Соглашение между Российской Федерацией и Международным банком реконструкции и развития о займе для финансирования проекта структурной перестройки угольной промышленности (Loan Number 4058 RU) [англ.]

(Заключено в г. Вашингтоне 28.06.1996)

LOAN AGREEMENT

(COAL SECTOR ADJUSTMENT LOAN) BETWEEN RUSSIAN FEDERATION AND INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

(Washington, 28.VI.1996)

Agreement dated June 28, 1996 between Russian Federation (the Borrower) and the International Bank for Reconstruction and Development (the Bank).

Whereas the Bank has received a letter dated May 22, 1996 from the Borrower describing a program of actions, objectives and policies designed to achieve adjustment of the Borrower's coal sector (hereinafter called the Program), declaring the Borrower's commitment to the execution of the Program, and requesting assistance from the Bank in support of the Program during the execution thereof; and

Whereas on the basis, inter alia, of the foregoing, the Bank has decided in support of the Program to provide such assistance to the Borrower by making the Loan in two tranches as hereinafter provided;

Now therefore the parties hereto hereby agree as follows:

Section 1.01. The «General Conditions Applicable to Loan and Guarantee Agreements for Single Currency Loans» of the Bank, dated May 30, 1995 (the General Conditions) constitute an integral part of this Agreement.

Section 1.02. Unless the context otherwise requires, the several terms defined in the General Conditions have the respective meanings therein set forth and the term «Deposit Account» means the account referred to in Section 2.02 (b) of this Agreement.

Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions set forth or referred to in the Loan Agreement, an amount equal to five hundred million dollars (500,000,000 USD).

Section 2.02. (a) Subject to the provisions of paragraphs (b), (c) and (d) of this Section, the Borrower shall be entitled to withdraw the proceeds of the Loan from the Loan Account in support of the Program.

(b) The Borrower shall open, prior to furnishing to the Bank the first request for withdrawal from the Loan Account, and thereafter maintain in its central bank, a deposit account in Dollars on terms and conditions satisfactory to the Bank. All withdrawals from the Loan Account shall be deposited by the Bank into the Deposit Account.

(c) The Borrower undertakes that the proceeds of the Loan shall not be used to finance expenditures excluded pursuant to the provisions of Schedule 1 to this Agreement. If the Bank shall have determined at any time that any proceeds of the Loan shall have been used to make a payment for an expenditure so excluded, the Borrower shall, promptly upon notice from the Bank, (i) deposit into the Deposit Account an amount equal to the amount of said payment, or (ii) if the Bank shall so request, refund such amount to the Bank. Amounts refunded to the Bank upon such request shall be credited to the Loan Account for cancellation.

(d) No withdrawal shall be made from the Loan Account after the aggregate of the proceeds of the Loan withdrawn from the Loan Account shall have reached the equivalent of 250,000,000 USD, unless the Bank shall be satisfied, after an exchange of views as described in Section 3.01 of this Agreement based on evidence satisfactory to the Bank: (i) that the macro-economic framework of the Borrower is consistent with the Program as determined on the basis of indicators agreed upon by the Borrower and the Bank; (ii) with the progress achieved by the Borrower in the carrying out of the Program; and (iii) that the actions described in Schedule 3 to this Agreement have been taken. If, after said exchange of views and consultation with the Borrower, the Bank shall have given notice to the Borrower that the progress achieved and actions taken are not satisfactory and, within ninety (90) days after such notice, the Borrower shall not have achieved progress and taken actions satisfactory to the Bank, then the Bank may, by notice to the Borrower, cancel the unwithdrawn amount of the Loan or any part thereof.

Section 2.03. The Closing Date shall be December 31, 1997 or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date.

Section 2.04. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one percent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time.

Section 2.05. (a) The Borrower shall pay interest on the principal amount of the Loan withdrawn and outstanding from time to time, at a rate for each Interest Period equal to LIBOR Base Rate plus LIBOR Total Spread.

(b) For the purposes of this Section:

(i) «Interest Period» means the initial period from and including the date of this Agreement to, but excluding, the first Interest Payment Date occurring thereafter, and after the initial period, each period from and including an Interest Payment Date to, but excluding the next following Interest Payment Date.

(ii) «Interest Payment Date» means any date specified in Section 2.06 of this Agreement.

