IV. Single out the main points of the texts.

V. Sum up the contents of the dialogues.

VI. Practise these words. To remind; reminder

a) Answer these questions.

1. Do you sometimes have to remind your customers of their contractual obligations? 2. Do you send letters as reminders? 3. How soon do your customers respond to your reminders?

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b) Act out the flash of conversation using the substitutions for the phrase in italics. Complete the dialogue giving your reasons.

A. We haven't got the breakdown of the contract price yet.

B. Thanks for reminding, but we've never let you down. We'll let you have it towards the end of the week.

A. Good, but if you fail...

Substitutions: breakdown of local expenses; breakdown of hard currency expenses; notification of tests; rates for work; bank guarantee; perfor­mance bond; final taking-over certificate

To rent; rent

a) Answer these questions.

1. Do contractors always bring in their own building equipment or can it be rented in the customer's country? 2. Why do local subcontractors some­times rent building equipment from contractors? 3. Do foreign subcontrac­tors use rented equipment?

b) Act out the flash of conversation using the substitutions for the phrase in italics. Complete the dialogue giving your reasons.

A. Let's move on to our next point, shall we?

B. Let's. Will you be renting any local building equipment?

A. We're thinking about it, but we're still undecided.

B. Anyway, you won't regret it, if you decide in favour of our local...

Substitutions: building mechanisms; tools; transport vehicles; road-build­ing machines (дорожно-строительные машины); cranes; office premises

duty; to pay duty; liable to duty; duty-free

a) Answer these questions.

1. Do contractors have to pay any duties on technological equipment entering the country for turn-key projects? 2. Is temporary importation equipment liable to duty or can it be brought in duty-free? 3. Who pays duties on construction equipment when the equipment is not taken back to the contractor's country?

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r.

b) Act out the flash of conversation using the substitutions for the phrase in italics. Complete the dialogue giving your reasons.

A. I'm quite positive we'll help you to clear your equipment and materi­ als for the works.

B. Good, and what are your customs formalities on temporary impor­ tation equipment?

A. Well, within the period for which you import it, it isn't liable to duty, but...

Substitutions: building equipment; building mechanisms; vehicles; lorries; cars

due; to be due; overdue; due to

a) Answer these questions.

1. What steps do your customers take if your deliveries are overdue? 2. What do you do about overdue payments from your customers? 3. When is your next payment due?

b) Act out the flash of conversation using the substitutions for the word in italics. Complete the dialogue giving your reasons.

A. I'm sorry to say we haven't got the equipment due to us.

B. Well, yes, the equipment is overdue. We've fallen behind the sched­ ule, you know. We promise to put things right next week.

A. If that's your promise we'll accept it. But if you fail us again we'll have to turn to the proper authorities and ...

Substitutions: delivery; consignment; payment; invoices; shipping docu­ments; visas

to allot

Act out the flash of conversation using the substitutions for the phrase in italics. Complete the dialogue giving your reasons.

A. Your calculations seem to us overestimated. The money we allot for the starting expenses is quite enough.

B. Not if you consider our actual expenses which are going to be heavy.

A. Could you reduce on something?

B. Well, we'll look into the matter again but...

Substitutions: mobilization expenses; local expenses; hard currency ex­penses; purchases of equipment in third countries; initial expenses

VII. Compare the style of these phrases.

Phrases from a business letter: Phrases from a business talk:

Having thoroughly studied the We've studied your document ca-

document we have come to the refully and believe that ... conclusion that...

You will realize that... We believe you do understand that

On the matter of hard currency Speaking about hard currency costs we are glad to state ... costs we're glad to tell you ...

As arranged ... We've agreed that...

When the contract was being nego- When we were negotiating the con- tiated ... tract ...

Therefore we urge you to pay ... As a result we ask you to pay ...

VIII. Fill in articles or possessive pronouns wherever necessary. Discuss the letter.

December 15, 20... Dear Sirs,

We are pleased to confirm ... agreement reached at... recent discussions in Moscow between you and ... Mr I., and look forward very much indeed to ... successful cooperation.

Before ... contract is drawn up for signature we should like to restate ... main points of the payment clause, viz.:

Payments of the part of the Contract price for... design and survey works as well as for... equipment to be delivered from ... Russia will be effected by the Customer out of the proceeds of... commercial credit to be extended by the Contractor for ... period of 8 years at ... 5 % annual interest rate in accordance with ... Agreement.

