Conformed Copy - L4332 - Higher Education Financing Project - Supplemental Letter

Page 1 September 14, 1998 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D. C. 20433 United States of America Re: Loan No. 4332-ME (Higher Education Financing Project) Dear Sirs: In connection with the Loan Agreement (Higher Education Financing Project) of this date between Banco Nacional de Obras y Servicios Públicos, S.N.C. (the Borrower) and International Bank for Reconstruction and Development (the Bank) for the above-captioned Project and the related Guarantee Agreement of same date between United Mexican States (the Guarantor) and the Bank, I am writing on behalf of the Guarantor to set forth the following: 1. We understand and agree that, for purposes of Section 9.02 of the General Conditions, the Guarantor is required by the Bank to report new "loan commitments" (as defined in the Bank's Debtor Reporting System Manual, dated January 1989) not later than 30 days after the end of the quarter during which the debt is incurred, and to report "transactions under loans" (as so defined) not later than March 31 of the year following that for which the report is made. 2. We represent that no mortgages, pledges, charges, privileges, priorities or other liens, other than those excluded pursuant to paragraph (c) of Section 9.03 of the General Conditions and those already disclosed to the Bank, exist on any public assets, as such term is defined in said Section, as security for any external debt. No defaults exist in respect of any external public debt. It is our understanding that, in making the Loan, the Bank may rely on the statements set forth or referred to in this letter. Very truly yours, UNITED MEXICAN STATES By Authorized Representative