Conformed Copy - C1941 - Public Sector Adjustment Credit - Third Agreement Amending Development Credit Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 1941 MAG (Third Amendment) Third Agreement Amending Development Credit Agreement (Public Sector Adjustment Project) between DEMOCRATIC REPUBLIC OF MADAGASCAR and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated December 14, 1990 CREDIT NUMBER 1941 MAG (Third Amendment) THIRD AGREEMENT AMENDING DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated December 14, 1990, between DEMOCRATIC REPUBLIC OF MADAGASCAR (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Borrower and the Association have entered into a Development Credit Agreement (Public Sector Adjustment Credit), dated July 18, 1988 (the Development Credit Agreement), for the purpose of assisting in the financing of the program referred to in Recital (A) of the Preamble to the Development Credit Agreement (the Program); (B) the Borrower and the Association have entered into an agreement dated April 6, 1989 (First Amending Agreement) and an agreement dated January 22, 1990 (Second Amending Agreement) amending the Development Credit Agreement for the purpose of providing the Page 2 Borrower with additional assistance in the financing of the Program; (C) the Borrower has requested the Association to provide further additional assistance towards the financing of the Program by increasing the amount made available under the Development Credit Agreement by an amount in various currencies equivalent to one million two hundred thousand Special Drawing Rights (SDR 1,200,- 000). WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, to provide such additional assistance to the Borrower upon the terms and conditions set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Amendments of the Development Credit Agreement Section 1.01. Section 1.02 of the Development Credit Agreement is amended by deleting the "and" at the end of Subsection (d), by deleting the "." at the end of Subsection (e) and the substitution thereof by "; and" and adding a new Subsection (f) as follows: "(f) 'Third Amending Agreement' means the Agreement Amending the Development Credit Agreement (Public Sector Adjustment Credit) between the Borrower and the Association, dated December 14, 1990." Section 1.02. Section 2.01 of the Development Credit Agreement is amended to read as follows: "Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions set forth or referred to in the Development Credit Agreement, an amount in various currencies equivalent to ninety-three million seven hundred thousand Special Drawing Rights (SDR 93,700,000) (the Credit), which includes an original amount in various currencies equivalent to ninety million five hundred thousand Special Drawing Rights (SDR 90,500,000), and three additional amounts in various currencies equivalent, respectively, to one million one hundred thousand Special Drawing Rights (SDR 1,100,000) (the First Additional Financing), nine hundred thousand Special Drawing Right (SDR 900,000) (the Second Additional Financing) and one million two hundred thousand Special Drawing Rights (SDR 1,200,000) (the Third Additional Financing)." Section 1.03. The proviso at the end of Section 2.04 (b) of the Development Credit Agreement is amended to read as follows: "; and provided, however, that any commitment charge on the First Additional Financing shall accrue from June 5, 1989, that any commitment charge on the Second Additional Financing shall accrue from March 21, 1990 and that any commitment charge on the Third Additional Financing shall accrue from a date sixty days after the date of the Third Amending Agreement." Section 1.04. Paragraph 3 of Schedule 1 to the Page 3 Development Credit Agreement is amended by: (i) substituting "SDR 27,300,000" set forth in subparagraph A (i) by "SDR 28,500,000"; and (ii) substituting "SDR 52,600,000" set forth in subparagraph B (i) by "SDR 53,800,000". Section 1.05. The following paragraph is added at the end of Schedule 1 to the Development Credit Agreement: "7. After a date twelve months from the date of the Third Amending Agreement, no withdrawals shall be made and no commitment shall be entered into to pay amounts to or on the order of the Borrower in respect of expenditures to be financed out of the proceeds of the Third Additional Financ- ing. At any time after such date, the Association may, by notice to the Borrower, cancel the unwithdrawn amount of the Third Additional Financing from the Credit Account or any part thereof." ARTICLE II Effective Date; Termination Section 2.01. This Third Amending Agreement shall not become effective until evidence satisfactory to the Association shall have been furnished to the Association that the execution and delivery of this Third Amending Agreement on behalf of the Borrower have been duly authorized or ratified by all necessary governmental action. Section 2.02. As part of the evidence to be furnished pursuant to Section 2.01 of this Third Amending Agreement, there shall be furnished to the Association an opinion or opinions satisfactory to the Association of counsel acceptable to the Association showing, on behalf of the Borrower, that this Third Amending Agreement has been duly authorized or ratified by, and executed and delivered on behalf of, the Borrower and is legally binding upon the Borrower in accordance with its terms. Section 2.03. This Third Amending Agreement shall come into force and effect on the date upon which the Association dispatches to the Borrower notice of its acceptance of the evidence required by Section 2.01 of this Third Amending Agreement. Section 2.04. If this Third Amending Agreement shall not have come into force and effect by a date ninety (90) days after the date of this Third Amending Agreement, this Third Amending Agreement and all obligations of the parties hereunder shall terminate, unless the Association establishes a later date for the purposes of this Section. If this Third Amending Agreement shall terminate under the provisions of this Section, the Development Credit Agreement shall continue in full force and effect, as if this Third Amending Agreement had not been executed. IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, have caused this Amending Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. DEMOCRATIC REPUBLIC OF MADAGASCAR Page 4 By /s/ Pierrot Rajaonarivelo Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ F. J. Aguirre-Sacasa Acting Regional Vice President Africa