Payments will be made in U.S. Dollars in accordance with ... Trade Agree­ment as follows:

1.20 % of this part of the Contract price, intended for mobilization work, will be paid by ... Customer within 60 days from ... date of ... signing the present Contract against the Contractor's invoice presented for collection without any documents attached to it.

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2. 80 % of this part of the Contract price will be covered by credit, to be; repaid by the Customer against the Contractor's drafts.

3. The Contractor will make out six invoices for 12.5 % of this part of the Contract price each in 4, 8, 12, 16, 20 and 24 months from ... date of signing ... present Contract.

4. The last invoice for 5 % of this part of the Contract price (enclosing the Final Acceptance Certificate) will be made out by the Contractor within 15 days after... project is taken over by the Customer for permanent opera­tion.

The amount of each draft will include... 5 % annual interest rate, charged for the amount of the outstanding debt. The interest rate for ... principal sum will be charged from ... date of each invoice.

We look forward to your letter confirming these points of our draft con­tract.

With all good wishes,

Yours faithfully,

re-state v зд. указать еще раз to take over a project принять объ

proceeds n средства ект

collection n инкассо outstanding debt невыплаченныг

draft n тратта, переводный вексель долг

to make out an invoice выставить principal sum капитальная сумма счет

IX. Fill in the prepositions or adverbs wherever necessary. Discuss the let­ter.

March 9, 20.. Dear Sirs,

We are very glad to receive your letter of... this year containing your ideas about some aspects of the payment clause.

As arranged we are sending you the wording of the relevant clause in the draft contract based on your recommendations.

"Payments of the part of the Contract Price ... the Contractor's services ... hard currency will be made ... the Customer ... Dollars USA in accor­dance with the Trade Agreement ... force.

The payments will be made ... follows:

1. 20 % of this part of the Contract Price for the Contractor's mobiliza­tion work will be paid by the Customer ... 30 days ... the date ... signing the present Contract ... the Contractor's invoice without any documents at­tached ... it.

2. 75 % of this part of the Contract Price will be paid by the Customer ... equal installments ...4, 8, 12, 16, 20 and 24 months from the date of signing the present Contract ... the Contractor's invoices without any documents attached.

1. The last invoice ... 5 % of this part of the Contract Price (enclosing

the Final Acceptance Certificate) will be made the Contractor within

15 days after the project is taken the Customer."

We think we have covered every point of your recommendations. If not, please do not hesitate to write ... us again. It will be a pleasure to give you an immediate reply.

Yours faithfully,

to base on основывать(ся), базировать(ся)

X. Read these letters and do the assignments given below each of them.

1. December 20, 20...

Dear Sirs,

We are writing to remind you that you are to reimburse the expenses incurred on the in-plant training of your trainees in our country. The com­pany is to establish a Letter of Credit within 30 days from the date of cable notification made by us.

Guided by the above terms and conditions we sent a telex inquiry on August 10, 20... and 4 reminders requesting you to open a Letter of Credit to the amount of... with a validity of 18 months. Unfortunately we have not received a reply, so far.

At present we are not able to make out an invoice for training your 100 trainees who came to our country to be trained in the 2nd and 3rd quarters this year as the balance sum under the valid Letter of Credit is not sufficient to cover expenses on the upkeep of your trainees.

The second point we should like to raise here is the following:

Under the contract the Customer is expected to prepare foundations for 2 rolling mills.

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Time is pressing but not all foundations are ready at the moment, which is sure to affect the erection work to be carried out by our side.

We could shorten the period of erection work if more specialists from our company could be received in your country and if you could accommo­date them adequately and without delay.

Please, advise us about your decision.

Yours faithfully,

in-plant training обучение на пред- balance sum остаток суммы приятии rolling mill прокатный стан

Hold the talks along these lines.

Settle the matter of payments for the in-plant training of the customer's trainees in our country; discuss the financial matters relevant to sending your specialists to speed up the erection work.

2. January 15, 20...

Dear Sirs,

We regret very much that you have not replied to our letters of Novem­ ber 1 and December 1 this year asking you to speed up the payment of cus­ toms duties on the Tower Crane which was sold to you under Contract No

When the contract was being negotiated we drew your attention to the fact that the crane was imported to your country on a re-exportation basis for the period of construction and erection under our contract with the Pub­lic Water and Electricity Corporation and that the Buyer was responsible for paying the customs duties on the crane.

