Conformed Copy - C2013 - Mining Sector Rehabilitation Project - Amendment 4

Page 1 July 30, 1991 Senor Lic. Enrique Garcia Rodriguez Ministro de Planeamiento y Coordinacion Ministerio de Planeamiento y Coordinacion La Paz Bolivia Senor Lic. Raul Boada Rodriguez Presidente Banco Central Casilla 3118 La Paz Bolivia Re: Credit No. 2013-BO (Mining Sector Rehabilitation Project) Amendment Dear Sirs: Please refer to the Development Credit Agreement between Republic of Bolivia (the Borrower) and international Development Association (the Association) and the Central Bank Project Agreement between the Association and Banco Central de Bolivia (the Central Bank) for the above-referenced Project, both dated August 4, 1989, as amended. Terms defined in Section 1. 02 of the Development Credit Agreement when used herein shall have the same meaning set forth in such Section. I would like to inform you that the Association agrees to amend the Development Credit Agreement and the Central Bank Project Agreement for purposes of changing the interest rates applicable to Sub-loans and to Central Bank Loans. Therefore, the following amendments are proposed: I. In the Development Credit Agreement (a) Section 1.02 is amended by deleting paragraph (aa) therefrom and inserting the following new paragraphs (aa), (bb) and (cc) thereto to read as follows: "(aa) 'Regulation' means the Central Bank's Reglamento para Subasta de Creditos Destinados al Desarrollo (Regulation for Development Credit Auction), issued in November 1990; (bb) 'Development Credit Auction' means any of the auctions carried out by the Central Bank among financial institutions in Bolivia for purposes of allocating funds obtained from international or foreign lending entities and determining the interest rate applicable to the loans made by the Central Bank to such financial institutions with such funds, including the Central Bank Loans; and (cc) 'Certificate of Deposit Rate, means the weighted average of the nominal interest rates paid by the Central Bank and the other financial institutions in Bolivia on certificates of deposit issued by the Central Bank and such other institutions during the period of four our weeks prior to the date on which the Central Bank Loan is made, as such rates are published by the Central Bank in daily newspapers in Bolivia." (b) Section 5.01 is amended by inserting the following new paragraph (1) thereto to read as follows:. "(1) the nominal interest rates on the certificates of deposit referred to in Section 1.02 (cc) of this Agreement (other than those issued by the Central Bank) shall have ceased, in the opinion of the Association, to be freely determined by the financial institutions issuing such certificates of deposit." Page 2 (c) Section 5.02 (c) is amended to read as follows: "(b) any event specified in paragraphs (g) or (1) of Section 5.01 of this Agreement shall occur; and". II. In the Central Bank Project Agreement (a) Article II is amended by inserting the following new Section 2.11 thereto to read as follows: "Section 2.11. The Central Bank shall, for purposes of any Development Credit Auction, establish as a floor for the interest rate to be offered by financial institutions participating in such Auction a rate which shall be not lower than the Certificate of Deposit Rate." (b) Schedule 1 is amended by replacing subparagraph (a) of paragraph (1) thereof by the following new subparagraph (a): "(a) the interest rate applicable to each Central Bank Loan shall be the rate referred to in Article 19 of the Regulation, which in no case shall be lower than the Certificate of Deposit Rate." (c) Schedule 2 is amended by replacing paragraph I (d) thereof by the following new paragraph I (d): "(d) Interest Rate: the Eligible Miner shall pay interest on the principal amount of the Sub-loan withdrawn and outstanding at a rate per annum to be freely determined between the Financial Intermediary and the Eligible Miner, with due regard to the economic and risk characteristics of the Investment Project, Working Capital or Financial Restructuring for which such Sub-loan is made." Please indicate your agreement to the foregoing amendments by signing and dating this letter in the space provided below. Upon confirmation by the Borrower and the Central Bank, please return one fully executed original to us. The provisions of this amendment letter will become effective as of the date of this letter upon receipt by the Association of the above-cited fully executed original. Very truly yours, INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ John M. Page Jr. Acting Country Director Latin America and the Caribbean CONFIRMED: REPUBLIC OF BOLIVIA By /s/ Samuel Doria Medina Auza Authorized Representative CONFIRMED: BANCO CENTRAL DE BOLIVIA By /s/ Presidente Date: September 11, 1991 Page 3