Article 7 Subrogation

1. If one Contracting Party or its designated agency makes a payment to any of its investors under an indemnity given in respect of an investment in the territory of the other Contracting Party, the latter Contracting Party shall recognise the assignment to the former Contracting Party or its designated agency by law or by legal transaction of all the rights and claims of the indemnified investor and that the former Contracting Party or its designated agency is entitled to exercise such rights and enforce such claims by virtue of subrogation, to the same extent as the indemnified investor, except the rights available to the investor by virtue of Article 9 of this Agreement.

2. The former Contracting Party or its designated agency shall be accorded in all circumstances in respect of the rights and claims acquired by it by virtue of subrogation as well as in respect of any payments received in pursuance of those rights and claims the same treatment as the investor was accorded by virtue of this Agreement in respect of the investment concerned.

3. As regards the payments made by virtue of subrogation, the provisions of Articles 5 and 6 of this Agreement shall apply.