Conformed Copy - C2771 - Financial Institutions Development Project - Amendment 1

Page 1 April 16, 1996 The Honourable Simon Mbilinyi Minister of Finance Ministry of Finance P.O. Box 9111 Dar es Salaam, Tanzania Dear Sir: Credit No. 2771-TA (Financial Institutions Development Project) Amendment to the Development Credit Agreement We refer to the Development Credit Agreement for the above-mentioned Project, dated October 27, 1995, between United Republic of Tanzania (the Borrower) and International Development Association (the Association), as amended to date. We also refer to discussions with supervision missions of the Association on the need to provide retroactive financing as a result of the delay in presenting the Project to the Board. We are pleased to inform you that the Association agrees to provide retroactive financing and proposes that paragraph 3 (a) of Schedule 1 to the Development Credit Agreement is amended to read as follows: "(a) payments made for expenditures prior to the date of this Agreement except that withdrawals in an aggregate amount not exceeding SDR 600,000, may be made in respect of Categories (1), (2) and (3) on account of payments made for expenditures before that date but after May 31, 1995;" All provisions of the Development Credit Agreement, except as amended herein, shall remain in full force and effect. Kindly countersign, date and return to us the enclosed copy of this letter. These amendments shall be effective as of the date of counter- signature by your authorized representative. Sincerely, James W. Adams Director Eastern Africa Department Africa Region CONFIRMED: UNITED REPUBLIC OF TANZANIA By: P. Ngumbullu Authorized Representative Date: May 1, 1996