China - Rural Sector Adjustment Loan : Credit 1932 - Loan Agreement - Conformed

LOAN NUMBER 2967 CHA c.,ZI S CMA Loan Agreement (Rural Sector Adjustment Loan) between PEOPLE'S REPUBLIC OF CHINA and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated ,r 1988 LOAN NUMBER 2967 CHA LOAN AGREEMENT AGREEMENT, dated Y.4 /S1 , 1988, between PEOPLE'S REPUBLIC OF CHINAV(thd Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank). WHEREAS (A) the Bank has received a letter dated May 25, 1988 from the Borrower describing a program of actions, objectives and policies designed to achieve adjustment of the Borrower's rural sector (hereinafter called the Program), declaring the Borrower's commitment to the execution of the Program, and requesting assistance from the Bank in the financing of urgently needed imports required during such execution; and (B) the Borrower has also requested the International Development Association (the Association). to provide additional financial assistance towards the financing of the Program and by the Development Credit Agreement, the Association is agreeing to provide such assistance in an aggregate principal amount equivalent to seventy-two million two hundred forty thousand Special Drawing Rights (SDR 72,240,000) (the Credit); (C) the Borrower and the Bank intend, to the extent practic- able, that the proceeds of the Credit be disbursed on account of expenditures in respect of the Program before disbursements of the proceeds of the Loan provided for in this Agreement are made; and (D) 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 as hereinafter provided; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Loan and Guarantee Agreements" of the Bank, dated January 1, 1985, with the modifications thereof set forth below (the General Conditions) constitute an integral part of this Agreement: (a) Section 2.01, paragraph 11, shall be modified to read: "'Project' means the imports and other activities that may be financed out of the proceeds of the Loan pursuant to the provisions of Schedule 1 to the Loan Agreement."; -2- (b) Section 9.07 (c) shall be modified to read: "(c) Not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, the Borrower shall prepare and furnish to the Bank a report, of such scope and in such detail as the Bank shall reasonably request, on the execution of the program referred to in the Preamble to the Loan Agree- ment, the performance by the Borrower and the Bank of their respective obligations under the Loan Agreement and the accomplishment of the purposes of the Loan."; and (c) The last sentence of Section 3.02 is deleted. Section 1.02. Unless the context otherwise requires, the several terms defined in the General Conditions, in the Develop- ment Credit Agreement and in the General Conditions applicable thereto have the respective meanings therein set forth and the term "Development Credit Agreement" means the agreement of even date herewith between the Borrower and the Association for the Project as such agreement may be amended from time to time, and such term includes the "General Conditions Applicable to Develop- ment Credit Agreements" of the Association, dated January 1, 1985, as applied to such agreement, and all schedules and agreements supplemental to the Development Credit Agreement. ARTICLE II The Loan Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions set forth or referred to in the Loan Agree- ment, an amount in various currencies equivalent to two hundred million dollars ($200,000,000). Section 2.02. The amount of the Loan may be withdrawn from the Loan Account in accordance with the provisions of Schedule 1 to the Development Credit Agreement. Section 2.03. The Closing Date shall be July 31, 1990 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 charg&'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. -3- 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 per annum for each Interest Period equal to one- half of one percent per annum above the Cost of Qualified Borrowings for the last Semester ending prior to the commencement of such Interest Period. (b) As soon as practicable after the end of each Semester, the Bank shall notify the Borrower the Cost of Qualified Borrowings for such Semester. (c) For purposes of this Section: i) "Interest Period" means the six-month period .commencing on each date specified in Section 2.06 of *this Agreement, including the Interest Period in which this Agreement is signed. (ii) "Cost. of Qualified Borrowings" means the cost of the outstanding borrowings of the Bank drawn down after June 30, 1-982, expressed as a percentage per annu as reasonably determined by the Bank. (iii) "Semester" means the first six months or the second six months of