【正文】 e Average Maturity of the Loan equals Article 3 – Drawdown, Net Disbursement Amount and Conditions Precedent1. Once the Lender has decided to release an Instalment in accordance with the Decision and the Memorandum of Understanding, the Borrower may request to the Lender in writing in the form of Annex 1 an Instalment or a Tranche of it, if the Instalment consists of more than one Tranches, and shall propose and preaccept, after consultation of the Lender, the size, maturity, maximum interest rate and whether fixed or variable, minimum net proceeds and other characteristics of it, acceptable to the Borrower (hereinafter the Request for Funds). The reference to a Tranche in this Agreement shall be understood to mean an Instalment if the latter consists of only one Tranche.2. Within the characteristics requested by the Borrower in the Request for Funds, the Lender shall transmit to the Borrower a notice in the form of Annex 2 setting out the main financial terms of the requested Tranche (hereinafter the “Acceptance Notice”). Once the Lender has served an Acceptance Notice relating to the Request for Funds, there shall, from the moment such Acceptance Notice is served, be a binding contract between the Lender and the Borrower. Nevertheless, the Lender39。s Agent)。(8) The release of instalments subsequent to the first one is conditional upon the Commission deciding favourably, after consultation with the Economic and Financial Committee, on the basis of the findings of its verification that the economic policy of Latvia accords with the adjustment or backup programme or any other conditions laid down by the Council or in the Memorandum of Understanding。s balance of payments sustainability as determined in Articles 2 and 3 of the Decision。 (2) Latvia has requested mediumterm financial assistance。23 / 24LOAN AGREEMENT between THE EUROPEAN COMMUNITY as Lenderand THE REPUBLIC OF LATVIA as BorrowerTHE BANK OF LATVIAas Agent to the Borrower EUR 3 100 000 000 _____ January 2009This Loan Agreement (the Agreement) is made by and betweenthe European Community (hereinafter referred to as the EC or the Lender), represented by the Commission of the European Communities (hereinafter referred to as the Commission), andthe Republic of Latvia (hereinafter referred to as Latvia or the Borrower), represented by the Minister of Finance, Mr Atis Slakteris,andthe Bank of Latvia acting as Agent on behalf of the Borrower (hereinafter referred to as the Borrower39。(3) The Council, by its Decision 5255/09 of 20 January 2009 (hereinafter referred to as the Decision) decided to grant Latvia under Regulation (EC) No 332/2002 a loan amounting to a maximum of EUR 3 100 000 000 with a maximum average maturity of seven years. The loan shall be made available in maximum six instalments。(6) The economic policy conditions to be respected by Latvia are laid down in the Memorandum of Understanding signed on ___ January 2009 between the Commission and Latvia and the Bank of Latvia and in subsequent (Supplemental) Memoranda of Understanding, if any (hereinafter referred to collectively as Memorandum of Understanding)。 (9) The Commission will launch in due course, on behalf of the EC and after written agreement by the Borrower on the main terms as set out hereinafter, bond issues or any other appropriate financial transactions for the principal amount in Tranches, the proceeds of which shall be onlent to the Borrower。(12) Appropriate measures related to the prevention of, and the fight against fraud, corruption and other irregularities affecting the assistance shall be provided for by the authorities of the Borrower。s obligation to make a Tranche available shall be conditional upon it obtaining the corresponding funds from the international capital markets. The Lender shall launch, on behalf of the EC, a bond issue or any other appropriate financial transaction for the funding of the amount of the Tranche (the “Financial Transaction”). 3. Once the Financial Transaction is executed, the Request for Funds, the Acceptance Notice and copies of the contracts(s) relating to each Financial Transaction (hereinafter referred to as the “Borrowing Contracts”), shall constitute a finance contract (hereinafter referred to as the “Finance Contract”) between the Lender and the Borrower and form an integral part of this Agreement. 4. The net proceeds of the Tranche shall be equal to the proceeds of the Financial Transaction less the aggregate amount of the missions and costs related to such Financial Transaction and to the preparation and execution of the Financial Transaction. In addition, costs referred to in Article 7, paragraph 6, shall also be deducted from the net proceeds, resulting to the amount to be disbursed to the Borrower (hereinafter referred to as the Net Disbursement Amount).5. The Net Disbursement Amount of the Tranche shall be transferred by the Lender39。s Agent shall advise in writing to the Lender39。 (3) the Lender on the one hand and a bank or a syndicate of banks on the other hand having signed the Borrowing Contracts and the Lender39。 (2) the Lender on the one hand and a bank or a syndicate of banks on the other hand having signed the Borrowing Contracts and the Lender39。January 2012.Article 4 – Undertakings1. Each Tranche of the Loan shall constitute an unsecured, direct, unconditional and general obligation of the Borrower and will rank at least pari passu with all other present and future unsecured loans and obligations of the Borrower arising from its present or future external indebtedness as defined in Article 8, paragraph 1(f).2. The Borrower undertakes, until such time as all principal under this Loan Agreement has been fully reimbursed and all interest and additional amounts, if any, under this Loan Agreement have been fully paid, with the exception of those encumbrances enumerated