(Japanese Note)

La Paz, May 31, 2000

Excellency,

	I have the honour to refer to the recent negotiations between the representatives of the Government of Japan and of the Government of the Republic of Bolivia that were held on the basis of the conclusions reached during the consultations between the representatives of the Government of the Republic of Bolivia and of the Governments of the creditor countries concerned held in Paris on October 29 and 30, 1998. 

 I have further the honour to confirm the following understanding reached in the course of the said negotiations:

1.	A debt relief measure in the form of rescheduling will be taken by Japan Bank for International Cooperation (hereinafter referred to as "the Bank") in accordance with the relevant laws and regulations of Japan.

2.	(1)	The debts to be rescheduled (hereinafter referred to as "the Rescheduled Debts") consist of the principal outstanding as of November 1, 1998, of the following debts which the Government of the Republic of Bolivia owes to the Bank, the breakdown of which is shown in the List attached hereto:

(a)	the debts previously rescheduled pursuant to the arrangements made by the Notes exchanged between the Government of Japan and the Government of the Republic of Bolivia on January 29, 1996; and

(b)	the debts previously rescheduled pursuant to the arrangements made by the Notes exchanged between the Government of Japan and the Government of the Republic of Bolivia on July 14, 1997.

	(2)	The total amount of the debts referred to in sub-paragraph (1) above will be thirty-five billion three hundred sixty-two million twenty-eight thousand and fourteen yen (35,362,028,014).

	(3)	Modifications may be made to the total amount referred to in sub-paragraph (2) above and to the List attached hereto by agreement between the authorities concerned of the Government of Japan and of the Government of the Republic of Bolivia, after the final verification to be made by the authorities concerned of the Government of the Republic of Bolivia and the Bank.

3.	The terms and conditions of the rescheduling will be stipulated in a rescheduling agreement to be concluded between the Government of the Republic of Bolivia and the Bank, which will contain, inter alia, the following principles:

	(1)	The Rescheduled Debts will be paid in forty-eight (48) semi-annual installments beginning on July 1, 2015 in accordance with the payment schedule shown in the Annex attached hereto.

	(2)	The rate of interest on the Rescheduled Debts will be zero point seven five per cent (0.75%) per annum beginning from November 1, 1998.

4.	Notwithstanding the provisions of the preceding paragraphs, the Government of Japan may notify in writing the Government of the Republic of Bolivia that the provisions of this Note are null and void, provided that the representatives of the Governments of the creditor countries concerned determine that the provisions concerning the terms of the reduction and reorganization of the Bolivian debts set out in the Agreed Minute signed by the representatives of the Government of the Republic of Bolivia and of the Governments of the creditor countries concerned in Paris on October 30, 1998 (hereinafter referred to as "the Agreed Minute") become null and void in accordance with the provisions of the Agreed Minute.  The understanding contained in this Note shall be null and void from the date of exchange of the present Notes when such notification is made by the Government of Japan.

	I should be grateful if Your Excellency would confirm the foregoing understanding on behalf of the Government of the Republic of Bolivia.

	I avail myself of this opportunity to renew to Your Excellency the assurance of my highest consideration.

(Signed)	Hiroyuki Kimoto
Ambassador Extraordinary
and Plenipotentiary of Japan
to the Republic of Bolivia

His Excellency
Dr. Javier Murillo de la Rocha
Ministry of Foreign Affairs
and Worship
of the Republic of Bolivia

