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Agreement between the Central bank of the Russian Federation and Bank of Latvia on the organization of calculations between business entities of the Russian Federation and Republic of Latvia

of February 12, 1997

Central Bank of the Russian Federation (Bank of Russia) and Bank of Latvia, hereinafter referred to as with the Parties, aiming at enhancement of the mechanism of calculations between business entities of the Russian Federation and the Republic of Latvia, agreed as follows.

Article 1

All calculations and payments for goods and services between business entities (legal entities and physical person) of the Russian Federation and the Republic of Latvia in agreements (contracts) signed between them are performed in national currencies of the Russian Federation and the Republic of Latvia (rubles and lats), and also in currencies of the third countries according to the legislation existing in the territory of each state. The payment currency and form of calculations are determined by agreement of subjects of foreign economic activity.

Article 2

1 calculations specified in Article and payments are made through correspondent accounts of the Parties and authorized banks.

For implementation of payments in rubles in the Bank of Russia the correspondent account in rubles opened for Bank of Latvia since July 1, 1992 remains, and for implementation of payments in lats in Bank of Latvia the correspondent account in armor opened for the Bank of Russia according to the interbank agreement of the Parties of October 28, 1992 remains.

On correspondent accounts of the Parties calculations on transactions, following from functions of the Central banks are perfromed only (including for conversion interbank transactions), calculations for other transactions are made only according to the supplementary agreement.

Article 3

Authorized banks of the Russian Federation are the commercial banks which obtained the license for maintaining correspondent accounts in foreign banks.

Authorized banks of the Republic of Latvia are the commercial banks which obtained the license of Bank of Latvia for carrying out banking activities.

Article 4

Each of the Parties determines procedure for establishment of the national currency rate independently.

The parties agreed to adhere to the mode of the single currency rate for all types of the external economic transactions.

The parties will communicate about the national currency rates established by them.

Article 5

Participants of foreign economic relations can make transactions with money in national currencies of the Russian Federation and the Republic of Latvia in their domestic foreign exchange markets according to the procedure, determined by the legislation of two states.

The Russian authorized banks make such transactions through the Latvian authorized banks if other is not stipulated by the legislation the Republic of Latvia.

The Latvian authorized banks make such transactions in the domestic foreign exchange market of Russia through the Russian authorized banks if other is not stipulated by the legislation the Russian Federation.

Article 6

The Russian and Latvian banks specified in Article 3, open each other or unilaterally accounts in national currencies on the basis of the agreements signed between them in which the procedure and conditions of implementation of payments and calculations are established.

Within these agreements the Russian and Latvian banks can perform on mutual basis purchase and sale of national currencies, and also mutual lending in national currencies and currencies of the third countries according to the accepted international banking practice and the laws existing in the territories of the Russian Federation and the Republic of Latvia.

Responsibility for accomplishment of cross payment obligations by the calculations perfromed through authorized banks is completely born by subjects of foreign economic activity.

The parties do not bear responsibility on settlement of cross liabilities of authorized banks and do not guarantee balance of balance in payments and calculations for the transactions performed through them.

Article 7

Means in rubles and lats on correspondent accounts of the Russian and Latvian banks can be used for implementation of the current payments in advantage of both legal entities and physical persons of the Russian Federation and the Republic of Latvia, and legal entities and physical persons of the third countries in accordance with the legislation of the Russian Federation and the Republic of Latvia.

Banks of the Russian Federation and the Republic of Latvia can use from the correspondent accounts means in lats and rubles for receipt of cash (from correspondent accounts of the Latvian banks in the Russian banks - rubles and from correspondent accounts of the Russian banks in the Latvian banks - armor) for use from on the purpose of uncommercial nature in the corresponding territories taking into account procedure and regulations of export of the cash established by the legislation of the Russian Federation and the Republic of Latvia.

Banks of the Russian Federation and the Republic of Latvia can freely accept from corresponding bank cash (banks of the Russian Federation - in rubles, and banks of the Republic of Latvia - in armor) for their transfer on the corresponding correspondent accounts.

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