In view of this you undertook to provide prompt customs clearance of the crane and to inform the Public Water and Electricity Corporation to this effect.

Yesterday we received a letter from the Public Water and Electricity Corporation containing a complaint about the delay in customs clearance.

Your delay places us in a very awkward position since we have already completed the works and handed the project over to our Customer — the Public Water and Electricity Corporation.

Therefore we urge you to pay the customs duties on the crane, if you have not already done so, and inform us by cable what the position is.

Yours faithfully,

when the contract was being nego- on a re-exportation basis на усло- tiated во время обсуждения кон- виях временного ввоза

тракта to place in an awkward position

to this effect зд. об этом ставить в неудобное положение

Hold the talks along these lines.

Contact the company which bought the tower crane and find out the reason for their infringement of your contract.

3- June 15,20...

Dear Sirs,

Thank you very much for your letter of 20th May enclosing the break­down of the cost of the civil engineering works on the project.

Having thoroughly studied it we came to the conclusion that you over­estimated the volumes of work to be executed and used excessive rates for your calculations.

We have compared your rates with the current rates in our country and have to indicate that the rates you use exceed the local ones by 25 %.

In your letter you are writing that your calculations are based on the rates submitted by the ... company which you are going to invite as a sub­contractor for the execution of the civil engineering works. In this connec­tion may we ask you to reconsider your choice of the subcontractor and engage our civil engineering companies to participate in the project.

Taking into account the overestimation of the amount of work and the excessive rates we ask you to reduce the cost of construction by 35 %.

Your prompt reply will be greatly appreciated.

Yours faithfully,

excessive rates завышенные ставки

Hold the talks along these lines.

Explain to your customer why you decided to engage a foreign company to do the civil engineering works, prove that the total cost of civil engineer-

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in accordance with the payments

agreement in force as deliveries are made it has become customary to sell at reasonable prices with allowance

made for its depreciation in accordance with the cusroms

regulations effective in your

country

ing works is reasonable. If the customer does not agree,suggest that they should carry out the civil engineering works themselves.

XI. Express the contents of the above letters in telexes.

XII. Study the translation difficulties. Translate into English.

Translation difficulties:

путем оплаты тратт подрядчика Руководствуясь вышеуказанны­ми условиями контракта, ... Во время обсуждения контракта

сообщить о положении дел

без приложения документов

меры по завершению строитель­ства строго в контрактные сро­ки

Мы ... хотели бы ознакомить вас с нашей точкой зрения по дан­ному вопросу

она (гарантия) оказалась услов­ной

работы на объекте были начаты только после того, как вами бы­ла представлена гарантия в со­ответствии с условиями кон­тракта

аккредитив ... был открыт ... не в ... банке, а в ... банке

в нарушение контракта

Мы внимательно рассмотрели вашу просьбу о предоставле­нии кредита

мы изыскали возможность ...

by paying the contractor's drafts Guided by the above contract terms

and conditions ... When the contract was being ne­gotiated ... inform (smb) what the position is without any documents attached measures to complete the con­struction strictly within the con­tractual time We ... would like to let you know our point of view on the matter

it (the guarantee) turned out to be

conditional the work on the project was not

started until you presented a

guarantee as stipulated in the

contract

the L/C ... was opened ... in (with)

... bank instead of being opened

in (with) ... bank in default of the contract (contrary

to the contract) We have carefully studied your

request to grant you credit

we have found a possibility ...

в соответствии с действующим

платежным соглашением по мере поставок сложилась практика продажи по разумным ценам с учетом его

амортизации в соответствии с таможенными

правилами, существующими в

вашей стране

1. Формулировка данной статьи контракта нас не устраивает. Эти расходы должны возмещаться заказчиком путем оплаты тратт подряд­чика. 2. Руководствуясь вышеуказанными условиями контракта, мы оплатили расходы по амортизационным отчислениям на арендуемое строительное оборудование в твердой валюте. 3. Во время обсуждения контракта было решено, что часть оборудования для объекта будет ре­экспортирована из третьих стран. 4. Мы до сих пор не получили вашего ответа по вопросу выделения твердой валюты на финансирование за­трат по строительству этого объекта. Просим сообщить о положении дел. 5. Счета для оплаты на базе инкассо будут представляться без при­ложения документов.

1. 22 мая, 20... г.

Уважаемые господа!

