Conformed Copy - L3424 - Economic and Financial Reforms Support Loan - Amendment

Page 1 H.E. Mustapha K. Nabli April 20, 1993 Minister of Plan and Regional Development Ministry of Plan and Regional Development Place Ali Zouaui Tunis Republic of Tunisia Re: Loan No. 3424 TUN (Economic and Financial Reforms Support Loan) Amendment to the Loan Agreement Your Excellency: The Republic of Tunisia (the Borrower) and the International Bank for Reconstruction and Development (the World Bank) concluded on December 13, 1991, a Loan Agreement (the World Bank Loan Agreement) for the Economic and Financial Reforms Support Loan. The World Bank Loan Agreement, which provided the Borrower with a Loan in an amount equivalent to two hundred and fifty million United States dollars (250,000,000) became effective on December 23, 1991. The Borrower has also obtained from the Export-Import Bank of Japan (the EXIMBANK) a loan for the same purpose and in an amount in Yen equivalent to one hundred and twenty million United States dollars ($120,000,000) under an agreement (the EXIMBANK Loan Agreement) concluded between the Borrower and the EXIMBANK on March 31, 1993. The Preamble to the EXIMBANX Loan Agreement acknowledges that the Co-Lenders Agreement between the EXIMBANK and the World Bank dated March 31, 1993, pertaining to the EXIMBANK Loan Agreement and the World Bank Loan Agreement, provides that the World Bank shall, subject to the agreement of the Borrower, incorporate a cross-default clause in respect of the EXIMBANK Loan Agreement in the World Bank Loan Agreement. Accordingly, we propose to you the following amendments to the World Bank Loan Agreement: 1. In Section 1.02, the word "and" appearing at the end of paragraph (j) is , deleted, the "." appearing at the end of paragraph (k) is changed to ";" and the following new paragraphs are added to read as follows: "(l) "EXIMBANK" means the Export-Import Bank of Japan; (m) "EXIMBANK Loan Agreement means the Loan Agreement (Economic and Financial Reforms Support Loan) entered into between the Borrower and the EXIMBANK on March 31, 1993; and (n) "EXIMBANK Loan means the loan provided under the EXIMBANK Loan Agreement." 2. In Article IV, the heading "Additional Event of Suspension" is changed to read "Remedies of the Bank". 3. In Section 4.01, a new paragraph (c) is added to read as follows: "(c) (i) Subject to subparagraph (ii) of this paragraph: (A) the right of the Borrower to withdraw the proceeds of the EXIMBANK Loan shall have been suspended, cancelled, or terminated in whole or in part, pursuant to the terms of the EXIMBANK Loan Agreement; or (B) the EXIMBANK Loan shall have become due and payable prior to the agreed maturity thereof. (ii) Subparagraph (i) of this paragraph shall not apply if the Borrower establishes to the satisfaction of the Bank that: (A) such suspension, cancellation, termination or prematuring Page 2 is not caused by the failure of the Borrower to perform any of its obligations under such agreement; and (B) adequate funds for the Program are available to the Borrower from other sources on terms and conditions consistent with the obligations of the Borrower under this Agreement." 4. In Article IV, a new Section 4.02 is added to read as follows: "Section 4.02. Pursuant to Section 7.01 (h) of the General Conditions, the following additional event is specified, namely, the event specified in paragraph (c) (i) (B) of Section 4.01 of this Agreement shall occur, subject to the proviso of paragraph (c) (ii) of that Section." Please indicate your agreement to the foregoing by signing and dating the form of confirmation on the enclosed copy of this letter and returning it to us. Given its interest in this matter, a copy of this letter will then be sent to the Export-Import Bank of Japan. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Harinder S. Kohli Director Maghreb Department Middle East and North Africa Region CONFIRMED: REPUBLIC OF TUNISIA By __________________________ Authorized Representative Date: 21 May 1993