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January 10, 1984

For the purpose of enhancing the friendship and expanding the banking cooperation, Bank of China and the Central Bank of the Philippines have, through friendly consultation, reached a deposit agreement as follows:

Bank of China shall make a deposit of US$20,000,000 (U.S. dollars twenty million) with the Central Bank of the Philippines.

The period of the deposit shall be six months starting from the date of drawdown.

Within one month as from the date of signing the Agreement, the Central Bank of the Philippines shall draw the total amount of the funds into the account specified by it in a tested telex to the Bank of China.

Interest shall be payable at 1/2% above the average derived from the London interbank offered rates (LIBOR) for six-month-deposits quoted by the Midland Bank, International Division, London, Barclays Bank International, London and Westminster Bank, London respectively at 11 a.m. two days before the date of drawdown.

Interest shall be calculated on the basis of 360 days in a year, and paid on the maturity of this Agreement.

At maturity repayment of the total principal and payment of interest shall be made by the Central Bank of the Philippines once for all, in U.S. dollars and free of taxes or levies.

This Agreement shall be written in duplicate in English and shall come into force on the date of signature.

Borrower - Central Bank of the Philippines

Lender - Bank of China

Amount- US$20 million (Twenty Million United States Dollars)

Purpose - The credit line shall be utilized for financing China's exports to the Philippines by way of discounting bills of exchange.

Validity - The credit line shall be available for one year from the date the Agreement comes into force.

Tenor - Each advance under the credit line shall be for a minimum of 30 days and a maximum of 180 days.

Method of Financing  

1) The Central Bank of the Philippines or its designated bank(s) shall open documentary letters of credit available against usance bills of exchange drawn on the Bank of China and with the stipulation that the Bank of China shall, on receipt of the relative shipping documents, accept and discount the bills of exchange according to the terms and conditions of the credit line agreement. The discount charges(free of taxes) are for account of the opening bank.

-2) The Bank of China has designated the Banking Department of its Head Office in Beijing and its branches in Guangzhou, Dalian, Shanghai, Qingdao and Tianjin to handle the business under this Agreement. These offices shall discount the bills of exchange and pay the exporters upon the presentation of the shipping documents and claim the discount charges concerned from the opening bank.

-3) On maturity of the bills of exchange, the opening bank shall make payment in accordance with the manner stipulated by the discounting offices of the Bank of China.

Discount Charges

-1) Interest shall be calculated at   average derived from the London interbank offered rates (LIBOR) for the same period quoted by the Midland Bank, International Division, London, Barclays Bank International, London and Westminster Bank, London respectively at 11 a.m two days before the date of negotiation.

-2) Acceptance Commission shall be charged at 0.5% p.a. and paid on the day of negotiation.