Мы получили Ваше письмо от ... сего года, в котором Вы выражаете озабоченность в связи с возможной задержкой ввода объекта в эксплуа­тацию и предлагаете нам рассмотреть меры по завершению строитель­ства строго в контрактные сроки. Мы, однако, хотели бы ознакомить Вас с нашей точкой зрения по данному вопросу.

Вы, безусловно, помните, что после подписания контракта Вы на 6 месяцев задержали выдачу банковской гарантии на полную стоимость контракта. Когда же вышеуказанная гарантия была представлена, она оказалась условной, что противоречило условиям контракта. В связи с этим работы на объекте были начаты со значительным опозданием.

Кроме того, аккредитив для осуществления платежей по закупке в третьих странах части технологического оборудования был открыт Вами не в Московском народном банке в Лондоне, а в банке в .... Это наруше-

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ние условий контракта вызвало задержку в поставке оборудования из третьих стран.

Несмотря на все это, нами предпринимаются все возможные меры по форсированию работ.

В связи с этим мы считаем, что, если работы на объекте не будут закончены в контрактные сроки, мы будем иметь право на продление контрактных сроков на завершение работ.

С уважением,

(без)условная гарантия (un)condi- форсировать работы to step up work tional guarantee

2. 15 апреля, 20... r.

Уважаемые господа!

Кае: строительство тепловой станции

Мы внимательно рассмотрели Вашу просьбу о предоставлении кре­дита для строительства тепловой станции мощностью ... в ... на услови­ях «под ключ».

С целью развития сотрудничества с Вашей фирмой и несмотря на значительную сумму кредита мы изыскали возможность предоставить Вам рассрочку платежей, но только по расчетам за поставки из нашей страны. Мы полагаем, что Вы имеете нашу разбивку кредитной части цены контракта и согласны с ней.

В обеспечение этих платежей Подрядчику будет выдана гаранти! Национального банка ....

За пользование кредитом Заказчик будет выплачивать Подрядчику ... % годовых, начиная с даты подписания Акта о временной приемке каждого энергоблока станции. Указанная процентная ставка будет вы­плачиваться одновременно с погашением основного долга.

Погашение кредита будет производиться равными годовыми долями путем оплаты выписанных Подрядчиком тратт. Первый платеж должен быть осуществлен в течение 30 дней с даты подписания Акта об окон­чательной приемке каждого энергоблока станции.

Условия платежей за поставки и услуги из третьих стран будут со­гласованы отдельно.

С уважением,

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энергоблок power unit акт об окончательной приемке

акт о временной приемке provi- permanent acceptance certifi-

sional acceptance certificate cate

3. 25 сентября, 20... г.

Уважаемые господа!

Настоящим письмом сообщаем Вам, что мы завершаем выполнение контрактных обязательств по нашему контракту на строительство гид­роэлектростанции в Вашей стране и проводим подготовительные рабо­ты к отправке в нашу страну части строительного оборудования и неис­пользованных материалов, ввезенных в Вашу страну на условиях вре­менного ввоза.

Как Вы знаете, в последнее время сложилась практика продажи стро­ительного оборудования и неиспользованных материалов в стране за­казчика по завершении работ, выполняемых на условиях «под ключ». Мы тоже намерены продать часть оборудования и материалов Вашей стране.

В связи с тем, что Вы выразили желание иметь право первого выбо­ра при продаже нашего строительного оборудования, направляем Вам перечень оборудования и материалов, которые мы хотели бы продать Вашим компаниям.

Все оборудование находится в рабочем состоянии и будет про­даваться с комплектами запчастей. Оборудование будет реализо-вываться по разумным ценам с учетом его амортизации.

Цены не включают таможенные пошлины. Они должны быть упла­чены покупателем оборудования в соответствии с таможенными прави­лами Вашей страны.

Осмотр оборудования и материалов может быть произведен в любое удобное для Вас время.

С уважением,

в рабочем состоянии serviceable а реализовать оборудование to sell

комплект set п equipment

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XIII. Read the dialogue, sum up the contents and act it out.

DISCUSSING PAYMENT OF RETENTION MONEY

Contractor: Mr G., we are surprised that you've withheld payment of the 5 % of the contract value which is due to us after the contract has been completed.

Customer: Mr I., it's a semi-turn-key contract and the 5 % is paid only after the project has been commissioned.