(iii) «LIBOR Base Rate» means, for each Interest Period, the London interbank offered rate for six-month deposits in single currency for value the first day of such Interest Period (or, in the case of the initial Interest Period, for value the Interest Payment Date occurring on or next preceding the first day of such Interest Period), as reasonably determined by the Bank and expressed as a percentage per annum.

(iv) «LIBOR Total Spread» means, for each Interest Period:

(A) one half of one percent (1/2 of 1%);

(B) minus (or plus) the weighted average margin, for such Interest Period, below (or above) the London interbank offered rates, or other reference rates, for six-month deposits, in respect of the Bank's outstanding borrowings or portions thereof allocated by the Bank to fund single currency loans or portions thereof made by it that include the Loan; as reasonably determined by the Bank and expressed as a percentage per annum.

(c) The Bank shall notify the Borrower of LIBOR Base Rate and LIBOR Total Spread for Interest Period, promptly upon the determination thereof.

(d) Whenever, in light of changes in market practice affecting the determination of the interest rates referred to in this Section 2.05, the Bank determines that it is in the interest of its borrowers as a whole and of the Bank to apply a basis for determining the interest rates applicable to the Loan other than as provided in said Section, the Bank may modify the basis for determining the interest rates applicable to the Loan upon not less than six (6) months' notice to the Borrower of the new basis. The basis shall become effective on the expiry of the notice period unless the Borrower notifies the Bank during said period of its objection thereto, in which case said modification shall not apply to the Loan.

Section 2.06. Interest and other charges shall be payable semiannually on June 15 and December 15 in each year.

Section 2.07. The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in Schedule 2 to this Agreement.

Section 3.01. (a) The Borrower and the Bank shall from time to time, at the request of either party, exchange views on the progress achieved in carrying out the Program and the actions specified in Schedule 3 to this Agreement.

(b) Prior to each such exchange of views, the Borrower shall furnish to the Bank for its review and comment a report on the progress achieved in carrying out the Program, in such detail as the Bank shall reasonably request.

(c) Without limitation upon the provisions of paragraph (a) of this Section, the Borrower shall exchange views with the Bank on any proposed action to be taken after the disbursement of the Loan which would have the effect of materially reversing the objectives of the Program, or any action taken under the Program, including any action specified in Schedule 3 to this Agreement.

Section 3.02. Upon the Bank's request, the Borrower shall:

(a) have the Deposit Account audited in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank;

(b) furnish to the Bank as soon as available, but in any case not later than six (6) months after the date of the Bank's request for such audit, a certified copy of the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and

(c) furnish to the Bank such other information concerning the Deposit Account and the audit thereof as the Bank shall have reasonably requested.

Section 4.01. Pursuant to Section 6.02 (1) of the General Conditions, the following additional event is specified, namely, that a situation has arisen which shall make it improbable that the Program, or a significant part thereof, will be carried out.

Section 5.01. The date ninety (90) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions.

Section 6.01. The Minister of Finance or any Deputy Minister of Finance of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions.

Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions:

For the Borrower: Ministry of Finance Ilyinka Street 9 103009 Moscow Russian Federation Telex: 112008

For the Bank:
International Bank for
Reconstruction and Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America

    Cable address:                                  Telex:
    INTBAFRAD                                       197688 (TRT),
    Washington, D.C.                                248423 (RCA),

                                                64145 (WUI) or
                                                82987 (FTCC)

In witness whereof, the parties hereto, acting through their duly authorized representatives, have caused this Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written.

SCHEDULE 1

EXCLUDED EXPENDITURES

For purposes of Section 2.02 (c) of this Agreement, the proceeds of the Loan shall not be used to finance any of the following expenditures:

1. expenditures in the currency of the Borrower or for goods or services supplied from the territory of the Borrower;

2. expenditures for goods or services supplied under a contract which any national or international financing institution or agency other than the Bank or the Association shall have financed or agreed to finance, or which the Bank or the Association shall have financed or agreed to finance under another loan or credit;

3. expenditures for goods included in the following groups or sub-groups of the Standard International Trade Classification, Revision 3 (SITC, Rev. 3), published by the United Nations in Statistical Papers, Series M, No. 34/Rev.3 (1986) (the SITC), or any successor groups or sub-groups under future revisions to the SITC, as designated by the Bank by notice to the Borrower:

