Conformed Copy - C1966 - Agricultural Marketing and Estate Development Project - Amendment 2

Page 1 October 1, 1992 The Honorable Louis Chimango Minister of Finance Ministry of Finance P.O. Box Lilongwe, Malawi Re: Agricultural Marketing and Estate Development Project (Cr. 1966-MAI) Amendment Dear Mr. Minister: I refer to (a) the Development Credit Agreement between the Republic of Malawi (the Borrower) and the International Development Association (the Association) and (b) the Project Agreement between the Association and Reserve Bank of Malawi (RBM), for the above- referenced Project, dated March 31, 1989. I also refer to the exchange of views between representatives of the Borrower and the Association in July 1992, proposing inclusion of Investment and Development Fund Limited as a Participating and the partial use of Credit funds for seasonal credit. Having reviewed the above recommendations, we propose to amend the Development Credit Agreement as follows: 1. Section 1.02. Paragraph "f" is amended to read "Participating Bank" means any of the following banks: Investment and Development Bank of Malawi Limited, the Commercial Bank of Malawi Limited and the National Bank of Malawi and shall include Investment and Development Fund Limited. 2. Schedule 2. Paragraph (b) of the objectives of the Project is amended to read: "(b) improve resource utilization and productivity on estates by providing seasonal and medium-term credit to intensify and diversify production." 3. Schedule 6. The amount "$500,000" in the second line of paragraph 1 (c) is deleted and replaced by the amount "$800,000". Please confirm your agreement with the foregoing, on behalf of the Borrower, by signing, dating and returning to us the enclosed copy of this letter. Very truly yours, INTERNATIONAL DEVELOPMENT ASSOCIATION By Stephen M. Denning Director Southern Africa Department Confirmed By Authorized Representative Date: October 7, 1992