandis, apply in full
force and effect tow this Agreement.
Section 1.02.
Wherever used in this Agreement, unless the context shall otherwise require,
the several terms defined in the Development Credit Agreement and the General
Conditions, as defined in Section 1.01 of the Development Credit Agreement,
have the respective meanings therein setforth.
Section
1.03. All the Schedules to the Development Credit Agreement incorporated herein
by reference are an integral part of this Agreement and may be modified,
amended, and/or supplemented from time to time by agreement between the
Borrower and the Association. The Borrower shall immediately notify the
Federation and the City of Mostar of any such modification, amendment and/or
supplement which will be deemed to be incorporated herein as an integral part
upon said notification.
Section
2.01- The Borrower shall relend a portion of the proceeds of the Credit (the
Subsidiary Credit) to the Federation for onlending to the City of Mostar on the
following principal terms and conditions:
(a) the
Borrower shall relend to the Federation and the Federation shall. onlend to the
City of Mostar an amount equivalent to the amount of the Credit allocated from
time to time to Categories A(1) through (41 set forth in the table in paragraph 1 ot
Schedule 1 to the Development Credit Agreement;
(b) the
term of the Subsidiary Credit shali by 35 years, including a 10 year grace
period:
(c) the
Borrower shall chage the Federation and the Federation shali charge the City of
Mostar a commitment charge at a rate equal to the rate payable under Section
2.04 of the Development Credit Aareement on the principal amount of the
Subsidiary Credit not withdrawn from time to time;
(d) the
Borrower shall charge the Federation and the Federation shall charge the City
of Mostar a service charge on the principal amount of the Subsidiary Credit
withdrawn and outstanding from time to time at a rate equal to the rate payable
under Section 2.05 of the Development Credit Agreement;
(e) the
principal amount of the Subsidiary Credit shall be payable in Dollars and shall
be the equivalent in Dollars (determined as of the date or respective dates of
repayment) of the value of currency or currencies withdrawn from the Credit by
the Borrower for the benefit of the Federation; and
(f) the
Borrower shall have the right to require modification in the repayment terms of
the Subsidiary Credit in conformity with the provisions of Section 2-07 (b) of
the Development Credit Agreement.
Section 2.02. The Borrower shall open an account (the Subsidiary Credit Account) on its books in the name of the City of Mostar and the amount of the Subsidiary Credit shall be credited to the Subsidiary Credit Account.
Section
2.03. The right of the City of Mostar to withdraw the proceeds of the
Subsidiary Credit is subject to the right of the Borrower to withdraw the
proceeds of the Credit
ARTICLE III
Section
3.01. (a) The City of Mostar shall pay to the Federation, which in turn shall
pay to the Borrower, which in turn shall pay to the Association, a commitment
charge on the principal amount of the Subsidiary Credit not withdrawn from time
to time at a rate to be set by the Association as of June 30 of each year, but
not to exceed the rate of one-half of one percent ( 1/2 of 1%) per annum.
(b) The
commitment charge shall accrue: (i) from the date sixty (60) days after the
date of the Development Credit Agreement (the accrual date) to the respective
dates on which amounts shall be withdrawn by the City of Mostar from the
Subsidfary Credit Account or cancelled; and (ii) at the rate as of the June 30
immediately preceding the accrual date and at such other rates as may be set
from time to time thereafter pursuant to paragraph (a) above. The rate set as
of June 30 in each year shall be applied from the next date in that year
specified in Section 3.03 of this Agreement.
(c) The
commitment charge shall be paid: (i) at such places as the Borrower shall
reasonably request; and (ii) in the currency specified in Sections 2.05(c)(iii)
and 2.08 of the Development Credit Agreement.
Section
3.02. The City of Mostar shall pay to the Federation, which in turn shall pay
to the Borrower; which in turn shall pay to the Association, a service charge
at the rate of three-fourths of one percent (3/4 of 1%) per annum on the
principal amount of the-Subsidiary Credit withdrawn and outstanding from time
to time.
Section
3.03 Commitment and service charges shall be payable semiannually by the City
of Mostar to-the Federation and by the Federation to the Borrower by March 15
and September 15 in each year.
Section-3.04. The City of Mostar shall pay to the
Federation, which in turn shall repay-to the Borrower, the principal amount of
the Subsidiary Credit in semiannual installments payable on each March 15 and
September 15, commencing September 15, 2009 and ending March 15, 2034. Each
installment to and including the installment payable on March 15, 2019 shall be
one and one-fourth percent (1-1/4%) of such principal amount, and each
installment thereafter shall be two and one-half percent (2-1/2%) of such
principal amount.
ARTICLE IV.
Section
4.01. The Borrower and the Federation shall take or cause to be taken all
actions necessary or appropriate to enable the City of Mostar to perform its
obligations under this Agreement and shall not take or permit to be taken any
action which would prevent or interfere with such performance.
Section 5.01. Any dispute arising out of this Agreement or in connection therewith which cannot be amicably settled between the Borrower, the Federation and the City of Mostar shall be finally settled in the courts of the Borrower under the laws of the Borrower.
Section 6.01. If
the right of the Borrower to disbursement from the Credit is suspended or terminated
by the Association pursuant to the provisions of the Development Credit
Agreement, the right of the City of Mostar to disbursement from the Subsidiary
Credit shall likewise and simultaneously be suspended or cancelled, as the case
may be. All other provisions of this Agreement shall continue in full force and
effect notwithstanding any cancellation or suspension under the Development
Credit Agreement.
Miscellaneous Provisions
Section
7.01. This Agreement shall become effective on the date upon which the
Development Credit Agreement becomes effective.
Section
7.02. Any notice or request required or permitted to be given under this
Agreement and any agreement between the parties shall be in writing.
Section
7.03. The following addresses are specified for the purpose of this Agreement:
For
Bosnia and Herzegovina
Ministry
of Foreign Trade and
Economic Relations
Musala 9
71000
Sarajevo
Bosnia
and Herzegovina
For the
Federation of Bosnia nnd Herzegovina:
Ministry
of Finance of the Federation
Mehmeda
Spahe 5
71000
Sarajevo
Bosnia
and Herzegovina
For the
City of Mostar
Mayor of
the City of Mostar
Adema Buæe
20
88000
Mostar
Bosnia
and Herzegovina
Section
7.04. If and of the above addresses and/or names are changed, the party
concerned shall immediately notify the other parties hereto in writing of the
new addresses and/or names.
Section
7.05. This Agreement shall terminate on the
date upon which the Development Credit Agreement shall terminate.
Section
7.06. This Agreement may be executed in several counterparts, each of which
shall be an original, and all collectively but one instrument.
IN , WITNESS
WHEREOF, the parties hereto, acting through their duly authorized representatives,
have cause this Agreement to be signed in their respective names of the day and
year first above written.