Poland-Mińsk Mazowiecki: Credit granting services

1. The purpose of the contract is to grant and operate a bank loan of up to PLN 8000000 intended to cover the deficit of the Minsk District’s budget in 2014 and to repay the loans previously taken out.
2.Duration of the loan – from the disbursement date of the first tranche of the loan until 30.6.2021
3. The loan will be granted in three tranches:
And tranche of PLN 4000000 until 15.10.2014.
Second tranche of PLN 3000000 until 31.10.2014
Third tranche of PLN 1000000 until 30.11.2014
4. The cost of the credit will be: the interest rate on the loan (bank interest) specified at variable interest rate. The interest rate on the loan will be set on a quarterly basis (with the following breakdown per calendar quarter:
And quarter including months: January, February, March;
2nd quarter including months: April, May, June;
3 rd quarter including months: July, August, September;
4th quarter including months: October, November, December).
5. The basis for determining the interest rate will be the WIBOR rate for three-month bank deposits recorded on the last working day of the quarter preceding the quarter for which interest is due, whereby:
the interest rate for the first loan period (covering the period from the granting of the first loan tranche* to 31.12.2014) will be calculated on the basis of the WIBOR rate submitted by the Contractor in the tender form (plus/less the bank’s margin).
*Additional explanation: in the tender form, it was assumed that the grant of the first tranche of the loan would take place on 15 October 2014. This operation could actually be carried out earlier (i.e. between the signature of the agreement and 15 October 2014).
6. The Contractor will specify in the tender form the interest rate at WIBOR (WIBOR 3M) of 27 June 2014 (at 2.68 %) plus/minus the bank’s margin expressed in percentage points on an annual basis.
7. Grace for repayment of capital instalments and interest:
Grace for repayment of capital instalments until 29.6.2015
Penalty payment of interest until 30.3.2015
8. The repayment of principal and interest shall be as follows:
(1) Repayment of principal – will be made in seven annual instalments between 2015 and 2021, including: 6 instalments of PLN 1142857 and one instalment of PLN 1142858. Those instalments will be payable on the value of the loan drawn down by 30 June of each year, i.e.:
And an instalment of PLN 1142857 until 30.6.2015.
Second instalment of PLN 1142857 until 30.6.2016
3 rd instalment of PLN 1142857 until 30.6.2017
Fourth instalment of PLN 1142857 until 30.6.2018.
V instalment of PLN 1142857 until 30.6.2019
6th instalment of PLN 1142857 until 30.6.2020
7th instalment of PLN 1142858 until 30.6.2021
— subject to paragraph 9.
(2) Interest shall be paid – on a quarterly basis – on the last day of each (calendar) quarter, subject to paragraph 9. Interest will be charged on the amount of the loan used.
9. If the loan obligation (i.e. principal or interest instalment) is due on a non-working day, the Contracting Authority will pay the required instalment and interest on the first working day after the scheduled date of repayment.
10. The Contracting Authority reserves the right to:
(1) waiving the last instalment of the loan (PLN 1000000) or part of it. No interest will be charged on the unused amount of credit. The waiving of the last instalment of the loan or part of it will not give rise to any additional costs for the Contracting Authority. In such a situation, repayment of the amount of credit actually used shall be made in seven equal annual instalments, within the time limits specified in paragraph 8(1), subject to the provisions of point (2);
(2) early repayment of the loan without incurring additional charges for shortening the duration of the loan. Interest will then be calculated only for the period and on the amount of the actual debt.

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