Artikel 7

(a). In order to provide for the settlement of debts under the present Agreement, the Turkish Government shall, in the period of twelve years following its signature, ensure each year the transfer, in appropriate currencies, of a total amount to the creditors resident in each creditor country (hereinafter called the “annual transfer”) which shall be determined and transferred in accordance with the provisions of this Article. In addition, the Turkish Government shall ensure the transfer of moratorium interest or contractual moratorium interest, as the case may be, as provided for in Article 10.
(b). In the first six years of that period, the total amount of annual transfers, including transfers in respect of debts to United States creditors (such total amount hereinafter called the “total amount of annual transfers”), shall:
(i) in the first five years of that period be equivalent to 15 million, 20 million, 25 million, 30 million and 35 million United States dollars, successively, in each year;
(ii) in the sixth year of that period, be equal to one-seventh of the total amount of payments in the process of transfer to all the creditor countries on 31st December, 1963.
(c). In each of the first six years of that period, subject to the provisions of paragraph (e), the total amount of annual transfers shall be divided between creditor countries according to the ratio between the payments in the process of transfer to each creditor country on the reference date and the total amount of the payments in process of transfer to all creditor countries on the same date provided that:
(i) the reference date shall be 5th August, 1958, for the first two years of that period; 31st December, 1960, for its third and fourth year; and 31st December, 1962, for its fifth and sixth year; and that
(ii) the annual transfers for the first two years of that period shall be calculated in accordance with the table set out in Annex I to the present Agreement; and that
(iii) on the basis of this distribution between creditor countries, the payments to United States creditors in the third, fourth, and fifth year shall be 13.939,14.206 and 14.314 per cent., respectively, of the total amount of annual transfers to all the creditor countries, and in the sixth year, equal to one-seventh of the total amount of payments in the process of transfer to United States creditors on 31st December, 1963. This arrangement shall not affect the total amount of annual transfers provided in paragraph (b).
(d). (i) The total amount of payments in the process of transfer on any of these reference dates shall be calculated in United States dollars on the basis of the parities between the appropriate currencies and the United States dollar in force on that reference date. The annual transfer to each creditor country shall be expressed in the appropriate currencies on the basis of the parities used in the preceding calculation of the total amount of payments in the process of transfer. Nevertheless, in the calculations relating to the first two annual transfers, the parities in force at the date of the signature of the present Agreement shall be used.
(ii) For the purposes of the present Agreement, the parity between an appropriate currency and the United States dollar shall be taken to be the declared International Monetary Fund par value on the relevant reference date. Where such parity does not exist, the official United States dollar parity in the country concerned shall be used or a parity calculated from the legal fine gold content of the currency concerned and the declared International Monetary Fund par value in terms of gold of the United States dollar on the relevant reference date.
(e). To the extent that it is required for the settlement of debts owed to creditors resident in Luxembourg, Norway, Portugal and, in the case of the annual transfers for the third year of that period, in Denmark, the Turkish Government shall ensure, in the first three years of that period, annual transfers to each of these creditor countries which, in total, shall represent two per cent, of the total amount of annual transfers for the corresponding year.
(f). In the remaining six years of that period, the annual transfer to each creditor country shall be, successively, equal to one-sixth, one-fifth, one-fourth, one-third, one-half, and to the remainder of the total amount of payments in the process of transfer to that country on 31st December of the year preceding the year in which the corresponding annual transfer is made.
(g). The Turkish Government shall carry out each annual transfer, in accordance with the Lists provided for in paragraph (a) of Article 8, in four equal instalments on 30th June, 30th September, 31st December, and 31st March, respectively, of each year provided that:
(i) in the first year the instalments shall be transferred not later than 31st July, 31st October, 31st December, 1959, and 31st March, 1960, respectively; and that
(ii) the amount to be transferred in accordance with this paragraph shall be reduced by the amount of any payment in the process of transfer which should have been transferred in the corresponding year and the counterpart of which has been used in Turkey by virtue of Article 9.