Contr.: That's true, but everyone here knows that we are not responsible for the delay. It happened because you didn't do the civil work in accor­dance with the schedule.

Cast.: Well, there is a delay, but the works are disrupted because you were late with the working drawings.

Contr.: Speaking about the working drawings, Mr G., you may remember that you made some alterations in the design just when we were dis­cussing the project report.

Cast.: Yes, we did, but they were fairly slight.

Contr.: The alterations were slight but they were outside the design assign­ment. As a result we had to revise part of the drawings. So we don't really understand why you are now refusing to pay the retention money.

Cust.: It's a most frustrating situation and yet we believe that the sum should be paid when the project is commissioned. And what if we compensate you for part of your additional expenses? They may be incurred until the project is commissioned, we understand that.

Contr.: That's fair enough. But we want to be compensated in full.

Cust.: Any idea of how heavy your additional expenses may be?

Contr.: It's hard to say at the moment. We'll give you rough calculations by tomorrow.

Cust.: Good. Then, I think, we might break for lunch now.

Contr.: That would be very welcome.

retention money сумма удержания to withhold payment приостано­вить платеж semi-turn-key contract контракт па условиях «полуключ»

to revise drawings внести исправ­ления в чертежи it's a most frustrating situation

эд. это очень неприятная ситу­ация

XIV. Give extensive answers to these questions.

1. What does turn-key construction imply? 2. Do turn-key contracts usu­ally provide for credit facilities? 3. On what terms may credits be granted? 4. What services and works may credits cover? 5. What expenses in local currency does the contractor bear? 6. Why is the contractor interested in getting rather a high advance payment in local currency? 7. In what way does the customer usually make current payments in local currency? 8. What expenses in hard currency may the contractor bear? 9. Why does the con­tractor try to reserve the right to engage foreign subcontractors? 10. What side may provide building equipment for construction and on what terms? 11. Does the contractor always return building equipment and mechanisms back to his country upon completion of the construction? 12. Why do con­tractors sell part of their building equipment, transport vehicles and surplus materials in the country of the customer upon completion of the works? 13. Are import duties paid on building equipment and mechanisms when they are taken to the country for turn-key construction? 14. Who has first option in purchasing the equipment in question?

XV. Write letters based on the following situations.

1. Вы получили от заказчика замечания по вашему проекту контрак­та. Заказчик считает, что контрактная стоимость завышена в связи с завышением: 1) объема строительных работ; 2) стоимости выполнения отдельных работ; 3) стоимости реэкспортного оборудования. Напиши­те письмо заказчику, дав обоснование вашим расчетам стоимости кон­тракта. Подробно остановитесь на замечаниях заказчика.

2. Ваша компания осуществляет строительство объекта на услови­ях «под ключ». Выполнение вами контрактных обязательств осложня­ется тем, что заказчик нарушает положения контракта в отношении условий платежа. Напишите письмо заказчику, указав на: 1) неодно­кратные нарушения условий платежа; 2) последствия вышеуказанных нарушений. Поднимите вопрос о предоставлении вам продления на за­вершение работ.

3. Ваша компания завершает выполнение обязательств по контрак­ту на строительство объекта на условиях «под ключ». Вам необходимо решить все вопросы, связанные с оборудованием временного ввоза. В соответствии с имеющейся договоренностью вашему заказчику предо­ставлено преимущественное право покупки вашего строительного обо-

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рудования и транспортных средств. Однако заказчик задерживает представление перечня необходимого ему оборудования. Напишите письмо заказчику: 1) напомнив о имеющейся договоренности в отно­шении оборудования временного ввоза; 2) сообщив подробности о воз­можности осмотра оборудования. Проинформируйте заказчика о сво­их действиях в случае дальнейшей задержки в получении информа­ции от заказчика.

XVI. Act out these situations.

1. A foreign firm is interested in signing a turn-key contract with you. Discuss your future cooperation in general terms. Speak in particular on the terms of granting commercial credit. Give all necessary clarifications.

2. You have received your customer's comments on your draft contract. The customer finds the contract value overestimated. Discuss the hard cur­rency part of the contract value, which, in the customer's opinion, is par­ticularly overestimated. Give convincing explanations of your calculations.

3. Your customer has come to Moscow to discuss the part of the con­tract price which covers local currency expenses. The point of disagreement is the advance for mobilization works. Prove to the customer that the 20 % advance stipulated in your draft contract is reasonable.

