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December 13, 1983

and

The Government of the Kingdom of Belgium

Considering the traditional friendship, between the Republic of the Philippines and the Kingdom of Belgium,

Considering that the Belgian law of 3 June 1964 completed by the Royal Decree of 10 November 1967 and the Belgian law of 10 August 1981 authorize the Minister of Finance of the Kingdom of Belgium and the Minister who is in charge of External Trade Relations to grant loans to foreign States.

Deeming it desirable that the financial assistance provided for in the present Agreement facilitates the implementation of the Programme relating to the Philippine Development Plan and contributes to the maintenance and expansion of the traditional pattern of trade between the two countries.

Have concluded the following agreement :

ARTICLE 1

PAYMENTS

1. The Government of the Republic of the Philippines shall be granted by the Government of the Kingdom of Belgium financial assistance in the form of a non-interest bearing loan amounting to one hundred (100) million Belgian Francs.

2. This financial assistance shall be made available to the Government of the Republic of the Philippines through one payment which shall be made in Belgian Francs into an account in the name of the Government of the Republic of the Philippines, Ministry of Finance, opened with the National Bank of Belgium. This payment will be effected as soon as possible, after the formalities as provided under Article 7 of the present Agreement have been complied with.

ARTICLE 2

REPAYMENTS

1. The loan granted under this Agreement shall be repaid by the Government of the Republic of the Philippines to the Government of the Kingdom of Belgium by twenty instalments, each amounting to five million (5,000,000) Belgian Francs.

2. Such repayments shall be effected in Belgian Francs at Brussels to the National Bank of Belgium in its capacity as treasurer to the Belgian State; they shall be effected annually on the 31st December of each year and initially on the 31st December 1994.

ARTICLE 3

ASSIGNMENT OF LOAN

The financial assistance provided under this Agreement shall be used by the Government of the Republic of the Philippines in accordance with the provisions to be determined jointly by an exchange of letters between the Government of the Kingdom of Belgium and the Government of the Republic of the Philippines.

ARTICLE 4

Payments effected in accordance with this Agreement for settlement of the principal shall be free of all existing or future charges or taxes of whatever description, for which such payments could be liable under any legal provisions or regulations of whatever description of the Republic of the Philippines and of the Kingdom of Belgium respectively.

ARTICLE 5

The goods purchased under the terms of the present Agreement shall be transported in equal proportions by Philippine and Belgian Carriers.

ARTICLE 6

The Government of the Republic of the Philippines, Ministry of Finance, represented by the Embassy of the Philippines in Brussels and the National Bank of Belgium, acting as agent of the Government of the Kingdom of Belgium, shall by joint Agreement take the technical measures required for the implementation of the provisions of this Agreement.

ARTICLE 7

The provisions of this Agreement shall become effective at a date to be determined by an exchange of notes establishing that the formalities required by the national legislation of each of the Contracting Parties for the implementation of this Agreement have been complied with.

IN WITNESS WHEREOF, the undersigned, duly empowered to this end, have appended their signatures to this Agreement.

DONE at Manila on the 13th day of December 1983, in two originals, in the English language.