Conformed Copy - L3851 - Pre-Export Guarantee Facility Project - Supplemental Letter

Page 1 GUARANTEE ADMINISTRATION UNIT April 19,1995 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Loan No. 3851 MD (Pre-Export Guarantee Facility Project) Representations Dear Sirs and Mesdames: In connection with the Project Agreement to be entered into today between the International Bank for Reconstruction and Development (the Bank) and the Guarantee Administration Unit (GAU), GAU hereby undertakes and warrants to the Bank that: 1. GAU is not engaged in litigation as plaintiff or defendant, the outcome of which might materially and adversely affect its financial condition. 2. GAU has no outstanding agreements or liabilities, contingent or otherwise (including taxes) which might materially and adversely affect its financial condition. 3. No debt of GAU is secured by any mortgage, pledge, charge, priority or other lien, and no contract or arrangement exists for the creation of any such mortgage, pledge, charge, priority or other lien. 4. There are no existing defaults in the payment of principal of, or interest or other charges on, any of GAUþs debts. 5. GAU is not in violation of, and execution and delivery of the Project Agreement and the compliance with all its terms do not and will not result in any violation of, any provisions of any existing agreement, franchise, concession, license or permit, or of any statute, law, decree, regulation or any other legal rule of a similar nature presently in effect and applicable to GAU. 6. GAU is a duly existing state-owned enterprise under the laws of Moldova with full authority to carry out its present business, to carry out the Project and to execute and deliver the Project Agreement and has furnished to the Bank true copies of all other legislation presently in force and affect and governing or applicable to the operations of GAU, as well as of its statutes as presently in effect and governing GAU. It is our mutual understanding that, in making the Loan and entering into the Project Agreement with GAU, the Bank may rely on the representations contained herein. Very truly yours, GUARANTEE ADMINISTRATION UNIT Page 2 By _________________________________ Authorized Representative