ANNEX

	0.53%	on	July 1,	2015

	0.56%	on	January 1,	2016

	0.59%	on	July 1,	2016

	0.62%	on	January 1,	2017

	0.65%	on	July 1,	2017

	0.68%	on	January 1,	2018

	0.71%	on	July 1,	2018

	0.75%	on	January 1,	2019

	0.79%	on	July 1, 2019

	0.83%	on	January 1,	2020

	0.87%	on	July 1,	2020

	0.91%	on	January 1,	2021

	0.96%	on	July 1,	2021

	1.00%	on	January 1,	2022

	1.05%	on	July 1,	2022

	1.11%	on	January 1,	2023

	1.16% 	on	July 1,	2023

	1.22% 	on	January 1,	2024

	1.28% 	on	July 1,	2024

	1.34% 	on	January 1,	2025

	1.41% 	on	July 1,	2025

	1.48% 	on	January 1,	2026

	1.56% 	on	July 1,	2026

	1.63% 	on	January 1,	2027

	1.72% 	on	July 1,	2027

	1.80%	on	January 1,	2028

	1.89%	on	July 1,	2028

	1.99%	on	January 1,	2029

	2.08%	on	July 1,	2029

	2.19%	on	January 1,	2030

	2.30%	on	July 1,	2030

	2.41%	on	January 1,	2031

	2.53%	on	July 1,	2031

	2.66%	on	January 1,	2032

	2.79%	on	July 1,	2032

	2.93%	on	January 1,	2033

	3.08%	on	July 1,	2033

	3.23%	on	January 1,	2034

	3.40%	on	July 1,	2034

	3.57%	on	January 1,	2035

	3.74%	on	July 1,	2035

	3.93%	on	January 1,	2036

	4.13%	on	July 1,	2036

	4.33%	on	January 1,	2037

	4.55%	on	July 1,	2037

	4.78%	on	January 1,	2038

	5.02%	on	July 1,	2038

	5.26%	on	January 1,	2039

(Bolivian Note)

La Paz, May 31, 2000

Excellency,

	I have the honour to acknowledge the receipt of Your Excellency's Note of today's date, which reads as follows:

"(Japanese Note)"

	I have further the honour to confirm on behalf of the Government of the Republic of Bolivia the understanding set forth in Your Excellency's Note.

	I avail myself of this opportunity to renew to Your Excellency the assurance of my highest consideration.

(Signed)	Javier Murillo de la Rocha
Ministry of Foreign Affairs
and Worship
of the Republic of Bolivia

His Excellency
Mr. Hiroyuki Kimoto
Ambassador Extraordinary
and Plenipotentiary of Japan
to the Republic of Bolivia

(Japanese Note)

La Paz, May 31, 2000

Excellency,

	I have the honour to refer to the recent negotiations between the representatives of the Government of Japan and of the Government of the Republic of Bolivia that were held on the basis of the conclusions reached during the consultations between the representatives of the Government of the Republic of Bolivia and of the Governments of the creditor countries concerned held in Paris on October 29 and 30, 1998. 

 I have further the honour to confirm the following understanding reached in the course of the said negotiations:

1.	(1)	The present arrangements will apply to the total amount of the following commercial debts with a repayment period of more than one year insured by the Government of Japan, which were contracted between the Government and governmental corporations of the Republic of Bolivia and Bolivian private entities on the one hand and the creditors concerned resident in Japan (hereinafter referred to as "the Creditors") on the other, and which were covered by the guarantee of the Government of the Republic of Bolivia or its public sectors (hereinafter referred to as "the Rescheduled Commercial Debts"):

(a)	with respect to the debts previously rescheduled pursuant to the arrangements made by the Notes exchanged between the Government of Japan and the Government of the Republic of Bolivia on January 29, 1996, the principal of the debts referred to in (a) and (b) of sub-paragraph (1) of paragraph 1 of the said Notes and outstanding as of November 1, 1998 (hereinafter referred to as "the Debts I");

(b)	with respect to the debts previously rescheduled pursuant to the arrangements made by the Notes exchanged between the Government of Japan and the Government of the Republic of Bolivia on January 29, 1996, the principal of the debts referred to in (c) of sub-paragraph (1) of paragraph 1 of the said Notes and outstanding as of November 1, 1998 (hereinafter referred to as "the Debts II");

(c)	with respect to the debts previously rescheduled pursuant to the arrangements made by the Notes exchanged between the Government of Japan and the Government of the Republic of Bolivia on July 14, 1997, the principal of the debts referred to in (a) and (b) of sub-paragraph (1) of paragraph 1 of the said Notes and outstanding as of November 1, 1998 (hereinafter referred to as "the Debts III");

(d)	with respect to the debts previously rescheduled pursuant to the arrangements made by the Notes exchanged between the Government of Japan and the Government of the Republic of Bolivia on July 14, 1997, the principal of the debts referred to in (c) of sub-paragraph (1) of paragraph 1 of the said Notes and outstanding as of November 1, 1998 (hereinafter referred to as "the Debts IV"); and

(e)	with respect to the debts previously rescheduled pursuant to the arrangements made by the Notes exchanged between the Government of Japan and the Government of the Republic of Bolivia on July 14, 1997, the principal of the debts referred to in (d) and (e) of sub-paragraph (1) of paragraph 1 of the said Notes and outstanding as of November 1, 1998 (hereinafter referred to as "the Debts V").

