Decree of the Minister for Foreign Affairs No. 108 / 1980 Coll.
Decree of the Minister for Foreign Affairs on the Loan Agreement between the Government of the Czechoslovak Socialist Republic and the Federal Military Government of the Federal Federal Republic of Nigeria
Valid
Effective from 01.02.1980
108
DECLARATION
Minister for Foreign Affairs
of 27 June 1980
on the Loan Agreement between the Government of the Czechoslovak Socialist Republic and the Federal Military Government of the Federal Republic of Nigeria
On 11 June 1979, the loan agreement between the Government of the Czechoslovak Socialist Republic and the Federal Military Government of the Nigerian Federal Republic was signed in Prague. The Agreement entered into force on 1 February 1980 on the basis of Article XI thereof.
The Czech translation of the text of the Agreement is announced simultaneously.
Minister:
Ing. Chupek v. r.
CREDIT AGREEMENT
between the Government of the Czechoslovak Socialist Republic and the Federal Military Government of the Federal Republic of Nigeria
Government of the Czechoslovak Socialist Republic and Federal Military Government of the Federative Republic of Nigeria,
thinking of friendly relations between the two countries,
Desiring to intensify and strengthen these relations,
considering strengthening further fruitful economic development cooperation,
they have agreed as follows:
The Government of the Czechoslovak Socialist Republic will assist the development efforts of the Federal Military Government of the Federal Federal Republic of Nigeria by granting it a loan of up to DEM 165 million (German marks) for the projects listed in Annex I to this Agreement and under the conditions set out in this Agreement. The loan granted under this Agreement shall be increased to up to 190 million German marks (DM 190 million) to carry out other projects which may be agreed by the Contracting Parties outside the projects listed in Annex I.
1. Loan referred to in Article I may be used to finance up to 85% of the FOB European Baltic port or FOB Hamburg value of industrial equipment and machinery of Czechoslovak origin (hereinafter referred to as "investment units');
- the corresponding amount of spare parts necessary for the operation of the investment unit during the test run.
2. The loan may also be used to cover costs in the Czechoslovak currency for services provided by Czechoslovak suppliers in connection with the supply of investment units, the teaching of Nigerian experts and technicians in the CSSR in the framework of individual contracts for the supply of goods concluded between suppliers and buyers in accordance with Article III of this Agreement.
3. The loan may also be used for payments under licence contracts relating to Czechoslovak patents and technological knowhow in connection with the supply of investment entities under this Agreement.
1. The supply of goods and services referred to in Article II shall be made on the basis of contracts agreed between Czechoslovak legal persons authorised under Czechoslovak laws to conduct foreign trade in the Czechoslovak Socialist Republic (hereinafter referred to as "suppliers') and the Federal Military Government of the Nigerian Federal Republic, the regional governments of the Nigerian Federative Republic or any other person authorised by the Federal Military Government to conclude contracts under this Agreement (hereinafter referred to as" Buyers').
2. The contracts referred to in paragraph 1 shall have the following payment terms:
(a) 5% (five percent) of the total value of each contract will be paid by the buyer to the supplier in advance within 60 days (sixty days) after the contract is signed;
(b) 10% (10%) of the total value of each account per contract will be paid by the buyer to the supplier against the designated documents on the basis of an irrevocable letter of credit opened by the Central Bank of the Federal Republic of Nigeria at the Czechoslovak Commercial Bank, Prague;
(c) 85% (eighty-five percent) of the total value of each account for each individual contract shall be paid to the Czechoslovak supplier under the credit granted under Article I of this Agreement. The Czechoslovak Commercial Bank, Prague, shall be responsible for automatically charging 85% (eighty-five percent) of the credit account referred to in this paragraph, set up in accordance with Article VI, at the same time as the drawing carried out following the submission of the documents identified by the supplier as provided for in paragraph (b) of this Article. The Czechoslovak Commercial Bank, Prague, will inform the Central Bank of the Federal Republic of Nigeria of any such liability.
3. Both Parties shall take the necessary measures to facilitate the negotiation and performance of contracts under this Agreement.