XVII. Read the following excerpts from documents you may come across in your business activity.

CONTRACT NO. ...

Terms of Payment

1. Payments on account of the credit extended by the Government of... the Government of... in accordance with the Agreement of March .. 20...

Payments on account of the state credit shall be effected in respect <5P the design works, deliveries of equipment to be manufactured in ... and materials according to с and f. prices, port of destination.

Invoices for design work subject to payment on account of the mentioned credit shall be presented as follows:

for 50 % of the cost — within 90 days from the date of the Contract coming into force;

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for 50 % of the cost — within 30 days from the date of the handover of the drawings and diagrams.

Invoices for supplies of equipment and materials from ... — for 100 % of the price of each delivery, с and f. port of destination—shall be presented as the deliveries are effected. Simultaneously the amounts of the invoices presented for payment to the Bank of... shall be placed to the credit account the way it is envisaged by the Bank Arrangement.

2. Payments for deliveries of equipment and materials to be purchased for the project in third countries.

The payments for deliveries shall be effected in US Dollars in cash as follows:

10 % of the total price of deliveries shall be paid as advance payment by means of a cable transfer against a bank guarantee for the same amount within 30 days from the date of presentation of the bank guarantee by the Contractor;

90 % of the total price of deliveries shall be paid from the irrevocable, divisible, transferrable letter of credit which shall be opened by the Cus­tomer within 30 days from the date of cable notification of the Contractor of the readiness for shipment of the first batch of deliveries (delivery basis is subject to additional agreement).

The period of L/C validity shall cover the whole period of deliveries of equipment from third countries.

The amount of each invoice for deliveries shall be decreased by 10 %, i.e. proportionally to the amount of the advance payment received.

3. Payments for civil engineering, erection, commissioning and adjustment works.

Civil engineering, erection, commissioning and adjustment works shall be paid in cash:

50 % of the cost of works shall be paid in US Dollars and 50%—in ...;

10 % of the cost of works in US Dollars and 10 % of the cost of works in .. shall be paid as advance payment against a bank guarantee for the same amounts;

80 % of the cost of works shall be paid against the certificates on actual execution of works each month;

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5 % of the cost of executed works shall be paid against notification of the Customer that a section of the Plant is complete and ready for commis­sioning;

5 % shall be paid against Final Taking-Over Certificate.

For payment of 50 % of the cost of works in US Dollars the Customer shall open an irrevocable, divisible, transferrable letter of credit within 30 days from the date of cable inquiry of the Contractor.

50 % of the cost of works in ... shall be paid by way of crediting ... to account No. ... of the Bank of... with the Central Bank of... .

4. Payments for the construction of the housing settlement for ... citizens.

Payments for the deliveries of equipment and materials from third coun­tries for the construction of the housing settlement shall be effected in US Dollars, namely:

10 % of the price shall be paid in US Dollars as advance payment;

90 % — as the deliveries progress from an irrevocable, divisible, trans­ferrable letter of credit which shall be opened within 30 days from the date of cable notification of the Contractor of the readiness of the first batch of equipment for shipment.

The rest of the terms and conditions of payments for deliveries from the letter of credit are identical to those terms and conditions of payments for the deliveries of mechanical equipment which are mentioned in para 2.

Payments for civil engineering and erection works connected with the construction of the housing settlement shall be effected in ... and US Dol­lars. Percentage breakdown of payments by currencies shall be carried out upon receipt from the Customer of detail materials on housing settlement construction, while:

10 % of the price shall be paid as advance payment;

90 % — as the works progress, on the basis of certificates wherein the volumes and cost of works executed each month shall be determined.

5. Payments for cargo transportation.

Payment of all expenses connected with the unloading and storage of cargoes at the port, loading and transportation up to the construction site, fulfilment of customs formalities, as well as the Contractor's fee in an agreed upon amount for implementing supervision over the transportation and men­tioned operations shall be effected in the currency of the expenses and shall* constitute actual expenses.

Each quarter a month prior to the beginning of the next quarter the Con­tractor shall submit to the Customer an invoice and tentative calculation of forthcoming expenses.

The amount paid the previous quarter shall be taken into account for adjustment of current payments submitted by the Contractor.

6. Performance bond.

The Contractor shall provide to the Customer's satisfaction an irrevo­cable letter of guarantee for a sum equal to ... per cent (... %) of the total Contract Price within fifteen (15) days from the date of the signature of the Formal Contract by both parties.