	(2)	The Rescheduled Commercial Debts consist of debts contracted in Japanese yen and United States dollars.  The total amount of each of the Debts I, II, III, IV and V is estimated as follows:

(a)	The total amount of the Debts I is estimated at one billion three hundred thirty-one million two hundred eighty-nine thousand one hundred and forty yen (1,331,289,140) for the debts contracted in Japanese yen, and seven hundred fifty-eight thousand seven hundred and forty-six United States dollars and seventy-eight cents ($758,746.78) for the debts contracted in United States dollars.

(b)	The total amount of the Debts II is estimated at seventy-five million three hundred fifty-seven thousand eight hundred and forty-three yen (75,357,843) for the debts contracted in Japanese yen, and fifty thousand four hundred and twenty-five United States dollars ($50,425.00) for the debts contracted in United States dollars.

(c)	The total amount of the Debts III is estimated at two billion one hundred thirty-six million fifty-five thousand two hundred and thirty-nine yen (2,136,055,239) for the debts contracted in Japanese yen, and two hundred forty-one thousand two hundred and eighty-four United States dollars and twenty-nine cents ($241,284.29) for the debts contracted in United States dollars.

(d)	The total amount of the Debts IV is estimated at one billion eight hundred eighty-three million nine hundred forty-nine thousand four hundred and fifty-four yen (1,883,949,454) for the debts contracted in Japanese yen, and nine hundred sixteen thousand eight hundred and twenty-four United States dollars and thirty cents ($916,824.30) for the debts contracted in United States dollars.

(e)	The total amount of the Debts V is estimated at one billion six hundred eighty million six hundred eighty-eight thousand nine hundred and thirteen yen (1,680,688,913) for the debts contracted in Japanese yen, and eight hundred twelve thousand and six United States dollars and thirty-two cents ($812,006.32) for the debts contracted in United States dollars.

	(3)	Modifications may be made to the total amount referred to in sub-paragraph (2) above by agreement between the authorities concerned of the Government of Japan and of the Government of the Republic of Bolivia, after the final verification to be made by the authorities concerned of the two Governments.

2.	(1)	The Government of the Republic of Bolivia will notify the Government of Japan, through the Central Bank of the Republic of Bolivia, of the amount and the dates of payments which will be made in order to settle the Rescheduled Commercial Debts in accordance with the payment scheme as set out in sub-paragraph (4) below (hereinafter referred to as "the Payment Scheme").

	(2)	The Government of the Republic of Bolivia will pay the total amount of the Rescheduled Commercial Debts to the Creditors in the currency or currencies designated in the contracts concerned through the Central Bank of the Republic of Bolivia in accordance with the Payment Scheme.

	(3)	The Government of Japan will take possible measures, within the scope of the relevant laws and regulations in force in Japan, to facilitate the settlement of the commercial debts concerned by the payment to be made in accordance with the Payment Scheme.

	(4)	Each of the Rescheduled Commercial Debts will be paid in accordance with the following schedule:

(a)	Eighty-four per cent (84%) of the Rescheduled Commercial Debts will be paid in sixty-four (64) semi-annual installments beginning on July 1, 2007 in accordance with the payment schedule shown in the Annex I attached hereto.

(b)	Sixteen per cent (16%) of the Rescheduled Commercial Debts will be paid on each original due date.

3.	(1)	The Government of the Republic of Bolivia will pay to the Creditors interest to be calculated as described in sub-paragraphs (2) and (3) below on each of the debts composing the Rescheduled Commercial Debts to the extent that they have not been settled, in accordance with the following schedule:

(a)	the first payment of the interest will be made on July 1, 2000; and

(b)	the consecutive payments of interest after the first payment will be made on January 1 and July 1 of each year.

