Conformed Copy - L2815 - Trade Policy and Export Diversification Loan - Amendment

Page 1 June 15, 1989 Su Excelencia Senor Jesils Rodriguez Ministro de Economonia Ministerio de Economia Hipolito Yrigoyen 250 Buenos Aires, Argentina Re: Loan 2815-AR (Trade Policy and Export Diversification Loan) Amendments to the Loan Azreement Dear Sir: Please refer to the Loan Agreement (the Loan Agreement) dated July 29, 1987, between the Argentine Republic (the Borrower) and the International Bank for Reconstruction and Development (the Bank) for the above-mentioned loan, as amended to this date. I am pleased to advise you that the Bank agrees to a request of your Government, through Mr. Aldolfo Canitrot,' to amend the Loan Agreement to finance a study relating to the restructuring of Banco de la Provincia de Buenos Aires, in an amount-not to exceed US$150,000 equivalent. Consequently, the Loan Agreement, is hereby amended as follows: 1. Paragraph (b) of Section 3.03 is deleted. 2. The following new paragraphs (b), (c) and (d) are added to Section 3.03: "(b) As part of the execution of the Program, the Borrower shall carry out, or cause to be carried out, no later than November 30, 1989, a study on the need of, and the alternatives for, the restructuring of the Banco de la Provincia de Buenos Aires in order to, inter alia, reduce its operating costs and provide banking services. consistent with the financial requirements generated by the execution of the Program." "(c) The Borrower shall (i) carry out, or cause to be carried out, the study referred to in paragraph (b) of this Section under terms of reference satisfactory to the Bank; (ii) promptly upon its completion, furnish, or cause to be furnished to the Bank, a copy of the recommendations and main findings of such study, (iii) exchange views with the Bank on such recommendations and findings; (iv) if the Borrower carries out the study through an entity which is legally or administratively independent from the Borrower, make available to such entity proceeds of the Loan in amounts not to exceed $150,000 equivalent, under arrangements satisfactory to the Bank; and (v) unless the Bank shall otherwise agree, not amend, waive, abrogate or repeal such arrangements or any provision thereof." "(d) In order to assist the Borrower in carrying out the measures and study included in the preceding paragraphs, the Borrower shall employ, or cause to be employed, consultants whose qualifications, experience and terms and conditions of employment. shall be satsifactory to Bank. Such consultants shall be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the Bank in August 1981." Page 2 Please confirm your agreement to the foregoing by signing the confirmation form in the enclosed duplicated original of this letter and returning that duplicate to us. Sincerely yours, By /s/ Pieter Bottelier Director, Country Department IV Latin America and the Caribbean Region CONFIRMED MINISTERIO DE ECONOMIA By /s/ Authorized Representative Date: