Conformed Copy - L3856 - Financial Sector Development Project - Backstop Facility Loan Agreement

Page 1 CONFORMED COPY LOAN NUMBER 3858 IN Backstop Facility Loan Agreement (Financial Sector Development Project) between INDUSTRIAL DEVELOPMENT BANK OF INDIA and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated March 24, 1995 LOAN NUMBER 3858 IN LOAN AGREEMENT AGREEMENT, dated March 24, 1995, between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank) and INDUSTRIAL DEVELOPMENT BANK OF INDIA (IDBI) (the Borrower). WHEREAS (A) India (the Guarantor) and the Borrower, having satisfied themselves as to the feasibility and priority of the Project described in Schedule 2 to this Agreement, have requested the Bank to assist in the financing of Part C of the Project; (B) by an agreement of even date herewith between the Guarantor and the Bank (the Backstop Facility Guarantee Agreement), the Guarantor is agreeing to guarantee the obligations of the Borrower in respect of the Loan and to undertake such other obligations as are set forth in the Backstop Facility Guarantee Agreement; (C) Part C of the Project will be carried out by the Reserve Bank of India (RBI) with the Borrower's assistance; (D) the Guarantor has requested the Bank to provide assistance towards the financing of Part A of the Project and by an agreement of even date herewith between the Guarantor and the Bank (Capital Restructuring Loan Agreement), the Bank is agreeing to provide such assistance in an aggregate principal amount equivalent to three hundred and fifty million dollars ($350,000,000) (the Capital Restructuring Loan); (E) the Borrower has requested the Bank to provide assistance towards the financing of Part B of the Project and by an agreement of even date herewith between the Borrower and the Bank (Modernization and Institutional Development Loan Agreement), the Bank is agreeing to provide such assistance in an aggregate principal amount equivalent to one hundred and fifty million dollars ($150,000,000) (the Page 2 Modernization and Institutional Development Loan); (F) by an agreement of even date herewith between the Guarantor and the Bank (the Modernization and Institutional Development Guarantee Agreement), the Guarantor has agreed to guarantee the obligations of the Borrower in respect of the Modernization and Institutional Development Loan and to undertake such other obligations as are set forth in the Modernization and Institutional Development Guarantee Agreement; and WHEREAS the Bank has agreed, on the basis, inter alia, of the foregoing, to extend the Loan to the Borrower upon the terms and conditions set forth or referred to in this Agreement, the Capital Restructuring Loan Agreement, the Modernization and Institutional Development Loan Agreement, the Modernization and Institutional Development Guarantee Agreement, the Backstop Facility Guarantee Agreement and the Project Agreement respectively; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Loan and Guarantee Agreements for Single Currency Loans" of the Bank, dated February 9, 1993 (the General Conditions), constitute an integral part of this Agreement. Section 1.02. Unless the context otherwise requires, the several terms defined in the Preamble to this Agreement, the General Conditions, the Capital Restructuring Loan Agreement and the Modernization and Institutional Development Loan Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "Reserve Bank of India" or "RBI" means the Guarantor