(2)	(a)	The rate of interest on the Rescheduled Commercial Debts applied for the period between November 1, 1998 and the day previous to the date of exchange of the present Notes, both dates inclusive, will be:

(i) with respect to the Debts I and II, eight point seven per cent (8.7%) per annum for eighty-four per cent (84%) of the debts contracted in Japanese yen, and eight point nine per cent (8.9%) per annum for eighty-four per cent (84%) of the debts contracted in United States dollars; and

(ii) with respect to the Debts III, IV and V, eight point five per cent (8.5%) per annum for eighty-four per cent (84%) of the debts contracted in Japanese yen, and eight point nine per cent (8.9%) per annum for eighty-four per cent (84%) of the debts contracted in United States dollars.

(b)	The rate of interest on the Rescheduled Commercial Debts applied from the date of exchange of the present Notes will be:

(i) with respect to the Debts I, one point zero eight one per cent (1.081%) per annum for eighty-four per cent (84%) of the debts contracted in Japanese yen, and one point one eight three six per cent (1.1836%) per annum for eighty-four per cent (84%) of the debts contracted in United States dollars;

(ii) with respect to the Debts II, one point five six five two per cent (1.5652%) per annum for eighty-four per cent (84%) of the debts contracted in Japanese yen, and one point nine three four per cent (1.934%) per annum for eighty-four per cent (84%) of the debts contracted in United States dollars;

(iii) with respect to the Debts III, one point zero eight one per cent (1.081%) per annum for eighty-four per cent (84%) of the debts contracted in Japanese yen, and one point one eight three six per cent (1.1836%) per annum for eighty-four per cent (84%) of the debts contracted in United States dollars;

(iv) with respect to the Debts IV, one point six four five nine per cent (1.6459%) per annum for eighty-four per cent (84%) of the debts contracted in Japanese yen, and one point five one seven one per cent (1.5171%) per annum for eighty-four per cent (84%) of the debts contracted in United States dollars; and

(v) with respect to the Debts V, one point three two three one per cent (1.3231%) per annum for eighty-four per cent (84%) of the debts contracted in Japanese yen, and one point four three three seven per cent (1.4337%) per annum for eighty-four per cent (84%) of the debts contracted in United States dollars.

	(3)	The amount of interest to be paid will be calculated by multiplying the amount of the debt unsettled by the product of the number of the days the debt has not been settled and the daily interest rate.  The daily interest rate is calculated by dividing the rate of interest referred to in (2) above by three hundred and sixty-five (365).  The illustration in the form of numerical formula of the method of calculation mentioned above is shown in the Annex II attached hereto.

	(4)	In case where any payment under the Payment Scheme or the payment schedule of interest set out in sub-paragraph (1) above is retarded, the Government of the Republic of Bolivia will pay the late interest accruing from the overdue amount at the rate of eight point three six per cent (8.36%) per annum for the debts contracted in Japanese yen, and eight point seven per cent (8.7%) per annum for the debts contracted in United States dollars.

	(5)	The interest paid will be exempted from all taxes and duties of the Republic of Bolivia.

4.	The Government of the Republic of Bolivia will pay bank charges incidental to the settlement of the commercial debts concerned.

5.	It is confirmed that the terms and conditions of the contracts concerned not specifically referred to in this Note will remain applicable, unless otherwise agreed upon by the parties to the contracts concerned.

6.	If the Government of the Republic of Bolivia accords to creditors resident in any third country terms and conditions more favourable than those referred to in sub-paragraph (4) of paragraph 2 with regard to debt relief measures, the Government of the Republic of Bolivia will forthwith accord to the Creditors the terms and conditions not less favourable than those accorded to creditors resident in such third country.

7.	Notwithstanding the provisions of the preceding paragraphs, the Government of Japan may notify in writing the Government of the Republic of Bolivia that the provisions of this Note are null and void, provided that the representatives of the Governments of the creditor countries concerned determine that the provisions concerning the terms of the reduction and reorganization of the Bolivian debts set out in the Agreed Minute signed by the representatives of the Government of the Republic of Bolivia and of the Governments of the creditor countries concerned in Paris on October 30, 1998 (hereinafter referred to as "the Agreed Minute") become null and void in accordance with the provisions of the Agreed Minute.  The understanding contained in this Note shall be null and void from the date of exchange of the present Notes when such notification is made by the Government of Japan.

	I should be grateful if Your Excellency would confirm the foregoing understanding on behalf of the Government of the Republic of Bolivia.