Group	Sub-group	Description of Items
112	-	Alcoholic beverages
121	-	Tobacco, unmanufactured, tobacco refuse
122	-	Tobacco, manufactured (whether or not containing tobacco substitutes)
525	-	Radioactive and associated materials
667	-	Pearls, precious and semi-precious stones, unworked or worked
718	718.7	Nuclear reactors, and parts thereof; fuel elements (cartridges), non-irradiated, for nuclear reactors
728.43	-	Tobacco processing machinery
897	897.3	Jewelry of gold, silver or platinum group metals (except watches and watch cases) and goldsmiths' or silversmiths' wares (including set gems)
971	-	Gold, non-monetary (excluding gold ores and concentrates)

4. expenditures for goods intended for a military or paramilitary purpose or for luxury consumption;

5. expenditures for environmentally hazardous goods (for purposes of this paragraph the term «environmentally hazardous goods» means goods, the manufacture, use or import of which is prohibited under the laws of the Borrower or international agreements to which the Borrower is a party; and

6. in furtherance of the purposes of Section 5.01 of the General Conditions, expenditures

(a) in the territories of any country which is not a member of the Bank or for goods procured in, or services supplied from, such territories or

(b) on account of any payment to persons or entities, or any import of goods, if such payment or import is prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations.

SCHEDULE 2

AMORTIZATION SCHEDULE

Date Payment Due	Payment of Principal (expressed in Dollars) <*>
On each June 15 and December 15 beginning December 15, 2001 through December 15, 2012 On June 15, 2013	20,835,000 20,795,000

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<*> The figures in this column represent Dollar equivalents determined as of the respective dates of withdrawal. See General Conditions, Sections 3.04 and 4.03.

SCHEDULE 3

ACTIONS REFERRED TO IN SECTION 2.02 (D) OF THIS AGREEMENT

1. During the second half of calendar 1996, the Borrower's actual transfers from the allocation for state support to the coal sector in the Borrower's 1996 budget

(i) to federal subjects for the development, replacement, rehabilitation, maintenance and operation of social assets divested from the coal sector to local authorities, and

(ii) to coal companies and local authorities for social protection, including community support and employment programs, are or were being made in accordance with the schedule, agreed upon by the Borrower and the Bank.

2. The Borrower has demonstrated to the satisfaction of the Bank that, during the calendar quarter immediately preceding the review referred to in Section 2.02 (d) of the Agreement, no state support for operating losses was made available to coal mines which have recruited employees in excess of 1% of their respective total number of employees during such period.

3. The Borrower's proposal for state support to the coal industry for 1997, the actual budget, if in place at the time of the review referred to in Section 2.02 (d) of this Agreement, the allocation of state support to the coal industry for 1997 approved by the Inter-Agency Coal Commission and the actual quarterly transfers during 1997, in case the review referred to in Section 2.02 (d) of this Agreement takes place in 1997, incorporate and are consistent with the parameters agreed upon by the Borrower and the Bank.

4. The Borrower has initiated the operation of the regional offices of the Federal Employment Services in all regions where mines are being closed with adequate capacity to deliver pre-redundancy services free of charge to employees prior to cessation of coal production for all coal industry employees of mines whose closure has been announced.

5. The Borrower has established the necessary institutional framework, which includes the participation of the Federal Employment Services, and has initiated the activities of the community support and employment programs, agreed upon by the Borrower and the Bank in the Kuzbass, Eastern Donbass, Pechora, Moscow and Kisel coal basins.

6. The Borrower has taken all actions required to be taken in accordance with the demonopolization program, agreed upon by the Borrower and the Bank.

7. The Borrower has demonstrated on the basis of social impact and monitoring reports, of such scope as agreed by the Borrower and the Bank, for the calendar quarter preceding the review referred to in Section 2.02 (d) of this Agreement, overall compliance with social impact indicators, agreed upon by the Borrower and the Bank, and has published such reports.

8. The Borrower has prepared and furnished to the Bank a financial impact monitoring report on the financial performance of the regional coal companies in such scope and detail as agreed by the Borrower and the Bank.

9. The Borrower has submitted to the Bank audits on five coal companies, which are main recipients of state support, in such scope and detail as has been agreed upon by the Borrower and the Bank.

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