This bond is given to cover the advance payment to be given to the Con­tractor as per Clause ... (Terms of Payment).

This letter of guarantee shall continue to be valid until the presentation of the Final Taking-Over Certificate.

subject to зд. подлежащий cable inquiry телеграфный запрос

to pay in cash платить наличными

XVIII. a) Write down 3-5 questions on the text.

b) Describe the purposes for which the organization was set up.

YOUR PARTNER EBRD

The EBRD (European Bank for Reconstruction and Development) is a multinational institution set up with the specific aim of assisting the coun­tries of Central and Eastern Europe to develop into market-oriented econo­mies. Its 59 shareholders include countries from both this region and the rest of the world, plus the European Community and the European Invest­ment Bank.

The strongest comparative advantage of the Bank relative to other in­ternational financial institutions lies in its ability to operate both in the pub­lic and private sectors and to have at its disposal the broadest range and flexibility of financing instruments. The Bank is uniquely equipped in both staff and range of instruments to support the different stages of transition.

Specifically, the EBRD seeks to promote the development of the private sector within these economies for its investment operations and through the mobilization of foreign and domestic capital. In relation to private com­mercial banks, the EBRD's main advantages lie in its willingness and ability

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to bear risk. This allows the Bank to act at the frontier of commercial possi­bilities. It also shares the project risk by acting with other private sector entities, such as commercial banks and investment funds, as well as multi­lateral lenders and national export credit agencies.

While its structure is unlike that of a commercial bank, the EBRD has a similar approach to dealing with projects and it prices its products on com­mercial basis. With its AAA credit rating, the Bank is able to raise funds at the finest rates from the international capital markets.

For a project to be considered it has to be commercially viable. The Bank does not issue guarantees for export credits or provide retail banking ser­vices.

Foreign joint ventures are one of the EBRD's main vehicles for financ­ing; joint ventures offer partners an effective way to gain access to foreign and domestic markets, encourage foreign private investments in the region, reduce risk, and facilitate the transfer of technology and management skills.

shareholder n акционер to bear risk нести риск

relative to относительно multilateral lenders многосторон-

flexibility n гибкость ние кредиторы

specifically adv зд. конкретно AAA credit rating показатель кре-

in relation to что касается дитоспособности AAA

willingness n готовность viable а жизнеспособный

XIX. Sum up the text in 5-7 sentences.

WORLD BANK - INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (IBRD)

The "World Bank" refers to the International Bank for Reconstruction and Development (IBRD) and its affiliate, the International Development Association (IDA). The Bank was set up together with the IMF by the Bretton Woods Conference of 1945 as an international bank for two pur­poses: to help finance the rebuilding of war-devastated areas and to aid the advancement of less-developed countries.

Operations started in 1946. The Bank is financed partly by contributions paid by member countries, partly by bond issues. The national contribu­tions constitute the bank's capital and relate to the individual countries' share of world trade. The bond issues finance the lending operations of the bank.

In financing the economic growth of member countries the International Bank complements the IMF, which finances temporary balance of payments imbalances. Loans are made to governments or government-guaranteed entities. Besides lending funds, the Bank provides technical advice to gov­ernments or other borrowers on a wide range of development problems. It carries out general economic surveys for governments wishing to study re­sources and to plan long-range policy of development.

At first devoted to the reconstruction needs of industrial countries the World Bank by the 1950s had focused its attention on the developing world. In 1956 the IBRD formed the International Finance Corporation (IFC) the purpose of which was to encourage growth in the private sector of develop­ing countries and to mobilize domestic and foreign capital for this purpose. In 1960 the IBRD established the International Development Association in order to assist the poorer developing countries (those with an annual per capita GNP of less than $731 in 1980 prices). Loans to these countries bear no interest and are repayable over 50 years with an initial grace period of 10 years.

The Bank's strategy has been to ensure that its aid reaches the broad masses of the people; this is to be done by investments encouraging produc­tivity and integrating the broad masses of people as active partners into the development process.

The powers of the Bank are vested in a board of Governors.

affiliate n филиал repayable а подлежащий погаше- war-devastated areas разоренные нию (уплате)

войной территории grace period льготный период

bond issue выпуск облигаций integrate v интегрировать; зд. вклю- complement v дополнять чать, вовлекать

survey п обследование vest v облекать, наделять властью International Finance Corpora­ tion Международная финансовая корпорация

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