	I avail myself of this opportunity to renew to Your Excellency the assurance of my highest consideration.

(Signed)	Hiroyuki Kimoto
Ambassador Extraordinary
and Plenipotentiary of Japan
to the Republic of Bolivia

His Excellency
Dr. Javier Murillo de la Rocha
Ministry of Foreign Affairs
and Worship
of the Republic of Bolivia

ANNEX I

	0.05%	on	July l,	2007

	0.05%	on	January 1,	2008

	0.05%	on	July 1,	2008

	0.05%	on	January l,	2009

	0.05%	on	July 1,	2009

	0.05%	on	January 1,	2010

	0.05%	on	July l,	2010

	0.05%	on	January 1,	2011

	0.05%	on	July 1,	2011

	0.05%	on	January l,	2012

	0.05%	on	July 1,	2012

	0.06%	on	January 1,	2013

	0.07%	on	July 1,	2013

	0.07%	on	January 1,	2014

	0.08%	on	July 1,	2014

	0.09%	on	January 1,	2015

	0.10%	on	July 1,	2015

	0.11%	on	January 1,	2016

	0.12%	on	July 1,	2016

	0.13%	on	January l,	2017

	0.15%	on	July 1,	2017

	0.16%	on	January 1,	2018

	0.18%	on	July 1,	2018

	0.20%	on	January 1,	2019

	0.22%	on	July 1,	2019

	0.24%	on	January 1,	2020

	0.26%	on	July 1,	2020

	0.29%	on	January 1,	2021

	0.32%	on	July l,	2021

	0.35%	on	January 1,	2022

	0.39%	on	July 1,	2022

	0.43%	on	January l,	2023

	0.47%	on	July 1,	2023

	0.52%	on	January 1,	2024

	0.57%	on	July 1,	2024

	0.63%	on	January 1,	2025

	0.69%	on	July 1,	2025

	0.76%	on	January 1,	2026

	0.84%	on	July 1,	2026

	0.92%	on	January 1,	2027

	1.02%	on	July 1,	2027

	1.12%	on	January l,	2028

	1.23%	on	July 1,	2028

	1.35%	on	January 1,	2029

	1.49%	on	July 1,	2029

	1.64%	on	January 1,	2030

	1.80%	on	July 1,	2030

	1.98%	on	January 1,	2031

	2.18%	on	July 1,	2031

	2.40%	on	January 1,	2032

	2.64%	on	July 1,	2032

	2.91%	on	January 1,	2033

	3.20%	on	July 1,	2033

	3.52%	on	January 1,	2034

	3.87%	on	July 1,	2034

	4.26%	on	January 1,	2035

	4.67%	on	July 1,	2035

	5.14%	on	January 1,	2036

	5.65%	on	July 1,	2036

	6.22%	on	January 1,	2037

	6.84%	on	July 1,	2037

	7.53%	on	January 1,	2038

	8.27%	on	July 1,	2038

	9.10%	on	January 1,	2039

ANNEX II

	Numerical formula of the method of calculation of the amount of the interest

I = A x D x R x 1/365

I :	The amount of interest

A :	The amount of the debt unsettled

D :	The number of the days the debt has not been settled

R :	The rate of interest (per annum)

(NOTE)

(1)	With respect to the first payment of the interest to be made on July 1, 2000 under (a) of sub-paragraph (1) of paragraph 3, D is equal to the number of the days from November 1, 1998 to the previous day of the first payment, both dates inclusive.

(2)	With respect to the consecutive payments of the interest after the first payment, D is equal to the number of the days from the day of the previous payment to the previous day of the payment, both dates inclusive.

(Bolivian Note)

La Paz, May 31, 2000

Excellency,

	I have the honour to acknowledge the receipt of Your Excellency's Note of today's date, which reads as follows:

"(Japanese Note)"

	I have further the honour to confirm on behalf of the Government of the Republic of Bolivia the understanding set forth in Your Excellency's Note.

	I avail myself of this opportunity to renew to Your Excellency the assurance of my highest consideration.

(Signed)	Javier Murillo de la Rocha
Ministry of Foreign Affairs
and Worship
of the Republic of Bolivia

His Excellency
Mr. Hiroyuki Kimoto
Ambassador Extraordinary
and Plenipotentiary of Japan
to the Republic of Bolivia