Guarantee Agreement L7312-TR (Conformed)

Page 1 CONFORMED COPY LOAN NUMBER 7312 TU Guarantee Agreement (Municipal Services Project) between REPUBLIC OF TURKEY and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated February 8, 2006 Page 2 LOAN NUMBER 7312 TU GUARANTEE AGREEMENT AGREEMENT, dated February 8, 2006, between the REPUBLIC OF TURKEY (the Guarantor) and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank). WHEREAS (A) the Guarantor and ller Bankas (the Borrower), having been satisfied as to the feasibility and priority of the Project described in Schedule 2 to the Loan Agreement, have requested the Bank to assist in the financing of the Project; (B) by the Loan Agreement of even date herewith between the Bank and the Borrower, the Bank has agreed to extend to the Borrower a loan in an amount equal to two hundred twelve million and nine hundred thousand Euro ( 212,900,000) on the terms and conditions set forth in the Loan Agreement, but only on condition that the Guarantor agree to guarantee the obligations of the Borrower in respect of such loan as provided in this Agreement; and WHEREAS the Guarantor, in consideration of the Bank