Conformed Copy - L3289 - Special Interventions Project - Amendment

Page 1 August 5, 1992 His Excellency The Secretary of Finance Department of Finance and Planning Post Office Wards Strip Waigani, N.C.D. Papua New Guinea Re: Loan No. 3289 - PNG (Special Interventions Project) Amendment of the Loan Agreement Dear Sir: In reference to your letter dated July 7, 1992, we would like to inform you rhat the Loan Agreement between the Independent State of Papua New Guinea and the International Bank for Reconstruction and Development, dated March 18, 1991, for the Special Interventions Project, is hereby amended as follows: Part B.2 of Schedule 6 to the Loan Agreement is amended to read: "2. Interest on Sub-loans shall be payable on the principal amount of said Sub-loan withdrawn and outstanding from time to time, at a rate equal to the weighted average cost of deposits in Papua New Guinea's financial sector, as reported to BPNG, plus 100 basis points. Provided, however, that the minimum on lending rate shall be the IBRD lending rate to the Independent State of Papua New Guinea under the Project plus 50 basis points. The principal amount of said Sub-loan shall be repaid over a maximum period of 20 years. Interest on Sub-loans shall be reviewed and, if necessary, adjusted every six months, starting October 1, 1992." Please confirm your agreement with the foregoing amendment by signing and dating the enclosed letter of confirmation and returning it to us. Yours sincerely, Clifford Gilpin Acting Director Country Department III East Asia and Pacific Region CONFIRMED: By; Authorized Representative Date: 14th October 1992.