a,calefidar year. Section 2.06. Interest and other charges shall be payable semiannually on May 1 and November 1 in each year. Section 2.07. The Bbrrower shall iepa-y the principal amount of the Loan in accordance with the amortization schedule set forth in the Schedule-to this Agreement_. ARTICL -III - Particular Covenants Section 3.01. (a) Subject to paragraph (b) of this Section, Sections 2.02 (b), 3.01, 3.02 and- 3.036f the Development Credit Agreement and Schedules 1, 2, and 3 thereto are incorporated in the Loan Agreement, with the following modifications (except for said Schedules 1 and 3) :in said Sections and Schedules unless the context otherwise requires: ' (i) the term "Association" shall be read as "Bank"; -4- (ii) the term "Credit" and "Credit Account" shall be read as "Loan" and "Loan Account", respectively; and (iii) the term "this Agreement" shall be read as "the Development Credit Agreement". (b) So long as any part of the Credit provided for under the Development Credit Agreement shall remain outstanding and unless the Borrower has been notified otherwise by the Bank: (i) all actions taken, including approvals given, by the Association pursuant to any of the Sections of, and Schedules to, the Development Credit Agreement enumerated in paragraph (a) of this Section, as well as pursuant to Section 2.03 of the Development Credit Agreement, shall be deemed to be taken or given in the name and on behalf of both the Association and the Bank; and (ii) all information or documentation furnished by the Borrower to the Association pursuant to the provi- sions of any of such Sections of the Development Credit Agreement or Schedules thereto shall be deemed to be furnished to both the Association and Bank. ARTICLE IV Additional Event of Suspension Section 4.01. Pursuant to Section 6.02 (k) 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. ARTICLE V Effective Date; Termination Section 5.01. The following events are specified as additional conditions to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c) of the General Conditions: (a) the Borrower's State Council has approved this Agreement; and -5- (b) all conditions precedent to the effectiveness of the Development Credit Agreement have been fulfilled, other than those related to the effectiveness of this Agreement. Section 5.02. The date sixty (60) days after the date of this Agreement is hereby specified for the purposes of Section 12.04 of the General Conditions. ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The 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 Sanlihe Beijing People's Republic of China Cable address: Telex: FINANMIN 22486 MFPRC CN Beijing 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 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) -6- 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. PEOPLE'S REPUBLIC OF CHINA Author d Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /aA/ Am Regional Vice resident Asia -7- SCHEDULE Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars)* November 1, 1993 3,650,000 May 1, 1994 3,790,000 November 1, 1994 3,935,000 May 1, 1995 4,090,000 November 1, 1995 4,245,00' May 1, 1996 4,410,000 November 1, 1996 4,580,000 May 1, 1997 4,760,000 November 1, 1997 4,940,000 May 1, 1998 5,135,000 November 1, 1998 5,330,000 May 1, 1999 5,535,000 November 1, 1999 5,750,000 May 1, 2000 5,970,000 November 1, 2000 6,205,000 May 1, 2001 6,440,000 November 1, 2001 6,690,000 May 1, 2002 - 6,950,000 November 1, 2002 7,220,000 May 1, 2003 7,495,000 November 1, 2003 7,785,000 May 1, 2004 8,085,000 November 1, 2004 8,400,000 May 1, 2005 8,720,000 November 1, 2005 9,060,000 May 1, 2006 9,410,000 November 2006 9,770,000 May 1, 2007 10,150,000 November 1, 2007 10,540,000 May 1, 2008 10,960,000 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. -8- Premiums on Prepayment The following premiums are specified for the purposes of Section 3.04 (b) of the General Conditions: Time of Prepayment Premium The interest rate (ex- pressed as a percentage per annum) applicable to the balance outstanding on the Loan on the day of prepayment multiplied by: Not more than three years 0.15 before maturity More than three years but 0.30 not more than six years before maturity More than six years but 0.55 not more than eleven years before maturity More than eleven years but not 0.80 more than sixteen years before maturity More than sixteen years but not 0.90 more than eighteen years before maturity More than eighteen years before 1.00 maturity INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT CERTIFICATE I hereby certify that thw foregoing is a-true copy of the original in the archives-of the International Bank for Reconstrpction and Development FOR SECRETARY