With reference to the letters dated September 25, 1992, January 6, 1993 and July 5, 1993 from the Chairman of the Paris Club to the Minister of Finance of the Republic of Slovenia and the letters dated June 23, 1992, July 13, 1992, October 27, 1992, April 23, 1993 and July 27, 1993 from the Minister of Finance of the Republic of Slovenia to the Chairman of the Paris Club, concerning the assumption by the Government of the Republic of Slovenia of certain foreign debts of the former Socialist Federative Republic of Yugoslavia1, the Government of the Republic of Slovenia and the Government of the Kingdom of Sweden have agreed as follows:
Article 1
Scope of the Agreement
This agreement shall apply to certain debts, arising from bilateral Agreements dated February 1, 1985, February 6, 1986, March 17, 1987 and December 22, 1988 between the Federal Executive Council of the Assembly of the Socialist Federative Republic of Yugoslavia and the Government of the Kingdom of Sweden (“the Bilateral Agreements”), which the Government of the Republic of Slovenia shall assume as its own debt. The Bilateral Agreements are attached to and form an integral part of this Agreement.
The debts covered by this Agreement (“the Debts”) have been specified in the appendices to a protocol (“the Protocol”), which has been signed simultaneously with this Agreement by Nova Ljubljanska banka and the Swedish Export Credits Guarantee Board (“EKN”) and represent the only debt of the Government of the Republic of Slovenia and Slovenian entities arising from the Bilateral Agreements. The Protocol forms an integral part of this Agreement.
Article 2
Payment provisions
Payment of the debts, whether of principal or of consolidation interest, with the exception of the amounts referred to in Article 3 below, shall be effected by the Government of the Republic of Slovenia in accordance with the relevant payment provisions of the Bilateral Agreements.
Article 3
Deferred amounts
a) Amounts of principal and consolidation interest, which have fallen due and not yet paid as at the date of this Agreement (“the Arrears”), shall be deferred and repaid by the Government of the Republic of Slovenia in six equal instalments on the following dates:
June 30, 1996
September 30, 1996
March 31, 1997
September 30, 1997
March 31, 1998
September 30, 1998
b) Interest shall be paid on the outstanding balance of the total amount of the Arrears. The interest shall be calculated from the due dates on the exact number of days elapsed on the basis of a 360 day year.
The interest shall have six month interest periods and be paid semi-annually in arrears on March 31 and September 30 of each year. The first interest period shall, however, run from January 1, 1991 up to and including June 30, 1996 and the second interest period shall run from July 1, 1996 up to and including September 30, 1996. The following interest periods shall run from October 1 and April 1 of each year. As regards the first interest period, the applicable rates of interest shall be determined separately for each successive period of six months.
The applicable rates of interest shall correspond to the rates of interest as defined in the Bilateral Agreements.
c) In the event that an amount payable according to the provisions of this Article has not been received on the due date thereof, interest shall be paid on such amount from the due date up to and including the day of actual payment at a rate which by one percentage unit exceeds the rates of interest as defined in Paragraph b) above.
Article 4
Implementation
Nova Ljubljanska banka and EKN are authorized, each within their own capacity, by their respective Government and under the full responsibility of that Government to implement this Agreement.
Article 5
Government liability
The Government of the Republic of Slovenia assumes full liability for the Debts and for the due fulfilment of all payments to be made under this Agreement.
Article 6
Settlement of disputes
Both parties shall attempt to solve any dispute arising in connection with this Agreement and the Protocol through negotiations. In the event that the parties have not been able to solve a dispute through negotiations, the dispute shall, at the request of either party, be settled by three arbitrators. One of the arbitrators shall be appointed by the Government of the Republic of Slovenia, the second by the Government of the Kingdom of Sweden and the third shall be appointed by the two arbitrators.
Should the arbitrators fail to agree upon the third arbitrator, he or she shall be appointed by the President of the International Court of Justice. If the latter should be a national of either Slovenia or Sweden, this duty shall be carried out by the Vice President of the Court, or, if he or she is a national of Slovenia or Sweden, by the most senior judge of the Court not being a national of one of the two countries.
The decision of the arbitrators shall be final and binding upon the parties.
The parties may, however, agree to have the dispute settled by one arbitrator.
Article 7
Tenor of the Agreement
This Agreement shall enter into force upon the approval of the competent authorities of both parties. In the case of Slovenia this approval will be given upon its ratification by the National Assembly of Slovenia. In the case of Sweden this approval has been given by its signing. For this purpose, Slovenia shall notify Sweden in writing that the procedures required by its legislation for the entry into force of this Agreement have been complied with.
In witness whereof the undersigned, being duly authorized thereto, have signed this Agreement.
Done in Ljubljana this 13th day of September 1996 in duplicate in the English language, both copies being equally authentic.
For the Government of
the Republic of Slovenia
Mitja Gaspari, (s)
For the Government of
the Kingdom of Sweden
Erik Asbrink, (s)
1 With reference to the fact that the Socialist Federative Republic of Yugoslavia has ceased to exist. All states that have emerged on the territory of the former Socialist Federative Republic of Yugoslavia (including the Republic of Slovenia) are legal successors of the former Socialist Federative Republic of Yugoslavia.