4. The loan granted under this Agreement may only be used for contracts concluded before 31.12.1981. Prices for individual contracts will be expressed in German marks (DM).
The date on which the Czechoslovak Commercial Bank, Prague, will make payment to the Czechoslovak supplier within the meaning of Article III, will be considered as the date of use of the loan.
1. The loan used will be repaid by the Government of the Federal Republic of Nigeria over 10 years (10 years).
2. Repayment of amounts encumbered in accordance with Article III (c) of this Agreement shall be made in regular annual instalments, the first from 24 months after the date on which the Czechoslovak Commercial Bank, Prague, has charged the relevant credit account on the basis of the final account submitted by the supplier under the relevant letter of credit referred to in Article III (b).
3. After the completion of deliveries or services within each contract, the Czechoslovak Commercial Bank, Prague, will prepare a repayment plan and send it in two copies to the Permanent Secretary of the Federal Ministry of Finance of the Federal Federal Republic of Nigeria. One copy of this payment plan will be duly signed by the Permanent Secretary of the Federal Ministry of Finance of the Federal Republic of Nigeria and returned to the Czechoslovak Commercial Bank, Prague.
The Czechoslovak Commercial Bank, Prague, will open in its books in the name of the Central Bank of the Federal Republic of Nigeria a special interest-bearing credit account for each individual contract and agree with the Central Bank of the Federal Republic of Nigeria on the details of that account.
The loan used will be remunerated at 3% (3%) per year. Interest will be calculated by the Czechoslovak Commercial Bank, Prague, and will be payable on 31 December and 30 June of the current year. This interest will be paid by the Government of the Federal Republic of Nigeria within two months of the due date.
The Government of the Federal Republic of Nigeria will be able to repay the loan in advance, in whole or in part, at any time, provided that it notifies 60 (60) days in advance. Any payments before the due date will be deducted from the instalments that are due last.
1. All payments made under this Agreement shall be made without any deduction in respect of taxes, duties, charges or other charges, as well as excluding bank charges and commissions.
(2) Repayments pursuant to Article V (2) and interest payable will be paid in convertible German marks (DM) or in any other convertible currency that may be agreed between the Czechoslovak Commercial Bank, Prague, and the Central Bank of Nigeria.
Any disputes or irregularities which may arise in connection with the performance of contracts concluded under this Agreement shall, first and foremost, be settled by mutual agreement. In the absence of agreement, dispute or irregularity, arbitration shall be dealt with in accordance with the detailed provisions agreed for that purpose between suppliers and buyers in each individual contract concluded under this Agreement. Each Party shall ensure that arbitration decisions made on the basis of the above arbitration agreements are implemented in both countries in accordance with the applicable laws and regulations of those countries.
This Agreement shall enter into force on the date of the exchange of notes confirming that it has been duly approved in accordance with the relevant constitutional provisions and shall remain in force until all obligations arising therefrom have been fulfilled.
Done and signed in Prague on 11 June 1979 in two original copies in English.
For the Government of the Czechoslovak Socialist Republic
Minister for Foreign Trade:
Andrei Barčák v. r.
For the Federal Military Government of the Federative Republic of Nigeria
Federal Financial Commissioner:
J. J. Oluley v. r.
Příloha I
Annex I to Decree No 108 / 1980 Coll.
List of projects,
to be implemented under the Czechoslovak government loan
| Název projektu | Část krytá československým vládním úvěrem |
|---|---|
| DM | |
| 1. Metalurgický a strojní závod na výrobu obráběcích strojů | 40 mil. DM |
| 2. Metalurgický a strojní závod na výrobu tvářecích strojů | 85 mil. DM |
| 3. Závod na výrobu nářadí a automobilových náhradních dílů | 40 mil. DM |
| 165 mil. DM | |
| 4. Další projekty (které budou dodatečně určeny) | 25 mil. DM |
| 190 mil. DM |
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Regulation Information
| Citation | Decree of the Minister of Foreign Affairs No. 108 / 1980 Coll., on the Loan Agreement between the Government of the Czechoslovak Socialist Republic and the Federal Military Government of the Nigerian Federal Republic |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 25.08.1980 |
|---|---|
| Effective from | 01.02.1980 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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