AGREEMENT
BETWEEN THE GOVERNMENT OF THE UNITED STATES
OF AMERICA AND THE GOVERNMENT OF THE RUSSIAN FEDERATION
REGARDING THE RESCHEDULING OF CERTAIN DEBTS OWED TO OR
GUARANTEED BY THE UNITED STATES GOVERNMENT
(Moscow, 26.V.2000)
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:
Article I
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.
Article II
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.
Article III
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.
A table summarizing the amount of Consolidated Amounts owed to
the United States is attached hereto as Annex B.
(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.
A table summarizing the amount of Previously Rescheduled
Consolidated Amounts owed to the United States and CCC is attached
hereto as Annex C.
(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 annum. 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 annum 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.
Article IV
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.
Article V
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.
Article VI
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
Annex C
SUMMARY OF PREVIOUSLY RESCHEDULED CONSOLIDATED AMOUNTS
(thousands of USD)
CCC USD 269,478
1972 Settlement Agreement USD 10,916
TOTAL USD 280,394
Annex D
1993 NON-CONSOLIDATED AMOUNTS
(thousands of USD)
CCC USD 5,531
1972 Settlement Agreement USD 34
TOTAL USD 5,565
Annex E
PREVIOUSLY RESCHEDULED NON-CONSOLIDATED AMOUNTS
(thousands of USD)
CCC USD 44,402
TOTAL USD 44,402
Annex F
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 number 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
The United States and the Russian Federation represent and
warrant that they have taken all action necessary or advisable to
authorize the execution, delivery, and performance of this
Agreement, on their own behalf and, on the part of the United
States, on behalf of CCC.
D. Miscellaneous Provisions
1. Adjustments. CCC has informed the Russian Federation of the
amounts CCC has determined to be rescheduled under this Agreement.
The parties hereto agree to make any necessary adjustments to the
amounts being rescheduled.
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
CCC may change this designated address upon written notice to
the Russian Federation.
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 number 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
The United States and the Russian Federation represent and
warrant that they have taken all action necessary or advisable to
authorize the execution, delivery, and performance of this
Agreement.
D. Miscellaneous Provisions
1. Adjustments. The Department of Treasury shall inform the
Russian Federation of the actual amounts rescheduled, and provide
a repayment schedule of those amounts within sixty (60) days of
signature of this Agreement.
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
|
